Women Business Owners Steal A March On The New Economy.

Research sponsored by IBM finds successful women entrepreneurs require greater access to capital and business training to support their business growth.

Women entrepreneurs represent one of the fastest growing segments in the UK economy, according to IBM sponsored research published today by Strathclyde University in collaboration with the National Foundation for Women Business Owners. Women entrepreneurs are creating a more gender-balanced business marketplace through a rapid increase in the number of women-owned business start-ups, the research finds. More than half (58%) of the women surveyed have owned their businesses for ten years or fewer, while only 10% have owned their businesses for 21 years or more.

The IBM sponsored research into the activities of women entrepreneurs in the UK shows that the proliferation of women-owned businesses is occurring despite a gap in access to capital between men and women business-owners. The percentage of personal savings used to finance business start-up is significantly higher amongst women (80-99%) than men (30-59%), and women business-owners are currently less likely than men to have used either bank overdrafts or a business loan over the past year. The research also finds women entrepreneurs eager for business education and technology training. They are quick to recognize the importance of business knowledge in the
execution of any successful business plan, and the need for up-to-the-minute IT skills to compete in an ever-increasing technology-based business environment.

“Our research shows that, not only are more and more women operating businesses throughout the UK, but – and perhaps more significantly – they are making a significant contribution to the shaping of the New Economy” said Dr. Sara Carter, Reader and Deputy Head of the Marketing Department at Strathclyde University, and author of the report. “It is clear from our survey that more and more women are breaking into what has, until relatively recently, been a predominantly male marketplace.

This is very positive news. But our research also signals a rising demand for business training amongst women entrepreneurs – a message we are keen to spread amongst those organizations, such as IBM, who support women business-owners.”

IBM recognizes the important contribution women are making to the New Economy, and is proactive in addressing their business needs. To address the discrepancy in access to capital, women business-owners can draw on the resources of IBM Global Financing to fund any IT development. Meanwhile on May 15th, IBM is holding free one-to-one technology consulting sessions for over a hundred women business-owners to help build on the business and technology knowledge base of these successful women entrepreneurs.

“The rapid expansion of women-owned businesses, and the emerging trend towards women entrepreneurs within the marketplace identified in this survey is very encouraging” said Cherie Piebes, Global Market Executive for IBM’s worldwide Women Entrepreneur Division. “This research shows a clear division between men and women in the importance placed on business and technology training. Women quite rightly see additional business and technology training as an important element in the setting up and running of a new business venture, that can give them a competitive edge in the business marketplace. In conjunction with these successful and ambitious businesswomen, we can work towards creating a more gender-balanced business marketplace.”

The key findings of the research are:

Women on the Move: Women entrepreneurs are “on the move”, making a significant contribution
to the New Economy. One third (32%) of women business-owners have owned their firms for five years or less, compared to just 21% of men.

Business Size: Women owned-firms are expanding in size as well as in their share of the marketplace. In 1998, 28% of women business owners had zero employees but by 2000 this had fallen to 20%. Furthermore, during the same period there was an increase in the number of women-owned businesses in the 1-9 and 10-49 employment size categories.

Finance: At business start-up, men are more likely than women to use a bank overdraft as a source of capital, and at present men are more likely than women to have used an overdraft or bank loan over the past year for business purposes.

Training and Education: More women than men are concerned with obtaining training and education in business, management, and technology issues. Women are also more likely to rate government funded business support services as either a very or extremely important business issue. Information Technology

Technology: Women business owners are making extensive use of technology to help their businesses grow and compete. 83% of women business-owners use computers in their businesses and 37% have a website. 60% of women use the Internet for communication, research, and e-commerce, and 26% sell their products or services online.

Business Ownership: Women are much more likely to be sole owners of their businesses (59%)
than men (38%), who generally tend to have at least one business partner (51% of men compared with 34% of women).

The Appeal of Entrepreneurship: Over and above the greater independence and self-determination that both men and women derive from owning their own businesses (76% of women and 77% of men), women consider increased flexibility (54% against 35%) and a greater ability to balance professional accomplishments and family responsibilities (40% compared with 22%) to be an additional attraction of entrepreneurship.

Following on from this research, IBM and everywoman.com will host the “Business Women on the Move” conference in London on 15th May 2001, with keynote speeches from leading UK businesswomen. The conference will provide insights on successful management and leadership styles, innovative risk-taking ventures, and new strategies for running and growing a business
with Internet and computer technologies. For further information on this conference, please visit the IBM website at: www.ibm.com/businesscentre/businesswomen.

About the Research

The research was conducted by Dr. Sara Carter and Ms. Susan Anderson of the University of Strathclyde, and was sponsored by IBM. 2,000 female and 2,000 male business owners were issued with a questionnaire based on one designed by the National Foundation for Women Business Owners. The results of the research are based on the returns of 1155 respondents, of which 531 (46%) were female business owners and the remaining 624 (54%) male business owners.

The National Foundation for Women Business Owners (NFWBO) – a non-profit research organization – is the premier source of information on women business owners and their enterprises worldwide. NFWBO provides original, groundbreaking research to document the economic and social contributions of women-owned firms. NFWBO is a cutting-edge knowledge source for those
government policy makers, educators, organizations, media professionals, and individuals looking to strengthen their support of women entrepreneurs. For additional information about NFWBO and its research, visit www.nfwbo.org.

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