Women-owned small businesses showing strong growth, resilience
By BuildMyBiz on October 12th, 2012
October 12, 2012 in Women Entrepreneurs
In the United States, the number of small businesses that are run by females is steadily increasing. These successful women entrepreneurs are seeing more opportunities for small business funding as they expand their operations. Their firms are bringing on more employees, offering new or improved products and services and marketing to potential customers in effective ways. Despite these triumphs, female-run companies do still face some challenges. This can be in the form of being outperformed by their male-owned counterparts or attempting to juggle families along with work responsibilities. However, women business owners are proving to be resilient during these difficulties.
Increase in American female-run small businesses
According to the most recent U.S. Census Bureau statistics, in 2007 there were approximately 7.8 million companies that were owned by females, reports Reuters. Of this amount, 90 percent were small businesses. A study from the Economics and Statistics Administration found that between 1997 and 2007, firms that are run by women experienced a growth rate two times more than that of male-owned small businesses. This represents a 44 percent increase for women owned developing entities, compared to the 22 percent for firms with men owners.
However, these successful women entrepreneurs are still coming across difficulties. The news source states that when it comes to revenue, female-owned businesses most of the time do not perform as well as companies run by males. According to a study by the Center for Women’s Business Research, women-run firms bring in only about 4 percent each year of all revenue that is generated by American businesses. Men are twice as likely to oversee a company that generates $1 million in revenue than women.
Industry experts believe that one of the causes of this lack of money for women entrepreneurs could be due to the fact that they generally do not own businesses that attract venture capital firms and other investors, Reuters reports.
Options for small business funding
So what options do female entrepreneurs have when it comes to small business funding? Business 2 Community suggests that owners look into the resources provided by the Small Business Administration’s Office of Women’s Business Ownership. The organization doesn’t extend loans, but it contains a vast amount of information pertaining to financing options for female-run companies.
Additionally, the source recommends that entrepreneurs can consider the products provided by alternative and micro-lenders if they need money for business-related operations.
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