Starting a small business is a great way for people to take control of their schedules, maximize their income and explore their full potential in their careers and personal lives – and the benefits of small business ownership appear to be particularly strong for women entrepreneurs. According to The Business Journals SMB Insights 2015 white paper, women entrepreneurs are making big gains compared to other business owners and also compared to women who do not own their own companies.
Here are a few key findings from the Business Journals’ white paper that show why women entrepreneurs are seeing some significant advantages in small business ownership:
Women Entrepreneurs are Wealthier than Employees
Many women might wonder if quitting a job to start a business, or starting a business after a layoff, is going to be a good financial move. They might wonder if they can make as much money at their own business as they used to make at their old job. While the transition can be stressful and uncertain, the Business Journals’ survey found some very good news: women tend to make a lot more money as business owners than they do as employees. In fact, women business owners have household incomes 56 percent higher than other full-time working women. Women business owners also enjoy a higher average household income – $144,000 per year – compared to $92,000 per year for full-time working women, and $74,000 for U.S. women overall.
A Rising Share of Businesses are Women-Owned
Women-owned businesses are having a much higher rate of growth than U.S. businesses overall. The number of women-owned businesses increased from 7.8 million in 2007 to 9.9 million in 2012, a 27.5 percent growth rate – compared to a growth rate of only 2 percent for all U.S. businesses.
Women Entrepreneurs are Social Media Savvy
Women entrepreneurs are slightly more likely than men to use social media networks for their businesses – 74 percent of women-owned businesses compared to 69 percent of men-owned companies. Women are also more likely to convert social media audiences into paying customers: 35 percent of women-owned businesses generated revenue from social media, compared to only 23 percent of men-owned businesses.
Women are Driven by Values
One reason why many people want to start a company is so they can do business differently or take a better approach to doing business and serving customers by doing business “the right way” that suits their values. This values-focus is especially apparent for women entrepreneurs. 63 percent of women business owners say they “want to do business with companies that I respect” (compared to 48 percent of men business owners) and 56 percent of women entrepreneurs say that they are trying to make sustainability an integral part of their companies’ products and services (compared to 50 percent of men).
Although women small business owners also face unique challenges and stresses (higher percentages of women than men business owners reported feeling concerned about spending enough time with family, dealing with demands on their personal time and managing daily stress levels), in many ways, this small business owner survey depicts an encouraging vision of women entrepreneurship. Women business owners have the chance to make more money, have more control of their schedules, make big decisions for their businesses and run their companies with an emphasis on values and personal priorities for how to do business the right way.
For more details, read The Business Journals SMB Insights white paper.
Does running your own small business sound like a good way for women to “have it all?” Leave a comment and let us know what you think! If you’re interested in learning more about Kabbage, visit our business loans for women page.