May 27, 2018

New Study Shows Women Making Strides In Small Business

Women make up over half of the U.S. population according to the the Census Bureau’s Survey of Business Owners. They also now control 51% of U.S. personal wealth and are the primary source of income in over 40% of households. In other words, they’re kicking some serious butt right now.

With financial independence becoming a reality for more and more women, it stands to reason that many have taken up the entrepreneurial torch. According to a recent survey by ShopKeep, this seems to be the case. They surveyed their own clientele, consisting of 1,700 existing brick-and-mortar small business owners across a variety of business categories. Of these businesses, 57% were female compared to 39% of male respondents, and 4% who chose not to identify.

Though this data is limited in its scope, it’s good to see numbers like this popping up around town. Warms the heart a little.

The study, in addition to providing a little glimmer of hope for the state of the American businesswoman, also touched on a number of issues related to small business. Specifically, it found that 49% of small business owners identify ‘Maintaining Profitability’ as the most difficult business challenge they face. This is actually not too surprising because 82% of businesses that fail suffer from a cash flow problem.

In fact, 41% of small business owners in a WePay SMB & Money Survey said they were experiencing cash flow challenges. Some of these challenges include:

  • Only one-third of small business owners getting paid immediately for their products or services
  • 12% saying it’s standard for customers to take one month or longer to pay
  • 10% saying that customers avoided paying for 181 days or more
  • One-fourth saying they have had a chargeback in the past year

These issues represent common roadblocks to cash flow that can be a source of distress and uncertainty for many business owners just wanting to be paid for their services. As microloans and online lending marketplaces improve access to financing, small business owners will find new ways to overcome cash flow challenges and keep business booming. If the strides made by female entrepreneurs are any indication, the future of small business is bright… 

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About the author

Andrew Mosteller
Andrew Mosteller is a freelance writer and regular contributor to Lendio News. His upbringing in an entrepreneurial family nurtured a passion for small business at a young age. Andrew's father, an equity fund manager, taught him the ins and outs of investment financing. Now, Andrew spends his time writing copy for business owners, helping them expand and advertise their unique brands. He's also studying Strategic Communications at the University of Utah. When Andrew's fingers aren't glued to the keyboard, he spends his time reading, podcasting, composing music, and bombing down the ski slopes.

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