Why Economic Empowerment is Critical for Women’s Equity and Equality – And Six Things You Can Do About It

We’re publishing this post during March, which if you follow any organization run or created for or by women, you know is Women’s History Month. Because Prequal too is a business that was created for and by women, the purpose and intention behind this month isn’t lost on us. And there’s a lot we could say about the historic accomplishments of women across the spectrum, but because we want womxn economically empowered, let’s talk about how economic empowerment, equity, and equality are all linked together – and more importantly, what you can do about it. 

Before we dive into women’s economic empowerment, we’d be remiss not to acknowledge that we’re talking about economic empowerment from a place of privilege. As a team of cis-gendered white women, we’ve been bestowed certain advantages through no effort of our own. We understand economic empowerment looks different for every woman, and it is a universal truth that the path to empowerment is longer and more arduous for women of color and trans women. Yet still, we champion economic empowerment for all women because we know that it is a critical piece to achieving equity and equality.   

What Does Economic Empowerment Mean? 

Economic empowerment helps to ensure that all individuals and communities have the resources, opportunities, and agency to participate fully in society and achieve their goals. When all members of a society are economically empowered, this can lead to a more equitable distribution of wealth and opportunity and a more diverse and resilient economy that supports the full participation and potential of all individuals. It can take many forms, such as access to education, job training, financial resources, and entrepreneurship support. 

Moreover, economic empowerment can help to break down systemic barriers that prevent certain groups from achieving their full potential. Women, people of color, trans people, and individuals from low-income backgrounds may face discrimination that limits their access to economic opportunities. There just aren’t as many doors that open as easily as they do for cisgendered white men.  

The bottom line is this: Economic empowerment is critical for equity and equality because it helps to ensure that everyone has the resources and opportunities they need to thrive, regardless of their background or circumstances. 

What are the critical components to economic empowerment? 

There are six critical components that lead to and bolster economic empowerment. In no particular order, they are: 

1. Financial inclusion: Providing access to financial services, such as savings accounts, credit, insurance, and other financial products, to individuals traditionally excluded from the formal financial sector. 

2. Income generation: Enabling individuals to earn income through employment, entrepreneurship, or other means. This includes improving job skills, providing training and education, and creating job opportunities. 

3. Asset ownership: Facilitating access to assets, such as land and property that can generate income and improve economic security for generations to come. 

4. Economic agency: Ensuring that individuals can make their own financial decisions and control their own economic resources. This includes providing access to information and resources to make informed decisions and removing legal and social barriers that limit agency. 

5. Social protection: Providing social safety nets, such as social insurance and cash transfers to protect individuals from economic shocks and promote financial resilience. 

6. Laws and policy: Establishing legal and policy frameworks that support economic empowerment, such as laws that promote gender equality and protect women's property rights and policies that provide equal access to education and employment opportunities. 

Here’s What You Can Do to Promote Economic Empowerment 

There are several ways you can do something today to help create economic empowerment for women. Here are our top five. 

Support women-owned businesses: Look for opportunities to buy from women-owned businesses and encourage others to do the same. This helps to promote entrepreneurship and economic independence for women while giving the added benefit of boosting your community if you shop local. 

Mentor a woman: If you have expertise in a particular area, consider mentoring a woman who is interested in that field. This can help to build skills and confidence and increase opportunities for economic advancement. 

Donate to organizations that support women's economic empowerment: Consider donating to organizations that provide training, education, and other resources to support women's economic empowerment. Examples include organizations providing microfinance loans to women entrepreneurs, like Kiva.org, or supporting women in non-traditional fields, like Women In STEM. 

Advocate for policies that promote gender equality: Speak up in support of policies that promote gender equality, such as equal pay laws or family leave policies. Contact your elected representatives to express your support for these policies. Not sure who to contact? Start here. 

Educate yourself and others: Learn more about women's challenges in the workplace and share that knowledge with others. Encourage others to take action to support women's economic empowerment. Did you know the current White House administration has a National Strategy on Gender Equity and Equality? It does. You can read it here. 

By taking small steps, you can create a more equal and economically empowered future for women. We’re doing our part, but it’s not enough. This must be a team effort, and we want you on our team.