Female Entrepreneurs - Key Statistics & Insights

Presentation created by Michelle Villalobos, Mivista Consulting, Inc. Copyright Michelle Villalobos, 2011. To reprint, please email [email protected]

Women in Business: Key Stats & Insights


Big Picture: By-The-Numbers Analysis of Women-Owned Businesses

Part One

• A: Overview of Earnings & Growth• B: Women-Owned Businesses

Earning Over $100,000 in Revenues• C: Characteristics of Women-

Owned Businesses• D: Reasons for Disparity


Overview of Earnings & Growth Of Women-Owned Businesses*

A

* Survey of Business Owners (SBO): Statistics for All U.S. Firms by Business Activity by Receipts Size of Firm, Gender, Ethnicity, Race, and Veteran Status: 2007


Women owned 7.8 million non-farm U.S. businesses in 2007 – an

increase of 20.1% from 2002

A


A


• Grew by 44% between 1997 & 2007 • Twice as fast as men-owned firms, • Added roughly 500,000 jobs while other

privately-held firms lost jobs. • More likely to be in industry sectors that

experienced employment growth (i.e., health care & education services)

Women-Owned Businesses:

A


• 28.7% of all nonfarm businesses in the US• 6.4% of total employment • 4.0% of total receipts

In 2007, women-owned firms accounted for:

A


The annual earnings ratio between self-employed women and men is 55%, well below the

ratio between non-self-employed women and men.

A


The vast majority of women-owned businesses draw in under $100,000 in revenues each year.

A


A



Geographic Breakdown:

California = • 1.0 million women-owned businesses (13.3%) • $181.5 billion (15.2% of all women-owned receipts)

Texas = • 610,279 women-owned businesses (7.8%) • $96.8 billion (8.1%)

New York = 7.6% and 7.1%, respectivelyFlorida = 7.5% and 6.6%, respecitivelyIllinois = 4.4% and 4.5%, respectively

A


A Look At Women-Owned Businesses Earning OVER $100,000 In Revenues*

B



The total universe of female-owned businesses earning over $100,000 in revenues is almost 1,000,000 (971,409 as of 2007)

B


Revenues of Women-Owned Businesses

Total Number of Women-Owned

Businesses% of total

Under $5,000 2,127,467 27.3%

87.5%

$5,000 to $9,999 1,414,859 18.2%

87.5%$10,000 to $24,999 1,773,435 22.8% 87.5%

$25,000 to $49,999 913,108 11.7%

87.5%

$50,000 to $99,999 591,837 7.6%

87.5%

$100,000 to $249,999 475,508 6.1%

12.5%$250,000 to $499,999 218,578 2.8%

12.5%$500,000 to $999,999 135,821 1.7%

12.5%

$1,000,000 or more 141,502 1.8%

12.5%

Total 7,792,115

Total universe over $100k = 971,409

businesses


Revenues of Women-Owned Businesses

Total Number of Women-Owned

Businesses% of total

Under $5,000 2,127,467 27.3%

79.9%$5,000 to $9,999 1,414,859 18.2%

79.9%$10,000 to $24,999 1,773,435 22.8%

79.9%

$25,000 to $49,999 913,108 11.7%

79.9%

$50,000 to $99,999 591,837 7.6%

20.1%

$100,000 to $249,999 475,508 6.1%

20.1%$250,000 to $499,999 218,578 2.8% 20.1%

$500,000 to $999,999 135,821 1.7%

20.1%

$1,000,000 or more 141,502 1.8%

20.1%

Total 7,792,115

Total universe over $50k = 1,563,246

businesses


Number of Female-Owned

Businesses

Total Number of Businesses

earning over

$100,000

% of Total

Revenues of Female-

Owned Businesses

Total Revenues

% of Total Revenues

Revenues $100,000 to $249,999

Revenues $250,000 to $499,999

Revenues $500,000 to $999,999

Revenues $1,000,000 or more

Total

475,508 2,758,994 17.2% 74,403,425 437,530,318 17.0%

218,578 1,488,049 14.7% 76,724,625 526,627,318 14.6%

135,821 1,074,149 12.6% 94,926,560 755,922,174 12.6%

141,502 1,420,296 10.0% 835,676,963 27,887,809,836 3.0%

971,409 6,741,488 14.4% 1,081,731,573 29,607,889,646 3.7%


Let’s delve deeper into these numbers...

2,758,994 total businesses in US

with sales between $100,000 and

$249,999

475,508 are woman-

owned

(= 17.2%)

B


1,074,149total businesses in

US with sales between $500,000

and $999,999

135,821 are woman-

owned

(= 12.6%)

B


1,420,296total businesses in US with sales over $1,000,000

141,502 are woman-owned

(= 10.0%)

B


The HIGHER the revenues go... the LOWER the percentage

of business owners who are women

B


Characteristics of Women-Owned Businesses

C



Women-owned businesses are typically smaller than men-owned businesses.

• Women own 30% of privately-held businesses• They account for only 11% of sales and 13% of

employment among privately-held companies• Average sales/receipts are only 25% of average

sales/receipts for men-owned businesses• Women-owned businesses are concentrated in

industry sectors where firms are typically smaller• Women start with less capital and are less likely to

take on additional debt to expand their businesses

C


The characteristics of self-employed women are similar to those of self-employed men

• Self-employed women are older, more likely to be married, and less likely to have children at home than women who are employed

• Self-employed women work fewer hours on average in their businesses than self-employed men


Workers in women-owned firms are generally lower paid than at men-owned firms.

• The average payment per employee at women-owned firms in 2007 was $29,000

• That’s roughly 78% of the amount paid per employee at men-owned firms, $37,000

• This comparison does not control for differences in industry, in workers’ skills, or in occupations between women- and men-owned firms.


Women-owned businesses also have lower survival rates over time:

• 72% of men-owned firms operating in 2002 were still in operation in 2006,

• Only 66% of women-owned businesses had survived during that same time period


Why So Much Disparity?

Survey of Business Owners (SBO): Statistics for All U.S. Firms by Business Activity by Receipts Size of Firm, Gender, Ethnicity, Race, and Veteran Status: 2007

D


“In particular, a range of factors... that differ for female business owners appear to be

important in explaining differences... Such factors include a lower tolerance for risk, fewer

hours worked, different occupation and industry selections, and different underlying

reasons for starting a business.”


D


Less Access To Capital


Women-owned businesses started their firms with 64% of the capital levels of businesses

owned by men (and more owner debt)

D

Presentation created by Michelle Villalobos, Mivista Consulting, Inc. Copyright Michelle Villalobos, 2011. To reprint, please email [email protected] of Business Owners (SBO): Statistics for All U.S. Firms by Business Activity by Receipts Size of Firm, Gender, Ethnicity, Race, and Veteran Status: 2007

Women were found to be more likely to indicate that they did not need any

financing to start their business.

Less Access To CapitalD

Presentation created by Michelle Villalobos, Mivista Consulting, Inc. Copyright Michelle Villalobos, 2011. To reprint, please email [email protected] of Business Owners (SBO): Statistics for All U.S. Firms by Business Activity by Receipts Size of Firm, Gender, Ethnicity, Race, and Veteran Status: 2007

Use Of Personal Savings & Personal DebtD


Lower Risk Tolerance(more on that in PART TWO)


D


Choice of Industry


Women-owned businesses are concentrated in industry sectors that are

dominated by firms that are smaller in size and in sales. Average sales and

payroll within industries where women own businesses are typically lower than

those where men own businesses.

D


Female Values & Characteristics in Business

Part Two

• A: The Female Brain• B: How Girls Are Socialized• C: Female Values That Support Business

Success• D: Conclusions


The Female Brain

A


“Gender is the most powerful determinant of how a person views

the world and everything in it. It’s more powerful than age,

income, race or geography.”

- Why She Buys, Bridgett Brennan


“...women live in a distinct female

culture with its own standards of

behavior, language, priorities and value systems,

that can be as difficult for men to detect as a dog

whistle.”

Why She BuysBridgett Brennan


“...yet men have 6.5 times as much “gray

matter,” associated with information processing, which is a clue to some researchers as

to why guys often excel at mathematics and spatial

reasoning.”

Empathy / “I know how you feel”

Oxytocin


How Girls Are Socialized

B


Sex differences in the brain are actually small... but life, society & culture magnify them over time.


Girls vs. Boys

• Mothers discourage physical risk taking more in daughters than in sons

• Energetic boys feed off one another, whereas energetic girls tend to settle down in clusters of more docile friends

• Girls are not as encouraged to compete overtly as boys are

• Men and boys score higher on measures of physical and verbal aggression

• Girls and women score higher on most measures of empathy (awareness and sharing of other’s emotions)

• Boys are “toughened up” in a way girls rarely are, leaving girls more expressive and more attuned to others’ feelings




Being independent, competitive and dominant are qualities that are encouraged in boys (and

often discouraged in girls)


The Military = nearly perfect microcosm of

male culture in action and

“arguably the precursor to

modern corporate culture.”*

Characteristics:- Status

- Hierarchy- Command/control

- Winning/losing- Victor/vanquished

* Why She Buys, Bridget Brennan


If a woman wanted to play with the boys, she had to do it on their terms, and turf


Aside from learning new skill sets,

adapting to the male-designed,

male-dominated business world may

require acting “tough” and

ignoring or hiding emotion.

Sometimes this feels like an uphill battle.


Female VALUES that can support SUCCESS in business

C


Women want to succeed just as much as men... but they define success differently.


Passionate about their purposes.


Female social networks =

perfect for viral spreading


Affinity for “Self-Help” (i.e., like asking for directions or getting expert input)


A tendency to favor collaboration as a way to solve problems or achieve a goal


Creating successful

relationships is important to

women.

Building networks is an

innate skill and brings

joy. It is also a cornerstone of successful

business practices.


For women success is sweeter

if it benefits the people or causes they care about.


Conclusions• Women-owned businesses overall earn less than male-owned

businesses - about 55%

• Women have the skills they need, and that the business world increasingly values, to reduce the disparity in their earnings

• Much of what “holds women back” could be reframed and propel them forward instead

• Mentorship and collaboration can support these efforts

• It is essential that our business culture focus on educating, supporting and nurturing female business owners

D