The numbers are in and they are the most the optimist they have been years. It is official-women are thriving in business ranging from home day care centers to Fortune 500 firms. An estimated 10.6 million firms in the US are at least fifty percent owned by women. Between 1997 and 2004 the growth rate among women owned almost doubled verses that of all other types of firms: one in 18 women in the US is a business owner!
This is only the tip of the iceberg because women owned businesses are contributing the economy in a very dynamic way. These businesses spend a total of $103 billion in areas such as information technology, telecommunications, human resources and shipping-just to name a few. Another $546 billion is attributed towards salaries and benefits for the 19.1 million people these firms employ nationwide.
These statistics definitely speak for themselves but it begs the question, why have we seen such a growth spurt in the last five years? The answer, as any economist would say, is complex and multi-faceted. However, there are quantifiable trends that most successful businesses have embraced. When polled, regardless of business type women across the board have set growth as their number one priority. This may not seem like an enormous revelation but the difference is how they go about this growth. Most of these businesses have adhered to tried and true business models enabling them to remain financially strong and credit worthy. Women owned firms are less likely to use commercial credit to finance their businesses (56% vs. 71%). And their capital is derived mostly from individual investors rather than venture capital sources. Interestingly, when compared to their male counterparts, women are more likely to utilize several sources of advice and assistance in managing their companies. These trends were examined in depth in a 2004 report by The National Women’s Business Council entitled Best Practices in Supporting Women’s Entrepreneurship in the United States. This report profiles 24 organizations or initiatives that helped women excel in business through a variety of means. According to the report, the criteria among selected organizations included: - those organizations that provide excellent assistance for women owned enterprises
- nationally based groups whose sole or major function is to provide assistance to women owned businesses
- organizations with a proven track record and
- organizations that provide direct assistance.
Furthermore, the study takes a varied cross section of organizations ranging from the public sector, the corporate sector as well as membership associations and educational group.While these organizations all help and promote business the lessons learned that emerged from the study were both encouraging and enlightening. For example, many agreed that the timing is perfect for women to begin expanding their businesses. The report elaborated on the idea that women should start thinking regional instead of local, global versus regional.
Another theme repeated throughout the study was the need for women to realize the intrinsic value of strategically aligned partnerships. Mutually beneficial partnerships were mentioned in a variety of forms. These partnerships were not only limited to actual symbiotic relationships formed during the course of normal business but also those formed within groups, organizations and the government. Many of the case studies noted the need for women to collaborate with their peers through common associations and other business groups. Other studies called for international forums concerning everything from education on obtaining capital to acquiring government contracts at home and abroad. Notably, one of the most striking lessons cited was by The National Women’s Business Council. It said,” The impetus for action and implementation should come from the business owner community.”
This notion of returning the power to women in business is both empowering and re-affirming. Most all the studied organizations (due in part to the basic criteria of the study) acknowledged the value and need for continuous research, obtainable assistance and continued support. It observed that the most successful relationships that enable sustainable growth are derived from the cooperation between the public and private sectors. This includes non-profits.
One common perception among those in the corporate world is that women-owned businesses consist of small revenues sales; the promise of profit is minimal. This could not be further from the truth! Women-owned enterprises are giving everyone a run for their money. They are vigorously contributing to a robust economy by providing jobs and services. Their numbers are growing at an unprecedented rate. Businesswomen have had to prove themselves time and time again. Now they have and it seems as if the sky’s the limit. |
