Insurance

"Look at women in business today, and you see a distinct, new generation of entrepreneurs. They're experienced, educated and have an appetite for growth." Center for Women's Business Research

The 1990's saw the start of phenomenal growth in the area of businesses started and owned by women. We're not talking about little, hope-to-make-a-go-of-it, knick-knack boutiques, but big-buck entrepreneurial ventures, many with full-blown payrolls. In fact, a whole generation of women entrepreneurs is achieving solid business success. Most of all, it's not that women are arriving on the business scene. It's that they've arrived and have become firmly established. They are here to stay and the future has never been brighter for the female entrepreneur.

"There are now more than 6.2 million women-owned businesses," according to reports at the Washington-based Center for Women's Business Research. "They employ 9.2 million workers and have revenues of $1.2 trillion and their growth has exceeded the national average for employment and revenue. These businesses making major contributions; they are impacting the economic strength of our country."

Here are the facts about women-owned businesses

• Women own 28% of the privately-held businesses in the U.S.
• Between 1997 and 2002, the number of women-owned firms in the U.S. increased at twice the rate of all firms (14% vs. 7%) and employment grew at 1.5 times the national average (30% vs. 18%).
• Nearly one in four of companies founded by women in the 1990s generate $500,000 or more in annual revenues.
• As of 2002, there are more than 110,000 women-owned companies with revenues of $1 million or more.
• More than 40% of women business owners have plans for growth over the next five years.
• One quarter of women-owned firms started less than 10 years ago have at least 20 employees.
• As of 2002, nearly 8,500 women-owned companies have more than 100 employees.
- Center for Women's Business Research.

What marks this new wave of entrepreneurs?

There are several distinct characteristics not often shared by women who started businesses in the 1980s:

• Education. They invest in themselves!! They're getting college degrees, especially in law and business, in record numbers.
• Experience. They're not novices to the business world. Many of these women left senior management positions to start their own companies.
• Capital. These women appreciate the importance of adequate funding. Most of all, they have learned how to attract capital and borrow to finance growth. According to Entrepreneur Magazine (February 2002), "41% of women-owned businesses started in the last decade are actively seeking capital, compared to 25% of those who started earlier."(Entrepreneur Magazine, February 2002, http://www.entrepreneurmag.com )
• Drive. They are not content to just start a business and then sit back to see what happens. They have a greater appetite for growth and self-fulfillment as entrepreneurs and are willing to go beyond the call of duty to learn their craft. They are considered ALPHAS!!!

Cause for Concern?

Women are closing the male-female gap in business and other important areas. However, many continue to lag behind when it comes to protecting their economic value to their families and to their businesses. For many women, there is still a huge gap in regards to knowledge of personal finance and business insurance. As a result, life insurance ownership for women in general, for example, is about half that of men ($92,800 vs. $175,300) according to a 1999 statistics reported by the Life Insurance Marketing and Research Association.

Recommendations

Whether you are a business tycoon, owner of a one-woman shop, or just thinking about taking the entrepreneurial plunge:

• Keep on learning. That's how you grow as a business and as a person. Education is the key to success.
• Secure your sources of capital. At the minimum, establish a line of credit. Then increase it periodically.
• Protect your economic value to your business, to your family, and to yourself with adequate life and disability income insurance. That way, should anything happen to you; your income can be replaced.
• Get good advice. Develop a relationship with your bank or credit union business relations officer. Talk to your accountant about tax-saving and asset-building strategies.

The new wave of female entrepreneurs is here. Whether it is a traditional business or a network marketing business, female entrepreneurs have really raised the ante on success in business and it is without a shadow of a doubt that trend will continue for years to come. Cheers to the female entrepreneur!! You are very much appreciated and we salute your accomplishments.

Onward and Upward,

Roger