NAWBO® Survey Finds Women Business Owners Holding Their Own Amid Economic Downturn

FOR IMMEDIATE RELEASE
February 25, 2009

Contact: Media Relations
800-556-2926
media@nawbo.org

(Washington,  D.C.) – A new survey of National Association of Women  Business Owners® (NAWBO®) members has found that, while women entrepreneurs are  facing the same economic difficulties as other businesses across the country,  more than half say they have no plans to reduce employment and nearly 25  percent say they actually plan to add jobs this year.

The  findings come even as the nation’s jobless rate is the highest in more than 16  years as many of the nation’s largest corporations have cut hundreds of  thousands of workers.

“These survey results highlight the strategic  strength, compassionate responsibility, and maturity of the women-owned  businesses that are uniquely reflected in our membership,” said NAWBO President  Cynthia McClain-Hill. “While it is clear that the economic crisis gripping the  country is forcing all business owners to make some hard decisions, NAWBO  members are not only surviving but appear to be well-positioned to weather the  storm.”

NAWBO members, on average, own companies larger than the norm for  women-owned businesses, with 21 percent employing 10 or more people and 26  percent making $1 million or more in annual sales. NAWBO members, on average,  have owned their companies for nearly a decade, with 42 percent reporting  annual sales of over $250,000.

Among findings from the new survey:

 
• The state of the economy is NAWBO members’ overriding concern, with three-quarters of respondents saying the current situation is the biggest economic crisis they have faced in their lifetimes. 
  
• Still, 52% of NAWBO members surveyed said they plan no changes in employment levels, while 24% said they will add jobs this year. NAWBO members’ hiring expectations are sharply higher than the broader market, as a January survey by the National Federation of Independent Businessfound just 9% of businesses surveyed said they plan to create new jobs over the next three months. 
  
• Just 17% of NAWBO respondents said they plan to reduce staffing this year, compared with the NFIB January survey that found 23% of employers had already reduced staffing in January and 14% planned cuts in the next three months.  
  
• Meanwhile, 40% of NAWBO members surveyed said they will keep capital investment levels at about the same this year as last – while 17% said they planned an increase. 
  
• More than half (53%) of NAWBO members surveyed said they plan to expand into new markets this year, while just 3% said they plan store or branch closures.  
  
• Aside from economic challenges, top issues NAWBO member respondents said they would like to see Congress and the new Administration address this year, in response to an open-ended question, include: healthcare/health insurance reform (45%); tax relief/business taxes (16%); education policies (15%); the war in Iraq (12%); and broader support for small business (11%). 
  
• 54% of NAWBO respondents said they believe economic and business conditions will be at least somewhat better by the end of this year - and 54% believe their own business will be somewhat or much better than it is today – compared to just 20% and 15%, respectively, who feel that the economy and their own business will be worse by the end of the year.
  

 

“As the fastest-growing segment of the  market, women entrepreneurs are vital to the growth of the nation’s economy and  are at the heart of any sustainable recovery through job creation and revenue  growth,” McClain-Hill said.

Recent  estimates by the Center for Women’s Business Research indicate that the  nation’s more than 10 million women-owned businesses employed 13 million  workers, generated $1.9 trillion in sales, and represented more than 40 percent  of all privately held firms in 2008.

“NAWBO is committed to the continuing success of  our more than 8,000 members across the country, providing essential tips and  tools to help women entrepreneurs in these challenging times,”said, Helen Han, NAWBO Executive  Director. “Our members are showing outstanding resolve and strength in coping with  this economic crisis and will play a crucial role in the nation’s recovery.”

As the  pre-eminent national women-owned business organization, NAWBO works to  strengthen the wealth-creating capacity of women entrepreneurs, promote  economic development, transform public policy, and propel women into economic,  social, and political spheres of power worldwide. Learn more at http://www.nawbo.org

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Methodology  note: Findings are from a survey of all members of the National Association of  Women Business Owners, conducted online Feb. 4-14, 2009. In all, 749 members  responded during the 10-day survey period. The sampling error of a survey of  N=749 is ±3.6% at the 95% level of confidence, meaning that  – 95 times out of 100 – the survey results will be within 3.6% of true  population values.