Inside the rise of Salt Lake City’s women entrepreneurs

This story is part of CNBC’s quarterly Cities of Success series, which explores cities that have transformed into business hubs with an entrepreneurial spirit that has attracted capital, companies, and employees.

Fewer than 15% of businesses in Salt Lake City, Utah, are owned by women, one of the lowest reported proportions in the United States, according to the latest data from the U.S Census Bureau. Still, there are efforts to empower women to start their own companies.

When Tessa Arneson opened a small Pilates studio in 2015, she noticed clients frequently asking for local service recommendations, prompting her to think about creating a network of related businesses.

“My dream was to jump away from corporate America and go and give people a little slice of happiness,” said Arneson, Maven co-founder and CEO.

Through the Pilates studio, Arneson met Rocky Donati, who had recently moved to Salt Lake City from San Francisco. Together, the two worked to create a community of entrepreneurs who could build and grow their businesses near one another in an area of the city called the “Maven District.” 

“I could see the vision,” said Donati, Maven’s co-founder and chief marketing officer.  She also saw something even bigger. “I could see the potential for bringing women together.” 

Maven has expanded from a single Pilates studio to several different businesses, including a co-working space, a boutique hotel, and more than 130 commercial tenants. Arneson and Donati said 85% of those businesses are owned by women. Back in 2013, the Pilates studio took in around $200,000 a year, the duo said. This year, all of the enterprises they own will generate about $4 million. 

Raising capital for underrepresented founders

Despite an increasing number of women-owned businesses, access to capital remains a significant barrier. Investing in underrepresented startup founders is what motivated Kimmy and Sergio Paluch to launch the venture fund Beta Boom in Salt Lake City. 

“There’s a lot of untapped potential still. So we’re getting there, but we’re not there yet,” said Kimmy Paluch, Beta Boom managing partner. “The potential I see is to fund more diverse businesses, to fund more women, to fund more people of color, and there are opportunities here.” 

The couple founded the firm in 2018, with a pilot fund of less than $1 million. Its second fund now has $15 million. Beta Boom invests in software companies in health, fintech and future of work, with an average investment of $300,000. It has already put $5 million into companies run by women. “What attracts investors is outcomes, revenue returns. Those are happening here in droves,” Paluch said.

Building a brand with mom influencers

Susan Petersen, founder and CEO of Freshly Picked, a baby and toddler lifestyle brand she started 15 years ago, knows what it means to break down barriers. 

“We have a high demand religion here,” Petersen said of the dominance of the Church of Jesus Christ of Latter Day Saints in Utah. Another hurdle is that online retail has been a male-dominated field. “So any time I think you have those two things, you have preconceived notions that you have to fight against, you have walls you have to knock down, you have ceilings you have to break — and I’ve had to do a lot of that,” she said. 

In 2009, Petersen started sewing baby shoes for her newborn. She took a shot at selling them first on Etsy and gained marketing traction through numerous “mom influencers” on social media who live in the state. “I would make sure and take care of them and form a relationship with them and they really helped me grow my business,” Petersen said. 

By 2014, when Petersen made a TV appearance on Shark Tank, the business was generating $500,000 a year in revenue. The broadcast fueled more sales and an expansion in her product line, into diaper bags and toys, available online and through boutiques and retailers nationwide, including Target. 

Petersen said revenue is now close to $20 million. She credits some of her success to women who helped her make her dream a reality. “I love how it feels like we’re all in it together,” she said.