Coffee Break: Women and important factor in doing business

A fast-growing sector in small business, women have a big impact on how companies operate

It seems that, lately, I've heard a lot of people saying, "What's the big deal about women in business?"

Well, no big deal at all provided you have no interest in selling to or doing business with the nation's fastest growing small business sector.

Consider this: According to the U.S. Small Business Administration's Office of Advocacy, women-owned firms are a vital part of the nation's successful economy, outpacing other small business sectors in growth and participating in every industry.

In the SBA's Women in Business report of 1998, the organization reported the number of women-owned businesses has been increasing, and doing so more rapidly than any other small businesses in the economy by 89 percent between 1987 and 1997.

Additionally, revenue increases for women-owned firms weighed in at 209 percent during that same 10-year period.

In its report, the SBA Office of Advocacy estimated there were 8.5 million women-owned businesses generating $3.1 trillion in revenue and employing 23.8 million workers.

Jere W. Glover, the SBA's chief counsel for advocacy, stated in the introduction to the report, "We need to increase awareness of the economic implications of women's business ownership. Removing the existing barriers to the development and growth of women-owned firms will benefit not just women-owned firms, but the whole economy."

The report states the number of self-employed women grew 48 percent, to 3.8 million, between 1983 and 1997.

Also, the SBA estimates that there will be about 4.7 million self-employed women by 2005.

Census Bureau data indicate that

The number of women-owned businesses, excluding regular C corporations, increased 43 percent from 1987 to 1992, compared with a 26 percent increase in all businesses.

Receipts of these women-owned businesses increased 92 percent in that same period, compared with 38.5 percent overall.

In addition, women-owned firms now represent 38 percent of all firms in the United States, according to the National Foundation for Women Business Owners.

The NFWBO is a nonprofit research, consulting and leadership training organization that is affiliated with the National Association of Women Business Owners.

Along with tracking the growth of women-owned businesses, NFWBO, with the help of such corporate sponsors as AT&T and The Principal Financial Group, tracks data related to businesswomen's spending and investing habits important information to have.

After all, how can you sell if you don't know who you're selling to?

Research has pointed out that, just as women and men communicate differently, they also take different approaches to purchasing, investing, managing and decision making.

Maybe some people just don't get the whole women in business thing. And that's OK.

It just means more business for the rest of us.