While the road to success and the million dollar mark may still be difficult for women-owned business to reach, a report by American Express research advisor Julie Weeks reveals that these women entrepreneurs are defiantly making strides in their various industries.
“It looks like the million-dollar, women-owned firms are doing better now than they were 10 years ago,” Weeks tells The Wall Street Journal.
The report observes that women-owned business begin to struggle when they reach $250,000 to $499,000 in annual profit. This becomes the breaking point for many of these companies as they deal with management issues.
“Women go in [to business] having technical expertise but they don’t have the managerial skills,” Marsha Firestone, the president and founder of advisory group Women Presidents’ Organization said to The Wall Street Journal. “To run a business, you need a lot of skills — marketing, financial, (human resources). You may not, in fact, have all those skills.”
In addition, businesses that make it past these management issues and into million dollar territory often do so at the expense of ownership. As they grow they begin to take on more stakeholders and owners making the company less than 51 percent women-owned.
Still, the reported 1.8 percent of women-owned companies in the one million dollar of 2011 is growing steadily in 2012.
“They do have bigger dreams now,” Firestone says of women entrepreneurs. “Women didn’t have the big dream 20 years ago. I think that’s changing.”