Press Release
Multi-Year Study Shows Training and Mentoring Have Positive Effect on Women-Owned Business Start-ups
Washington, DC – A three-year study released today provides evidence that the services offered by Women’s Business Centers strengthened the business skills of women starting new ventures, and that their businesses grew during the course of the multi-year study, according to the Center for Women’s Business Research.
The study, entitled Launching Women-Owned Firms: A Longitudinal Study of Women’s Business Center Clients, was underwritten by OPEN: The Small Business Network from American Express, the American Express Foundation, the AT&T Foundation and the National Women’s Business Council. The study followed women business owners who were clients of four Women’s Business Centers from January 2001 to October 2003.
“Over the course of the study, women business owners were increasingly likely to characterize their businesses as experiencing rapid growth (from 2.3 to 2.7 with 4 being the fastest growth) rather than as stable or declining,” said Myra M. Hart, Chair, Center for Women’s Business Research and Professor, Harvard Business School. “Clearly, mentoring and training can provide important tools for women engaged in launching new ventures or nurturing high growth businesses. One can learn how to be an entrepreneur.”
Overall, the women entrepreneurs reported a substantial increase in their key business skills. The ability to describe business competition showed statistically significant improvement (increasing from 3.9 to 4.2, with 5 as the highest possible rating).
Improvement also was observed in key skills such as having a clear business vision and detailed financial plan, describing one’s average customer, knowing how to seek business capital, and using business skills in other areas of one’s life.
“This study is the first of its kind to chart the actual impact of the programs and training being delivered to women entrepreneurs by the Women’s Business Centers,“ said Marilyn Carlson Nelson, Chairman and CEO of Carlson Companies and Chair of the National Women’s Business Council. “We are very encouraged to learn the results of this study. It’s further affirmation that Women’s Business Centers are playing a valuable role in the successful launch and growth of women-owned businesses.”
“Technology is playing a major role in the success of these businesses. Almost all the businesses (93%) had an e-mail address,” said Robert Dapkiewicz, director, AT&T Small Business. “More than half (56%) had a website and 36% were selling online. There are helpful technology solutions for all businesses regardless of size.”
“This study demonstrates that mentoring and training around key business skills are key factors in helping women-owned start ups get off the ground and grow, “ said Catherine Foucher, Vice President, OPEN from American Express. “This will help all of us who serve women business owners do an even better job of meeting their needs because it points to the importance of providing tools and resources, in addition to capital, for these entrepreneurs.”
The study found the strongest relationship between frequent visits to the Business Centers and the development of skills in the areas of pricing of goods and services, writing a business plan and ability to expand markets. Skill development was positively related to actual application of business skills; women who experienced strong skill development also reported increases in their use of these skills in operating or planning their businesses.
Overall, the women business owners in the study believed that business ownership had a positive impact on their personal lives. Throughout the course of the study, approximately three-quarters (77%) of the business owners reported a positive impact on their self-confidence and personal lives. Furthermore, approximately half of these business owners reported that business ownership had a positive impact on their economic situation.
Having a mentor also contributed to the success of business center clients. Women business owners with mentors were more likely than those without to say that their businesses experienced growth.
A large majority of the Women’s Business Center clients were satisfied with the training they received. Over three quarters (76%) reported that they were very or somewhat satisfied. The classes, seminars and workshops were identified as the most helpful forms of assistance. Business management, financial management, and networking emerged as the topics of greatest interest and value.
A program of the U.S. Small Business Administration, Women’s Business Centers represent a national network of more than 80 educational centers designed to assist women who want to start and grow small businesses. Women’s Business Centers operate with the mission to level the playing field for women entrepreneurs who still face unique obstacles in the world of business.
The four centers that participated in the study are: The Women’s Economic Self-Sufficiency Team in Albuquerque, NM; The Center for Women and Enterprise in Boston, MA; The Women’s Business Development Center in Chicago, IL; and The Women’s Initiative for Self-Employment in Oakland and San Francisco, CA. They were chosen for their diverse program content, client characteristics, regions, and types of communities served.
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Methodology This study is based on data collected from clients from four women’s business centers from January 2001 through October 2003. Initial data was collected from women’s business center records; additionally four surveys were administered by women’s business center staff via telephone interviews, in person, by mail or by fax. Of the initial 774 clients included in the study, 335 responded to Survey 1, 287 to Survey 2, 196 to Survey 3, and 148 to Survey 4. Sixty-four clients responded to all four surveys. Those clients remaining in the study throughout were generally similar to the women’s business centers’ overall base in terms of race/ethnicity and education. However, business owners were more likely than other clients to remain with the study.
Center for Women’s Business Research Center for Women’s Business Research is the premier source of knowledge about women business owners and their enterprises worldwide. The Center’s mission is to unleash the economic potential of women entrepreneurs by conducting research, sharing information and increasing knowledge about this fast-growing sector of the economy.
Since 1989, the Center for Women’s Business Research has generated research-based intelligence that has helped public- and private-sector leaders, advocates, and individual women business owners make informed strategic decisions for generating greater business opportunities.
The National Women’s Business Council The National Women’s Business Council is a bi-partisan Federal government council created to serve as an independent source of advice and counsel to the President, Congress, and the U.S.
Small Business Administration on economic issues of importance to women business owners. Members of the Council are prominent women business owners and leaders of women’s business organizations. For more information about the Council, its mission and activities, contact: National Women’s Business Council, 409 3rd Street, SW, Suite 210, Washington, DC 20024; Web site: www.nwbc.gov.
OPEN: The Small Business NetworkSMfrom American Express OPEN: The Small Business NetworkSM from American Express is a division of American Express that offers small business owners a wide range of tools, services and savings designed to meet their evolving needs, including charge and credit cards, convenient access to working capital and credit information, enhanced online account management capabilities and savings on business services from an enhanced lineup of partners. To obtain more information about the OPEN Network, visit www.OPEN.americanexpress.com or call 1-800-NOW-OPEN.
The American Express Foundation was created in 1954 and is funded by the American ExpressCompany and its business units, including the OPEN Network. The Foundation makes grants around the world on behalf of the American Express Company around three grant-making themes: Community Service, Economic Independence, and Cultural Heritage.
American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.
AT&T and the AT&T Foundation AT&T (www.att.com) is among the world’s premier voice and data communications companies, serving consumers, businesses, and government. Public service and social responsibility are traditions deeply embedded at AT&T. The AT&T Foundation (www.att.com/foundation) invests in projects that serve the needs of people in communities throughout the nation, particularly for initiatives that use technology in innovative ways and for programs in which AT&T employees are actively involved as contributors or volunteers.
Citation
Center for Women’s Business Research. “Multi-Year Study Shows Training and Mentoring Have Positive Effect on Women-Owned Business Start-ups.” Press Release. August 10, 2004. Washington, DC.