What Makes Women Successful Business Owners?

Recently, I’ve noticed an increasing number of women leaving their corporate jobs in favor of starting their own small business. In one case, the woman was let go, and in several other cases, she left voluntarily. Regardless of why she ventured out on her own, one thing seems consistent: women make great entrepreneurs. Here are some interesting facts I came across from the National Women’s Business Council:

  • There are 7.8 million women-owned businesses in the United States.
  • Women-owned firms generate $1.2 trillion in total receipts.
  • Women-owned firms employ 7.6 million people across the country with a payroll of $217.6 billion. These employer firms have average receipts of $1.1 million.
  • Women-owned businesses make up more than half (52.0%) of all businesses in health care and social assistance.
  • The other top industries for women include: educational services (45.9% of all businesses are women-owned), administration and support and waste management and remediation services (37.0%), retail trade (34.4%), and arts, entertainment, and recreation (30.4%).
  • Industries with the lowest percent of women-owned businesses include mining, quarrying, and oil and gas extraction (15.0%), transportation and warehousing (11.4%), agriculture, forestry, fishing, and hunting (10.3%), construction (7.9%), and management of companies and enterprises (6.7%).

If you look at the industries where women business owners tend to gravitate—healthcare, social assistance, education, administration, retail, and the arts—you can see a glaring trend. Women do well in industries that are communication based.

Surprising? Not really. Women are, by nature, strong communicators. They know how to build relationships and create strong teams, and they believe that teams are important. No wonder they do so well in fields that require fine-tuned communication skills.

Additionally, the Small Business Administration has reported in recent years that women-owned businesses are far outpacing all other businesses in terms of growth. To me, that means women are choosing businesses that play to their strengths and their passion and are putting their all to making it a success.

As a female business owner myself, I’m obviously happy by these findings. But I think we can do even more. Yes, women are choosing business ownership because they want more control in their life—they want a way to work and stay productive without having to sacrifice family time. But what if they didn’t have to make that choice? What if the fact that women held only 14.4% of Fortune 500 executive officer positions weren’t true? What if women held more than the measly 15.7% of Fortune 500 board seats? And what if women held more than 2.6% of Fortune 500 CEO positions? I believe, as does Harvard Business Review, that having more women in top positions ultimately leads to greater overall success. Why? Because with women participating, a group’s “collective intelligence” rises.

So women, if you’ve ever dreamt about starting your own business, know that you have some natural tendencies that will contribute to your success. And if you’re one who enjoys the corporate culture, push on to make your voice heard in the executive level. Whichever path you choose, know that the business world needs your expertise, your passion, your communication skills, and your unique female success traits.

This blog is part of my Wednesday for Women blog series, where I feature stories, resources and information to help women gain greater influence, power, and confidence in their professional and personal life. Please enjoy these weekly Wednesday blogs and forward them to the powerful women in your life.

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