Did you know that women are better entrepreneurs than men?
There is an emerging assumption that women make good business people as compared to men. There has been debate on whether women make good business people than men, especially considering that businesses which are owned by women are significantly rising. In the current perspective, there is a significant shift in the world of businesses where women are increasingly penetrating the business world that had been previously dominated by men. In particular, more and more women are starting businesses both on the physical market and on the internet and the rate at which many of them are succeeding in relation to their men counterparts is alarming, thus raising the debate on whether women are better entrepreneurs in comparison to men. Previously, women had to compete with men in the business world by incorporating the same characteristics, attitudes and behavior as males. Today women have the kind of liberty which they did not have and this has enabled them to be themselves.
A number of women had had it rough especially when accessing loans, angel funding or venture capital. This has subsequently made it hard for them to run their own businesses and companies and scaling to a new level. This phenomenon has been heightened by a study conducted by Carter & Rosa (2008) which establishes that women are at an increasing odd of being funded to run their businesses as compared to men. Other problems which women encounter in their businesses include deficit in technical awareness in business operations as compared with men, lack of necessary networks in building their businesses, family responsibilities among others. However, these problems have not succeeded in preventing these women from succeeding in the business context.
A study carried out by the Center for Women Business noted that in the U.S, women businesses almost by almost twice the number of all organizations between 2008 to 2014. The author observed that businesses that were exclusively owned by women accounted for 28 percent of all private entities with more than 9.2 million workforces. Further, their contribution to the U.S economy is approximately $2.38 trillion in revenue. In addition, there was a significant rise to the number of sole-proprietorship form of businesses that were exclusively owned by women, net income and gross receipts. In particular, sole proprietorship type of businesses grew from 5.6 in 2008 to 7.5 million in 2008. The positive figures are cited widely by other studies and websites dealing with women business affairs (National Women’s Business Council, 2015).
A number of studies such as that performed by Paribas Global Entrepreneur (2016) found out that women business persons outdid males in a variety of businesses. The focus of the survey was on the ultra-high and medium worth businesspersons a cross 18 nations across the world. According to this survey, 90% of women entrepreneurs had positive expectations that their businesses will stabilize and do well in future. This study went on to indicate that majority of women are able to take calculated risks as compared to men. In particular, the study established that 87% of women are in a position of take financial risks against 73% of men.
In general perspective, women take a realistic approach of risk than men. They carefully evaluate risky situations and adhere to the specified course of actions accordingly. Further, in this analysis, women are not affected by superiority complex while analyzing the risks affecting their businesses. Contrary, they put a realistic perspective on the real status of the businesses and act accordingly when need be. This is a different aspect with men majority of who have a tendency of overestimating their financial growth and success. For example, in this particular study, 42% of women entrepreneurs claimed that their businesses were doing fine, while 62% of men stated that the situation of their businesses was fantastic. Upon closer analysis, the authors noted that the difference in opinion was not really because the men were doing better than women but because of the difference in perceptions whereby; men happens to be overconfident.
Various examples can be derived from U.S context and other parts to showcase women who own quite successful businesses. Among these is Vidger Teresa, the current president of Temporary Housing Directory whose business she began in 2001. Her company, which gives her the flexibility to work from home is currently worth $20 million. Others who have significantly moved to the entrepreneurship ladder include but not limited to Loftus Nicole, President of Zorch International, a Chicago based company dealing mainly with utensils, Sure Shode who runs a brokerage company and Christie Lee, the owner of Oil Chem Technologies L.L.C. There are just a few examples of women who have been successful in this industry.
A study by Abramowicz & Sparks (2007) established that women are able to make more money in business than men. The study also found that despite encountering problems, women who went on to succeed in getting funding to start businesses had a higher rate of success that their men counterparts. Among the reasons cited for these successes were that majority of women happens to be financially conservatives. In addition, most of these women perform thorough preparations prior to investing or initiating businesses. The study went further to support the notion that women are becoming more successful than men in businesses. The study establishes that unlike men, women have a tendency of putting more focus on profitability and controlled growth without much concern on how they can exit lucratively. Furthermore, there is a tendency for women to have preference in investing their profits from business over equity investment in order to scale sustainability.
The study by the Center for Entrepreneurship points out that the reason for the better performance of women in business is that they are good at risk taking when compared to men. The survey found that despite both men and women business owners indicating that they were prepared to take risks in business, women took a leading role where 87% of the women considered themselves as financial risk takers whereas the percentage of men were 73%. On the other hand, 80% of women surveyed were optimistic that their business would succeed when compared to 67% of men who had similar sentiments. Alongside embracing risk, women entrepreneurs were also found to tailor their business strategies after a realistic evaluation of the potential dangers likely to incur the business. Particularly, four times as many women compared to men suggested that there were specific times in business and economy in which they could not take risks (CWLE, 2015).
Carter, and Rosa (2008) postulate that in the current perspective, approximately two-thirds of women who are currently in the C-suite level jobs had an interest in establishing their own businesses within the next two years. On the contrary, only one-third of males had similar sentiments. Among those who were already engaged in the business sector, 47% of the women were interested in initiating another business within the next two years. Only 18% of men had similar sentiments. Further, there is a tendency for women to put more focus and work hard for their businesses to success as compared to men.
Carter, and Rosa, (2008) explains that women makes good business persons for many reasons. First, women have a higher capability of multitasking, and taking various roles simultaneously. Furthermore, most of these women want to ensure that what they are doing is perfect by adhering to high standards. This keenness helps a lot in avoiding unnecessary mistakes and sloppy works.
An observation by the National Women Business Council noted that the type of business also greatly determined the success or failure of women in businesses. In particular, the survey identified that these women were more effective in owning and managing smaller businesses than bigger ones. Moreover, majority of these successful women were operating businesses that were more goal oriented and fulfilling a local need rather than profit seeking. This was contrary to majority of men who have “bigger ambitions” and have a focus of generating as much profit as possible as a show of their effort.
There is no doubt that women are doing better in businesses than their males. In other words, it can be rightly said that women are more competitive than their male counterparts. This view has been supported by a number of studies and surveys done to gauge the competitiveness of both men and women in business matters. These studies have gone on to note that despite working under adverse conditions as well as the many obstacles which they have to face, women still triumph over these and succeed in businesses . As we have already noted, the major reasons behind these phenomena mainly relates to their personality traits and emotional aspects. The positive statistics should therefore inspire and encourage women into initiating and managing business projects.