Center Publication

Fact of the Week, June 29, 1998

Center for Women’s Business Research

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Women Business Owners.

January - June 1998

Black women business owners are far more likely to have started their businesses on a part-time basis, and far more likely to have started their businesses alone rather than with other partners. Solid majorities of Asian, Caucasian, Hispanic and Native American/Alaska Native women (78%, 78%, 65% and 62%, respectively) all started their firms on a full-time basis, compared to 52% of Black women. The majority of Asian, Caucasian, Hispanic and Native American/Alaska Native women (61%, 59%, 71%, and 55%, respectively) started their firms with one or more business partners. However, fully 65% of Black women business owners started their firms without any partner.

From Women Business Owners of Color: Challenges and Accomplishments, NFWBO 1998

Fact of the Week, June 22, 1998

Technology is playing an important role in the growth and development of women-owned businesses internationally, according to women business leaders from 14 countries around the world: 83% of those surveyed currently use computers in their businesses, 51% have used the Internet, and 26% have home pages for their businesses.

From surveys conducted at two international conferences of entrepreneurial leaders of women’s business associations, NFWBO 1998

Fact of the Week, June 15, 1998

Although the primary motivations for business ownership are positive, many women leave their former positions to start businesses because a “glass ceiling” was preventing them from advancing any further in their careers. More than one-third (36%) of Black women business owners said they were kept from advancing by a glass ceiling or wall, compared to 26% of Native American/Alaska Native, 23% of Asian, 21% of Caucasian, and 12% of Hispanic women business owners.

Fact of the Week, June 8, 1998

Ireland’s women entrepreneurs are poised for growth. Fully 63% plan to grow their businesses over the next two years 44% by increasing sales, 11% by opening new stores or branches, and 8% by expanding their part-time firms into full-time enterprises.

From a survey conducted by IBM among members of Network Ireland, in consultation with NFWBO, and with additional support from Bank of Ireland. NFWBO and IBM 1998

Fact of the Week, June 1, 1998

For women who used some amount of capital to start or become a business owner, Black women business owners were least likely to borrow. Only 29% borrowed capital, compared to 37% of Asian, 45% of Native American/Alaska Native, 49% of Caucasian, and 51% of Hispanic women entrepreneurs.

Fact of the Week, May 25, 1998

The chief reward of business ownership for nearly half of Black women entrepreneurs and more than half of Asian, Caucasian, Hispanic, and Native American/Alaska Native women entrepreneurs was being their own boss. Approximately one-third of all ethnic groups of women business owners said that what they liked most about entrepreneurship was the feeling of independence in owning their own firm. A solid majority of each ethnic group reported that, after looking back over what they had gone through to start and grow their business, they would do it again.

Fact of the Week, May 18, 1998

The most important issue concerns of Latin- and Iber-American women business owners at the present time are similar to women entrepreneurs in the United States business management issues such as maintaining profitability (89% very or extremely important), finding and keeping quality employees (89% very or extremely important) and managing cash flow (82%).

From Key Issues Affecting Women Business Owners in Argentina and Other Latin- and Iber-American Countries, NFWBO 1998

Fact of the Week, May 11, 1998

The single area where women business owners of color were all significantly different from Caucasian women entrepreneurs is access to capital. Sixty percent (60%) of Caucasian women business owners currently have bank credit. In comparison, 50% of Hispanic, 45% of Asian, 42% of Native American/Alaska Native, and 38% of Black women business owners currently have bank credit available for use in their business.

Fact of the Week, May 4, 1998

Women business owners, regardless of ethnicity, are attracted to entrepreneurship for the same reasons. Between 70% and 80% of Asian, Black, Caucasian, Hispanic, and Native American/Alaska Native women business owners said that improving things for themselves and their families was a strong motivation for entrepreneurship. Between 60% and 70% of each ethnic group surveyed said that they started a business to do for themselves what they had been doing for an employer.

Fact of the Week, April 27, 1998

Mentors and role models can play an important part in encouraging those who are thinking about business ownership. While the majority of business owners reported that they did not have a mentor or role model when starting out in business, women are more likely than men to have a mentor. Forty-six (46%) of women business owners, compared to 37% of men business owners, reported having a mentor or role model who they looked to or drew encouragement from when starting their business.

From Paths to Entrepreneurship: New Directions for Women in Business, NFWBO 1998

Fact of the Week, April 20, 1998

Nearly three-quarters (74%) of Latin American women business owners surveyed are optimistic about their country’s national economy in the coming two years, while only 8% are pessimistic. These women are even more optimistic about their business’ prospects - fully 85% are optimistic, while only 2% are pessimistic.

Fact of the Week, April 13, 1998

When working with financial advisors, it is more important to women business owners than to their male counterparts that appointments are set up prior to calling on them, that questions are answered completely, and that advisors provide additional detail if requested. Women rated setting an appointment prior to calling on them 8.5 on a 1 to 10 scale (men gave it a 7.9). Women business owners also rated having questions answered completely at 9.0 on the scale, compared to an 8.3 ranking among men business owners.

From Retirement Plan Trends in the Small Business Market: A Survey of Women- and Men-Owned Firms, NFWBO 1997

Fact of the Week, April 6, 1998

Most women either start businesses totally unrelated to their previous jobs or turn personal interests into business pursuits, while businesses started by men are most likely to be closely related to their previous careers. Fifty-six percent (56%) of women own businesses which are either totally unrelated to previous careers (42%), or turn a personal interest into a business pursuit (14%). Fifty-nine percent (59%) of men business owners are in a business closely related to previous careers; only 2% of men business owners report turning an avocation into a business.

From Paths to Entrepreneurship: New Directions for Women in Business, NFWBO and Catalyst, 1998

Fact of the Week, March 30, 1998

Few home-based business owners surveyed in five states in the Midwest use only a business phone line for their business. Just over half of women-owned firms (52%) and 39% of men- owned firms use a residential phone for business use. Nearly one-third (31%) of women-owned firms use both a residential and business phone for their firm, compared to 44% of men-owned firms. Seventeen percent (17%) of women- and men-owned firms use a business phone line exclusively.

From Making Connections: The Use of Communications and Computer Technology by Home- Based Businesses in the Midwest, NFWBO 1997

Fact of the Week, March 23, 1998

Among those businesses with 10 or more employees that have retirement plans, the women- owned firms have had them for a shorter period of time. Fully 45% of women-owned firms have had their plans for 3 years or less, and 38% have had them for 5 or more years. Among men- owned firms, 31% have had their retirement plans in place for 3 years or less, while 53% have had them for five or more years.

From Retirement Plan Trends in the Small Business Market: A Survey of Women- and Men- Owned firms, NFWBO 1997

Fact of the Week, March 16, 1998

Today’s generation of women business owners (those in business fewer than 10 years) have a different blend of work experiences compared with women in business 20 years or more. Newer women business owners are more likely to have been in the workforce prior to starting their business, more likely to have worked in a professional or management position, and much less likely to have been in a clerical position, compared to past generations of women entrepreneurs.

Fact of the Week, March 9, 1998

Although for the most part women and men are attracted to entrepreneurship for positive reasons, the number in business for themselves due to negative circumstances in their former positions has increased. Frustration with their previous work environment has pushed a significant number of women into entrepreneurship and this has increased over the past two decades. Among women in business for fewer than ten years, 22% are entrepreneurs mainly because they experienced “glass ceiling” issues in their former careers, compared to just 9% of women who have owned their companies for 20 years or more.

Fact of the Week, March 2, 1998

The primary reason that women are launching new businesses is that they are inspired by an entrepreneurial idea. Forty-four percent (44%) of women, and 36% of men, have become business owners primarily because they had a winning business idea or came to realize they could do for themselves that they were doing for an employer.

Fact of the Week, February 23, 1998

Women- and men-owned home-based businesses in the Midwest are using a variety of communications services: 53% have call waiting, 48% have multiple phone lines, 46% have a dedicated line for their fax or modem, 41% have voice mail, 30% use conference calling features on their phone, 26% use caller ID or call forwarding, and 19% have 800 or 900 phone service.

Fact of the Week, February 16, 1998

Over four in ten (41%) business owners in firms with 10 or more employees rate retirement planning an 8 or higher on a 1 to 10 scale in importance. Women business owners rate retirement slightly higher in importance than do men business owners. Forty-five percent (45%) of women business owners rate it an 8 or higher, compared to 40% of men.

Fact of the Week, February 9, 1998

Women-owned home-based firms are as likely as men-owned to operate as “virtual corporations” collaborating with other firms on a project-by-project basis, bringing complementary skills to the relationships. According to a survey of home-based businesses in five Midwest states, over one-third of firms operate as a virtual corporation on at least an occasional basis. One in five (19%) say they do so very frequently.

Fact of the Week, February 2, 1998

Women business owners are more positive about the future of electronic commerce in comparison to men business owners. Forty percent (40%) of women business owners say that the Internet will be a reality for at least half of the nation’s businesses in less than 3 years, compared to 34% of men business owners. In addition, 32% of women business owners currently use the Internet to conduct business transactions, compared to 27% of men, and 51% of women business owners who have a home page see it as a way to generate sales, compared to 36% of men business owners.

From Embracing the Information Age: A Comparison of Women and Men Business Owners, NFWBO 1997

Fact of the Week, January 26, 1998

Thirty-nine percent (39%) of women-owned firms, compared to 30% of men-owned firms, offer profit sharing to their employees.

Fact of the Week, January 19, 1998

Women are just as likely to use communications and computer technologies in their home-based businesses as men, according to a survey of home-based businesses in five Midwest states; 73% of women and men owned firms use a desktop computer; 62% have a fax machine; 57% have a computer modem; and 53% have CD-ROM capability.

From Making Connections: The Use of Communications and Computer Technology by Home-Based Businesses in the Midwest, NFWBO 1997

Fact of the Week, January 12, 1998

Among businesses with 10 or more employees, women business owners place higher relative importance in not putting their employees’ retirement plan investments at risk. Sixty percent (60%) of women rated not putting employee investments at risk a 9 or 10 on a 1 to 10 scale, compared to 50% men.

Fact of the Week, January 5, 1998

There are significant differences between women and men business owners on the relative importance of factors influencing their purchasing decisions. Seventy- two percent (72%) of women business owners compared to 51% of men business owners report that a 24-hour or toll-free help line is very or extremely important; 77% of women business owners compared to 58% of men business owners report that vendor knowledge/experience is very or extremely important; 74% of women business owners compared to 56% of men business owners report that post-sale technical support is very or extremely important.

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