Female entrepreneurs make an outstanding contribution to the Canadian economy, their local communities and their families. It takes a special combination of skill and ability to manage the demands of entrepreneurship or self-employment while maintaining a healthy work-life balance. Women seem to be masters of multi-tasking – running a small business, many from home, while juggling the demands of young families and aging parents. Many men have these abilities too, but the success rate of female-run micro-businesses is higher than that of men – making us want to investigate the characteristics of female business owners more closely. Let’s look at some recent research on female entrepreneurship and success rates from Dr. Robert Hisrich’s The Female Entrepreneur:
Female entrepreneurs as a whole undertake more research and planning in the pre-start-up stage of their businesses. Women are generally willing to spend more time to lower the risk of an action than are men. This is one of the reasons for the higher level of success of female-run businesses – we know that planning, research and preparation is associated with higher levels of success in small business.
Women are in general well organized and good time managers – additional demands placed on women due to multiple and overlapping roles they may fill in their lives, particularly if they have a family. Small business success requires development of exceptional organizational and planning skills, and women who hone these skills in their daily lives seem to transfer them naturally to business.
Women tend to be more conservative and manage cashflow and budgets well, particularly in the early stages of business development. This bodes well for the bumpy ride of early-stage entrepreneurship, when making do with what you have or stretching your dollars can mean the difference between success and closing up shop.
Women, in general, are more likely to seek advice and counselling in business sooner and more often than are men. The propensity for men to try and figure it out on their own in business is one of the factors that lead to higher levels of business failure for men.
Women’s communication styles are more likely to be collaborative than competitive. Women emphasize relationship-building, team-building, collaboration and co-operation more often than men in business.
Of course, Dr. Hisrich points to areas of weakness for most female entrepreneurs as well. Things we need to work on are: negotiation skills, developing stronger business networks, taking more calculated risks (like obtaining a loan to grow a company’s product line or marketing strategy), and becoming more comfortable with the financial and accounting functions of our companies. In 2010, we compiled a list of challenges faced by female entrepreneurs, and we think many of them are still prevalent today.
Do you have any female entrepreneurship success stories? Are you, or do you know, a female entrepreneur who’s got a great small business? Sound off in the comments!
According to a report released by the Taskforce for Women’s Business Growth, women owned 47% of Canada’s 1.6 million small and medium-sized enterprises in 2007. This translates to over $117 billion per year of activity in our country’s economy.
The Taskforce for Women’s Business Growth – a “non-partisan consortium of prominent women business owners, SME service agencies, academics, and industry associations” – has created a strategy to help support the growth of women-owned businesses. Their recommendations include:
Create a national women-focused economic development strategy. This includes creating small business education targeted to women and holding an economic summit where female entrepreneurs can network and share economic best practices.
Create programs to develop and increase involvement in foreign trade.
Implement programs for female business owners to leverage supplier diversity.
Support women entrepreneurs’ financial literacy and increase access to capital.
Increase the adoption of technology in women-led firms through training and other incentives.
A 20% increase in total revenues from women-owned businesses can translate to a $2 billion per year increase in Canadian economic activity, according to the report. It’s a corner of Canada’s business world with outstanding potential.
To learn more about the Taskforce for Women’s Business Growth and download the roundtable report, visit their website.
At GoForth Institute, we’re strong proponents of entrepreneurship education in developing countries. It’s a great way to help people create sustainable growth in their communities.
For this reason, we were excited to come across a blog post on Babson College’s site, talking about The US-Saudi Women’s Forum on Social Entrepreneurship, their partnership with The Wellesley Centers for Women at Wellesley College, Dar Al Hekma College, and ICF International. In this one-year program, young women from Saudi Arabia were taught all the skills they need to become social entrepreneurs. They learned about social entrepreneurship, developing leadership skills and how to create business plans. They then launched their business ideas with the support of the program.
This month at GoForth Institute, we’re highlighting women in small business. With good reason, too – women own or manage 40% of Canada’s businesses and are starting small businesses at a record rate. However, with every type of entrepreneurship comes a unique set of challenges, and female entrepreneurs are no different.
What are the major challenges faced by women entrepreneurs?
A woman who starts a small business faces many of the same challenges encountered by any entrepreneur:
However, women who start small businesses also face a host of challenges unique to female entrepreneurs. Women are typically the primary caregivers of children and still tend to earn less than men, meaning that women starting a small business have even more to think about.
Giving women entrepreneurs the tools for small business success
At GoForth Institute, we’re entrepreneurs too. This means we’re committed to giving all entrepreneurs the tools they need to make sure the small business they’ve started has the best chances for success. We offer leading small business online learning programs, which are great for many women-owned small businesses – like home-based businesses. Women who have become self-employed or who have busy work/life schedules need only spare 10 hours in total to get comprehensive small business training from entrepreneurs who’ve been through the same things themselves!
The Canadian government is also making strides in supporting women in business, with initiatives such as business loans for female entrepreneurs and women-only networking events. Of course, businesses themselves love to support female entrepreneurs – check out the RBC Canadian Women Entrepreneur Awards as an example.
If you’re a woman in business, what unique challenges have you faced? Let us know!
Canada has the highest proportion of self-employed women in the world! In Canada, 821,000 female entrepreneurs have provided 1.7 million jobs since 1996, proving that women make key contributions to their local and national economies, communities and families through small businesses they’ve started.
The success rate of female-owned micro-business higher than that of men.
“Micro-business” refers to businesses that have fewer than five employees. Home-based businesses and self-employed professionals often fit into this category. So why do micro-businesses operated by women have higher rates of success? In our research, we uncovered a few key differences in the way women entrepreneurs operate:
Women entrepreneurs as a whole undertake more research and planning in the pre-start-up stage of their businesses. We know that planning, research and preparation is associated with higher levels of success but why would women do more planning in business than men? Women are generally willing to spend more time to lower the risk of an action than are men.
Women are in general well organized and good time managers – additional demands placed on women due to their multiple and overlapping roles as wives, mothers, sisters, friends and business owners requires development of exceptional organizational and planning skills. These skills are transferred into their businesses.
Women tend to be more conservative and are better managers of cash flow and budgets, particularly in the early stages of business development. Why lease a new vehicle to look more successful when the old clunker will do just fine for now?
(Read more reasons for female-owned small business success in this month’s Message from the President – a female entrepreneur herself!)
Check out our May newsletter for more articles about outstanding female small business owners. Let’s hear from you – who are some female small business owners that inspire you? Are you a woman who has started a small business? Do you have any advice for women on how to start a small business? Leave a comment and let’s chat!