This year, many women may bid corporate positions adieu and strike out on their own as entrepreneurs.
A total of 88% of respondents in a recent survey predict that female entrepreneurship will rise as the year continues.
The survey is the result of a third annual undertaking by Web.com and the National Association of Women Business Owners (NAWBO). It was designed to deliver insights about challenges members of NAWBO face along with gaining information about their perceptions of the current business climate.
The online survey involved 306 respondents and was conducted by Golin between March 19 and April 4.
The survey pool represented the diversity of NAWBO’s membership, cutting across age groups, industries and business size.
Respondents represented businesses that ranged from under $100,000 in annual gross sales (41%) to those with more than $1 million (24%).
Industries included consulting (22%), finance and insurance (11%), construction (5%), legal services 4%), healthcare and social assistance (4%), and others.
Perceptions About New Business Launches
Optimism was high among respondents for improved business performance versus 2014, with 93% saying they were optimistic about the overall performance of their businesses.
Even so, optimism wasn’t quite as high in regard to women-owned startups, survey takers noted. Despite that respondents cited a strong belief that more women will start their own businesses in 2015 with several reasons for the predicted trend noted:
- The timing is good, courtesy of technology and social media making it easier to reach large audiences
- Younger women have a propensity to want to do something they love
- Fatigue in corporate jobs may inspire women to strike out on their own as economic conditions continue to improve
What Influences Startups
Researchers also asked respondents for their input on the motivating factors behind new women-owned startups.
While always seeing oneself as an entrepreneur topped motivation factors in previous years of the study, this year, respondents said the biggest motivator for women was simply having a vision they wanted to see through with 29% of respondents citing this reason.
Other factors included:
- Women seeing themselves in the role, 19%
- A drive to solve specific industry problems, 12%
- Needing a break from a day job, 11%
Passion Trumps All
When it comes to other motivating factors for starting a business, passion weighed out as supreme.
A total of 92% of respondents said being able to do something women are passionate about served as a larger motivator than enjoying flexibility to care for a family (65%).
What’s Troubling Female Entrepreneurs?
The survey also looked at some of the challenges women business owners face. The issues of greatest concern included:
- The state of the economy, 88%
- Business tax concerns, 77%
- Health insurance, 69%
- Labor costs and availability of workers, 66%
- Education policies, 59%
- Regulatory burdens, 55%
Advice for Women in Business
Respondents also shared their advice for those in business or seeking to launch their own. The key takeaways from the study included three major points:
- Online presence is critical for success
- Connecting and engaging with customers on their own terms delivers a personal touch that is extremely beneficial
- Entrepreneurs should take advantage of all resources available to small business owners
The above points, the study concludes, will help women business owners not only “improve their business’ bottom line this year, but they will lay the groundwork for long-term success.”
