Women may be
By Laura Crites
key to improving
the economyTHE Star-Bulletin's Feb. 22 Hawaii Inc. special supplement on small businesses did a good job of addressing business resources and challenges in Hawaii. Unfortunately, it missed a truly big story: the phenomenal rise of women as small-business owners.
Women are changing the face of America's economy. They are starting businesses at twice the rate of men and are more likely to survive the critical first five years. They own 36 percent of all businesses and are anticipated to control 40-50 percent of all companies in America by the year 2000.
Although women are more likely to be in service and retail businesses, the fastest growth industries for women are construction, wholesale trade, transportation, communication, agribusiness and manufacturing.
In Hawaii, women own nearly 30,000 businesses out of a total of almost 80,000. They rank 13th nationwide in the percent of women-owned businesses.
Why are women rushing to start their own companies? They want independence, flexibility, freedom from corporate limitations, control over their own lives and the opportunity to take risks.
Women are often motivated by a passion or mission, a belief thatthey can make the world better through their small businesses. In interviewing 50 aspiring entrepreneurs recently for a training program I am conducting, I noticed that women were less likely to rank "money" as a primary motivation.
Many women also want to create a new, employee-friendly business culture that recognizes the many demands on workers' lives, including family and children. They tried to fit into a male-dominated business culture by learning the rules but found the fit too uncomfortable.
Finally, the phenomenon of the woman who owns a business reflects a desire to take responsibility for one's own financial security. High divorce rates, corporate layoffs and the demise of the welfare system signal that women cannot count on other individuals or institutions to take care of them financially.
The biggest promoter of the explosion of women-owned businesses has been the U.S. Small Business Administration. SBA has recognized the phenomenon of the woman business owner and actively supported it.
In 1988, SBA established the Office of Women Business Owners (OWBC), which funds women business centers around the country. The OWBC also has a web site (www.onlinewbc.org) which offers women business owners advice in starting, running, financing and expanding their businesses.
Other web sites exist that focus on women entrepreneurs. Banks, private lenders and business schools around the country are recognizing the opportunity that exists in supporting women with their business ventures.
In Hawaii, the SBA, American Savings Bank and Central Pacific Bank played a significant role in launching the Women's Financial Resource Center, a nonprofit corporation specializing in working with aspiring and established women entrepreneurs.
THE stampede of women to start their own businesses has implications for Hawaii. Banks need to pay attention to the aspiring and established woman business owner in ways they have not before.
This may require a change in attitude and practices including promoting women into leadership positions as well as placing them in commercial lending departments.
Government leaders in Hawaii need to recognize the potential for women to play a substantial role in pulling Hawaii out of the economic doldrums.
Organizations dedicated to helping small businesses need to become aware of what makes the aspiring and established women entrepreneur unique. MBA and entrepreneur programs at colleges and universities in Hawaii need to actively recruit women.
Hawaii must get on board. If women are changing the face of the American economy, they should be recognized and sought out as active partners in revitalizing this state's ailing economy.
Laura Crites is executive director of the Women's Financial Resource Center.