Women-Owned SMBs Ride Out Recession
Abigail Adams, wife of the second U.S. President John Adams, is famous for having told her husband “don’t forget the ladies” when he was crafting laws for the new country. Fast forward to present day, and women continue to show their know-how — especially in business. Here’s the evidence.
The nation’s women-owned small businesses are experiencing less of a decline during this recession than men-owned small businesses, according to the Q2 2011 Small Business Credit Sales Report from Capital Access Network (CAN).
CAN’s examination of thousands of small businesses show that Main Street businesses lost 3.4% of their credit card sales in Q2 2011, compared to Q2 2010, but that women-owned small businesses saw a decline of only 1.5% (compared to men-owned businesses which saw a 3.6 percent drop).
Why are women-owned SMBs holding up? As explained in an April 2011 American Express Open Forum, women’s innate strengths at social networking, intuition, pain tolerance, multitasking, patience and listening. In addition, women younger than 45 hold high school and college degrees in higher percentages than their male peers. The growth of female-owned businesses has surged in recent years, even during the recession, so clearly something is happening here.
Plus, there are a variety of local, state and federal grants for which women-owned businesses can apply. And the US Small Business Administration authorizes contracting officers to set aside certain federal contracts for eligible women-owned businesses.
Disclosure: The VAR Guy’s parent company, Nine Lives Media Inc., is 50 percent owned by a woman — CEO Amy Katz.