Supporting diverse companies can lead to many beneficial outcomes. As a woman owned company, 1628 values the importance of supporting diverse businesses.
The past year has seen an increased focus on the importance of diversity in business, and with good reason. Studies have shown that supporting businesses owned by women, minorities, and veterans can lead to a wide range of positive financial outcomes. This blog will explore why it’s so important to support diverse businesses and will provide some examples of the financial impacts they can have.
The Benefits of Supporting Women-Owned Businesses
Women-owned businesses are on the rise, with more than 12 million in the United States alone. These businesses generate over $1.8 trillion each year and employ nearly 9 million people. Supporting these businesses is not only an ethical imperative—it can be a great way to make money as well. For example, research has shown that companies with gender diversity are 15% more likely to outperform their peers financially. Additionally, investors who focus on investing in women-owned businesses have seen returns that are 7% higher than those who do not invest in them.
For more on the topic, check out our blog on the benefits of women mastermind groups.
The Benefits of Supporting Minority Owned Businesses
Minority owned businesses are also growing rapidly; there are now nearly four million minority owned firms in the US generating a combined $700 billion in revenue each year. Investing in these firms can be extremely lucrative; studies have found that venture capital investments in minority owned firms yield over double the return when compared to investments made in non-minority owned firms. Additionally, research has found that companies with greater racial and ethnic diversity tend to be 35% more likely to achieve better financial results than companies without such diversity.
The Benefits of Supporting Veteran Owned Businesses
Veteran owned businesses play an important role in our economy, employing over five million workers while generating $1.3 trillion annually. Research shows that veteran-run companies tend to outperform their peers financially; one study found that veterans were 8% more likely than non-veterans to start successful companies and raised 20% more money during their first rounds of fundraising than non-veterans did. Additionally, veteran run companies tend to hire other veterans at higher rates than non-veteran owned companies—which means they’re doing more than just making money—they’re helping Americans find meaningful employment opportunities as well!
It’s clear that supporting diverse businesses like Women-Owned, Minority Owned, and Veteran owned is beneficial for both our economy and society at large as well as providing tangible financial benefits for those who choose to invest or work with these types of organizations. It’s time for us all to step up and make sure we’re giving these hard working entrepreneurs the attention they deserve! When done right, supporting diverse businesses, such as 1628, can lead us all into a brighter future!
Click here to learn about 1628’s Women Empowered program.