Women Business Owners Are Savvy Risk Takers New Study Highlights Behaviors Driving Growth of Women-Owned Businesses SAN FRANCISCO, July 28 /PRNewswire-FirstCall/ -- Many women business owners are willing to take substantial financial risks to ensure the success of their business, says a new study from the Center for Women's Business Research underwritten by Wells Fargo. The report, titled "Women Entrepreneurs Savvy About Risk," also says women business owners -- now numbering 10.6 million nationwide -- are much more willing to take risks in running their businesses than in their personal finances. "When I started my business, I took a significant risk by venturing into an unfamiliar and somewhat unknown industry," said Judi Henderson-Townsend, founder and president of Mannequin Madness, the largest mannequin recycler in Northern California. They provide retailers with an alternative to throwing away their unwanted Mannequins in the landfill by renting and reselling used mannequins. "Four years later, I am looking to expand my business to other cities," said Henderson-Townsend. "I am confident about this next step, as I believe in this business and am willing to take smart risks to ensure its future success." The more than 400 women business owners surveyed were asked to determine whether they would take substantial or above average risks in regards to their business. Almost one of every four surveyed (21 percent) said they were willing to take substantial financial risks expecting substantial returns when saving or investing for their business, while forty-five percent were willing to take above average financial risks expecting above average returns. "This report shows that, contrary to common belief, women business owners are indeed willing to take financial risks in order to expand their businesses," said Marjorie Alfus, Chair, Center for Women's Business Research. "In fact, two thirds of the women in this study were willing to take above average or substantial risks to achieve their growth goals. The success of their risk taking is documented in the dynamic growth rates -- employment by women-owned businesses expanding at twice the rate of all businesses (24% vs. 12%) and revenues growing 17% faster than all businesses." However, risk-taking among women business owners looking to expand their businesses is significantly higher than women business owners not looking to expand. This is particularly true of women business owners who seek external capital to expand their business and of those who had successfully sought this type of funding in the past. Twenty-five percent of expansion-oriented business owners are willing to take substantial financial risks and an additional fifty-one percent are willing to take above average risks. (Photo: http://www.newscom.com/cgi-bin/prnh/20050728/SFTH033 ) Risk-taking was consistent among all types of women-owned businesses in the study, regardless of company size, age of business, or personal characteristics of the business owner (age, education, ethnicity, etc.). "As women-owned businesses continue growing at twice the national average, it's important for us to understand the unique factors behind their growth," said Joy Ott, regional president for Wells Fargo Bank in Montana and national spokesperson for Wells Fargo's Women's Business Services program. "Entrepreneurial culture defines this country and the spirit of small business owners in the U.S. today, and nowhere is this better personified than in women business owners." About the Center for Women's Business Research The Center for Women's Business Research is the premier source of knowledge about women business owners and their enterprises worldwide. The Center's mission is to unleash the economic potential of women entrepreneurs by conducting research, sharing information and increasing knowledge about this fast-growing sector of the economy. Since 1989, the Center has generated research-based intelligence that has helped public- and private-sector leaders, advocates, and individual women business owners make informed strategic decisions for generating greater business opportunities. The Center shares its knowledge of the economic and social aspects of women's entrepreneurship with policy makers, financial institutions, corporate leaders, government agencies, academia, and the media through research reports, press releases, newsletter publications, seminars, speaking engagements, and worldwide on the Internet at http://www.womensbusinessresearch.org/. About Wells Fargo & Company Wells Fargo & Company is a diversified financial services company with $435 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the Internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, "Aaa," from Moody's Investors Service. Providing financial products and services to more than one million businesses with annual sales up to $20 million in all 50 states, Puerto Rico and Canada, Wells Fargo is the #1 lender to small businesses in the United States in total dollar volume according to the most recent CRA data (2003). The second largest national SBA lender in dollars, Wells Fargo is an SBA Preferred Lender in 28 states, and originated 3,555 loans for $495 million in 2004. Wells Fargo has also been ranked the number one SBA 504 lender nationally for the last two years. Its targeted business services programs provide outreach and education to women, African American, Latino, and Asian business owners about financial services. Since 1995, Wells Fargo has loaned more than $23 billion to women and minority business owners. http://www.newscom.com/cgi-bin/prnh/20050728/SFTH033 http://photoarchive.ap.org/ DATASOURCE: Wells Fargo & Company CONTACT: Kathryn Ellis of Wells Fargo & Company, +1-415-222-4682, or ; or Juanita Weaver of Center for Women's Business Research, +1-202-638-3060, ext. 19, or Web site: http://www.wellsfargo.com/

Copyright