Research Summary
Women-Owned Firms Are Going Global
Washington, DC -- Women-owned firms participating in the global marketplace are growing more rapidly than women-owned businesses which are primarily domestic. Yet, as expansion-oriented as these women-owned international firms are, they face even greater difficulties than their domestic-oriented counterparts in obtaining financing to fuel growth and expansion. In their latest research monograph, Going Global: Women-Owned Businesses in the International Marketplace, the National Foundation for Women Business Owners explores these and other issues of women business owners’ contributions to the global economy.
The six part Monograph Series is sponsored by AT&T and the MetLife Small Business Center.
Women-owned businesses involved in international trade have higher growth rates than those not involved in international trade. Key findings show:
57% of women-owned businesses in the global marketplace developed a new product or service during 1992 compared to 44% of those not in international trade;
52% of women-owned firms in international trade expanded domestically compared to 23% of those not exporting or importing;
70% expected sales to grow between 1991 and 1992 compared to 64% of their domestic-oriented counterparts;
42% expected employment to increase compared to 31% of women-owned businesses not in the global marketplace.
“Despite these positive signs, access to capital is constraining growth for women-owned international companies to an even greater extent than it is for women-owned domestic companies,” said Laura Henderson, NFWBO Chair and President and CEO of Prospect Associates, a Rockville, Maryland company. “Nearly half (46%) of the women leading international companies cite access to capital as a serious barrier to business growth compared to 38% of women business owners leading domestic companies. Removing this barrier would unleash the potential of these companies to increase their contributions to this nation’s global competitiveness.”
Women-owned businesses participate in international trade at about the same rate as all small businesses. In 1992, 13% of all women-owned businesses were involved in exporting or importing.
“Competing globally is no longer the preserve of the large companies. Over 90% of the firms exporting goods have fewer than 500 employees. Women-owned businesses have a tremendous stake in growing their global market share,” said Richard Falcone, AT&T Vice President. “They are a vital, growing market for companies like AT&T, which provide the products and services to help international companies expand.”
Compared to all women-owned businesses, the firms involved in international trade are older, have more employees and higher sales. Nearly half (47%) of the international firms are 10 years old or older compared to 37% of all firms surveyed.
International firms are larger than domestic firms. One quarter (25%) have 25 or more employees, while the majority (84%) of all women-owned businesses have less than 25 employees. Over one third (37%) of the international women-owned firms also report annual sales of at least $1 million compared to 23% of all women-owned firms.
Women-owned firms most likely to be active participants in the global marketplace are in goods- producing industries (agribusiness, mining, construction, manufacturing) or in wholesale or retail trade.
“Women-owned businesses are making tremendous contributions to the economy, both in America and abroad” remarked Judy Weiss, Senior Vice-President, MetLife’s Small Business Center. “This monograph clearly shows that female-owned companies that do business globally are at the fore-front of domestic growth as well. Supporting these companies by providing business products and services that help them maximize their full potential is not just good business -- it’s good for the global economy.”
The National Foundation for Women Business Owners (NFWBO) is the research, training and education arm of the National Association of Women Business Owners (NAWBO), the only nationwide professional organization dedicated to women who own and manage their own businesses. The mission of NFWBO is to support the growth of women business owners through gathering and sharing knowledge.
This report is the fourth in a series of monographs sponsored by AT&T and the MetLife Small Business Center. The complete report is available from NFWBO at $40.00 per report.
The data used in this report were gathered from a November 1992 Membership survey of NAWBO members. A total of 3,855 questionnaires were tabulated for this analysis. 1,071 completed questionnaires returned for this survey, yielding a statistical reliability of ± 3.1% at the 95% confidence level. This means, that 95 times out of 100, survey responses will be within 3.1% of true population values.
Charts
Growth Expectations Higher Among Women-Owned Firms In Global Marketplace
Access to Capital a More Serious Problem In Global MarketplaceManufacturing, Trade Firms Most Likely to Be Involved in International TradeWomen-Owned Firms In The Global Marketplace Have Seen More Recent Business Expansion
Citation
Center for Women’s Business Research. “Women-Owned Firms Are Going Global.” Research Summary. March 17, 1995. Washington, DC.