Friday, November 6, 2009

Women-Owned Business

The Center for Women's Business Research says they're surprised by their research showing that women's businesses contribute significantly to the economy. Why are they surprised? I've known that for years.

What surprises me is that only 28% of businesses are owned by women. My bet is that a lot of the entrepreneurial activity going on is not picked up by studies. Perhaps that's because many businesses stay small and don't employ many people.

The ones that do, contribute a lot to the economy. That's why several experts quoted in an article about the study said that the nation should do more to help women grow their businesses and take them out of the bottom tier to move into the mid-sized range.

Making that kind of leap is very difficult for any business. It means a different form of management and space. Cash flow changes. A lot of businesses that can't make the transition die. At least, that is what I've seen personally. The nature of what you do day-to-day changes when you have employees. But it is good for the economy as a whole.

The actual study cannot be accessed online. I got computer code, when I tried to do it. To read about the study, see this article in the New York Times:

Practically Speaking
One in Four Businesses Calls the Owner ‘Ma’am’
Published: November 5, 2009
More than a quarter of all businesses are women-owned, but a high proportion of those are one-woman shops. Organizations are working to help them size up.

http://www.nytimes.com/2009/11/05/business/smallbusiness/05sbiz.html
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