Report Highlights Strategies of Successful Female Entrepreneurs

Milja Image
October 21,2019

Women entrepreneurs have employed a distinctive set of at least seven business strategies to achieve success in startups.

That’s the conclusion of a study of women entrepreneurs conducted by Bank of America and Babson College. The report, published on Oct. 17, 2019, delivers unique insights into the challenges and coping strategies of women at the helm of business. Instead of duplicating studies that document the difficulties women face attracting startup capital, the Babson/BofA report highlights useful techniques for overcoming challenges and transforming them into opportunities.

In addition to the well-publicized lack of access to conventional funding, BofA and Babson found that women face challenges that include market misperceptions, network exclusion, and managing expansion. The strategies documented in the report help minimize the effects of all three.

Based on interviews with more than 30 female entrepreneurs, the study identifies seven proven strategies successful women have used in launching and growing their businesses:

They explore capital alternatives. Although venture capital funding is one of the fastest ways to accelerate business growth, fewer than 3% of women entrepreneurs use this sort of financing. Women choose other funding models not only because they have trouble attracting VC investments, but because other money sources allow them to retain more ownership and control of their businesses.

They build for the long term. Growing a company is a marathon, not a sprint, respondents said. The interviewed women explained that they attributed much of their success to looking ahead while making short-term decisions.They develop a sustainable and talented workforce. Women entrepreneurs emphasize the importance of investing in employees. They organize seminars and workshops and try to create a positive working atmosphere that will pay off in the long run.They buy from and fund women-owned businesses. Purchasing products from women-owned companies is one of the best ways to help them grow their business, creating a network of firms that help each other. They mentor and seek mentorship. Mentoring comes in many forms - from organizing events and workshops to chatting during a coffee break. These are all great ways to learn new tricks and deepen your knowledge. They join or create networks. When it comes to promoting women-led businesses, more and more women-organized groups have come onto the scene. Creating networks allows women entrepreneurs to share their experiences and learn about new business trends. They utilize personal insights and experiences. Women have valuable insight into what it’s like to be a female consumer. They use their experience to form what this demographic is looking for in a product or service.

These strategies emphasize that women can actually benefit by using unconventional business strategies and transform feminine “soft points” into strength. For example, instead of focusing on big purchases and collaboration with big investors, they are more likely to avoid them and concentrate on steady, incremental growth.

More News

You must have heard it a million times - if your business doesn’t show up on the first page of Google search results, you may as well close up shop. Though this may sound harsh to business owners who pay no attention to search engine optimization, the latest Small Business Search Trends Report published by Google yesterday stresses the importance of local SEO.According to the report, there were 350 times more ‘local’ and ‘near me’ searches in 2019 compared to ten years ago. What this means is that in this day and age, focusing on local SEO tremendously impacts your overall success by increasing your business exposure to local customers.This is especially true for small business owners who run eateries or cafes. Google’s Small Business Search Trends Report indicates that restaurants, diners, pharmacies, coffee shops, and pizzerias are the most searched for mom-and-pop businesses.Now more than ever, small entrepreneurs in the business of serving coffee should take heed of local SEO. The report shows that the search interest in “local coffee shops” has reached a record high. Other local businesses seeing a rise in searches this year include flower shops, print shops, and tire shops.Residents of east coast states seem to be particularly fond of performing local searches. West Virginia, New Hampshire, Pennsylvania, Rhode Island, and South Carolina are the top five states where people use Google to find local businesses.How can Google help your small business rank higher?Being aware of the local search trends is the first step to boosting your small business. But what if you lack the digital skills to follow through? In that case, a trip to your local library could be a game-changer.Earlier this year, Google launched an initiative called Grow with Google to help small businesses grow. As a part of this program, $1 million were granted to the American Library Association (ALA) to help libraries across the nation provide communities with digital skills. So far, the collaboration has supported 130 libraries in 18 states with the goal of eventually reaching all 50 states.As part of its long-term efforts to support local economies throughout the U.S., is now making a $10 million pledge to help low-income, and underrepresented entrepreneurs launch new businesses by providing access to training and capital.“Almost half of all libraries in the U.S. provide assistance to entrepreneurs looking to start a business of their own. That’s why the first grant will benefit the ALA to support entrepreneurship centers at ten libraries and to help libraries across the U.S. develop new offerings for small business owners,” Kim Spalding, head of Google Small Business Ads said in an official announcement yesterday.Google for Small Business is yet another resource business owners have at their disposal. Launched in June, the website offers free personalized plans for small businesses, so they know which Google tools will help them reach more customers and work more efficiently.
By Ivana V. · September 21,2021
Small businesses continue to face increased costs as a result of the U.S.-China Trade War. The conflict has been raging for almost a year now, claiming small business casualties with no sign of stopping.The U.S. Secretary of the Treasury, Steven Mnuchin dismissed official reports and stated that U.S. companies aren’t affected by the trade war. Numbers indicate that, while this may be true of large corporations, the effects on small family businesses are being overlooked in this assessment. The current tariff package has resulted in a 37% increase in expenditures. Each tariff cent inevitably trickles down to the end customer, which, in turn, leads to lower sales and a never-ending low-investment cycle.As a general rule, startups and small businesses are more sensitive to expenditure increases. Simply put, larger companies have more leverage when looking for new suppliers, while small businesses are more dependent on stable markets.Certain companies have tried to find a way around tariffs by stockpiling goods. While this is a wise short-term strategy, in the long run it may make small businesses rigid to market changes. As a result, small businesses could lose their main advantage over big players — flexibility.As fiery rhetoric continues from Washington D.C. and Beijing alike, it’s still uncertain how long the trade war will last. Nevertheless, one thing is evident — it is seriously harming American small businesses and startups.
By Milja · December 14,2020
Despite macroeconomic turmoil caused by the U.S. - China trade war, small business owners report the highest levels of optimism since the index was first published in Q2 2017. This quarter's index explores veteran-owned businesses and the employment of veterans by small businesses.According to the data from the Q3 MetLife & U.S. Chamber of Commerce Small Business Index, small business owners across the country are reporting high levels of confidence both about their local economies and the national economy. The overall Index score reached 70.7 in the third quarter of 2019, up by 2 points since last quarter.The survey conducted on a sample of 1,000 small business owners shows increased optimism about the local economy. More than half of respondents (56%) say their local economy is in good health, up by 5% since Q2. Views of the national economy remained steady, with 58% of small businesses saying that the U.S. economy as a whole is in good health too. The results are statistically unchanged from the previous quarter (59%).Small retailers are most likely to perceive the national and local economies negatively, which isn't surprising given the number of brick-and-mortar retail stores that have closed this year. Only 53% of retailers label the national economy as good. On the other end of the spectrum are manufacturers. With 63% of small businesses from the manufacturing sector rating the national economy as good, they are the most optimistic."Small businesses are the backbone of the American economy," Tom Sullivan, vice president of small business policy at the U.S. Chamber of Commerce told Yahoo! Finance. "It's important that we provide them with a sense of certainty and work towards finding solutions that enable business growth and create an environment where Main Street businesses can continue to thrive."Quarterly Spotlight on Hiring VeteransBoth veteran-owned (82%) and non-veteran owned small businesses (81%) agree that hiring more veterans would be beneficial for business. However, only 46% of small businesses report they have hired a military veteran. The figure is much lower when it comes to businesses that have intentionally recruited veterans in the past year - just one in 10.Employers view veterans as great workers and attribute highly positive characteristics to them. Most small business owners perceive veterans as disciplined (86%), punctual (77%), and team players (67%). However, almost half (49%) of small businesses with 20 or more employees say it is difficult to find helpful information about hiring or retaining veterans."Veterans are proven learners with a passion for teamwork and a commitment to results," said Joe Shamess, Co-Founder and Owner of veteran-owned Flags of Valor. "Every sailor, soldier, airman, and marine entered military service needing to learn the basic skills of the armed forces and the advanced skills to support dynamic missions. Employing and empowering veterans is what we are all about! It's a win-win for businesses and their communities."Survey results indicate that larger small businesses have a higher tendency for hiring and recruiting veterans. They are also more likely to use resources intended explicitly for hiring veterans like partnering with an organization dedicated to placing veterans in the workforce, sharing job postings with military employment counselors or attending veteran job fairs or recruiting events.The survey results indicate that most (88%) small business owners would like to see more formal workplace programs that would support the re-entrance of veterans into the civilian workforce. Currently, businesses in the American South are the leaders in hiring veterans - 51% have done so. Contrastingly, the Northeast is the region that hires the least veterans. Only 38% of small business owners in that part of the country say they have hired a veteran.
By Ivana V. · December 14,2020

Leave your comment

Your email address will not be published.

There are no comments yet