This is still a man’s world when it comes to entrepreneurship

A study by the US Senate committee has exposed a large gender imbalance in entrepreneurship, with women lagging behind men in many of the areas crucial for business success.

 

Called “21st century barriers to women's entrepreneurship”, it reveals that there were eight million women-owned firms in the US in 2007, but these accounted for just 3.5 per cent of sales and 6.4 per cent of all employment.

 

Limited funding was identified as one of the main causes of the imbalance; the study found that women do not get sufficient access to loans and venture investment. As a result, only 16 per cent of conventional business loans and 17 per cent of SBA loans went to women, despite women owning 30 per cent of small companies. 

 

When it came to conventional small business loans, women-owned businesses accounted for just 4.4 per cent of total dollar value loans from all sources, which is equivalent to $1 of every $23 available.

 

Lack of access to government contracts and business training were also identified as holding back the potential of women-owned businesses. 

 

“In the 21st century, women entrepreneurs still face a glass ceiling. While women-owned firms are the fastest-growing segment of businesses, and many succeed, women must overcome barriers their male counterparts do not face,” the report said.

 

It points out, however, that the situation is is improving.

 

Between 1972 and 2007, women-owned businesses increased from 4.6 per cent to 28.7 per cent of all firms. During the same period, the revenue generated by women-owned firms went up from just 0.3 per cent to 3.9 per cent of all receipts. 

 

Additionally, the growth of women-owned firms out-paces that of all other types of firm; women-owned businesses added roughly 500,000 jobs between 1997 and 2007, while the rest of privately held firms lost jobs.

 

“This is especially notable when one considers how women-owned businesses have recovered economically after the collapse of our financial markets in 2008,” the report concludes.