Research Summary

Characteristics of Women Entrepreneurs Worldwide Are Revealed

Center for Women’s Business Research  ·  March 5, 1999

Surveys show optimism, technology use, global trade

The announcement-based on surveys sponsored by IBM-is the first time that information about the major business concerns and characteristics of women entrepreneurs from numerous countries around the world has been combined to provide new insights into the challenges and accomplishments of women business owners.

“Maintaining the success and furthering the growth of their enterprises is a high priority for women entrepreneurs worldwide,” noted Lois E. Haber, CLU, ChFC, NFWBO Chair and President & CEO of Delaware Valley Financial Services, Inc. in Berwyn, Pa. “The most important issues cited by women business owners around the globe include maintaining business profitability, managing cash flow and bill payment, and finding and keeping quality employees.”

Other issues of concern for women entrepreneurs are gaining access to technology, access to capital for business growth, and government corruption.

Research has shown that, around the world, women-owned firms comprise between one-quarter and one-third of the businesses in the formal economy, and are likely to play an even greater role in informal sectors.

The surveys were conducted in 1997 and 1998 among women business owners in Brazil, Canada, Ireland, Mexico and at three international conferences. Entrepreneurial leaders of women’s business associations attended conferences sponsored by the Center for International Private Enterprise (CIPE) and Les Femmes Chefs d’Entreprises Mondiales (FCEM); they represented women business owners from Canada, Cote d’ Ivoire, Ethiopia, Ghana, Italy, Malta, Mexico, Namibia, Paraguay, Senegal, South Africa, Uganda, and the United States. At a Latin American women business owner conference, just over half of the respondents were from Argentina.

Women entrepreneurs, regardless of country of origin, share many of the same business concerns and the majority are optimistic about the outlook for their businesses over the next two years. Nearly all (91%) of Canadian, 86% of Argentinian, 84% of CIPE/FCEM and Mexican women business owners, and 59% of Brazilian women business owners are optimistic about the outlook for their businesses for the coming two years.

“The majority of women business owners surveyed use some form of computer system in their business,” noted Cherie Piebes, Global Market Executive, Women Entrepreneurs for IBM. Nearly all (95%) women business owners surveyed in Argentina and Canada use some form of computer system in their business. Majorities of the other groups surveyed also currently use computer systems in their business: 83% of women business owners in CIPE/FCEM countries; 81% in Ireland; and 64% in Mexico currently use computers in their business.

Piebes also observed that “approximately three-quarters of Brazilian and Canadian women business owners are using the Internet-a larger share than their counterparts in other countries. One-quarter to one-third of women entrepreneurs from Canada, CIPE/FCEM countries, and Mexico have a home page on the World Wide Web.” The most important factors women business owners consider when purchasing information technology are reliability, service and software availability. Virtually all (99%) Canadian and Irish women business owners, 95% of Mexican, 86% of CIPE/FCEM, 75% of Brazilian, and 61% of Argentinian women business owners report that reliability is an important factor to consider when purchasing information technology.

When women business owners were asked about barriers to technology use in their firms, the most significant factors listed were the cost of hardware and software; the difficulty of keeping systems serviced or upgraded; and the lack of information or training about how to use technology.

The National Foundation for Women Business Owners/IBM survey results also revealed that women business owners from Canada, CIPE/FCEM countries, and Ireland are most likely to be involved in international trade, while Brazilian and Mexican women business owners are the least likely. The most frequently-used forms of financing used over the past year by women business owners included in the global surveys are business earnings, business or commercial bank loans, and credit cards. Sixty-five percent (65%) of Canadian women business owners, 48% of Mexican, 39% of Irish, 38% of CIPE/FCEM, 29% of Brazilian, and 26% of Argentinian women business owners report using business earnings within the last 12 months as a form of financing.

Argentinian women business owners are most likely to have used a business or commercial bank loan, while Mexican women entrepreneurs are least likely to have used bank loans within the last 12 months. Canadian women business owners are also most likely to have used credit cards.

Charts

Key Business Issues Are Maintenance of Profitability and Managing Cash Flow

Most Women Buisness Owners Use Computers in Their BusinessesWomen Business Owners Are Using the InternetWomen Business Owners Are Involved In International Trade

Methodology Note: The seven studies summarized herein were conducted in late 1997 through 1998, using a variety of methodologies. In most cases, data collection itself was handled by IBM personnel. All completed questionnaires or survey data were forwarded to NFWBO for tabulation and/or analysis.

It should be noted that, in nearly all cases, the women business owners interviewed for these small-scale research studies were members of business associations (or attendees at a women business conference). As such, these women own firms in the formal sector of the economy and are likely to own larger and more well-established firms than the typical women-owned firm in each country. Therefore, these findings should not be used to generalize to the entire women business owner population in a given country or region.

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).

IBM recognizes women business owners as an undeniable force in today’s economy and is dedicated to servicing the needs of this dynamic market. Reflecting this commitment, IBM has established a worldwide team focused on helping women business owners explore and embrace technology, and actively supports women-owned businesses and their associations.

Research Summaries by Date  ·  Research Summaries by Topic