Chapter 6: Women-Owned and Minority-Owned Businesses

1. Chapter 6: Women-Owned and Minority-Owned Businesses

2. Learning Objectives • To realize women-owned businesses have grown rapidly since 1980 as a result of many factors • To understand why women-owned businesses are often smaller than those owned by men • To be able to explain why there has been a substantial increase in minority-owned businesses in recent years • To be able to explain the challenges and opportunities faced by women- and minority-entrepreneurs

3. Women-Owned Businesses • 35 percent of all U.S. businesses • Generate $2.3 trillion in sales • Employ 19.1 million people • Generate $492 billion in salaries and wages

4. Female Entrepreneurs • Motivation • Dissatisfaction with corporate life • Work/life balance • Desire for challenge

5. Smaller Size of Women-Owned Businesses • Motivational differences • Company age and industry • Possible obstacles

6. Motivational Differences • Need for work/life balance • Define success differently than men

7. Company Age and Industry • Women-owned businesses • Often in service sector • Often younger than those owned by men

8. Possible Obstacles • Start-up funds less for women-owned businesses • Lack of access to capital?

9. Breaking the Tradition • Women President’s Organization • Two million dollars in annual sales • One million dollars in annual sales for service businesses • Business growth in non-traditional industries

10. Women Entrepreneurs in Other Countries • Female entrepreneurs increasing across the globe • Percentage of female entrepreneurs expected to double by the year 2009 • In Africa, women comprise the majority of entrepreneurs in the “small-scale economy”

11. Minority Entrepreneurs • Three subgroups • Ethnic entrepreneurs • Immigrant entrepreneurs • Minority entrepreneurs

12. Ethnic Entrepreneurs • Share common national background or migration experience • Not always immigrants

13. Immigrant Entrepreneurs • Recently arrived in the United States • May start businesses as a means of survival

14. Minority Entrepreneurs • Any individual not of majority population • African-American • Hispanic/Latin • Asian, Pacific Islanders, American Indians • Alaskan descent

15. African-American Entrepreneurs • African-Americans were entrepreneurs as early as the late 1700s • Substantial increase in number in past few decades • Expected to reach 2.2 million businesses by 2010

16. Asians and Pacific Islanders • Successful in industries from hotels to high-tech • Korean Americans have highest self-employment rate of any ethnic or racial group

17. Hispanic Entrepreneurs • Includes: • Mexicans • Cubans • Spaniards • Puerto Ricans • Others from South America • Mexicans own the greatest number of firms

18. American Indians and Alaska Natives • Rate of entrepreneurship has grown rapidly in recent years • Majority of businesses exist in Alaska, California, Texas, Oklahoma, and Florida

19. Obstacles • Lack of access to capital • Racism

20. Opportunities • Increasing minority population • Increasing interest in entrepreneurship among ethnic groups

21. Women and Minority Entrepreneurs in the Business Plan • Stress education and relevant work experience • Be convincing and persistent