Some people subscribe to the stereotype that woman bosses tend to be, well, witches. Those who do will be sorely disappointed to learn that women-owned businesses are on the rise and so is the likelihood of working for a female employer. Currently, 8.6 million women-owned businesses in the United States employ 7.7 million employees, or 40% more people than McDonald's, IBM and Wal-Mart combined. Woman-owned businesses are finding success by overcoming obstacles with the help of benefits afforded them by the government while breaking down old stereotypes like the aforementioned assumption that women bosses are somewhat shrewish.
Women-owned businesses face a bevy of boulders on the road to success. Statistically financial institutions, even now, favor lending money to male management. According to a study by Biz2Credit, women-owned companies are 15 percent to 20 percent less likely to be approved for small business loans to businesses led by men. "Women tended to be more involved in retail operations, which generally have higher operating expenses and smaller margins. This may also account for their lower credit scores," Biz2Credit’s CEO, Rohit Arora said, "Banks look at these figures and thus find women-owned businesses more risky to fund, which accounts for the lower loan approval rates for women." Some banks understand this and are seeking to assist female entrepreneurs. In March, Wells Fargo committed to lending $55 billion to women-owned businesses by 2020. “Women-owned businesses are among America’s fastest growing segments, and we are honored to support their role in shaping the future of small business,” said Lisa Stevens, Wells Fargo lead executive for Small Business and West Coast Regional Banking president, “As a leader in lending to women, Wells Fargo is dedicated to helping women succeed financially — in business and personally.”
Businesses that are certified as woman-owned are able to take advantage of additional assistance from the government, including loans and contracts designated to help disadvantaged business owners. In government standards being a woman is considered a disadvantage when it comes to business which can be considered offensive to some empowered female employers. This deters many women CEOs from taking the steps to certification but they’re only selling themselves short. Female business owner, Tama Starr saw the light after a male employee explained it to her like this, "If a job is set aside for guys named Jimmy, my name is Jimmy, I'll take it!"
Pride isn’t the only problem women–owned businesses are facing. Women’s sense of humility can hold them back just as much. Tierra Kavanaugh Turner runs a business matching clients and companies and she says all too often women sell themselves short. "We know what our clients are willing to pay and so many times we have top, female candidates that will almost come in 20-to 25-thousand dollars less," she said. "So it's really upon women to understand what they're worth, to demand it, to require it and learn how to negotiate it." Because of this attitude it’s hard for women-owned businesses to break through the $500,000 benchmark but it’s not impossible. Companies like Turtle and Huges, Inc. J & R Music and Computer World, and Eileen Fischer, Inc. have repeatedly brought in revenues ranging in the hundreds of thousands each year.
Female business owners are starting to catch on and adjusting their business strategies to find success. According to Inc.com, “Women-owned businesses with $1 million or more in revenue are more likely to have large corporations (34%) and government (31%) as their primary clients.” Other sectors are catching up though including retail, educational services, health care, social assistance, entertainment and recreation. In 2012 women-owned firms combined generated revenues of $1.3 trillion and compared to an overall rate of 5%, 2% of women-owned businesses continue to bring in more than $1 million in annual revenue.
The future looks good for female business owners as long as they stay out of their own way. It’s important for them to learn to lean on someone sometimes, accept assistance when it’s available and try not to be too much of a witch at work.
Photo courtesy of FreeDigitalPhotos
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