Entrepreneurship Key For Women!
Women are leaving the workforce in droves in favor of being at home. Not to be a homemaker, but as job-making entrepreneurs.
By Natalie MacNeil
A quiet revolution is taking shape right now among women. Unlike the Quiet Revolution that began in the 1970s which saw women leave the home and enter the workforce in droves, women today are leaving the workforce in droves in favor of being at home. But unlike generations of women before, these women are opting to work in the home not as homemakers—but as job-making entrepreneurs.
Women have been starting businesses at a higher rate than men for the last 20 years and tend to create home-based micro (less than 5 employees) and small businesses. Women will create over half of the 9.72 million new small business jobs expected to be created by 2018 and more and more are doing this from home offices across the country. It’s a surprising statistic, especially considering that women-owned businesses only created 16 percent of total U.S. jobs that existed in 2010.
Elaine Pofeldt 3/29/2013 Contributor
I cover serial entrepreneurs and their ecosystem
New research by the loan broker Biz2Credit reveals some bad news about women-owned businesses: They have higher operating expenses, slimmer margins and lower credit scores than male-owned firms the same age. And they have loan approval rates that are 15% to 20% lower.
Biz2Credit studied 14,000 businesses that sought funding through its online platform. Women make up about 29% of applicants on Biz2Credit.
Some of the differences are significant. The women-owned firms had 15% lower annual revenue, and operating expenses that are 21% higher.
These findings may not reflect all women-owned firms–after all, businesses seeking credit may need it because they have cash-flow problems–but they should not be ignored.
What explains the results? Rohit Arora, CEO of Biz2Credit, says that in his experience, many women business owners start out borrowing for their businesses on personal credit cards, instead of establishing credit in the name of their businesses. Result: They fail to build a great credit score for the business.
That has long-term consequences. If they later apply for a loan, their lower credit scores put them in a weaker position. Those who get loans may qualify for less-attractive interest rates. ”Banks are gender-blind, to a large extent,” he says.
Inspiring Video for Women Entrepreneurs
Angela Jia Kim
For discussion as to how to pursue your dreams on entrepreneurship I invite you to email me on firstname.lastname@example.org or call me n 407-749-9395.
Small Business Consultant