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’

By MICKEY MEECE

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

Women Entrepreneurs

When I attend venture capital events and look around the room, I'm almost always amazed to see so many men and so few women. Why is that?

A recent article in the Wall Street Journal (see link in my list of shared articles - Does an Aversion to Risk-Taking Hold Back Women Entrepreneurs?
from WSJ.com: Independent Street by Kelly Spors) posits the idea that maybe there are fewer women entrepreneurs because women are risk averse. The article also surmises that women seek perfection, rather than jumping into a business before everything is finalized. Men are less afraid to do this. The article references another article about women in business that was published in the New York Times.

My own theory is that there are plenty of women-owned businesses, but most of the owners either want to keep their businesses small and easily managed or they don't want to give away ownership to equity investors. I like having a small business that I can run out of my home. I like being the sole proprietor, answering to no one but my clients. I want to focus on my craft and my clients needs. I want to manage my growth my own way.

I also don't have a business that investors would like. Most VCs I've met want a high-tech business with lots of intellectual property protected by patents. They want fast growth and huge returns on their investments. They're looking for a fast path to operating profit.

While there are some great women entrepreneurs out there, I just haven't run across many that fit this sort of profile. Maybe they've been beaten up too much in the corporate world. Maybe they've been looked down on for so long, they've lost sight of what they could accomplish. Maybe what lets them excel in school -- doing the work well and pleasing the teacher -- isn't what makes for a great entrepreneur. Who knows?

What do you think?

Women-Owned Businesses

Women entrepreneurs unite! Women are the ones who are the biggest engines of growth in this country. A report by the Center for Women's Business Research shows that there are 10.4 million firms owned by women. These businesses generate $1.1 trillion in sales. And they are growing at twice the rate of all firms.
http://www.cfwbr.org/facts/index.php

Not only that, women-owned firms without employees generated $167 billion in sales in 2004. This just shows how powerful self-employed women entrepreneurs can be.

I've worked with a number of women entrepreneurs over the years and can say that without a doubt, women tend to do their homework, work hard and make careful purchasing decisions. I also believe that lots of women have started their own businesses because they have more faith in themselves than typical employers tend to have in women employees.