Women-Owned Businesses Continue To Expand Faster Than The Economy.

The U.S. Census Bureau’s “1997 Survey of Women-Owned Business Enterprises” shows that the growth in the number of women-owned firms, employment, and revenues continues to exceed the rate of growth of all businesses.

Due to a change in the way the Census Bureau defines a woman-owned business, the new Census report does not count some firms that were included in the past – those in which a woman owns 50% of the business and publicly-traded women-owned firms. The agency is now counting only privately-held, majority-owned firms.

However, regardless of how a woman-owned business is defined, the newly-released Census data continues to show growth in the number and economic contributions of women-owned businesses. In particular, the expansion in employment and revenues of women-owned firms between 1992 and 1997 is significantly higher than the growth in the number of firms.

“These growth trends among women-owned businesses documented in the Census Bureau’s new report are consistent with earlier Census data and NFWBO’s 1996 and 1999 estimates,” said Nina McLemore, NFWBO Chair and President of Regent Capital. “What this tells us is that no matter how women-owned businesses are defined, these firms are growing larger and more substantial, and are making greater contributions to the economy.”

“The Census Bureau report paints an incomplete picture of women’s business ownership in the U.S.,” McLemore continued. “While firms qualifying for government procurement are required to meet a 51% ownership standard, this narrow definition leaves out a significant number of dynamic, economically-powerful women-owned firms. The Census Bureau report eliminates from the count firms in which women, by virtue of sharing equity with investors to grow their businesses, now own 50% or less of the business. All women-led enterprises that are publicly-traded are also omitted from the Census count.”

Elisa Arévalo Boone, Vice President, Wells Fargo noted that, “Our bank understands that the women-owned business market is a much larger audience than just the firms that are privately-held or in which a woman owns 51% or more of the firm. In fact, our goals of lending $10 billion over 10 years and offering other financial services for women-owned businesses regardless of the size of business or percentage ownership is designed to help them expand their businesses.”

For over a decade, NFWBO’s research has tracked such issues as access to financing, access to international and government markets, uses of technology, and management and decision-making styles. “NFWBO’s research on these subjects includes women who own and have daily management control of their firms, even if they are not majority owners,” explained Myra Hart, DBA, NFWBO Vice Chair and Professor of Entrepreneurship, Harvard Business School. “Many of the most successful women-owned businesses have grown by sharing equity with outside investors.”

“NFWBO’s research on businesses in which women influence and shape their firms by managing them on a daily basis documents the characteristics and management practices of these businesses that are a vital part of our economy – in the U.S. and worldwide,” Hart continued. NFWBO’s original, groundbreaking research is used by corporations, financial institutions, government agencies, academic institutions, and women business owners to develop programs and shape policies.

NFWBO will soon issue a more detailed analysis of the Census Bureau’s new report, and will release 2001 estimates of the number and growth of women-owned businesses this Spring.

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