Research Summary

Women Entrepreneurs Embrace the Internet and Information Technology

Center for Women’s Business Research  ·  September 30, 1997

Computer investments top $170 billion

“Embracing the Information Age: A Comparison of Women and Men Business Owners” was commissioned by IBM and is based on a survey of nearly 800 women- and men-owned businesses across the country. The report reveals that women business owners increased their computer investments in the past year by 60% to $170.3 billion, and plan to invest an additional $67.2 billion in computer hardware and software in 1997.

“Women business owners are using technology to explore new business opportunities,” explained Lois E. Haber, NFWBO Chair and President & CEO of Delaware Valley Financial Services, Inc. in Berwyn, Pa. “The share of women business owners that have established a home page for their business has tripled since last year 23% now have a home page, compared to 16% of men business owners. Furthermore, 17% of women business owners say that the most important reason for using new technology is to explore new strategies for growth, compared to 10% of men business owners.” “NFWBO’s research shows that women business owners will increase their investment in computer hardware and software in 1997 by 51% over last year’s investment,” said Micki Napp, National Market Executive, Women-Owned Business, IBM. “IBM recognizes that women entrepreneurs lead the way in using the Internet as a powerful tool to pursue new business strategies, evaluate the competition, recruit qualified executives, and take their firms global. We will continue to support this market by sponsoring research, providing education, and offering customized solutions.” (more) When the NFWBO survey asked women and men business owners how technology is helping their businesses, a higher percentage of women compared to men entrepreneurs indicated it was assisting them in: responding to customers (39% compared to 32%), speeding up product or service introductions (28% compared to 23%), and improving their marketing efforts (24% compared to 17%).

“Women business owners appear to be more likely to explore the Internet’s opportunities than men business owners,” NFWBO Chair Haber noted. 47% of women business owners currently subscribe to an online service, compared to 41% of men business owners;

51% of women business owners frequently use the Internet to communicate or send e-mail, compared to 40% of men business owners;22% of women report frequent usage of the Internet to conduct research compared to 14% of men business owners;9% of women entrepreneurs compared to 3% of men business owners use the Internet to review business opportunities or make bids on contracts.

As technology is developing at a tremendous rate, business owners are finding they need to replace and upgrade their computer systems more frequently. One third (33%) of both women and men business owners say that they need to replace or make additional technology-related purchases at least every year.

This third annual study reveals differences in factors influencing women and men business owners’ purchasing decisions are even more pronounced this year than last. Twenty-one percent (21%) more women than men business owners say that having a 24-hour or toll-free help line is an important factor; 19% more women than men business owners hold vendor knowledge and experience as important; 18% more women than men say that post-sale technical support is important; and 14% more women than men deem price an important factor.

“The ways in which women business owners are making decisions about technology purchases are consistent with other NFWBO research,” observed Haber. “Our research documents that women entrepreneurs place value on both relationships and factual information, are more likely than men entrepreneurs to seek out the opinions of others, and are more reflective than their male counterparts when making decisions,” Haber explained. “As women-owned firms continue to increase in numbers and economic power, it is increasingly valuable for policy makers and other business owners to understand and benefit from these differences.”

“NFWBO’s research has documented that the nearly 8 million women-owned businesses in the U.S. accounting for over one-third (36%) of all firms in the country are making major advancements in their application of technology for business growth,” observed Phyllis Hill Slater, president of the National Association of Women Business Owners (NAWBO) and president of Hill Slater, Inc., a Long Island, NY-based engineering and architectural company.

Charts

Significant Increase In Planned Investment

Women More Likely to Subscribe to Online Services, Have a Home PageWomen and Men Differ Significantly on Key Purchase FactorsWomen Businesses Use More Sophisticated Computer Systems Than Men Businesses

The complete report “Embracing the Information Age: A Comparison of Women and Men Business Owners” is $90.00. (Discounts are available for NAWBO members and NFWBO corporate partners.)

The National Foundation for Women Business Owners (NFWBO) is a nonprofit research and leadership development foundation. 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. NFWBO is affiliated with the National Association of Women Business Owners (NAWBO).

The sponsor of “Embracing the Information Age: A Comparison of Women and Men Business Owners” is IBM. For IBM, marketing to women-owned firms is part of a larger corporate strategy to target the needs of unique customer groups including small- to medium-sized businesses. IBM has expanded its commitment to women-owned businesses by growing its worldwide team dedicated to serving the needs of this market. This team leads IBM’s effort to understand the unique market needs, support research, offer educational seminars about the use of technology, provide purchasing programs for associations, and offer customized solutions.

Methodology Note: This report analyzed data collected in a mail survey conducted in the Spring of 1997 among a nationally-representative sample of women- and men-owned firms. The sampling frame used was Dun & Bradstreet’s Dun’s Market Identifier file. The over 10 million firms in the Dun & Bradstreet database comprise an accurate census of the commercially-active firms in the U.S.; that is, the firms in the sample are likely to be full-time firms engaged in commerce.

Survey packages were mailed to respondents in March 1997; a second reminder postcard was sent three weeks later. Responses were cut off in late April. A total of 793 questionnaires were returned, for an overall response rate of 3.2%; 777 were returned before the cutoff date and were included in this analysis. The sampling error for a survey of N=777 is 3.5% at the 95% confidence level. This means that, 95 times out of 100, survey responses are within 3.5% of true population values.

to order the complete research report.

Research Summaries by Date  ·  Research Summaries by Topic