Research Summary
New Study Quantifies Thinking and Management Style Difference Between Women and Men Business Owners
Washington, DC --Women and men business owners have different styles of success, according to a new report from the National Foundation for Women Business Owners, “Styles of Success, The Thinking and Management Styles of Women and Men Business Owners.” The research, underwritten by American Express Small Business Services, examines for the first time in both a qualitative and quantitative way the similarities and differences between women and men entrepreneurs.
The study shows they think differently, manage differently and define success differently. Despite these significant differences, entrepreneurs as a group share special characteristics unique to business owners which sets them apart from the general working population.
Among the findings:
More than half of women business owners (53%) emphasize intuitive or “right-brain” thinking. This style stresses creativity, sensitivity and values-based decision making. Seven out of ten (71%) men business owners emphasize logical or “left-brain” thinking. This style stresses analysis, processing information methodically and developing procedures.
Women business owners’ decision-making style is more “whole-brained” than their male counterparts, that is, more evenly distributed between right and left brain thinking.
Two-thirds (66%) of women business owners (compared to 56% of men business owners) tend to reflect on decisions, weighing options and outcomes before moving to action. In addition, women are more likely to gather information from business advisors and associates. More men business owners (44% compared to 34% of women business owners) emphasize action and give greater attention to external events and activities than reflection.
“Up to now, models for business success have been largely male-defined, often forcing women into a mold in which they did not feel comfortable,” said Laura Henderson, Chair of the National Foundation for Women Business Owners and President and CEO of Prospect Associates, Rockville, Maryland. “The recognition that both women and men’s styles are styles of success will help them both strengthen their management styles and learn from each other.”
“All businesses are facing similar challenges. Workforces are growing more diverse; markets are broadening beyond our own cultures and borders; and business entrepreneurs are an increasingly diverse group,” said Steven W. Alesio, Executive Vice President of American Express Small Business Services. “In this environment, it is increasingly valuable for organizations of all sizes to recognize, understand and benefit from all styles of success.”
Additional findings:
Women entrepreneurs describe their businesses in family terms and see their business relationships as a network. Men entrepreneurs think in hierarchical terms and focus more on establishing clear rules and procedures.
Women see men as being better able to delegate. Men admire that women are more perceptive and caring in their business relationships and able to balance different tasks and priorities.
Both women and men entrepreneurs agree there is more to success than monetary gain. However, women derive satisfaction and success from building relationships with customers and employees, having control of their own destiny, and doing something they consider worthwhile. Men entrepreneurs describe success in terms of gaining self-satisfaction for a job well done and achieving desired goals.
“The explosive growth of women-owned businesses over the past decade attests to the success of their ‘non-traditional’ style. The continuing success of businesses established by men attests to the value of their styles. This study shows that success may be achieved in many different ways,” commented Patty DeDominic, President, PDQ Personnel Services, Inc. and President of the National Association of Women Business Owners (NAWBO).
Despite these significant differences, the study showed that as entrepreneurs women and men are more like each other than they are like the working population in general. Compared to the general working population, entrepreneurs are more logical and analytical in their decision-making.
“Small business continues to be the engine driving our economic growth,” said Mr. Alesio. “Therefore, it is important to understand the management styles of both men and women entrepreneurs so that we can better benefit from their diversity as well as their similarities.”
NFWBO is the National Association of Women Business Owners’ (NAWBO) non-profit research, leadership development and entrepreneurial training foundation. The Foundation’s mission is to support the growth of women business owners and their organizations through the accumulation and sharing of knowledge. It is one of the leading sources for information on women-owned businesses.
The study, directed by NFWBO’s Director of Research, Julie Weeks, sampled a population of 127 women and men business owners in 6 cities across the country. Each business owner completed the Success Style Profile and a demographic questionnaire, and participated in a focus group discussion.
Diane H. Ross, President of TriDelta Management Group, Inc., Yorktown, VA developed the concept for this project and participated in conducting the research. Dr. Dennis Coates, President of Performance Support Systems of Newport News, VA is the developer of the Success Style Profile used in the study. Dr. Rebecca Klemm, President, Klemm Analysis Group, Washington, DC and a member of the NFWBO Board of Directors, guided the project design and assisted in the conduct of the research.
Charts
Women Entrepreneurs Emphasize Intuitive Decision Making; Men Emphasize Logic
Entrepreneurs As A Group Emphasize Logical Thinking More Than the Working Population At LargeWomen Entrepreneurs Emphasize Caring; Men Prefer LogicThe Business Goals of Women and Men Entrepreneurs DifferWomen Entrepreneurs Seek More Advice When Making Business Decisions
Citation
Center for Women’s Business Research. “New Study Quantifies Thinking and Management Style Difference Between Women and Men Business Owners.” Research Summary. July 19, 1994. Washington, DC.