ENTERPRISING WOMEN
By: Sandy Licata Bartow and Leigh Klein

Women as entrepreneurs -- sound foreign? Not any more! Entrepreneurship in the United States and around the world is at an all time high as individuals leave large corporations in record numbers to start a business. Women are leading this revolution. The Center for Women’s Business Research reports that in 1973 women owned just 6 percent of businesses. Today women have controlling interest in 46 percent of businesses, hire 27.5 million people and generate $3.6 trillion in annual sales.

This phenomenal growth is partially attributed to workplace glass ceilings. But, it’s more likely influenced by quality of life issues; flexibility to control balancing family life and work, an interest in building wealth, and the American dream of owning one’s own business.

The good news is the success rate for women-owned business is 85 percent, which is considerably higher than the overall average for start-up businesses. However, despite their success, the majority of women’s businesses continue to remain small enterprises.

Capital Investment a Factor in Growth

Dun & Bradstreet research reports that 78 percent of women-owned companies employ five or fewer people, compared to 71 percent of men’s businesses. Census Bureau reports also show that women tend to own businesses that are smaller than those run by men. Two percent of women-owned firms had more than $1 million in receipts, compared with 5 percent of all businesses.

Even though recent statistics demonstrate that women are gaining credability within the marketplace, female entrepreneurs continue to struggle against gender-biased myths. Despite women’s increasing levels of educational attainment and experience, some within the business community believe they lack the skills to run a business. Thus, many feel that women’s businesses are primarily hobbies rather than serious investments. These misconceptions are more than a nuisance—they can seriously impede a woman entrepreneur’s ability to obtain capital to finance her business.

Securing outside financing is one of the most common obstacles currently facing women entrepreneurs. Recent studies demonstrate that women-owned businesses are solid financial investments. In 1999 women entrepreneurs received less than 5 percent of venture capital invested in the United States. Unfortunately, some women are uncomfortable acquiring debt in order to establish their businesses and are less likely to seek outside financing to leverage their own companies. Some have defined this as undercapitalization. Being undercapitalized severely limits the growth of a business, and is one of the main reasons that businesses, especially small ones, fail.

Entrepreneurial Education and Support a Must

For women starting or growing a business, Kansas City offers top-notch resources including the Kansas Women’s Business Center, the Missouri Women’s Business Center, Service Corps of Retired Executives (SCORE), KC SourceLink, NAWBO, and the Small Business Administration. These and other organizations provide free counseling and support.

The positive economic impact that women business owners are making is clear. To maintain and accelerate the impact, it is vitally important for those interested in entrepreneurship to have access to education, capital and networks—it does make the difference between success and failure.

Sandy Licata Bartow is Executive Director of the Kansas Women’s Business Center and a small business Instructor for Wayne State University. Leigh Klein is Development and Marketing Manager at the Kansas Women’s Business Center. Either can be reached at 913.492.5922.

Checklist for Success

1. A well crafted business plan
2. Attracting and retaining good employees
3. A unique niche that focuses on market needs for a particular product or service
4. Beneficial relationships with bankers and suppliers
5. A strong team
6. Solid understanding of the financial position of her business
7. Willingness to, and understanding how to seek capital to support her business
8. Knowing when to ask for help and having community resources available to address all barriers to success

Article Source: http://www.flourishmagazine.com