Glass Ceiling Inspiring Women to Business Ownership

Survey also shows men more likely to become serial entrepreneurs

diversity womanTraditionally, men have been more likely to pursue a career in entrepreneurship when compared to women. However, the Census Bureau reports that this trend has changed in recent years with a 59% increase in the number of women-owned businesses since 1997 – a number greater than the national average.

BizBuySell, an online business for sale marketplace, recently commissioned a demographic study of individuals engaged in buying or selling a small business. The study, which surveyed more than 2,000 buyers and sellers, highlighted several trends that are shaping today’s market. Here are some of the findings:

Female buyers are motivated by a desire to be their own boss. According to the survey, 55% of the women responded that this was their primary motivation to purchase a business, as opposed to 48% of men. “Corporate layoffs over the last few years is a factor,” cites Bob House, General Manager for BizBuySell. “The other thing that could be at play here is the inequities between male and female — the salary differences and promotional opportunities and things like that. I’m sure that that’s a factor as well.”

Female buyers and sellers are much more likely to be divorced. For women interested in buying a business, 20% of women were listed as divorced, whereas only 7% of men were divorced. “If you think about it, probably some of them even may have actually not been in any situation where they’re a primary bread winner, so divorce can propel them with assets. So perhaps business ownership seemed like a viable path,” speculates House.

Men looking to sell want out to buy bigger businesses, but women just want out. Retirement is the main reason for selling a business for men and women, but 16% of men list “desire to own a bigger business” as their reason for selling vs. just 6% of women. The second most cited reason for selling among women is “burn-out” with 22% of female respondents selecting this option compared to 13% of men. “Women, when they exit a business are a bit more likely to potentially return to the work force, versus men who are more likely to reinvest or purchase another business,” says House.

One Response to Glass Ceiling Inspiring Women to Business Ownership

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