Women are becoming more actively involved in setting up new businesses these days. More and more of them are starting establishing new business ventures and meeting with investors to discuss new proposals.
Recent research indicates that more women are banding together to form a sustainable business network. In fact, from 1992-97, the number of women-owned firms in the U.S. grew at 2.5 times the rate of all U.S. firms, and the number of women-owned employer firms increased at 6 times the national average.
The fact that more women are establishing new businesses has been made possible in part by the fact that they are having more access to business capital. There are now more grants and loans available to a women entrepreneur. In addition, a lot more diversity programs are being operated that specialize in providing seed funding to women entrepreneurs.
However, despite the recent achievements, research shows that it still remains difficult for women of color to get access to seed funding. According to a recent study, 60 per cent of Caucasian women business owners had bank credit, compared to 50 per cent of Hispanic, 45 per cent of Asian, 42 per cent of Native American and 38 per cent of African-American women business owners.
Studies are also indicating that women are diversifying into different areas of new businesses. Construction, manufacturing and transportation have seen the largest recent increases in the number of women-owned new businesses. However, services and retail still make up the largest share of women-owned firms.
One of the advantages of working in a women-owned new business is that the workforce is more diverse. On an average, a woman entrepreneur employs a gender-balanced workforce of 52 per cent women and 48 per cent men. On the other hand most other businesses have a work force that is more than 65 per cent men.
A women's business network has also found to be more generous with its funds. Women business owners are more philanthropically active. At least seven out of 10 women entrepreneurs of a top new business volunteer at least once per month; 31 per cent of them contribute $5,000 or more to charity annually.
A women's business network has also found to be more technologically savvy and use the Internet a lot more for business. More women entrepreneurs of a new business are engaged in e-commerce.
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