Female Business Owners Optimistic About Economy
WASHINGTON -- Fully 87% of female business owners are optimistic about economic outlook of their businesses this year, a 12% increase over 2013. When asked about their biggest near-term concerns over the next six months, the top issue – cited by 90% – is gaining new customers
The 2014 State of Women-Owned Businesses Report, commissioned by the National Association of Women Business Owners and Web.com Group Inc., also shows that while the economy is the top concern of 90% of respondents, 89% are also optimistic about how well their busnesses will do this year.
"Women small-business owners are not just more optimistic about their own businesses, they're also more bullish about the prospects for female entrepreneurs who are just starting out," said Billie Dragoo, national board chairwoman of NAWBO. "Our report shows that 92% of WBOs predict that more women will start their own business this year -- an 8% jump over 2013. With a positive outlook and strong entrepreneurial spirit, women business owners continue to be a driving force of our economy."
Their second-greatest cconcern is keeping existing customers, cited by 81% of respondents. To address these challenges, the owners are emphasizing investments in customer service (69%) and marketing (62%) over enhancing their products (48%) or hiring (26%).
Respondents also place a higher priority on online marketing, with a greater focus on investing in their mobile presence (+13% from 2013), social media presence (up 8%), ecommerce (a 6% increase) and website (up 3%). Fully 85% of the owners believe social media are important for creating and maintaining customer relationships and 79% plan to invest in their social media presence.
The 2014 report also shows:
Taxes, access to health insurance and energy costs are top worries. In addition to their economic concerns, 80% are worried about business tax issues, up 12% from 2013. As for other issues keeping owners awake at night this year more than last, 71% say the cost and accessibility of health insurance is a significant issue (+2%); 61% cite having access to capital (+6%); and 51% say fuel and energy costs are a concern (+10%).
While social media marketing is a priority, female business owners lack confidence in their abilities and vastly underuse these channels. Eighty-five percent of respondents said social media are important for building customer relationships but only 67% use them to connect with customers. Just more than half, 54%, are confident in their ability to build a social media presence for their business, and only a quarter are posting on social media at least once a day. A majority, again 54%, is posting one to six times per week and 23% rarely post. When they do use social media, their preferred platforms are LinkedIn (25%), Facebook (21%) and YouTube (20%).
"Women small-business owners recognize the importance of the Web, mobile and social media to engage, capture and nurture customer relationships, and they are increasing investments in these resources to drive growth," said David L. Brown, chairman, CEO and president of Web.com. "However, WBOs face unique challenges in social media where they lack either the expertise or time to realize the full potential of this channel. Small-business owners who prioritize the Web and social media in their marketing mix -- or find a partner to help them gain this expertise -- will reap the benefits of increased customer engagement and satisfaction."
Published by The Business Journal, Youngstown, Ohio.
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