Is Women’s Wealth Growing
Faster Than Men’s Wealth?
One study says yes.
Two major factors may be influencing the trend.
Provided by MidAmerica
Picture the women of the world growing wealthier. It’s
happening right now. Research from the Boston Consulting Group affirms this
development. BCG, 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 of the 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. As the
ranks of middle market companies rose 4% from 2008-2014, the number of
women-owned or women-led middle market firms soared by 32%.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 1997-2015, 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. They 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
In reference to the latter phenomenon, 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 BCG 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
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1 - time.com/money/4360112/womens-wealth-share-increase/
2 - forbes.com/sites/geristengel/2016/01/06/why-the-force-will-be-with-women-entrepreneurs-in-2016/
3 - blackenterprise.com/small-business/black-women-business-owners-outpace-all-other-startups-six-times-national-average/