Women Business Owners Are Savvy Risk Takers
July 28 2005 - 9:30AM
PR Newswire (US)
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/
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