Launching a Product in the Current Climate
In recent years, the entrepreneurial landscape has witnessed a remarkable surge in women-owned businesses, with women of color at the forefront of this growth. According to the 2024 Wells Fargo Impact of Women-Owned Business Report, between 2019 and 2023, women-owned businesses outpaced those owned by men in growth rates: 94.3% in number of firms, 252.8% in employment, and 82.0% in revenue. Notably, Black and Latina women entrepreneurs experienced significant increases in average revenues during this period, with 32.7% and 17.1% growth, respectively. And despite last year’s pendulum swing, companies are back on the DEI train. According to Resume Templates, more than half of the companies that have done away with diversity, equity and inclusion policies or scaled them back say it was due to political pressure or public scrutiny that led to their decision and one in seven companies who did are now saying it was a mistake.
Here’s what we know:
Customers are shopping their values! Studies show that customers, especially Gen Z, are spending money with brands that speak to their values which includes minority owned and women-led organizations.
Customers want authenticity. Your story is unique and it matters. Building community around the specific needs that speak to who your customers is and the pain-points they experience is key.
Tariffs are here. So, no matter your political views the domestic and global landscape is changing and everyone will be impacted by the cost. Now is the perfect time for new and emerging brands to capitalize on this shift.
Several factors contribute to this favorable environment for launching a product-based business. Read below to find out why now is the best time and catch what we’re calling the second wave!
Evolving Tariff Policies - Recent adjustments in U.S. tariff policies have created opportunities for domestic production. For instance, effective March 7, 2025, no additional tariffs are due on goods from Canada and Mexico that qualify for the USMCA preference, encouraging regional trade and manufacturing collaborations. Additionally, a 25% tariff on imported automobiles and certain parts aims to bolster domestic manufacturing, potentially opening avenues for local suppliers and entrepreneurs.
Supply Chain Innovations - The supply chain sector is undergoing transformative changes, emphasizing resilience and efficiency. These innovations present opportunities for new businesses to integrate advanced technologies and sustainable practices from inception, providing a competitive edge. Key trends include:
Cost-to-Serve Analysis: Businesses are adopting granular approaches to understand the cost implications of different products, customers, and channels, enabling more informed decision-making.
Risk Management: With supply chain disruptions becoming more common, companies are investing in predictive technologies to anticipate and mitigate risks.
Sustainability Focus: There's a growing emphasis on environmental, social, and governance (ESG) considerations, leading to more sustainable and ethical supply chain practices.
Supportive Economic Climate -The increasing recognition of the contributions made by women-owned businesses has led to enhanced support structures, including:
Access to Capital: Financial institutions and organizations are offering tailored funding options and resources to support women entrepreneurs.
Networking Opportunities: There are more platforms and communities dedicated to connecting women entrepreneurs, facilitating knowledge sharing and collaboration.
Educational Resources: Comprehensive guides and tools are available to assist in navigating the product development process, from ideation to market launch.
Tariffs, supply chain changes, and a supportive economic environment makes this an opportune moment for women of color to launch product-based businesses. By leveraging these factors, aspiring entrepreneurs can position themselves for success in today's dynamic market. The current economic climate, combined with these supportive measures, creates an awesome environment for women of color to embark on a new brand or product business now. Tap in with us via Circle to connect with a community that can help.
Sources: Dodge Construction Network, U.S. Customs and Border Protection, The White House+2The White House+2AP News+2, World Economic ForumKPMG+1NetSuite+1, KPMG