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Affordable Insurance and Cash Flow Management Poses Biggest Challenge for Women Business Owners
In a study by Biz2Credit that explores the challenges facing minority and women business owners, finding affordable insurance and cash flow management pose the biggest challenge to women business owners. African-American women proved to be the most in need of business financing options and resources. NAWBO members participated in this study, which was conducted by Biz2Credit in coordination with business associations, ethnic media outlets and local chambers of commerce.
“There’s a large financial knowledge and service gap within the minority and women business owner community,” said Ramit Arora, President of Biz2Credit. “The current market landscape will only worsen unless legislators take swift action to free up financing or loan resources.”
Biz2Credit, a small business marketplace, administered the survey to examine the effects of the ongoing credit crunch and recession on the health of minority- and women-owned small businesses. The survey was distributed to more than 100,000 African-American, Asian, Hispanic and women small business owners. In addition to NAWBO, ImpreMedia Digital and a large network of local Chambers of Commerce distributed the survey to their members and readers.
Other key concerns of minority and women business owners included acquiring new clients and adopting technology. Around 52 percent of Hispanic or Latino respondents indicated that they manage their finances manually instead of using an accounting software program.
The survey also found that there are several key themes connecting small business owners:
- Their online behavior (e.g., women have almost twice as many web-sites for business, yet their use of online advertising is almost the same)
- Their financial and business challenges (e.g., there were some common themes like the impact of the credit crisis on short-term financing; however some distinct differences emerged for various ethnic groups and genders)
- Their usage patterns for tools and services related to insurance, financial management, and tax preparation (e.g., the Hispanic sector used customized software for managing financed but the penetration of QuickBooks was low).