Female Entrepreneurs Are Starting Twice As Many Businesses As Men
If A Company Is Not Female-Friendly, It’s Probably Suffering A Loss
Women are starting businesses at twice the rate of men. Could that be true? Yep, it is. Why are they doing this? Is it the glass ceiling? What kind of businesses? Are they getting financing? What are the Good News Changes? Let’s discuss it.
According to a report by the Small Business Administration’s Office of Advocacy, women-owned firms employ 19.1 million workers and generate $2.5 trillion in sales. Up until now, the majority of women-owned businesses have stayed fairly small and are in the services and retail sector. However, some of the fastest-growing are in industries considered nontraditional for women: Construction, agriculture, manufacturing, communication, and public utilities.
Here’s why women are stampeding in the entrepreneurial direction: flexible scheduling, independence, satisfying work, family-friendly tendencies, and a sure way to avoid the glass ceiling. Speaking of the glass ceiling, the U.S. General Accounting Office reported that in seven of 10 key industries, the “earnings gap” between full-time women and men managers widened between 1995 and 2000. As the U.S. entered the 21st century, women composed 46.5 percent of the workforce but only 12 percent of all corporate officers. Let’s shine a spotlight on that glass ceiling—it’s not insignificant!
Sharon Hadary of the Center for Women’s Business Research states that now the focus is getting women to grow and expand their companies, an area where female entrepreneurs still lag behind men. That’s attributed to many reasons — from lack of access to venture capital, to a desire by some women business owners to stay small. Less than 3% of women-owned businesses have $1 million or more in revenue, according to the center’s research. By comparison, more than twice that percentage of male-owned businesses take in $1 million or more.
Banker Maria Coyne told Business Week, “There has been a big debate about why the majority of women-owned companies stay small. I find that female-owned companies fall into three camps. First, the lifestyle businesses that consciously stay small and are perfectly happy with that. Then there’s the group that wants to grow large and will do whatever they can to achieve that. Then there’s a middle group that would like to grow their businesses but don’t know how and are afraid to ask for help.” Men rush to banks for financing quicker than women. Women are more likely to bootstrap their businesses. There’s nothing wrong with that, but sometimes revenue can skyrocket with the infusion of capital. Here’s a Good News Change—banks, looking at the number of female business owners, are suddenly eager to allocate money in their direction. Take a look at the forward-thinking programs at Wells Fargo, KeyCorp and Merrill Lynch.
Here’s the Tip of the Week.
Tip:
When you’re butting your head against the glass ceiling, consider some of the female-friendly companies, and also spend some time evaluating becoming an entrepreneur. For information on which companies have a steady record of being female-friendly take a look at Working Mother’s 100 Best Companies. If you’re thinking of starting or expanding a business, I suggest the following: Invest in good advice from reliable sources; open a business account at a local bank; register a domain name; make sure your computer equipment is sufficient; create a written business plan; and find a compatible networking group.
My best wishes to you—whichever path you choose to follow!
Further Reading:
Podcast (always less than 10 minutes), Working in Heels, by Nancy Clark, Look For An Oprah Business —Women Want A Job They Feel Good About—A Business With Good Intentions
Blog, Women’s Lunch Talk, by Nancy Clark, Promoting Women Increases The Bottom Line— Fortune 500 Companies Recognize A Good Thing!
Blog, Women’s Lunch Talk, by Nancy Clark, Women Need To Ask! —Men Ask More, Men Get More
Website, WomensMedia, by Robert Bowen, 6 Easy Steps to Make a Change in Your Career
Let’s face it, change is scary. Here are 6 easy steps to move you in your desired direction starting today.
Website, Springboard Enterprises
This nonprofit out of Washington, D.C., is dedicated to accelerating women’s access to the equity markets. The group produces programs that educate, showcase and support entrepreneurs as they seek equity capital and grow their companies.
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