Research Summary

Women Business Owners Upbeat for 1999

Center for Women’s Business Research  ·  January 20, 1999

Many say Y2K is not a major concern

“Women business owners are somewhat more optimistic than their male counterparts with respect to both the future health of their businesses and their projected increases in revenues and profits in the coming year,” explained Lois E. Haber, CLU, ChFC, NFWBO Chair and President & CEO of Delaware Valley Financial Services, Inc. in Berwyn, Pa. “Sixty-four percent (64%) of women business owners, compared to 56% of men business owners, believe the health of their businesses will be better in 1999 compared to last year.”

The results of the national survey of 607 women and men business owners were used to develop the NFWBO/Wells Fargo Business Confidence Index measuring women and men entrepreneurs’ optimism about the health of the economy and their businesses.

“Women business owners are generally optimistic, ranking 62 on the 100-point NFWBO/Wells Fargo Business Confidence Index,” said Colleen Anderson, executive vice president of Wells Fargo. “Since women-owned businesses are a significant economic force driving business growth and employment their confidence in the health of their businesses is a key factor in overall economic well-being of the country. Wells Fargo’s goal is to support their plans for growth with access to necessary capital and financial services.”

When asked about specific business economic indicators, two-thirds (67%) of women business owners, compared to 62% of men business owners, say that their revenues will increase in 1999 compared to 1998; 64% of women entrepreneurs compared to 57% of men entrepreneurs report that their profits will increase in 1999.

Overall, women and men business owners alike hold positive views on current economic conditions in their communities. Nearly half describe the economic conditions in their communities as better than one year ago, and about one-third say that the economy will be better a year from now.

The most important business concerns of both women and men business owners are managing business growth, finding and keeping qualified employees, and keeping up with technology.

“The top business issue managing and maintaining growth was cited by more women than men entrepreneurs in the NFWBO/Wells Fargo Business Confidence Survey,” noted NFWBO’s Haber. “Both women and men are generally optimistic about their businesses and local economies and 80% of women entrepreneurs and 72% of men entrepreneurs report that growth-related issues are foremost in their minds.”

The survey also revealed that only one-third of women and men business owners view the Year 2000 computer issue as a critical concern for their businesses.

“Many of these business owners may wake up on New Year’s Day 2000 with equipment problems that could jeopardize their business operations,” said Wells Fargo’s Anderson. “Wells Fargo is encouraging all business owners to be aware of Y2K computer problems and plan ahead.

Just over half of women business owners believe their businesses are healthier than a year ago. Asked why the health of their businesses has improved over the past year, 34% reported that they have more customers or sales; 15% give credit to the strong economy, and 15% say that more advertising is one of the most important reasons for the improved health of their businesses.

Charts

• Women Business Owners Are More Optimistic Than Men About the Future of Their Businesses
• Majority of Women and Men Business Owners Owners Say Revenue and Profits Will Increase in 1999
• Women More Likely Than Men to Say More Advertising Is the Reason Things Are Better...
• Top Concerns Are Managing Business Growth and Finding/Keeping Qualified Employees

The National Foundation for Women Business Owners (NFWBO) is a nonprofit research and leadership development institute. NFWBO is recognized as the premier source of information and intelligence on women business owners and their enterprises by corporations, policy makers, financial institutions and the media. Up-to-date intelligence about women business owners and their enterprises worldwide is documented in NFWBO’s original research and analysis. The Foundation is affiliated with the National Association of Women Business Owners (NAWBO).

Headquartered in San Francisco, Wells Fargo has a long history of equal opportunity for women. In the 1860s, bank founder Henry Wells founded Wells College for women in Aurora, NY, and hired women agents to manage Wells Fargo posts. One of the oldest banks in the U.S., Wells Fargo opened its doors in 1852, as a banking and express firm providing a wide array of services to pioneers, including the operation of stagecoach lines, the transportation and safekeeping of gold, and the delivery of the U.S. mail. Today, Wells Fargo is a $196 billion diversified financial services company providing banking, insurance, investments, mortgage and consumer finance through 5,836 stores in all 50 states, Canada, the Caribbean, Latin America and elsewhere internationally.

Study Methodology: The survey was conducted among a nationally-representative sample of 607 business owners 392 women and 215 men randomly selected from Dun & Bradstreet’s Dun’s Market Identifier database. The interviews were conducted during the month of July, 1998. CJ Olson Market Research, Inc., a woman-owned firm, conducted the interviews.

The sampling error for samples sizes 392 and 215, respectively, are ±5.0% and ±7.1% at the 95% level of confidence. This means that, 95 times out of 100, survey results will be within the above ranges compared to true population values.

Wells Fargo/NFWBO Business Confidence Index Methodology: A Business Confidence Index was constructed by combining the responses to eight questions. The first set of four close-ended questions chosen for the confidence index asked the respondent to describe economic conditions in their community now compared to one year ago, how they thought the economy would be one year from now, how the overall health of their business is now compared to one year ago, and what they thought the health of their business would be one year from now. Possible responses were much better’, somewhat better’, about the same’, somewhat worse’, or much worse’. A response of much better was given a score of 100, somewhat better’ rated a 75, about the same’ rated 50, somewhat worse’ rated 25 and much worse’ rated zero.

The next set of four close-ended questions asked business owners to forecast business revenues, employment, capital investments, and profits in 1999 compared to 1998. Possible responses were: increase significantly’, increase somewhat’, stay about the same’, decrease somewhat’, or decrease significantly’. A response of increase significantly’ was given a score of 100, increase somewhat’ was rated 75, about the same’ rated 50, decrease somewhat’ was rated 25 and decrease significantly’ rated zero.

The business confidence index is an averaging of these eight questions.

Copyright © by the National Foundation for Women Business Owners.

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