In what might be the most significant economic shift of our lifetime, we're witnessing the early stages of what experts call "The Great Wealth Transfer." Over the next two decades, an estimated $80+ trillion will change hands as Baby Boomers pass their accumulated assets to younger generations. What makes this particularly revolutionary is who stands to benefit most: women.
As we transition from Women's History Month into Financial Literacy Month, we're exploring how this massive transfer of wealth could specifically impact women entrepreneurs and those considering self-employment, with curated key insights from leading publications and experts on the matter. This roundup brings together research and perspectives from Ellevest, Forbes, and Business Insider to help you understand both the scope of this wealth transfer and the strategic opportunities it presents.
The Numbers Behind the Shift
According to Cerulli Associates, "The Great Wealth Transfer is the forecasted hand-off of trillions of dollars from the older Silent Generation and aging Baby Boomers to their young Generation-X, Millennial, and Generation-Z adult children and grandchildren over the next 20 years." They estimate the transfer will total nearly $84 trillion, with about $72 trillion going to heirs and $12 trillion to charities, as reported by Forbes.
For women specifically, this represents a monumental opportunity. Ellevest reports that "by 2030, American women will manage at least $30 trillion" in assets. This transfer is happening in two distinct ways: 1) women tend to outlive men, so more Boomer women will manage their wealth independently, and 2) inheritance patterns show that the larger millennial generation—with its record numbers of women breadwinners—will inherit significant portions.
As Ellevest describes it, we're witnessing "The Feminization of Wealth" – a period when women will control unprecedented economic resources and potentially reshape our economy.
How Women Will Use Their Wealth Differently
What makes this transfer truly revolutionary isn't just the change in who holds wealth, but how it will likely be deployed. Research suggests women's economic priorities differ significantly from men's.
Ellevest reports that women (especially high-net-worth women) donate a greater percentage of their wealth to philanthropic causes. They're also "far more likely to give to organizations supporting women and girls, addressing issues like reproductive rights, women's health, and violence against women."
In investment patterns, Ellevest also reports that "more millennial women are already investing for positive impact." Women are more likely to "apply an environmental, social, and governance (ESG) lens to their investments." This includes "gender-lens investing," which examines how companies address gender imbalance as both a risk and opportunity.
Pathways for Women Entrepreneurs
So how does this massive wealth transfer impact women entrepreneurs and those considering self-employment? There are several strategic opportunities worth exploring:
1. Acquiring Existing Businesses
For women entrepreneurs who don't want to start from scratch, purchasing an established business is an increasingly viable option. "The decision of buying a business or starting your own are not yes or no options,” reports Forbes contributor Melissa Houston. “They are different points on the same spectrum of entrepreneurship, each with its own merit."
Plus, according to Business Insider, "over half of small businesses—those with a single owner and fewer than 500 employees—are owned by people over 50. This creates what they call "The Great Boomer Fire Sale" – a potentially massive opportunity for purchasing established ventures.
For women, whether they’ve inherited wealth or not, acquiring a business can be more practical than starting one. From fast food to gym and sports franchises, business acquisitions allow you to have tangible assets, customers, and cash from day one.
2. Building High-Profit Solo Ventures
For women who prefer building their own businesses, “being a solopreneur does not mean that you ignore the profitability in your business,” Houston suggests in her Forbes article on how to build a high-profit solo business. “Some of the most successful businesspeople have built high income, high profit businesses as solopreneurs by leveraging smart strategies, efficient systems, and a deep understanding of their market."
This path might be particularly appealing for service-based business owners and consultants who can leverage digital tools to maintain lean operations while maximizing profit margins. "You don't need a big team to build a thriving, profitable business,” she says.
3. Serving the Needs of Newly Affluent Women
Perhaps the most overlooked opportunity lies in providing services to women who will manage significant assets for the first time. Ellevest reports that only "38% of women say they have a financial advisor who can help them navigate a wealth transfer." Additionally, "only about half of women know where to go with inherited money vs 72% of men."
Brandon Aversano, writing for Forbes, notes that businesses should prepare for this shift by focusing on "personalized experiences, clear communication, elegant products and trust above all else." He explains that companies that fail to build with these consumers in mind "could struggle to command attention and retain customers in the future."
Preparing for the Opportunity
Whether you're building a business to serve women with newfound wealth, using inherited assets to acquire an existing company, or looking to build a high-profit solo venture, preparation is key.
Houston advises entrepreneurs to "define your vision and goals, choose the right niche, build a strong personal brand, and master marketing and sales." For solopreneurs specifically, she recommends "streamlining operations with smart systems and focusing on financial management" to maximize profitability.
For those who might inherit wealth, Ellevest suggests asking yourself strategic questions like: "What are your financial goals? Do you have an approach for impact investing? Do you know who your team will be? And what is your plan for the actual windfall?"
Our Perspective
The Great Wealth Transfer could be an extraordinary convergence of opportunity for women entrepreneurs. Whether you're positioned to receive a portion of this transfer, planning to provide services to those who will, or exploring the acquisition of established businesses from retiring owners, the insights provided by the experts here can help you navigate this economic shift strategically.
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