Challenging economic times do encourage entrepreneurial activity, according to a recent Pepperdine University business report. Bill Gates started Microsoft in a recession; in fact, more than half of the companies on the Fortune 500 list began during a recession.
The current recession is a very male one, with some experts saying men have lost four out of five jobs shed since December 2007. That’s tough on men’s families, and the lucky ones have a wife to keep the family afloat while they regroup. Today, nearly two-thirds of women work outside the home, according to a 2009 Pepperdine University business report.
Women today earn 45 percent of all household income and seven million families rely mainly — or entirely — on a woman’s income. In the United States, women make 80 percent of discretionary purchases, including 90 percent of food and 55 percent of consumer electronic purchases.
Waiting for Pay Equity?
Despite that significant purchasing power, women have not yet achieved equity in earnings. Women working full time earned 80.2 cents for a man’s dollar in 2009, up from 62.3 cents in 1979, according to Census Bureau data. At that rate, women would achieve full pay equity with men in the year 2037. Maddeningly, the pace of increase has actually slowed this decade, which might mean women managers will not achieve full pay equity with men until around June of 2076
The higher a woman rises in management and pay, the wider the pay gap grows, according to a company that tracks self-reported salary data. Women chief executives earn 71 percent of what equally qualified men earn.
Don’t Just Get Mad
Small wonder increasing numbers of women don’t just get mad, they start their own businesses. As of 2009, there were 10 million women-owned firms in the United States; they employ more than 13 million people and generate nearly two trillion dollars in sales, according to a recent Pepperdine University business report.
If you’ve been laid off, pursue further education to help ensure you won’t get hit next time. Maybe you couldn’t afford to quit to go to school before; now, you can’t afford NOT to. Women are investing in themselves, and schools across the country report increased numbers of women pursuing MBAs and undergraduate degrees in accounting and business.
Weather the Storm
Survival will depend on how well you have prepared and how quickly you react to current changes. These tips can help all workingwomen.
- Consolidate your debt load and consider refinancing if rates and fees are favorable.
- Curb your consumption and buy only what you really need, focusing on purchases that provide long term returns, not just immediate satisfaction.
- Invest in yourself. Earn a degree, add new skills and increase your professional network.
- Take reasonable risks. Carefully weigh the costs and benefits of starting that new business you have been dreaming of, and don’t be afraid to make the leap if you can make the most of current opportunities.
Managing Your Money As An Entrepreneur
Experts say managing your money is especially critical for a new entrepreneur. These five tips offer essential guidance.
- Overcome any lack of information and experience by educating yourself about finance.
- You’ll have lower savings to start than a typical man, and start-up loans are hard to come by in this regulatory environment. Many women turn to family and friends for start-up loans.
- Don’t take things personally because this will cloud your relationships with money. Cultivate a dispassionate view of your business.
- Don’t rip yourself off by undervaluing what you do.
- Scrupulously keep personal and business money streams separate. If you’re not keeping accurate profit and loss information, you can miss valuable tax deductions. You may even get into trouble with the IRS if you are not tracking your complete business expenses.
Use Feminine Skills for Success
We know women are primary breadwinners, chief purchasing agents, and CEOs of their own businesses. I recently spoke with a wonderful woman who says that women are transforming our world by creating environments that are more cooperative, more collaborative, that allow vulnerability and create a sense of mutuality with each other. I’ll talk more about her in another article.
This feminine — and feminist — enterprise model allows for intelligent risk taking and a collaborative approach that considers wider social values in addition to profits. As economies around the world dig out from the recession, watch for the emergence of the new female model of success. Women can lead by example to change the business environment away from excessively risky behavior and spiraling debt. We can choose for ourselves to build the economy we want for ourselves and future generations.
~By Dr. Nancy D. O’Reilly