Shelly Kapoor Collins had spent more than 10 decades in technology, but she felt that something was still missing from her career. â€śI knew that I loved tech, but I never quite understood the concept of working for someone else,â€ť she said.
And eventually, the mother of a 10-month-old daughter who was pregnant with a son got sick of waiting for the right time to branch out on her own. So she decided to go ahead and launch her company, Enscient Corporation. And she couldnâ€™t be happier.
â€śThe lesson I learned is that you canâ€™t wait for the right time, you have to be the one to pick the right time,â€ť she said. Now sheâ€™s taken her experience in the tech world â€” first at MCI, then at Oracle â€” and put it to work serving clients in government. â€śIt was chaotic, but I thrived on the chaos,â€ť she said of her experience launching a company while parenting young children with her husband. â€śI felt like I had found what I was looking for and I could sink my teeth into it.â€ť
It seems that a lot of American women have decided that it is their time to take the same dive. According to an analysis of new data on business creation from the Census Bureau conducted by the National Womenâ€™s Business Council, woman-owned businesses increased 27.5 percent between 2007 and 2012, adding 2.1 million to the total, outpacing the growth the 20 percent growth they saw in the five years before that. Women now run more than 36 percent of all businesses (that arenâ€™t farms), up from just under 30 percent in 2007.
Businesses owned by men, meanwhile, just puttered along. They grew less than 6 percent between 2002 and 2007 and less than 8 percent between 2007 and 2012.
And companies run by women now employ 8.9 million people. In fact, the number of people working for a woman-owned business increased 19.5 percent, while it only increased 11.5 percent for those run by men.
The increases are even more dramatic for businesses started by women of color like Kapoor Collins, who is Indian American. Businesses owned by black women increased 67.5 percent between 2007 and 2012, versus less than 19 percent growth for those started by black men. Nearly 60 percent of all businesses run by a black person are now run by women. Hispanic women saw an even bigger gain, as their businesses increased more than 87 percent in the same time period compared to about 39 percent growth for Hispanic men. And those run by Asian American women grew 44 percent, compared to 25 percent for Asian American men.
Of course there are still far more companies run by men. The total came to nearly 15 million as of 2012, compared to 9.9 million owned by women.
And money can be a concern. Kapoor Collins has experienced funding hurdles firsthand. When she decided to launch a new product that helps politicians and nonprofits fundraise, she needed funding herself to get it up and running. Two things got in her way, though: one is the time demand of fundraising for someone with young children, and the other was plain sexism. â€śMen give to men, they raise from each other and give to each other,â€ť she said. â€śItâ€™s an old boysâ€™ network. As a woman, itâ€™s hard to tap into that.â€ť In the end she decided to have her company fund the project itself.
Itâ€™s a well-known problem that women struggle to raise money. They only net 13 percent of of venture capital funding and get less than 5 percent of government contracts. Business school students are four times more likely to recommend investing in a company led by a man, something that holds true even with the exact same pitch.
And once they get up and running, womenâ€™s businesses can struggle to bring in the big bucks. The vast majority of companies they own bring in less than $25,000 in receipts and companies that size saw the highest rate of growth. Just 1.8 percent make it past the $1 million revenue mark, compared to 6.3 percent owned by men.
Still, Kapoor Collins thinks the trend of women starting companies will only continue thanks to the visibility of female businesswomen like Facebookâ€™s Sheryl Sandberg and Yahooâ€™s Marissa Mayer. â€śWomen canâ€™t be what we canâ€™t see,â€ť she said. But things have changed. â€śMentorship is on the rise, contributing to more women doing and starting businesses.â€ť
And her message to any woman who might be considering making that move herself: jump in. â€śThe worst thing you can do is to not do it,â€ť she said.
This blog originally appeared at ThinkProgress.org on August 20, 2015. Reprinted with permission.
About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Instituteâ€™s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.