Women business owners are feeling pretty positive about the future according to a recent survey by Bank of America titled, “2016 Women Business Owner Spotlight.” The study revealed women small business owners are more optimistic than male business owners about revenue and growth prospects of their businesses. This inaugural survey of 1,000 male and female small business owners, focused squarely on the aspirations and pain points of women.
Among the key findings, female business owners are more excited about the future and focused on the success of their business compared to male business owners, with 54 percent of women surveyed expecting revenue to increase over the next 12 months compared to 48 percent of men.
Bullish on business growth
When considering the growth potential of their business over the next five years, the survey found women respondents felt more optimistic than men. Results showed that 60 percent of women business owners expected their businesses to grow versus 52 percent of men, an 18 point drop for men when compared to 2015.
Credit cards
The two main sources of funding used by women entrepreneurs include their business credit cards (28 percent) and bank loans (23 percent). Interestingly, 16 percent of women business owners indicated they use personal credit cards to fund their business.
However, using personal credit to fund business activities presents some big challenges because if your business ever becomes at risk, it can also affect your personal credit. Experian recommends keeping business credit transactions completely separate from personal credit. Doing so protects personal assets and helps entrepreneurs build strong credit profiles. Also, many lenders are using blended credit scores that evaluate business and personal credit profiles when making lending decisions, so it is best for entrepreneurs to do all they can to build a strong business credit profile. Experian has more information about the dangers of using personal credit to fund your business on the Business Credit Facts web site.
Access to capital and clients
While access to capital has improved in recent years, many women don’t feel that way. In fact, the study showed that 28 percent of women said they do not have the same access to capital as their male counterparts. Access to clients, however, is one area where women feel they are on more equal footing, with 88 percent saying they have the same or greater access to clients than men.
Increasing the minimum wage
Women small business owners are more likely to support raising the minimum wage. In fact, the survey indicated that 55 percent of women entrepreneurs think raising the minimum wage would have a positive impact on the economy, compared to only 41 percent of men.
Issues that concern small business owners
While both women and men small business owners share similar views on top economic concerns over the next 12 months, more women small business owners are concerned about:
- Corporate tax rates (54 percent of women vs. 45 percent of men).
- Strength of the U.S. dollar (59 percent of women vs. 45 percent of men).
- Commodities prices (52 percent of women vs. 44 percent of men).
To learn more about the study go to bankofamerica.com
