A nationwide survey of female owners of businesses (WBOs) was carried out by Web.com Group, Inc. (Nasdaq WWWW) as well as NAWBO. National Association of Women Business Owners (NAWBO) discovered an overall positive outlook on the economy as well as a prediction from the majority of women business owners (85 percent) that more female business owners to start businesses in 2013 than they have in previous years. WBOs are also planning to make greater (38 percent) as well as the exact same (54 percent) in recruiting this year than in 2012 – which is a positive indication for the economy.
2013 was the year in the Female Entrepreneur
The State of Women-Owned Businesses survey revealed that the majority of WBOs were confident about their total success (81 percent) for the coming year. They also felt positive, although less so, about the economic outlook overall (74 percent) in 2013.
“The 2013 State of Women-Owned Businesses Survey confirms that despite these economic downturns, women business owners are hopeful about the business opportunities in the coming year,” said NAWBO President and CEO Diane L. Tomb. “This survey informs us about the opportunities and challenges facing NAWBO members, as and women entrepreneurs in general. We at NAWBO are determined to tackle these problems on behalf of the women who are entrepreneurs in general.”
The survey also revealed some of the most difficult issues facing WBOs, for example, the need to connect with new customers. Web.com and NAWBO created the survey to know the current state of women’s business ownership, such as the WBOs’ (WBO) motivations for beginning their own businesses, the problems they face in business as well as the impact of macro-and microeconomic influences affecting their businesses and what plans for the investment they have in the coming next year and which matters of public policy are most important to them.
What is it that keeps female business owners awake at night?
Concerning public policy issues, the top four concerns in the mind of WBOs are the state in the economic system (57 percent) and health insurance cost as well as affordability (40 percent) and taxation issues for businesses (36 percent) as well as access to a qualified employee (36 percentage). Although two in five WBOs indicated that the cost of health insurance and affordability are significant to them, the majority (71 percent) think it is unlikely that Patient Protection and Affordable Care Act (“Obamacare”) will not affect how they conduct business.
Financing Solutions to Meet the needs of business capital
Over three-quarters, (78 percent) of WBOs didn’t seek an extension or a new credit line during the last year. Of the 78 percent, over 50% (68 percent) stated that they did not need additional credit in the first place, while the other (32 percent) didn’t believe they could obtain credit even should they try. A majority of WBOs finance their business by using cardholders (45 percent) or business earnings (40 percent) or through private sources like savings from personal accounts or donations from family members or close friends (37 percent).
Who is the ideal candidate to become an entrepreneur?
According to survey respondents, women begin their own businesses because of a variety of motives that include having a clear vision of the business idea or drive to address a specific industry issue, wanting to control or a better time-to-work balance, and finding themselves in the best spot in the right moment. When asked what was their primary motivation to launch their own business, the most commonly-reported reply was the fact that they had followed their dream (28 percent) which was followed by the discovery of an idea that would allow the entrepreneur to take on the role (21 percentage). The survey revealed that the most crucial characteristics to run a successful business include having a burning enthusiasm for the idea (1st) as well as the vision of achieving long-term success when the company is founded (2nd) and having the ability to fail before trying to make it and accept chances (3rd).
In search of new customers through Online Investments and Social Media Marketing
I asked what they viewed as the most difficult aspect of managing their business in 2013; more than two-in-five (39 percent) of WBOs indicated that the most difficult part was getting new customers. To attract new customers, almost three-quarters (73 percent) of WBOs are planning to increase their marketing spending in 2013. In particular, they plan to put money into social media-based marketing (36 percent) along with search engine optimization (SEO) (36 percent). This is not shocking because more than fifty percent (44 percent) think that SEO and social media will be the next big thing in small-scale business marketing. In contrast, WBO’s predicted traditional outreach strategies such as direct and print postal mail (1.6 percent) and online advertising (4.4 percent), and email marketing (6.2 percent) are likely to be less influential on marketing for small businesses in the near future.
In assessing which marketing strategies are currently having the most impact on the performance, more than 50% (52 percent) of respondents said that maintaining and designing websites was a major factor and was followed by SEO and social media marketing (38 percent) and marketing via email (25 percent). The WBOs also found that LinkedIn (27 percent) was the top important social media platform for them which is followed by Facebook (26 percent), YouTube (18 percent), and Twitter (17 percent).).
“Women entrepreneurs are determined to reach new customers, and their strategy to do this is to enhance their online presence for their business,” said Web.com executive vice president and chief people officer Roseann Duran. “This is a great thing for consumers who are strapped for time, as they can anticipate an enhanced and engaging online experience with several of their top companies in 2013.”