The new year is already underway, but we’re still in a reflective mood. We thought we’d share one of our favourite ever blog posts: Six things I learned about business in 2010, by our own Dr. Leslie Roberts. In this entry from 2011, Dr. Roberts shares some pretty important lessons she herself learned about small business in the year prior. We like that her insights are still as relevant today as they were then, and that the lessons were learned from her own entrepreneurship experience. As you likely know, your entrepreneurship experience can surprise you!
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.