Last month, I stopped by Napa city to see my friend. There, I found the store Makers Market. It was founded in 2014 by Suzy Ekman with the idea to rebuild the American-made legacy. I visited Makers Market at a different location before, writing its hand-crafted goods and natural materials, which signal authenticity.

But this time, I noticed their other, secret weapon. The chalkboard sign outside listed three things.

• Hand-crafted
• Sustainable
• Woman owned

“Woman owned” is actually a very smart way to signal competence. People often think women have warmth, but maybe less business competence. When the business owner chooses to put this fact on the sign, it may flip the stereotype and could become a confident statement: “I am a successful owner of a high-quality business.”

This is not only my idea. A recent marketing research demonstrates that using the “woman-owned” label increases the perception of service quality. For businesses like Makers Market, this simple sign is a powerful strategy to overcome stereotypes and gain customer trust.

***

Reference

Davis, N., & Kim, T. (2025). ‘Woman-Owned Business’ Labels Enhance Perceived Competence. Journal of Consumer Research, 52(1), 115-134.

Gender bias is widely recognized as having negative effects on women in business, including on outcomes such as hiring, promotion, pay, and access to venture capital funding. This study identifies a strategy that women business owners can employ to boost business outcomes. Across five preregistered studies (N = 2585), including a field study, affixing the owner attribute label “woman-owned business” can engender positive business outcomes, including perceptions of business competence and service quality (studies 1 and 2). These effects are driven by an increase in perceptions of the business owner’s agency (study 3). Affixing a gender-based owner attribute label is especially effective in situations that lack other credible cues of competence (study 4) and in industries that are perceived as difficult to succeed in (study 5). The present work advances our understanding of stereotypes, discrimination, and identity in the consumer marketplace, and it offers practical implications for business owners in traditionally marginalized groups who face—and must combat—stereotypes.