Research Summary
Technology Key to Growth and Success of Women-Owned Businesses
April 26, 1995, White Plains, NY--Women business owners are savvy consumers of information technology, according to a new study of women-owned businesses nationwide. They consider information technology integral to their business operation and are quick to adopt new technologies to improve customer responsiveness, quality and flexibility.
The survey, conducted by IBM and the National Foundation for Women Business Owners (NFWBO), showed that over half of those surveyed plan to increase their information technology investment in the coming year.
Forty-three percent of the women business owners in the survey describe themselves as “on the leading edge” or “more advanced than average” in quickly adopting new technologies when compared to businesses of similar size in their industry.
Fully three quarters report that technology is “very essential” to the functioning of their business today.
Women-owned businesses are growing more rapidly than is the overall economy,“ said Laura Henderson, Chair, National Foundation for Women Business Owners and President and CEO of Rockville, Maryland-based Prospect Associates. ”The vast majority of women entrepreneurs recognize that technology is key to their growth and success. They are leveraging information systems in their businesses and positioning themselves to benefit from the latest advances."
“The business environment today is fiercely competitive,” said Pete Andino, General Business Director, IBM U.S. “Women business owners are gaining a competitive edge because of their sophisticated approach to technology.”
TECHNOLOGY HELPING BUSINESS GROWTH
Over half (54%) of women business owners in the nationwide survey say that the technology systems currently in place in their businesses are used primarily to expand and grow their businesses.
Susan Peterson, President, Susan Peterson Productions Inc., of Washington, DC, has used technology to stay on top of a growing organization in the media and presentation training field.
“Computer technology not only increased our production incredibly, but it helped us communicate more effectively and efficiently within our organization and with our clients,” said Peterson.
Further, technology helps businesses be competitive in key areas:
- 50% say technology assists them in responding to customers;
- 44% say it helps them improve quality;
- 36% report it helps their business be more flexible.
Women business owners tend to be involved personally with their company’s information technology systems. Forty-six percent say they use technology themselves on a regular basis. Sixteen percent say they enjoy new technology and try to adopt new applications as soon as they are available.
PLANS TO ENHANCE
Over half of women business owners plan to increase their investments in information technology in the coming year. Thirteen percent expect to spend $15,000 or more on computer systems this year; most (60%) will spend up to $5,000 on information technology.
Price is not the primary consideration when purchasing computer technology for their businesses. The most important consideration is reliability (76%), followed by ease of use, price and post-sale technical support.
IBM ranked highest in the survey as the brand of choice for both computers and software applications. Respondents did not know that IBM was sponsoring the study.
- 60% say IBM has the widest variety of solutions;
- 56% consider IBM hardware the most flexible and upgradeable;
- 51% say IBM has the best after-sales support.
INFORMATION SUPERHIGHWAY AS A BUSINESS ASSET
Nearly all of the women business owners surveyed view the “Information Superhighway” as a potential asset to their business and expect to use it in the future for business transactions, bidding on business and accessing information. One-third are confident that they know a fair amount about the “Information Superhighway.” However, almost half report they do not know very much about it, and 21% say they know nothing at all.
The National Foundation for Women Business Owners (NFWBO) is the research, training and education arm of the National Association of Women Business Owners. NFWBO supports the growth of women business owners and their organizations through gathering and sharing knowledge.
IBM U.S. General Business provides IBM with a dedicated focus on the expanding market for small and growing businesses through a variety of support programs and a network of business partners with industry-specific solutions to complement IBM’s information technology expertise.
SURVEY METHODOLOGY NOTE:
In January, 1995, 10,000 surveys were mailed to a random sample of women business owners across the country. Approximately five weeks later, a post card reminder was sent. In addition, surveys were mailed to a random one-third of the National Association of Women Business Owners (NAWBO) members in December, 1994, with a follow-up reminder mailing sent only to NAWBO’s 50 chapter presidents. In total, 560 surveys were returned from the general mailing and 515 were returned by NAWBO members, for response rates of 5.6% and 30.9% respectively.
Combined, the survey population is 1,075. The survey error for a sample of that size is 3.1% at the 95% level of confidence, meaning that 95 times out of 100 survey findings will be within 3.1% of the true population values.
Charts
- Technology Playing An Essential Role In Business Operations
- Investment In Information Technology Will Increase
- Many Women-Owned Firms Are Leaders In Adopting New Technology
- Technology Helps Women-Owned Business In Many Areas
Citation
Center for Women’s Business Research. “Technology Key to Growth and Success of Women-Owned Businesses.” Research Summary. April 26, 1995. Washington, DC.