Characteristics of Successful Women-Owned Small Businesses

I recently reported on the broad findings of a 2007 study analyzing women-owned small businesses sponsored and published by RMS McGladrey, the National Association of Women Business Owners, and the University of Chicago. A primary survey objective was to ascertain if there were notable variations in women-owned businesses of different sizes and revenues. Some additional results related to this objective, and others, include:

Business Characteristics:
1. The larger the business, the more likely it is to be a non-service business, especially businesses over $6 million. The larger the business, the more likely the business operates outside of the U.S., and again, especially the businesses over $6 million. The study suggests that this trend could be related to a larger business' ability to operate globally (because of resources), or it could be a result of choosing to expand globally with increased revenues being the outcome of that strategic decision.

2. Women-owned small businesses with international operations operate in these three main industries: (1) Non-durable goods manufacturing; (2) durable goods manufacturing; and (3) retail and wholesale.

4. Over 40% of the surveyed businesses are more than 11 years old, compared to other published studies that report that 50% of businesses survive four years or more, and only 40% of businesses last six years or more. In this study, 61% of the women-owned small businesses have been in business six years or longer.

Characteristics of the "Woman Entrepreneur"
1. Higher education is highly connected to entrepreneurship, with more than 40% of women small business owners having post-graduate education versus the national average of 25% of female professionals having post-graduate education, and only 9% of the entire female workforce having advanced degrees.

2. Women wished they had started businesses earlier in their work careers, supported by the fact that of the larger small businesses with more than $6 million in revenue 40% were started by women between 20 and 29.

3. In terms of motivation to start and grow a business, there were significant differences between the business size categories. 83% of women owning businesses up to $1 million in revenues wanted primarily  to "generate enough income to provide for a comfortable life" versus only 40% of women owning businesses of $6 million and up in revenues having this as a goal. Women owning larger businesses also reported that their primary goal for their businesses is to build a business that can be sold for retirement funding or to build a business to pass on to future generations - both between 30-40% of responses.

Shivonne Byrne, Innuity CMO

Comments

[Patty]

Those are some interesting findings.I was unaware there were any variations.It's nice to see women taking charge and with tremendous success! However, it’s never easy to start a business. Everyone has to start from the bottom. If you’re in this position or know any other women wanting to start a business, a great opportunity is awaiting! There is a great contest going on called “Make Your Dreams Come True with Mirassou”. They will be awarding one aspiring business woman $50,000 plus a team of highly professional consultants to help kick start your business. Visit http://www.mirassou.com/women_in_business/dreams.asp for more info and to enter. The deadline to enter is December 15, 2007. I work with them so just wanted to give you the inside scoop!