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Female Owned Businesses Responsible for Job Creation in the U.S.
As the economic recession is still going on in the U.S., Tandelyn Weaver has found some interesting insights on the job growth in the United States.
By: Tandelyn A. Weaver
Mrs. Weaver shares a report published by The Guardian Life Small Business Research Institute projects that female-owned small business, now just 16% of total U.S. employment, will be responsible for creating one-third of the 15.3 million new jobs anticipated by the Bureau of Labor Statistics by 2018 (Forbes.com January, 2010)
Trends are changing and we see women entrepreneurship on the rise, where women are actively participating in the business related activities. In fact if you see today, large firms like Mary Kay (Mary Kay Ash), Estee Lauder (Estee Lauder) and Tootsie Roll Industries(Ellen Gordon) are founded, run and/or majority owned by women. A few like Marriot hotels were joint start ups of a wife and husband team.
The rise in the number of female owned businesses can be attributed to many factors.
One of them is that despite all legislative efforts, women continue to face a subtle form of discrimination in work place. Female owned businesses are instrumental in providing women an opportunity to contribute to the economic sector to their fullest, without facing the “glass ceiling effect”. These businesses are fast expanding into even male dominated sectors of the economy like construction, transportation, communications and public utilities.
As more and more enroll and get degrees in business related studies, the larger the pool of women entrepreneurs becomes. These women are equipped with proper financial, marketing and human resource knowledge. Armed with this knowledge such women have more chances of establishing a business of their own and taking charge of their own professional development.
Social factors have also resulted in the growth of female owned businesses. Where motherhood results in delays of starting their own businesses, it is also the reason for women owned business growth. Divorced or single mothers who undergo traumatic experiences in life have been an impetus for 30% of female business owners to embark on their entrepreneurial ventures.
Women tend to be more sensitive nature to the work environment. For instance, they want to know and keep in touch with what the customers want. The spend more time keeping and appreciating the customers they have . They are, at times, more in tuned to the needs of their employees as well and most likely will offer better pay and health benefits.
It is also believed that businesses owned by women start small and go through steady growth. The first three year survival rate of female owned businesses is 72.25%. The reasons for high survival rates of female owned businesses lies in the natural and to some extent learned disposition of females to run and manage a business successfully. For example, it is said that patience is the key to any successful entrepreneurial venture.
Women are known to be naturally patient and flexible to change.
Family businesses have also been a successful place to help business growth. These family businesses have inspired women to start a business of their own and helped build in them skills which are necessary for managing a business. A study conducted in the mid 90’s showed nearly 78% of female business owners had some form of family business connections in their past. Women entrepreneurs are more likely to start a business for achievement of personal goals like accomplishments and recognition and the need to support their families.
It is inspiring to know that women are helping create jobs in United States and around the world.
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Tandelyn A. Weaver is the president of The Power of Positive Action, LLC. A certified life coach, Tandelyn is the author of Business and Personal Freedom Acceleration – Build Your Business, Exceed Your goals, Make More Money on her website www.PersonalFreedomforWomen.com/