Cortburg Speaks Retirement

7 Reasons to Invest in Women Owned Businesses

• Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® • Season 2023 • Episode 134

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In this audio podcast, Miguel Gonzalez talks about 7 reasons to invest in women-owned businesses and how to get started.  

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with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

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INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

On this week’s audio podcast, I share 7 reasons to invest in women owned businesses and how to get started.

In 2021, women-led companies only received 2% of all venture capital funding, a figure considered the lowest percentage in more than five years.1  Data shows this figure does not necessarily reflect the potential success of female-owned businesses, but possibly more of a reluctance for male investors or male-led funds to green-light these projects. 

The reasons could include tradition, fear, or even institutional biases that venture capitalists may not even be aware of. But by declining a proposal based purely on the gender of the ownership or leadership team, investors may be missing out on potentially lucrative business opportunities. 

Reasons to Invest in Female-Led Companies

There are several compelling reasons for investing in female-led companies.  

  1. Over a 10-year period, female-led companies performed 63% better than male-led companies.1 
  2. Businesses founded by women bring in twice as much revenue as businesses founded by males.2 
  3. Companies led by women or gender-diverse teams are 21% more likely to bring in more profits than companies led by all-male teams.1 
  4. Increasing female leadership from 0 to 30% is linked to a 15% increase in profitability.2
  5. Diversity improves the overall flexibility and problem-solving skills of organizations. 
  6. Women-owned companies can advocate for sustainable, environmentally friendly, and pro-family policies. 
  7. Women leaders are heading the current push for greater environmental, social, and governance (ESG) investing.  

Women-led companies also tend to earn more and have a higher chance of profitability than businesses led exclusively by males. These companies can help improve local communities by creating more opportunities for growth and investment. Countries where companies have high ESG standards often see an uptick in overall gross domestic product (GDP). 

How to Get Started Investing in Women-Owned Companies

The benefits are clear, but how do you get started encouraging or financially supporting women-led organizations?

One way is by looking for public companies founded by or led by women. Then start tracking their performance, including stock activity.  

As an alternative to handpicking individual companies to invest in, consider investing in an Exchange Traded Fund (ETF) that focuses on female-owned companies. An ETF allows you to manage risk by investing in multiple companies at once. Often, ETFs track a certain index. They work similarly to mutual funds, and allow you to invest in women-led companies without requiring substantial research.

Remember, you do not necessarily have to only invest in larger companies. Another option is to explore peer-to-peer or local investments. This strategy can even allow you to earn a percentage of profits annually based on your share of ownership.

Whether you want to focus on women-led companies or other types of socially conscious investments, be sure to consult with a financial professional. They can help you select optimal options for your personal situation. You may also explore educational seminars designed for people wanting to diversify investment strategies. 

 

Make sure to visit our website, www.CortburgRetirement.com. Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

  • The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
  • Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. All indexes are unmanaged and cannot be invested into directly.
  • Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.
  • An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors. 
  • There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
  • All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
  • This article was prepared by WriterAccess.
  • 1 Investing in Women, The Philadelphia Citizen, https://thephiladelphiacitizen.org/xx-edge-philly-reading/
  • 2How to Invest in Women Led Companies, Public.com, https://public.com/learn/how-to-invest-in-women-led-companies

 

 

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Miguel Gonzalez, MBA, AIF®, CPFA®, PPC®, CRC®

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