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of the most well-known trends in women's entrepreneurship
have now formed a familiar mantra: women are starting
and growing businesses at twice the rate of their
male counterparts; women-owned firms are becoming
more economically substantial; and women-owned firms
are just as financially strong and credit-worthy
as the average U.S. firm.
But,
what may not be as well-known is the fact that increasing
numbers of women are starting businesses in what
some describe as "non-traditional" industries -
industries such as construction, manufacturing and
transportation.
This
is an important element of the growth in women's
entrepreneurship. Indeed, it is the next wave of
women's business ownership.
The
New Look of Women-Owned Firms
According
to new research published by Center for Women's
Business Research (Women-Owned Businesses in
2002: Trends in the U.S. and 50 States, December
2001; U.S. Census Bureau data), there are now 6.2
million majority-owned, privately held women-owned
firms in the United States, representing 28 percent
of all firms.
Over
the past five years, the number of women-owned firms
has increased 14 percent, twice the national business
growth average of 7 percent. During that same timeframe,
the number of firms with employees has grown 37
percent, employment has grown by 30 percent, and
revenues in women-owned firms have increased 40
percent. Thus, the overall growth of women's entrepreneurship
is strong, and the economic clout of women-owned
businesses is increasing.
It
is interesting to note, however, that the fastest
growth in women's entrepreneurship is found among
businesses not typically thought of as havens for
women in business - industries such as construction,
agriculture and transportation.
While
the number of all women-owned firms grew by 14 percent
over the course of the last five years, the number
of women-owned firms in non-traditional industries
(agriculture, mining, construction, manufacturing,
transportation/communications, and wholesale trade)
grew by 17.5 percent.
In
comparison, the number of women-owned firms in traditional
industries (retail trade, finance/insurance/real
estate, and services) grew by just 10.4 percent.
The comparative growth among women-owned employer
firms (meaning businesses that have employees in
addition to the owner) is even more striking -
37 percent growth among all women-owned employer
firms, 35.6 percent growth in traditional industries,
and 50.2 percent growth in the number of women-owned
employer firms in non-traditional industries.
Among
women-owned firms in non-traditional industries,
recent growth has been strongest in construction,
with a 35.5 percent increase in number of firms
between 1997 and 2002, and a 71.6 percent increase
in employer firms.
Women-owned
agribusiness and transportation/communications firms
have grown solidly, as well, showing 27.2 percent
and 23.6 percent increases, respectively, in all
firms in the industry, and 69.4 percent and 50.6
percent increases among employer firms.
Definition
of "Non-Traditional" Is Changing
The movement of women into what are considered
non-traditional industries is still a relatively
new phenomenon - the growth in the employment
and revenues of women-owned firms in these industries
has not yet significantly outpaced the growth in
the number of firms, as it has among women-owned
firms in traditional industries.
The
number of women-owned firms in non-traditional industries
increased by 17.5 percent between 1997 and 2002,
while employment grew by 22.9 percent and revenues
increased by 35.4 percent. In contrast, the number
of women-owned firms in traditional industries grew
by 10.4 percent during that time, but employment
increased by 36.5 percent and revenues jumped 46.7
percent.
What
does this tell us? For one thing, it certainly is
a strong sign that women are truly engaged in all
facets of entrepreneurial endeavor. They not only
own businesses that we may instinctively think of
when referring to women-owned firms - beauty
salons, interior decorating, and public relations
businesses - more and more, they are found
at the helm of construction businesses, bus and
limousine companies, and agribusinesses.
What
this also tells us is that our terminology should
soon change. The terms "traditional" and "non-traditional"
likely will be relics of the past, as women-owned
businesses become a visible part of the fabric of
every industry.
JULIE
R. WEEKS is the managing director and director of
research at Center for Women's Business Research
(www.womensbusinessresearch.org)
in Washington, DC. She can be contacted at 202-638-3060,
ext. 11 (e-mail: JWeeks@womensbusinessresearch.org).
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