How To Put More Wealth In The Hands Of Women

Despite making significant strides in business and leadership, women still face substantial barriers when it comes to building wealth. Currently, only 1.9% of women-owned businesses generate $1 million or more annually. It’s clear that we need to do more to shift this narrative and put more wealth into the hands of women.

When women have more money, they create positive ripple effects for their families, communities, and economies.

Here’s how we can work together to get more wealth into the hands of women:

1. Encourage Women to Start Businesses

One of the most effective ways to build wealth is through entrepreneurship. Women who start their own businesses can scale and build wealth in ways that are often limited in traditional corporate environments. As more women embrace entrepreneurship, especially in sectors that have proven lucrative, we empower them to generate significant income. The key is to build a profitable business that makes a lot of money.

To make this happen, we need more resources aimed specifically at women. Women-owned businesses often face more significant funding challenges, receiving a fraction of venture capital compared to their male counterparts. Creating more opportunities for women entrepreneurs to access capital is a critical step toward wealth creation.

2. Prioritize Financial Literacy

For women, learning how to manage money, invest, and grow wealth is essential. The more financially literate women are, the better they can manage their businesses, grow their wealth, and secure financial independence.

We need more programs for women to learn investing, saving, and financial planning. This is particularly important for women who are starting businesses. A firm grasp of financial management ensures that entrepreneurs can make informed decisions, avoid common pitfalls, and set their businesses up for long-term profitability.

3. Invest in Women-Owned Businesses

Supporting women entrepreneurs makes financial sense. Studies show that women-run companies tend to be more profitable and efficient. When women have access to capital, mentorship, and resources, their businesses are not only successful but sustainable. Investors should prioritize putting their money into women-owned businesses and funds that support female founders.

Venture capitalists and angel investors should look beyond traditional industries and consider the innovative businesses that women are building in sectors like tech, health, and finance. Investing in women isn’t just about equality as it’s about smart business decisions that lead to greater wealth creation.

4. Break Down Cultural Barriers

Cultural attitudes towards women and money often hold women back from accumulating wealth. Many women are raised to believe that discussing or prioritizing money is unseemly or selfish. As a result, they may be less aggressive about seeking raises, negotiating contracts, or investing in their businesses. We must challenge these outdated norms and empower women to take control of their financial futures.

Women need to embrace the mindset that building wealth is not just acceptable but necessary. Wealth gives women the ability to support causes they care about, invest in future generations, and create legacies. When we break down the cultural barriers that hold women back from talking about and pursuing wealth, we create a pathway for greater financial independence.

5. Build Generational Wealth

Wealth-building doesn’t stop with one woman. It continues through generations. Encouraging women to focus on building generational wealth ensures that financial stability is passed down to future generations. This involves more than just saving and investing; it’s about building businesses and assets that will last.

Women should be encouraged to think beyond their own lifetime and consider how they can leave a legacy of wealth for their children, grandchildren, and communities. This means owning assets like property, investing in long-term businesses, and establishing trust funds or other financial tools that ensure wealth is passed down.

6. Amplify Women’s Voices in Leadership and Policy

Women need a seat at the table where financial decisions are made. Whether it’s in corporate boardrooms, government policymaking, or the investment world, women must be in positions of power where they can advocate for changes that will lead to greater wealth for women.

Women leaders are more likely to prioritize gender equity, push for policies that promote work-life balance, and advocate for equal pay. The more women we have in leadership positions, the more likely we are to see these issues addressed at a systemic level.

The bottom line is getting more wealth into the hands of women isn’t just about increasing individual earnings; it’s about shifting societal structures. From encouraging women to become entrepreneurs, to closing the gender pay gap, investing in women-owned businesses, and breaking down cultural barriers, we can create a world where more women are empowered to build and grow their wealth. And when women have more wealth, everyone benefits. Wealth is power, and it’s time for women to take control of their financial futures.

Melissa Houston, CPA is the author of Cash Confident: An Entrepreneur’s Guide to Creating a Profitable Business and the founder of She Means Profit. As a Business Strategist for small business owners, Melissa helps women making mid-career shifts, to launch their dream businesses, and also guides established business owners to grow their businesses to more profitably.

The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.