In 2016, the Global Entrepreneurship Monitor (GEM) reported that over 200 million women across the globe had ventured into starting and running their own business. Although GEM had previously found there were 50 percent more men who became entrepreneurs, the gender gap in entrepreneurship started narrowing between 2012 and 2014.
Until it came to be that in many nations, women had demonstrated the ability to make good in business just as their male counterparts. Through the years, women entrepreneurs have been introducing innovative products and services that have driven economic growth. They were able to create jobs that allowed many in their communities to provide for their families.
Today, the latest studies show that female-owned businesses in the U.S. alone, have gained momentum. Sharon Miller, the current head of Small Business Dept. at Bank of America, reported that for the first time in four years, they now find women more optimistic about their revenue prospects, not only in terms of employment, but also on business growth.
In analyzing the 2019 Bank of America report to determine the current outlook for female entrepreneurs throughout the country. Ms. Miller found that of the 1,323 businesses they surveyed, 524 were female-owned. Most of whom have businesses dealing with consumer products, in practicing their profession or in rendering personal services.
Seventy-three percent (73%) of the female entrepreneurs they surveyed had plans to expand their business in anticipation of revenue growth. In contrast, only sixty-six percent (66%) of the male entrepreneurs surveyed are contemplating business expansion plans.
In a similar report, Courtney Kelso, the Senior Vice President of American Express added that in 2019, the number of female-owned businesses grew by 21% since 2014. Their report further broke down the analysis, which showed businesses owned by women of color grew by as much as forty-three percent (43%); of which enterprises owned by black females, grew at a faster rate of fifty percent (50%).
What Makes Female Entrepreneurs Different from Male Entrepreneurs?
A research article about an explorative study comparing the characteristics of male and female entrepreneurs, presented several differences on how men and women handle their business. The study published by the Journal of Entrepreneurship & Organization Management, was conducted by Dr. Abdulwahab Bin Shmailan, an Associate Professor of the Department of Management and. Information Technology at Jubail. Industrial College,in Saudi Arabia,
Dr. Bin Shmailan noted that male entrepreneurs tend to make quicker decisions because female entrepreneurs are inclined to devote more time in making decisions. His analysis also found that male entrepreneurs are more focused on profit driven ventures. Female business owners on the other hand, also take social contribution into considerations by making sure they are offering quality products.
When it comes to dealing with employees, male business owners are more task oriented than their female counterparts because women entrepreneurs tend to put more value into good employer-employee relationships. In most cases, women business owners are not as willing to undertake financial risks as do their male counterparts.
Based on our perception of those differences, it is apparent that female entrepreneurs typically follow a business plan that they developed beforehand, or hired a professional business plan writer to develop one for them. A business plan, after all, is essential when strategizing for costs and revenues, in evaluating priorities and in planning ahead for specific action points, or contingency plans to take, in case something out of the ordinary transpires.