Women Business Owners Are Savvy Risk Takers.

Many women business owners – now numbering 10.6 million nationwide – are willing to take substantial financial risks to ensure the success of their business, says a new study from the Center for Women’s Business Research underwritten by Wells Fargo. The report, titled “Women Entrepreneurs Savvy About Risk,” also says women business owners are much more willing to take risks in running their businesses than in their personal finances.

The more than 400 women business owners surveyed were asked to determine whether they would take substantial or above average risks in regards to their business. Almost one of every four surveyed (21%) said they were willing to take substantial financial risks expecting substantial returns when saving or investing for their business, while 45% were willing to take above average financial risks expecting above average returns.

“This report shows that, contrary to common belief, women business owners are indeed willing to take financial risks in order to expand their businesses,” said Marjorie Alfus, Chair, Center for Women’s Business Research. “In fact, two-thirds of the women in this study were willing to take above average or substantial risks to achieve their growth goals. The success of their risk taking is documented in the dynamic growth rates – employment by women-owned businesses expanding at twice the rate of all businesses (24% vs. 12%) and revenues growing 17% faster than all businesses.”

Risk-taking was consistent among all types of women-owned businesses in the study, regardless of company size, age of business, or personal characteristics of the business owner (age, education, ethnicity, etc.).

However, risk-taking among women business owners looking to expand their businesses is significantly higher than women business owners not looking to expand. This is particularly true of women business owners who seek external capital to expand their business and of those who had successfully sought this type of funding in the past. Twenty-five percent (25%) of expansion-oriented business owners are willing to take substantial financial risks and an additional 51% are willing to take above average risks.

“When I started my business, I took a significant risk by venturing into an unfamiliar and somewhat unknown industry,” said Judi Henderson-Townsend, founder and president of Mannequin Madness, the largest mannequin recycler in Northern California. They provide retailers with an alternative to throwing away their unwanted mannequins in the landfill by renting and reselling used mannequins they get from retailers.

“Four years later, I am looking to expand my business, “ said Henderson-Townsend. “I am confident about this next step, as I believe in this business and am willing to take smart risks to ensure its future success.”

“As women-owned businesses continue growing at twice the national average, it’s important for us to understand the unique factors behind their growth,” said Joy Ott, regional president for Wells Fargo Bank in Montana and national spokesperson for Wells Fargo’s Women’s Business Services program. “Entrepreneurial culture defines this country and the spirit of small business owners in the U.S. today, and nowhere is this better personified than in women business owners.”

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For more information at http://www.womensbusinessresearch.org