How women got to be so important to the U.S. economy: societal changes and economic realities

During World War II, many women entered the workforce for the first time to assist the war effort. Because so many of them discovered they enjoyed working outside the home, a fundamental shift in women's attitudes toward conventional life paths ensued. Then, during the 1960s and 1970s women started to enter the workforce in large numbers, in part because of the newfound sense of freedom they had gained though the various activist movements. The introduction of the birth control pill also had a significant effect on women's role in business, as it gave them a choice of when, and if, they wanted to have children.

WOMEN OWN BUSINESSES

Between 1997 and 2002, sales generated by women-owned firms increased 40 percent nationwide, nearing $1.5 trillion. And, according to the U.S. Census Bureau, women-owned firms employed nearly 9.2 million workers as of 2002. Furthermore, this wealthy growth segment of businesspeople also influences the purchasing of many business-related products and professional services. The U.S. Small Business Administration reports that women-owned businesses generate more than the gross domestic product of most countries, contributing $2.38 trillion annually in revenues to the U.S. economy! And this trend is no fluke. Working Mother magazine predicts these numbers will continue to grow as women-owned businesses open at twice the rate of maleowned enterprises.

WOMEN INVEST

With an increasing number of women investing in the stock market, the women's demographic will create more wealth in the future. According to the National Association of Securities Dealers, women now comprise 47 percent of investors overall, 50 percent of new and potential shareholders and 35 percent of investors with holdings of more than $50,000 in mutual funds and stocks. We call this nest egg building, and then some!

SINGLE WOMEN CREATE NEW BUYING DYNAMICS

Seventy percent of women will be solely responsible for their finances and purchases at some point in their adult life. Factors that contribute to this not-so-surprising trend include a high divorce rate, more women choosing not to marry and women's longer life expectancy (widows outlive their mates by an average of seven years). Along with their growing income, women simply have more years to influence the economy.

TITLE IX INFLUENCES GENDER EQUITY

Passed in 1972, Title IX was landmark legislation that banned gender discrimination in athletics and that continues to create opportunities for women that their moms and grandmothers never had. In the thirty years since Congress approved this gender-equity law, sports leagues for girls and young women have become increasingly popular at all levels.

Interestingly, an April 2002 article in the Chicago Tribune reported that a study linked sports participation with success among women executives. "For women, the road to the boardroom may well lead through the locker room," concluded a survey of 401 women executives conducted by Oppenheimer Funds and its parent company, MassMutual Financial Group. "From the Locker Room to the Boardroom: A Survey on Sports in the Lives of Women Business Executives" provided food for thought, by showing the correlation between women playing sports in their early years (whether on cross-gender or all-girl teams) and their developing a sense of equality with their peers and a spirit of competition, which led to business successes in later years. Volleyball, soccer, basketball and any other school sport certainly do teach the values of discipline, teamwork and working toward a goal—so the connection to success in business makes good sense.