Picture the women of the world growing wealthier. It’s happening right now. Research from the Boston Consulting Group, a leading business strategy advisor, says that as the world grew 5.2% wealthier between 2015 and 2016, women’s wealth grew 6.6%. In total, women own about $39.6 trillion in assets worldwide, and possess a 5% greater share of global wealth in 2016 than they did in 2011.1
What are some potential reasons behind this shift?
One reason is that more women are becoming successful business owners. Census Bureau data from 2012 (the most recently available year, at this writing) shows women owning 36% of U.S. businesses, a 30% leap from the levels of 2007. And, from 2008 to 2014, women-owned or –led companies in the middle market soared by 32% while the number of middle market companies as a whole only rose 4%.2 This has all taken place even though female entrepreneurs typically start a business with 50% less money than their male peers, according to research from the National Women’s Business Council.
Perhaps most impressive has been the growth of businesses owned by Latina and African-American women. American Express OPEN found that from 1997 to 2015, the number of U.S. firms owned by Latinas increased by 224%. Simultaneously, the number of businesses owned by black women rose by 322%. African-American women started up companies at six times the national average during those 18 years.2,3
Beyond the business world, there is a second major reason for the increased net worth of women. Women are acquiring or inheriting significant wealth from parents, spouses, or relatives, some of whom are millionaire baby boomers or members of thriving business-class households in emerging economies.1
For example, the net worth of women who live in Asia-Pacific nations other than Japan has risen by an average of 13% a year since 2011. Globally, assets under management owned by female investors grew 8% per year in that time.1
The Boston Consulting Group white paper projects that women may grow even wealthier by 2020. It forecasts that, by then, women will control $72.1 trillion of assets around the globe, thanks to their collective wealth increasing by about 7% a year.1
At Kaizen, beyond being woman-owned, we pride ourselves on providing superior client service and investment management. We are honored to serve as a personal CFO for our clients, going the extra mile to help our clients achieve their financial goals.
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
1 - time.com/money/4360112/womens-wealth-share-increase/ [6/7/16]
2 - forbes.com/sites/geristengel/2016/01/06/why-the-force-will-be-with-women-entrepreneurs-in-2016/ [1/6/16]
3 - blackenterprise.com/small-business/black-women-business-owners-outpace-all-other-startups-six-times-national-average/ [3/4/16]