Research Summary

Women Entrepreneurs are a Growing International Trend

Center for Women’s Business Research  ·  February 28, 1997

NEWS ADVISORY

Washington, DC Women-owned businesses are a substantial and growing economic force in the global marketplace, according to a series of studies conducted or analyzed by the National Foundation for Women Business Owners (NFWBO):

Across the world, women-owned firms typically comprise between 1/4 and 1/3 of the business population;The number of women-owned enterprises is growing faster than the economy at large in many countries;Women-owned businesses are starting in every industry sector.

“Entrepreneurship among women is a vibrant and growing trend internationally,” noted NFWBO Director of Research Julie R. Weeks. “Women business owners are making significant contributions to economic health and competitiveness in countries around the world.”

NFWBO the premier source of information and statistics on women business owners and their enterprises worldwide has conducted extensive surveys and statistical analyses concerning women business owners and their enterprises in the U.S. and is expanding its study of trends in women’s entrepreneurship internationally.

NFWBO relates the following characteristics of women entrepreneurs in a variety of countries:

Women are starting businesses faster than their male counterparts. In the U.S., the number of women-owned firms is increasing at nearly twice the national average. In Canada, the number of women-led firms has increased at over twice the national rate.Although most women-owned firms in developed nations are in the service and retail trade sectors, the growth rate of these firms into less traditional fields of business endeavor is increasing. In the U.S., the fastest growing sectors for women are in construction, wholesale trade, transportation, and agribusiness. A similar trend in industry diversification is seen in Canada.On a personal basis, women entrepreneurs globally are very similar. They are likely to be married, have children, be between the ages of 35 and 54, and be more highly educated than the typical woman in the community.Women business owners throughout the world share a similar level of concern about key business issues such as maintaining profitability, managing cash flow, and labor costs.Women business owners in developing economies are concerned with some issues that are not a consideration for women business owners in developed countries. In Africa, 77% of women business owners surveyed at a conference state that problems with infrastructure (roads, bridges, utilities) are a very or extremely important issue for them in their business, and 68% state that political instability is a serious business issue as well. In Russia, 90% of women business owners surveyed last year report that tax policies are a very or extremely important business issue, 81% point to business laws, 66% cite banking system instability, and 55% are very concerned about government corruption.

Charts

Women Owned Firms Comprise Between 1/4 and 1/3 of All Businesses Worldwide

Interesting Differences in Industry Distribution for Women-Owned Firms InternationallyWomen Business Owners Globally Share Similar General Business Concerns...But Show Striking Differences in Some AreasWomen Business Owners a Highly Educated GroupMost Women Business Owners Internationally Aged 35-54Most Women Business Owners Are MarriedAverage Number of Children Among Women Business Owners Higher in Africa, Than in US, Russia

The National Foundation for Women Business Owners (NFWBO) is the premier source of information and statistics on women business owners and their enterprises worldwide. The NFWBO is a non-profit research and leadership development foundation focusing on women entrepreneurs. It is affiliated with the National Association of Women Business Owners, the U.S. member of an international organization of women business owner associations, Les Femmes Chefs d’Entreprises Mondiales (FCEM). The NFWBO supports the growth of women business owners and their enterprises through conducting research, sharing information, and increasing knowledge.

METHODOLOGY NOTE: The information drawn upon for this news advisory comes from a variety of sources, as noted below:

Africa: Data collected via a written survey (in English) distributed and collected at a conference hosted by the Ghana Association of Women entrepreneurs in Accra, Ghana in July, 1996. Survey size N=75, respondents mostly from West and North African countries (including Ghana, Ethiopia, Gambia, Namibia and Nigeria. Study underwritten by IBM;

Canada: Bank of Montreal Institute for Small Business, “Myths & Realities: The Economic Power of Women-Led Firms in Canada,” statistical analysis using Statistics Canada and Dun & Bradstreet data. NFWBO consulted on project;

Mexico: Analysis of government data by Profesora Gina Zabludovsky, Universidad Nacional Autonoma de Mexico;

Russia: Written survey distributed by mail and in person from January to June 1996. Survey size N=664 women business owners from across Russia. Conducted by NFWBO and the Ural Women’s Association with support from a grant from the International Research and Exchanges Board, with funds provided by the U.S. Department of State (Title VIII);

United States: Various surveys and statistical analyses, all The National Foundation for Women Business Owners.

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