Women become more familiar sight among small business owners
By BuildMyBiz on June 9th, 2014
June 9, 2014 in Women Entrepreneurs
The business sector may have once been “a man’s world,” but that era has been over for decades and now more than ever women are stepping up to the plate and running their own businesses. Female entrepreneurs and business moguls are rapidly becoming a formidable demographic of small business owners, and the tide is not likely going to ebb anytime soon. Recent research has shown that the number of female executives is on the rise, and women in powerful business positions tend to be more optimistic about their companies than their male counterparts.
Women work their way to the top
While some disparity between male and female workers may still exist today, that margin is continually narrowing. American Express recently analyzed U.S. Census Bureau data to gain insight into the female demographic of business owners. The “State of Women-Owned Businesses Report” revealed that the rate of women starting their own businesses is at an all-time high. With more than 9.1 million female-run business in the U.S., woman-owned businesses are responsible for employing nearly 8 million people and bringing in a collective $1.4 trillion in revenue.
On a daily basis,an average 1,288 new women-run businesses are started, which is twice as much as the rate just three years ago. The study examined data from the past 17 years and found that the number of female-run companies has jumped by a whopping 68 percent.
“The report clearly shows that women are choosing the path of entrepreneurship at record rates,” Randi Schochet, vice president of brand strategy and activation for American Express OPEN, explained. “Imagine the economic impact if more of these new ventures were transformed into thriving businesses.”
Optimism up across the board, women leading the charge
Another bank-generated report, this time from Bank of America, set out to learn more about small business optimism. The report, which focused specifically on small businesses in the Dallas/Fort Worth region of Texas, found that about 70 percent of female business owners expect increases in revenue, while only 65 percent of male owners felt the same way. Overall, this is a 17 percent increase from last year.
At the same time, men were more likely to believe they should be earning more, as 41 percent felt that way compared to just 35 percent of women. Whether this indicates that women have more realistic expectations or men have higher goals is unclear, but as women business owners are more likely to make new hires in the coming year, they may need to consider strategies to allocate the funding to do so.
Getting ready to add more staff
When planning to bring on new hires, especially in a small business, it is important to establish the infrastructure to do so without hitting speed bumps. For instance, company owners may want to consider establishing human resources for small businesses to help handle the intake process and keep all of their employee information organized and up to date. A small business HR department can also help to set up employee guidelines, from office behavior rules to dress codes and other guidelines.
With more employees comes the added responsibility of paying these individuals. Rather than bringing on even more staff or training current employees in how to do payroll for a small business, it may be more efficient and financially lucrative to outsource payroll for small business to a third-party service. Not only is a payroll company able to keep paychecks coming in a timely manner, but it will provide expert insight into the various rules, regulations, requirements and tax information that can get confusing for small business owners.
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