The statistics from the last few years confirm that women entrepreneurs are a force to be reckoned with. Women are starting businesses at twice the national rate, and the revenue from women-owned businesses is estimated at $2.8 trillion, according to an October 2009 report on the economic impact of women-owned businesses. If U.S.-based women-owned businesses were their own country, they would have the 5th largest GDP in the world.
At the same time, we’re seeing that many of our most common business practices are fundamentally unsustainable. For example, many businesses today are built on the use of cheap labor from third world countries to develop products full of toxins that are then shipped worldwide using fossil fuels. How long, realistically, can such a model be sustained? The rise of sustainable business is in large part due to the realization that business models dependent upon the indiscriminate use of both social and natural resources are not sustainable in the long term.
Both women-owned businesses and sustainable businesses are fairly new trends in business. Neither had an impact until perhaps the past 20 years, and weren’t even a consideration during the Industrial Revolution when many of our business practices were established. Now, however, they are both positioned to significantly change the way we do business in the 21st century.
The opportunity that we have with women-owned businesses is this: to harness that entrepreneurial activity and steer it in a sustainable direction. By doing so, we can demonstrate that businesses can be successful without depending upon the exploitation of workers in third-world countries. We can show that businesses can be successful without destroying our natural environment or exposing us to toxins in the products we bring into our homes. We can show that business has a role to play in mitigating the effects of climate change. We can develop businesses that benefit the communities in which they operate.
All of this is possible through sustainable business, which shows that businesses can be financially profitable while also being ecologically sustainable and socially beneficial. And women can lead the way, because we are the ones who are currently driving much of the entrepreneurial activity. If small businesses are the engine of the economy, then women are in the driver’s seat. We can choose the path that we want to take.
What do you think? Would you like to develop your business to be sustainable? Why or why not?
Carolina Miranda is the founder of Cultivating Capital, a business consulting firm specializing in helping women business owners develop sustainable businesses. She holds an MBA in Sustainable Enterprise that combines fundamental business skills with a deep understanding of sustainable business practices. She has a background in both non-profit and for-profit businesses and has first-hand experience working as a Sustainability Manager, implementing sustainability certifications, and conducting green business audits.
This article originally appeared at Cultivating Capital. You can view it here.