Chapter 6: Women-Owned and Minority-Owned Businesses

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

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 minorityentrepreneurs 2

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 3

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

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

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

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

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

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 9

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 10

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

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

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

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

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

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

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

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 18

19 Obstacles Lack of access to capital Racism 19

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

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

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