Men, Women Follow Own Paths to Starting a Business
SAN FRANCISCO -- Businesses owned by women often face different challenges than their male counterparts, a new study has found.
Despite the hurdles they face, 85% of female small-business owners say they would dive into running their own businesses all over again if given the chance, according to the "Pay It Forward" survey commissioned by Bank of the West.
Although women put in more effort in preparation, female business owners said that they did not fully immerse themselves in knowing the economic ramifications of starting a business. Only 39% of women (compared to 51% of men) understood the financial implications completely or very well.
According to the National Women's Business Council, once female-owned businesses get off the ground, they often grow faster than male-owned businesses. Their level of satisfaction is especially evident when asked about their exit strategies:
- Fewer women (16%) than men (21%) will consider selling their business to the highest bidder.
- 21% of women and 17% of men report they intend to leave their business to their children or relatives rather than someone not related.
Statistics suggest that women-led businesses are one of the fastest growing types of small businesses in the United States. Before taking on this responsibility, the survey found, women tend to perform due diligence more so than men:
- A significantly higher percentage of female small-business owners, 35%, report they took business classes. The figure for men was 26%.
- 31% of female owners conducted Web-based research compared to 21% of men.
The survey also sought to learn how men and women go about seeking advice -- and from whom -- at the outset of their ventures:
- 47% of females versus 35% of males believe the advice of an accountant is important.
- 29% of females versus 21% of males believe the advice of a financial adviser is important.
- 28% of females versus 21% of males believe the advice of an attorney is important.
Along the same vein, the majority of female and male small-business owners named financial advisers among the top three subject-matter experts for someone just starting out. However, a significantly higher percentage of women, 44%, listed financial advisers as the most important. Only 35% of men agreed. And, 26% of males listed technology experts as the most important asset to starting a business, compared to just 18% of females.
Bank of the West, founded in 1874, is a regional financial services company chartered in California with $69 billion in assets. Bank of the West is a subsidiary of BNP Paribas, which has a presence in 80 countries and 190,000 employees.
Published by The Business Journal, Youngstown, Ohio.
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