Title: Women-Owned Small Businesses Growing Quickly
Study: Women-Owned Companies (Phillips, American City Business Journals 2011)
Finding: Women-owned small businesses are the fastest-growing segment of the business market.
Note about The Woman Effect Research Index: This study was performed by researchers not affiliated with InPower Women. Our Research Index includes all relevant research to the subject of women, business and power. We do not influence how the research was conducted or reported by the researchers. In our abstracts, we focus on pulling out the most actionable advice for individual women. To suggest additional research we should index, or discuss our choice of abstract focus, please contact us
InPower Insight: Wonder where the women leaving the ranks of corporate America are going when they leave half way up the ladder? Many of them are going out on our own to run very small businesses, which can be run from home.
One of the key findings of the study conducted is that women owned small business category is the fastest growing segment of the business market and this is most recognizable among small US companies.
Nearly half of the companies with 1-4 employees is owned by women however, only 1/3 of businesses with 5-499 employees are owned by women. Women tend to have businesses that they can run from home and so their revenues are lower than their male counterparts.
While women who own businesses tend to be younger than their male counterparts, being an average age of 48.5, their net worth is significantly less. On average women earn 884,000 dollars while men earn 1.4 million. Researchers explain that this may be attributed to the smaller scale of women owned businesses.
It was also found that women are more independent decision- makers. Though they travel and work less than their male counterparts, women are more stressed.
Personal Coaching Tip: If you are tempted to go out on your own, you’re in good company. Recognize that most of your female peers are running smaller, less well capitalized businesses, however. If your goal is to found a growing and high-value company, you’ll still be in the minority and encounter many of the same sexist trends you run into in a corporate environment. If you want a business that supports a more flexible lifestyle, you can find it, but this isn’t an automatic solution to the stress and “time crunch” reality you’re leaving in the corporate world either. Here’s a big benefit, though: in either scenario, you’ll be your own boss. You’re in charge of your success. What do you want it to be?