For Small Business Owners & the Self-Employed

Insider Secret:

The Truth About Men vs. Women Business Owners

Don't be surprised if one of your competitors is an aggressive and business-savvy woman entrepreneur

by Alex Goumakos, CPA

Is there a difference between men and women small business owners?  The answer to that is a resounding yes.  In my experience, there are many differences in the way men and women approach, manage and grow a business.  In a few ways, the women have the men beat (sorry guys...).

One major distinction between men and women owners is that women tend to seek assistance in business matters more often than their male counterparts.  Call it what you will, but a man’s ego sometimes gets the better of him. 

As a business advisor, I get a lot more questions from women business owners.  And they seek my advice before they make an important business decision.  Men owners, on the other hand, tend to seek my assistance later in the process. 

This isn't to imply that men are not careful about making business decisions.  They absolutely are.  It’s just that women owners reach out and do a lot more homework and research before they put a strategy into action.  Many men, on the other hand, consider asking for help as a sign of weakness.

I’ve had several instances in my consulting career, where male clients didn’t tell me that their business was in trouble until the very last minute. One male client for example, kept telling me his business was doing great, when in fact, he was losing money in buckets.  The truth finally came out during an interim review of his financial statements.  I have never had this situation happen with a female entrepreneur.

Females, on the other hand, seem to dwell on specific issues more than they should.  I know this might sound a little sexist (so please save me the nasty emails :-) ), but in my experience, I find this to be the rule rather than the exception.  Men make and execute decisions quickly, albeit sometimes too quickly. As a result, male owned small businesses tend to be more dynamic.  

For instance, when men succeed, they succeed big.  But when they fail, they fail big.  Women on the other hand, run much more stable businesses.  Like the men, when they succeed, they succeed big.  The difference is, however, that when women fail, they fail on a smaller scale than male owned businesses.

Not only does my experience show a definite difference between men and women owners, but research shows it as well.  In February of 2001, the National Foundation for Women Business Owners released a report entitled, Entrepreneurial Vision in Action:  Exploring Growth Among Women and Men-Owned Firms.

The report highlights some interesting survey results regarding the differences between men and women in business.  Included in the report are the following:

• Banking and loans are still an impediment to women owned business. 

• Women in business are less likely than their male counterparts to have had an entrepreneurial role model, a managerial or executive professional background, or past experience owning a business. 

• 60% of women owners consult with professionals compared to 44% of male owners.

•  48% of women, compared to 39% of men, rely on business magazines.

• 45% of women, compared to 36% of men regularly consult a company board.

• 36% of women, compared to 29% of men gain frequent input from other business owners.

• Women owners place greater emphasis on quality, service and vendor reputation.

• High net worth women business owners are even more philanthropic than their male counterparts.

• As of 1999, there are 9.1 million women owned businesses in the U.S., employing over 27.5 million people and generating over 3.6 trillion dollars in sales.

• As of 1999 women owned businesses accounted for 38% of all firms in the US.

• Women owned businesses are as financially sound and creditworthy as the typical firm in the US economy, and are more likely to remain in business than the average US firm.  

In business, men have traditionally enjoyed more advantages, resources and perks than their female counterparts.  For example, it’s always been much easier for a male business owner to raise capital, to have high earnings, and to command respect.  

Yes, women have definitely come a long way, but there’s still a long way to go.

One of the things to learn from all of this is that men and women can definitely learn from each other.  Men should understand that it’s okay to reach out for help when it’s needed.  Women can learn from men by realizing that it’s perfectly ok to be more aggressive, forceful and yes, even ruthless in certain situations. 

So the next time you come across a gold mine enterprise, don’t automatically assume that it’s a male owned business.  There’s a good chance that a women is responsible for its success.