2003 Press Releases

Poll Reports More Women Turning To Self-Employment In New Decade

Women Start-Ups Outpacing Men's 2-to-1 This Year

Flexible Time for Home and Community; More Control Spur 'Micro' Movement Among Female Work Force

Washington, D.C., November 11, 2003 -- Buffeted by a challenging economy, an uncertain job market and a heightened focus on home and family post 9-11, a new poll shows that more women are turning to self-employment as a strategy for navigating life. The survey shows that start-ups of women-owned businesses have grown by double digits annually from 2000-2003, significantly outpacing growth in the 1990s and out-numbering men-owned start-ups by nearly a 2-to-1 ratio in 2003.

The poll, conducted by the National Association for the Self-Employed (NASE), shows that women increasingly are taking stock of the broader job market and economic climate and electing to set up shop -- often at home -- in pursuit of more control, greater independence and a better balance of work, family and community stewardship. Adding to the equation are technology advancements and accepted workplace trends that enable individuals to work virtually from any location or office configuration.

The NASE conducted the survey last month among more than 1,000 self-employed Americans. Women owners of randomly selected businesses with fewer than 10 employees comprised half of the survey sample, while men "micro-business" owners comprised the remaining half.

Despite a litany of challenges – topped off by the economy -- almost a third of women surveyed in the poll say they have started their businesses since 2001, and nearly 10 percent (9.8 percent) report they have launched their current enterprise this year. In contrast, 5.1 percent of businesses owned by male survey respondents have been started in 2003.

While 85 percent of women surveyed report that they gave up working for someone else to start their current enterprises, one in 10 (10.4 percent) say they currently are employed by someone else even as they pursue their own business on the side. One in five (22.5 percent) women surveyed report their businesses are part-time pursuits – double the level of men-owned entrepreneurial businesses that are designated "part-time."

"These trend findings present an important snapshot of women in today’s workplace and a look at how the nation's 9.1 million self-employed women are in all-out pursuit of a more integrated and fulfilling work and personal life than they believe is afforded by the corporate world," notes Robert Hughes, president of the NASE.

According to the study, six in 10 women who are self-employed today have had to switch careers and most say they are working harder to start and sustain their own ventures, but it is a trade-off most are happy to make to better accommodate the needs of their families and other interests. Chief motivations are more time with and focus on family, as well as greater flexibility in managing their households. Women business owners also say their independence enables them to be more involved in the community.

In an age of high-speed Internet access, business development centers and self-service office and document support, women are taking advantage of increasing opportunities to work from a home office and cover other bases that are important to them and their families, from supervising homework and shuttling children to after-school activities to volunteering in the community.

Changing The Way Women Work

Hughes notes the findings spotlight how women are radically changing the landscape of work to help their families and communities while accomplishing their career goals. "While women in the 1990s were working flat-out to climb the corporate ladder, we’re seeing greater measures taken by women today to address and integrate other aspects of life during the work week," said Hughes.

But greater flexibility in work schedules does not mean today's self-employed women are slacking off. More than six in 10 surveyed say they do not anticipate ever taking full-time retirement, and one-third (29.7 percent) of women respondents say they are working harder than they did five years ago to sustain a similar or lesser lifestyle.

Women report self-employed income that is significantly lower than men’s, in part because of the part-time nature of the enterprise and the broader role they are playing in managing family and home. Average income for women surveyed is $38,640 versus $54,260 for men. Nearly 45 percent of women respondents report making an income of less than $25,000, while only 24.6 percent of men are at this level. In contrast, more than one in four (26.1 percent) men surveyed report making $75,000 and up – twice the number of women who report reaching this income level. More than a third (36.3 percent) of women surveyed believe they face barriers to their success based on gender.

At the same time, women entrepreneurs express greater commitment than men in sticking with their self-employment plan over the long-haul, regardless of other attractive career opportunities that might come along. More than 25 percent (26.6 percent) of women surveyed say they would not consider closing their businesses even if another desirable job came their way. Only 17 percent of men are so solidly behind working for themselves.

Assessing The Contributions of Women in the Workplace

"Women are re-writing many of the rules on entrepreneurship, bringing a fresh and broadened perspective to business and key national issues that is exciting and critical to the growth of our economy and to the health and balance of society," said Hughes.

Women surveyed solidly agree with the statement, "If more women were involved in decision- or policy-making at the federal level, the economy would be in better shape." Agreement about this statement among men was significantly lower.

When asked the changes and differences women can affect, the top choice for women was that they could "achieve a society that is better balanced between work and family," while the leading point of agreement among men was that women provide a "greater diversity of ideas." Men and women are in solid agreement about the ability of women to help achieve reforms on important social and economic issues such as health care.

Survey Methodology

The NASE poll was developed to assess trends pertaining to self-employment and micro-business (fewer than 10 employees) ownership in the United States. More than 1,065 women and men micro-business owners participated in the Internet-based survey, which was fielded September 26-October 5, 2003 among randomly selected micro-business owners and operators throughout the United States.
 

About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) non-profit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's web site at www.nase.org.

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