Thursday, June 4, 2009

Women Owned Business Generate $1.9 Trillion In Sales

Since the dawn of the first fur trading businesses in the U.S., the business arena has been dominated by men. However, times – they are a-changing. In fact, women owned businesses are believed to generate nearly $2 trillion in sales annually – and that figure only counts those women owned businesses that are officially classified as such! (Classifying a business as a minority-owned business is always at the discretion of the business owner, and not all business owners go through the process of obtaining a minatory-owned classification).

With more and more women starting businesses and becoming the majority shareholders in already established businesses, it’s important to pay attention to the role that women play in the global business marketplace. Here are a few facts about women owned businesses that may surprise you:

  • 10.1 million firms are owned by women.

  • Those 10.1 million firms employ more than 13 million people, and generate $1.9 trillion in sales as of 2008.

  • Three quarters of all women-owned businesses are majority owned by women (women own 51 percent or more of the shares for the business). This accounts for a total of 7.2 million firms, employing 7.3 million people, and generating $1.1 trillion in sales.

  • One in five firms with revenue of $1 million or more is woman-owned.

  • Three percent of all women-owned firms have revenues of $1 million or more, compared with 6 percent of men-owned firms.

Banking and Finance
Women business owners' satisfaction with banking relationships has more than doubled since 1992 (35 percent vs. 82 percent).
  • More than two-thirds (67 percent) of women business owners choose financial products and services based on their relationship and experience with a lender.

  • Women owners of firms with $1 million or more in revenue are more likely to belong to formal business organizations, associations or networks than other women business owners (81 percent vs. 61 percent).

What This Means to You

In order to effectively work with and market your services to women owned businesses, it’s important to understand how the leaders of these businesses work. As noted in the example above, women tend to make decisions based on their relationships and are more likely to belong to business organizations as they increase their revenue.

Ask yourself a few simple questions about how your marketing strategy, services (including customer services), and products appeal to women owned businesses, such as:

  • How can this knowledge impact your marketing plan and efforts as you attempt to develop relationships with these businesses?

  • How are your services designed to meet the needs of both the business and the business principals?

  • Do you have products or services that appeal to women owned businesses?

  • How can you improve your efforts to develop relationships with women owned businesses based on this knowledge?


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sigsoog said...

Women owned businesses are increasing at a higher rate than ever. This can be attributed to a few different factors from narrowing gaps in education, more access to funding or the economy making people look at new career options..

Women owned businesses