Research Summary
Women and Men Entrepreneurs Differ on Technology Purchase Decisions
Washington, DC Women-owned businesses are as likely as men-owned businesses to invest in and use computers and information technology. However, women entrepreneurs differ from men entrepreneurs in how they make their purchasing decisions, according to a new study from the National Foundation for Women Business Owners.
Women as Focused on Technology Benefits as Men
The study, “Entering the Information Age: Comparing the Role of Computers and Information Technology in Women- and Men-Owned Businesses,” is the second annual survey on technology commissioned by IBM. This year, AT&T also supported the research. This is the first national study to compare women- and men-owned businesses’ use of technology.
“Women-owned firms are every bit as focused on keeping technology up-to-date and available for future growth as are men-owned firms,” commented Susan Peterson, NFWBO Chair and President of a Washington, DC, communication training firm. “However, women business owners place much more emphasis on service, price and the vendor’s reputation and experience.”
Fully nine in ten business owners - both women and men - are using computers in their businesses. However, the research showed that the criteria women business owners use for selecting technology and a technology vendor differ from men:
Almost 80% of women business owners place great importance on a 24-hour or toll-free help line compared to only 63% of men entrepreneurs;
Women business owners are more price sensitive than their male counterparts (92% compared to 85% say that price is an important decision factor);
Women place higher value on ease of installation and use, a warranty and the computer vendor’s reputation and experience.
In addition, women business owners are more likely than men business owners to rely on fellow business owners for information and advice. They are less likely than men business owners to seek technology information from computer-related publications, general interest magazines, business association meetings and the Internet.
Like all businesses in the U.S., women-owned businesses have a significant investment in computer technology. Firms owned by women have an estimated current investment of $106 billion in computer hardware and software and are planning substantial future investment.
“The National Foundation for Women Business Owners’ research shows that the nearly 8 million women-owned firms in the U.S. plan to make $44.5 billion in computer-related purchases in the coming year,” says Cherie Piebes, IBM National Executive, Women and Minority-Owned Businesses. “In addition, the study verifies what IBM has recognized that women business owners make their purchasing decisions differently than men. That is why IBM has developed marketing programs specifically directed to women entrepreneurs.”
Women business owners are as likely as men business owners to recognize the potential of the Internet and the World Wide Web. About one-third of all businesses (31%) already subscribe to an online service and 56% expect to become a regular user within five years.
“This study re-affirms that women business owners, like their male counterparts, realize that the Internet can help them open up new business opportunities and gain quick access to valuable information,” said Richard Falcone, Vice President, Commercial Markets, AT&T. “We at AT&T are committed to helping these businesses accelerate their learning curve to gain the benefits of the Internet.”
Charts
Women and Men-Owned Businesses Do Not Differ on The Extent to Which They Use Technology
U.S. Businesses Plan to Invest Nearly $143 Billion in Computer Equipment in the Next 12 MonthsSources of Information About Technology Differ for Women and Men Business Owners in Several AreasWomen and Men Business Owners Differ Significantly on Important Purchase Factors Copyright © by Center for Women’s Business Research
Citation
Center for Women’s Business Research. “Women and Men Entrepreneurs Differ on Technology Purchase Decisions.” Research Summary. December 1, 1996. Washington, DC.