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The Latest on Women Owned Businesses
Just the Facts, Ma’am
By Rosemary DiDio Brehm
Published: January / February 2009
“40% of all privately held firms in the US are owned by women (where 50% of ownership or more is by a woman).”
That means that there are “10.1 million businesses, employing 13 million men and women, generating $1.9 trillion in sales which have at least 50% of its ownership women-based.”
“And three quarter of those businesses have majority women-ownership (51% or more) which breaks down to 7.2 million firms employing 7.3 million men and women in the US generating $1.1 trillion in sales! “
These numbers come from The Center for Women’s Business Research. Every two years they update their findings; their most recent statistics came out in October of 2008. Here are some more numbers to think about from this report:
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“1.9 million businesses are majority-owned (51% or more) by women of color in the US and they employ 1.2 million people and generate $165 billion in sales. This category grew faster than all privately held firms.”
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“One in five women-owned businesses have revenues of $1 million or more.”
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“Between 2002 and 2008, the five fastest growing states for women-owned firms are: Nevada and Arizona (tied), Florida, Texas, Maryland and Georgia. The five fastest growing metro areas for women-owned firms are: Orlando, FL; Raleigh, NC; Atlanta, GA and Riverside, CA (tied for third); Charlotte, NC; and Phoenix, AZ.”
Interestingly, the Center’s 2006 report ranked Florida the number one fastest growing state and Tampa Bay the third fastest growing metro area in the US, so there have been some changes in the last two years.
So there you have some NUMBERS about women-owned businesses. I am one of those 10.1 million women business owners and I want to know how the latest research can help me grow my business. So I went beyond the numbers and found some “actionable” FACTS about women-owned businesses.
Key Fact - Banking and Finance
“Women business owners who obtained capital persevered, making an average of four attempts to obtain bank loans or lines of credit and 22 attempts to obtain equity capital.”
Perseverance is the key, but given our economic challenges, what can our bankers and financial institutions do to help us? We must have good relationships with them, understand our financials, and have clear business plans. It is also essential to know what our financial needs are and make our case clearly.
Key Fact - Exit Strategies
Women’s “concern about (selling) price is equal to men who are selling their businesses; however, women differ from men when they think about the potential buyer:
| Issue |
Women |
Men |
| Concern about buyer’s identity, personality, and background |
72% |
39% |
| Concern about buyer’s plan for business |
79% |
52% |
| Concern about current employees |
86% |
61% |
| Intent to pass the business on to a daughter or daughters |
37% |
19% |
This is valuable information I use when I assist male and female clients with their exit strategies.
Key Fact - Technology
“Women business owners value technology as a means to create workplace flexibility:
What this says to me is that we want technology to help us juggle our priorities. I will surely look for technology companies who can make my business more flexible.
Key Fact - Management Style
No surprise here, male and female business owners manage differently. “Women emphasize relationship building as well as fact gathering and are more likely to consult with experts, employees, and fellow business owners.”
In both my own consulting business and my experience facilitating a Tampa Bay women’s business organization, the women I work with want safe environments in which to collaborate with peers; they want no-nonsense fact gathering sessions; and they want connections to those who can support them and whom they can support.
I know what I am going to do differently tomorrow because of these facts. Find out what you can do differently by going to The Center for Women’s Business Research.
NOTE: all italicized quotes are directly from The Center for Women’s Business Research
About the Author
Rosemary DiDio Brehm, President of turningpoints2results and Facilitator of the Tampa Bay Women Presidents’ Organization, is an organizational strategist who helps businesses align their leaders, teams, and customers. Contact Rosemary at 727-443-0319.
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