home business

The annual MasterCard Worldwide “Women in Small Business” survey was conducted by Ipsos Public Affairs to highlight the success and growing power of women-owned small businesses in the United States. Specific survey findings include:

Women-Owned Business Sector Continues to Experience Healthy Growth
• Between 1997 and 2006, the number of majority women-owned firms increased 42%—almost double that of all firms (23%).
• Women-owned firms currently employ nearly 13 million people and generate $1.9 trillion in sales.

Success of Women-owned Small Businesses
• More than three-quarters of women-owned small businesses (78%) have been in existence for more than 10 years, indicating a healthy business climate for small business operation.
• One quarter of women-owned small businesses (25%) generate between $1 million and $5 million in revenue annually.

Payment Card Use
• Payment cards are prevalent among women small business owners. In fact, more than three quarters of respondents hold either a credit or debit card (82%), while 24% hold both.
• More than three-quarters of women entrepreneurs (82%) say they completely separate personal and business finances. Only 5% reported no separation, while the remainder (13%) reported some overlap.

Managing Finances
• Almost one-third of women small business owners (29%) use a money management software application to manage their business finances, roughly the same as 2006 (33%), though employing an accountant remains the number one method for financial management (41%). Just one percent use cash and receipts.

Motivations & Challenges
• The primary motivator for women to start their own businesses is the opportunity to be their own bosses (32%). Additional reasons include the opportunity to generate household incomes (22%) and added flexibility with their schedules (13%).
• The main challenges women entrepreneurs said they face in running small businesses are stretching themselves across multiple roles and projects (21%), healthcare costs (12%), balancing family and work (11%), and lack of time to focus on generating new business (11%). Challenges associated with effectively managing cash flow are also cited.

More information is available at www.mastercardeasysavings.com.

Previously published in the February 2008 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com