Women Business Owners Keep On Rolling!

Women entrepreneurs have been breaking down barriers on their way to fueling the American economy and a recent study conducted by the Center for Women’s Business Research helps to underline the economic power of women business owners.

The study, titled “Removing the Boundaries: The Continued Progress and Achievement of Women-Owned Enterprises,” takes an in-depth look at the unique characteristics of for-profit, active women-owned U.S. firms, focusing specifically on growth and financial strength. Below are several key findings revealed by the study:

The number of women-owned firms with 100 or more employees increased by 43.9 percent between December 1997 and December 2000. This is 68 percent faster than all businesses who broke the “100 employee mark” during the same period.

It is reassuring to know that women-owned businesses in this category are outpacing the growth rate of comparable businesses. I have the privilege of talking with many of these types of women entrepreneurs on a regular basis and I look forward to sharing this information with them. But, I will guarantee that they won’t stop their work to take time to pat themselves on the back. They’re too busy growing their companies!

The number of women-owned firms with $1 million or more in revenues has grown by 31.6 percent from 1997 to 2000, nearly twice the rate of all other comparable firms.

This is indeed impressive. Women entrepreneurs are continually discovering their strengths and showing the rest of the world that they are just as business savvy as other business owners maybe even more so in some instances.

Women-owned firms continue to be just as financially strong and creditworthy as the average U.S. firm. On three separate measures – bill payment, financial stress and overall creditworthiness – there is no difference in the scores of women-owned firms and the average U.S. firm.

While this information comes as no surprise to the millions of women who own their own business, it is unfortunate that many lenders and capitol investment firms have not caught on. Women continue to face hurdles when it comes to obtaining proper financing to help grow their businesses. In fact, a survey conducted among the more than 1,500 attendees at the U.S. Department of Labor’s Women Entrepreneurship in the 21st Century conference, showed that 84 percent had found it difficult or very difficult to raise private investment. And, as a result, 58 percent said they had used personal savings and assets or taken a second/third mortgage to finance their businesses.

Women-owned firms are as likely as all firms to stay in business. Two-thirds (65.5 percent) of women-owned firms in business in December 1997 were still in business at the end of 2000, compared to 66.2 percent of all U.S. businesses.

This has been a well-known fact for the past decade. In fact, in several industry sectors, women-owned businesses more often outlast those started by men.

Additionally, the study confirmed that women own businesses in every economic sector and that the growth rate for the number of women-owned firms exceeds the industry average. Below is a breakdown of the growth in the number of women-owned businesses among these specific industries:

· Agriculture/Forestry/Fishing – 79.3 percent

· Engineering/Accounting/Research Services – 30.4 percent

· Real Estate – 26.7 percent

· Durable Manufacturing – 26 percent

As you can see from the breakdown above, many of these industries are not what some would consider “traditional” for women. I’m pleased to say that women have been stepping out of the professional boundaries set forth by societal mores for years and this study supports this completely.

There is a lot of great information contained in this study that further confirms the fact that women entrepreneurs are truly the backbone of our nation’s economy. If you’re interested in ordering the complete study, please visit the center’s website at Women's Business Research.

The column is written by Terry Neese, entrepreneur, past national president of the National Association of Women Business Owners (NAWBO), and co-founder of Grassroots Impact. Terry founded Terry Neese Personnel Services, located in Oklahoma City, 25 years ago.

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