Research Summary
Credibility and Independence: Women Business Owners Voice Greatest Challenges and Biggest Rewards of Entrepreneurship
Washington, DC -- Their greatest challenge is being taken seriously proving their capability and establishing their business’ credibility. Their biggest reward is the empowerment that comes with gaining control over their destiny. These are the major challenges and rewards of business ownership for women entrepreneurs, according to the National Foundation for Women Business Owners’ newest research monograph, Credibility, Creativity, and Independence: The Greatest Challenges and Biggest Rewards of Business Ownership Among Women.
Based on a membership survey of the National Association of Women Business Owners (NAWBO), this report analyzed responses to an open-ended question in the survey. This question allowed the women business owners to define and articulate the rewards and challenges of business ownership without any preconceptions by the researchers.
GREATEST CHALLENGES
According to 38% of women business owners, the most significant challenge they face is being taken seriously. Being taken seriously includes:
Proving their capability and credibility (18%);Competing and succeeding in a male-dominated environment (13%);Overcoming sexism, discrimination and stereotypes (8%).
Maintaining the growth and competitiveness of their business also is a significant challenge. One in five women business owners (21%) cite this as one of their top challenges. Balancing family and work responsibilities was cited as an important challenge by 12%. Most of the women in the study were married (66%) and many had children at home (41%).
BIGGEST REWARDS
Most women business owners agree that the greatest rewards of entrepreneurship come from within and are strongly related to the empowerment derived from being in charge of one’s own fate. Nearly half the women business owners (45%) mentioned issues related to gaining control and independence as the greatest reward of business ownership, including:
Having control over their own destiny (26%);Gaining independence and freedom (13%);Achieving growth and personal balance (8%);A feeling of pride and self-esteem (6%).
The rewards of business ownership also include the satisfaction of building and growing a business (20%) and employing people and helping them achieve their full potential (15%). Financial rewards are mentioned by 8%. Not surprisingly, the number of women mentioning financial rewards increases with the number of years spent in business. In the early years of a business, when financial rewards may not be great, only 3% say money is the most rewarding aspect. That number quadruples after women have been in business for more than 10 years.
Other challenges cited by the women business owners include learning and keeping abreast of change (8%); external forces, such as government regulation and economic conditions (7%); access to capital (6%); breaking into new markets and getting new business (6%); and building and maintaining relationships with colleagues and clients (5%).
Other rewards cited include: feeling a kinship with other women entrepreneurs (15%); receiving recognition for achievements and acknowledgment of capabilities (12%); building satisfying relationships both inside and outside the company (10%); financial rewards (8%); quality and creativity in products and services (7%); and overcoming gender-related obstacles (6%).
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 second in a series of monographs sponsored by AT&T and MetLife. The complete report is available from NFWBO. The first report in the series compared the benefits offered by women and men entrepreneurs. Upcoming reports in the series include women business owners in international trade and the global marketplace and the use of technology in women-owned businesses. Individual reports are available from NFWBO at $40.00 per report.
METHODOLOGY NOTE: The data used in this report were gathered from a November 1992 mail survey of NAWBO members. One open-ended question was asked: “What do you consider is most challenging and rewarding about being a woman business owner today?” A total of 820 questionnaires were tabulated for this analysis. Three hundred and three (303) respondents replied with answers related to the challenges of business ownership, while 469 gave answers related to what was most rewarding about business ownership. All told, fully three-quarters (N=597) of the tabulated questionnaires had a response related either to a challenge or a reward. Because it was an open-ended question, respondents were able to give multiple answers. A respondent base of 597 yields statistical reliability of +/- 4.1% at the 95% confidence level. This means that, 95 times out of 100, survey responses will be within 4.1% of true population values.
Charts
The Biggest Rewards of Business Ownership
The Greatest Challenges of Business Ownership
Citation
Center for Women’s Business Research. “Credibility and Independence: Women Business Owners Voice Greatest Challenges and Biggest Rewards of Entrepreneurship.” Research Summary. September 30, 1994. Washington, DC.