Something extraordinary is happening among women-owned businesses. It is something that even many women business owners did not predict. Women-owned firms are growing faster than those owned by men. It's a phenomenon, really, and here is why.
Women's firms growing faster than men's, even with less capital to start
The word phenomenon is used here because women are succeeding in spite of the roadblocks they encounter when attempting to start their own businesses. Here are a few:
- Men are three times as likely as women to get financing
- Most women-owned firms start smaller than those owned by men
- Women's growth expectations for their businesses are about half the amount that men typically expect from their businesses
But look at what is actually happening...
In spite of all this, women's businesses are growing faster than men's. A recent study done for the National Women’s Business Council reported that although women start out with less capital, they are seeing more rapid growth in their businesses. The actual percentages for the years 2008-2011 show that more than 58 percent of women-owned firms grew by 30 percent or more, compared with 53 percent for companies owned by men.
Against all the odds....
One of the reasons cited is that due to the very fact that women have more difficulty finding financing, they start small and slow and are very cost-conscious and frugal. They are less likely to hire people immediately and more likely to do more functions on their own to start out. By keeping costs down, they are able to invest more in their businesses.
But don't mistake caution for weakness. These women are anything but weak. They are strong and determined to succeed and take their businesses to the next level. And that is exactly what they are doing.
Read more from the MarketWatch article at www.marketwatch.com/story/women-owned-businesses-start-smaller-but-add-jobs-faster-2014-09-05