Women Entrepreneurs

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Where do women stand when it comes to business, most will tell you they once again open a business to “pursue a passion,” above any other reason. Four of every 10 U.S. businesses are owned by women, with female-led businesses having grown a spectacular 58 percent from 2007 to 2018.

In a State of Small Business survey of more than 2,700 men and women small business owners and entrepreneurs, Guidant Financial uncovered that women business owners have significant differences from their male counterparts. The survey shows that women entrepreneurs are younger and more educated, plus more resourceful in where they find funding.

The survey uncovered many results such as:

#1 motivation for opening a business: “wanted to pursue my own passion” followed by “ready to be my own boss”

33% report their happiness level at a 10 (10 being the highest) followed by 22% at an 8

Top 5 small business industries: #1 health, beauty, fitness #2 food/restaurant #3 Business services #4 general retail and #5 education

Confidence in political climate: 17% rate it an 8, 16% a 10

Top 6 challenges for small business owners: 35% report lack of capital, 16% marketing/adv, 14% time management, 12%adminstrative work, 11% recruiting/retaining employees and 6% managing/providing benefits

 

While boomers rule small business ownership as we saw in the 2019 Small Business Trends report, women in small business skew younger than their male counterparts. Fifty-two percent of female small business owners are over 50, compared to the 59 percent of men. Women overtake men in the 40 to 49 segment at 29 percent to 24 percent. While there is a larger percentage of female millennials than male, the difference is lower than other segments, with just 19 percent women versus 17 percent men.

Women are more interested in starting new businesses or franchise locations instead of purchasing pre-established businesses of franchise locations, with 58 percent of women starting their business from scratch

The profitability of woman-owned businesses is up by 3 percent from the prior year but still lags behind male-owned businesses. Seventy-one percent of female-owned businesses reported profitability, compared to 80 percent of male-owned businesses.

Women tend to be more educated than men as well. Seventy-two percent of female business owners have a higher degree, compared to 64 percent of male small business owners.

Cut and pasted below is a full press release and info graph about the survey, which we hope you will find of interest.

In addition, we encourage you to contact us to speak directly to Guidant Financial CEO David Nilssen who can provide a wealth of knowledge on the survey as well as how women can get started and grow their businesses. Please contact me should you want more information, have any questions, and the survey infograph artwork (there is a link provided in the release as well).

Best,

Stacia Kirby, Kirby Communications
206-363-1492
Stacia@kirbycomm.com

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Women Entrepreneurs are Increasingly More Diverse and Educated Compared to Men
Guidant Financial and LendingClub Release 2019 Women in Business Report

BELLEVUE, WA (March 11, 2019)  A survey conducted by small business financing company Guidant Financial and online credit marketplace LendingClub Corporation (NYSE: LC) reveals how female entrepreneurs and small business owners increasingly differ from their male counterparts. The companies teamed up to survey more than 2,700 current and aspiring small business owners across the nation.

“The data clearly shows that women entrepreneurs are younger and more educated, plus more resourceful in where they find funding,“ said David Nilssen, CEO of Guidant Financial. “We anticipate that business ownership by women will continue to grow and evolve in exciting new ways.”

Key findings include:

25 percent of female small business owners are African-American. Only 14 percent of male small business owners are African-American.

Women entrepreneurs skew younger than their male counterparts.
52 percent of females surveyed were over the age of 50, compared to 59 percent of men.
29 percent of females surveyed were between 40 and 49, compared to 24 percent of men.
19 percent of females surveyed were under the age of 40, compared to 17 percent of men.

Nearly 3 out of 4 (72 percent) of female small business owners have pursued higher education, compared to 65 percent of their male counterparts.

38 percent more women than men have Associate’s degrees.
20 percent more women than men have Master’s degrees.
3 percent more men than women have Bachelor’s degrees.

Both 4 percent of male and female small business owners have Doctorate degrees.

Women are 48 percent more likely to be concerned about the effects of the political climate on small business than men.

Female ownership in health, beauty, and fitness businesses increased 55 percent year over year, while food-related businesses and restaurants increased by 45 percent year over year.

The most popular industries for women-owned small businesses:

1) Health, beauty, and fitness 2) Food-related and restaurant 3) Business services 4) General retail 5) Education

36 of women small business owners use cash to get their business off the ground, compared to 32 percent of men. Funding from friends and family is the next most popular form of financing for women, at 17 percent compared to men’s 11 percent.

An accompanying white paper and infographic can be found HERE

Methodology
Between November 6, 2018 and November 16, 2018, Guidant Financial and LendingClub conducted an email survey of more than 2,700 male and female small business owners and aspiring entrepreneurs from the continental U.S., Alaska, and Hawaii. Ages of respondents ranged from 18 to over 70.

About Guidant Financial
Headquartered in Bellevue, WA Guidant Financial helps business owners secure financing to start, buy or grow a business. An industry leader in business and franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate and deploy customized financing solutions. Their services include, but are not limited to, 401(k) business funding, SBA loans, unsecured credit, and portfolio loans. In total, Guidant has helped over 20,000 entrepreneurs in all 50 states to invest more than $4 billion in funds to start small businesses, resulting in more than 85,000 U.S. jobs created. Visit Guidant on the web at guidantfinancial.com.

About LendingClub
LendingClub was founded to transform the banking system to make credit more affordable and investing more rewarding. Today, LendingClub’s online credit marketplace connects borrowers and investors to deliver more efficient and affordable access to credit. LendingClub’s technology platform creates cost efficiencies, which are passed onto borrowers as savings in the form of lower rates and to investors in the form of risk-adjusted returns. LendingClub is based in San Francisco, California. Loans made by WebBank, member FDIC.