Published: August 15, 2008 10:19 am            

Information on women in business

The Center for Women’s Business Research reports that one in seven employees in the United States works in a woman-owned business. Nearly half (48 percent of all privately-held U.S. firms are 50 percent or more women-owned for a total of 10.6 million firms).

Thus women owned businesses are extremely vital to the American economy. Currently, the fastest growing businesses are women-owned firms with 100 or more employees. This category has grown 44 percent, over 1.5 times the rate of all comparably-sized firms.

Regardless of race or ethnic background, the vast majority of women entrepreneurs have growth as a primary goal. Women-owned businesses are as financially strong and creditworthy as any average U.S. firm.

Women businesses have similar performance on bill payment, have similar credit risks, and are as likely to remain in business as other businesses.

Women are moving into the equity capital markets, but receive only 9 percent of the institutional investment deals and 2 percent of the dollars. They are more likely to receive investments from individual investors than from venture capital firms. Most use their own funding to start their business or rely on family or friends for start-up capital needs.

Eighty-six percent of women entrepreneurs report using the same products and services at home as they do in their business.

Women, however, utilize different management techniques than their male counterparts. Women emphasize relationship building as well as facts-gathering. Women are also more likely to consult with others, including experts, employees and fellow business owners. Finally, women may take more time to make decisions.

Women business owners are philanthropically active: 70 percent volunteer at least once per month; 31 percent contribute $5,000 or more to charity annually; 15 percent give $10,000 or more. Internationally, women entrepreneurs agree that key business concerns are a blend of day-to-day business management issues, such as maintaining profits, finding good employees, and managing cash flow along with external factors including the economy, government business laws, access to technology and access to capital.

Women-owned firms have diversified into all industries with the fastest growth reported in construction, transportation, communications and public utilities, and agricultural services. Also, the number of women-owned firms has expanded by an estimated 28 percent, more than three times the growth rate of all firms with employees.

However, with profit comes expenditure. Women-owned businesses spend an estimated $546j billion annually on salaries and benefits ($492 billion on salaries and $54 billion for employee benefits). Health benefits comprise the largest share of benefit expenditures, estimated at $38 billion.

Are you interested in entrepreneurship and self-employment? Dalton State College offers a class in entrepreneurship and an entire bachelor’s degree in business management. Also, the University of Georgia’s Small Business Development on our DSC campus is ready to help as you develop your idea into a business plan.



Marilyn Helms is a business professor at Dalton State College. She can be reached at (706) 272-2600 or by e-mail at mhelms@daltonstate.edu.

        

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