Research Summary

Women Business Owners in Argentina consider access to leading technology the key for their success

Center for Women’s Business Research  ·  August 23, 2000

How best to maintain business profitability, concern with government corruption and business laws, access to technology and capital are among the most important concerns of women business owners in Argentina

Buenos Aires, 15 August, 2000: Committed to the socio-economic situation, and with the goal of providing information tools that reflect the reality of business owners in our country, IBM presented the “Study on Women and Men Business Owners in Argentina”. The study was made in conjunction with the Center for International Private Enterprise (CIPE), the National Foundation for Women Business Owners (NFWBO), and Instituto APOYO.

The study, based on 602 interviews with business owners in Argentina, covers a wide range of business issues. How best to maintain business profitability, concern with government corruption and business laws, access to technology and capital, credit acquisition, outlook toward the direction of their business, memberships with business associations and clubs, attendance at seminars and business meetings, and woman-man ownership relations, are among the most important concerns of women and men business owners in Argentina.

Following is a summary of some of the most significant findings of the study:

Nearly all of the owners who were interviewed (92% of the women and 85% of the men) say that maintaining profitability is a very important concern. Sixty percent (60%) of both women and men say that government corruption is a very important concern; 57% of the women and 48% of the men state that government business laws and policies are a very important issue. More women than men (54% compared to 43%) say that access to capital is a very important concern for them, but both rate the importance of access to technology equally important (51% of women and 48% of men say that it is a very important issue in their business).

Women business owners are more optimistic than their male counterparts about economic prospects in Argentina and in their own business, yet both are somewhat circumspect in light of recent economic fluctuations. One-third (35%) of women are optimistic about the economic outlook in Argentina over the next two years; 25% are neutral and 38% are pessimistic. Among men 24% are optimistic, 32% are neutral, and 44% are pessimistic. These business owners are more optimistic about their own business’ prospects in the coming two years. Among women, 58% are optimistic, 15% are neutral, and 26% are pessimistic. Among men, 33% are optimistic, 33% are neutral, and 31% are pessimistic.

Just one third (34%) of men business owners and one-quarter (23%) of women business owners have lines of credit for their businesses at the present time. One third of women and men say that they used no financing for their business over the course of the past year. The sources used were tapping private sources, such as savings, friends and family (30% women and 21% men) and reinvesting business earnings (27% women and 11% men).

Three-quarters (77%) of men business owners and just under half (48%) of women business owners use computers in their businesses, and men business owners are somewhat more likely to be active users of the Internet. However, women and men-owned firms are equally likely (23% of women and 21% of men) to have a web site for their business. The sites of women-owned firms are more likely to include such features as having a communication function to ask questions and receive answers by e-mail (61% of women say their site has this feature, compared to just 22% of men) and providing detailed product information (54% women, 29% men).

Less than one-quarter of the business owners interviewed (22% of the women and 18% of the men) belong to a business chamber or association. Yet, most of the women and men interviewed would find some of the basic benefits available to them through membership in an association somewhat or very helpful to them in their business. For example, 69% of women and 63% of men say that it would be helpful to be able to meet regularly with other entrepreneurs in their community to share ideas and experiences. Fifty-nine percent (59%) of women and 61% of men would find it helpful to attend seminars or lectures on business topics, and 55% and 52% of women and men respectively would find it helpful to receive training on finance, marketing, and other business issues. Women more than men would like to see more support from government offices charged with business development issues (61% of women would find this helpful for their business, compared to 50% of the men). Further, 61% of the women business owners interviewed would find it helpful for their business’ growth to be able to meet and network specifically with other women business owners. This certainly shows a desire among women business owners for the camaraderie, training and technical assistance, and networking and advocacy that women’s business associations can provide.

The women entrepreneurs interviewed are somewhat younger and their businesses are somewhat smaller compared to those owned by men. While women and men business owners in the survey are equally well educated, women are more likely than men to own retail or personal services enterprises, and less likely to own a firm in the business services sector, but are just as likely as men to own a goods-producing business.

Methodology Note: This survey was conducted by telephone from April through early May 2000 among 602 business owners - 300 women and 302 men - in Argentina. The sample was stratified by employment size of firm (small: 5 or fewer employees; medium: 6 to 25; and large: 26 or more) and reweighed to correct size proportions. 450 of the interviews were conducted in the Buenos Aires metropolitan area, and 152 in the remaining population centers in the country (Córdoba, Mendoza, Rosario), in keeping with the distribution of the business population. Businesses located in rural areas, however, were not interviewed.

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