A study shows CA leads the US in women-owned businesses. Sacramento entrepreneurs share their experience
New research out this week from the University of Southern California shows California leads the country in women-owned businesses. The research, sponsored by the California Chamber of Commerce, recommends numerous next steps to best support them. The research was presented at the CalChamber Women’s Leadership Council.
“The impact of women on California’s economy is undeniable, with nearly 40 percent of all businesses in the state being women-owned,” said Jennifer Barrera, president and CEO of CalChamber.
The recommendations include:
- Support inclusive policies in California and reduce barriers to women owning businesses.
- Continue research focused on women business needs and the impact of women on California’s business environment.
- Raise awareness of financing options and investment opportunities to increase women’s access to capital.
- Support networks for women business owners, increase contracting opportunities.
“We can't ignore 50% of our population’s skill sets,” said Cheryl Neninga, co-founder FourthWave. “It lifts everybody's boat for women to be more successful and create businesses that are going to move our society forward.”
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FourthWave is a Sacramento-based accelerator for female tech entrepreneurs, providing mentorship, leadership development and access to capital to women.
“Women get less capital,” she said. “Women are founding companies at four and a half times the rate as men, so there's clearly inequality there and we see it across the board.”
Patricia Castillo is the owner of Leash and Collar Dog Boutique in Sacramento’s midtown. She recently celebrated four years of her business.
“I do feel like this has opened my eyes to how many women business owners there are in Sacramento,” Castillo said, noting the business next door is also woman owned. “I do feel like there's a really big community, that's growing, of women owned businesses that support each other. It's exciting to see.”
(Acheson Wine Company is located next to Leash and Collar and is co-owned by Loraine Scott.)
Leash and Collar Dog Boutique, at 19th and Q, is filled with treats, pet supplies, gifts and accessories.
“The biggest thing is our birthday section,” Castillo said. “We have lots of birthday toys, birthday cakes, cupcakes. We can customize birthday cookie boxes, anything if you're throwing a birthday party for your dog.”
Castillo shared that while being a woman business owner is empowering, it also comes with unique challenges.
“I think I've gotten better with my confidence level and finding my voice,” she said. “I do think there is a difference when we're negotiating prices or we're opening new accounts with distributors.”
Among the experts we spoke to for this story, they all agreed: It’s different for women in business.
“Becoming an entrepreneur and becoming a business owner is difficult as it is, regardless of what your gender is, but then when you add in the fact that you are women, women just naturally have added pressures added to them,” said Liliana Bernal, immediate past president of the National Association of Women Business Owners Sacramento Valley.
Bernal owns her own business, too. She owns Balanced Diversity Solutions, a recruiting and workforce consulting company.
She explained that women face additional obstacles from caretaking from children and family members, to accessing the same capital as their male counterparts. She said statistics show that women are denied financials more than men, and when they do receive loans, tend to have higher interest rates.
“The most important thing is we build a community,” she said, stressing the need for women to network and build circles of support. “My first advice is, if you're thinking about it, just do it. Just do it. It's been one of the most rewarding things that I've ever done.”
Susan Rabinovitz, artisan and CEO at Little Relics in Sacramento, had a similar message.
“Oh my gosh, just do it,” she said.
Rabinovitz has more than two decades of experience creating, fixing and personalizing jewelry, family heirlooms and custom pieces in the city. She said the midtown community, especially, has a strong network of women supporting in each other in their businesses.
“We work together and we're not afraid to ask each other questions,” she said. “There's this really cool community that we have that we're really starting to cultivate.”
The research from the University of Southern California goes on to say that between 2022-2023, California women owned businesses added $580 billion in revenue from 2019-2023, out of a $3.7 trillion national revenue and that women made up 45.9% of workers and owned 43.1% of businesses.
Sanjay Varshney is a professor of finance at Sacramento State and the owner/founder of Goldenstone Wealth Management. Varshney believes that while the gender gap has improved in the business community, there is still more that can and should be done.
“There's a professional angle to it. There's a personal angle to it,” he said. “You talk about the venture capital industry, you talk about the banks, they tend to be dominated mostly by men and there is this bias.”
Despite this, Varshney stresses to his students that they can succeed, and draws from his own experiences as an immigrant to the United States and starting his own business in his guidance.
“If I see somebody struggling from a challenge, for example a gender bias or racial discrimination or some other biases, I remind them that, yes, are we perfect. The answer is no. Is the world perfect? The answer is no. But can I safely say that if you get working on it, that you will be able to overcome the challenges and you will be able to do anything you want,” he said.
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