Top Challenges For Women-Owned Businesses (And How To Overcome Them)
Nearly half of all U.S. businesses are owned by women, according to IncFile, amounting to about 13 million businesses. An estimated 849 women-owned businesses open every day. Their biggest challenges? According to a survey by ADP and the National Association of Women Business Owners, women entrepreneurs struggle most with hiring, financing, access to growth resources, employee experience and access to HR tools.
Hannah Beppel, a content designer at ADP, has outlined a few takeaways from this survey, including how women can navigate these challenges. We share her insight in this issue of PromoPro Daily.
Challenge No. 1: Hiring. Nearly half of women-owned businesses (43%) have no staff in addition to the owner. This could mean the difference between expanding or stagnating. What can women entrepreneurs do? Capitalize on being a small business. Find out what your desired candidates value most and then see how you can incorporate those things in your offer.
Challenge No. 2: Financing. Of the survey respondents, only 10% had secured a small business loan. Most women entrepreneurs use personal savings to finance their business, Beppel says, with some using loans from family or friends. To overcome this challenge, she recommends creating a funding plan. Map out areas designated for more spending and areas to hold back right now. Make sure you only bite off what you can chew, she says.
Challenge No. 3: Access to growth and training tools. Almost half of the respondents expressed a desire to access social media training to help with growth, Beppel says. Others indicated a need for tools to find, contact and hire new employees. Instead of worrying about what you don’t have yet, try focusing on one area at a time. If you want to boost your social media, trying taking a short course to learn social tools and how to use them.
Challenge No. 4: Improving the employee experience. Small businesses may not have the deep pockets of large corporations, but they can still win and retain top talent. If you currently have a team, Beppel recommends checking in with them about what could give them a better employee experience. For example, staffers may greatly appreciate more flexible hours or more floating holidays.
Challenge No. 5: Better HR and payroll tools. Many female entrepreneurs aren’t up to speed on different tax credits or HR-related issues. On this topic, Beppel suggests that women business owners find trusted advisors. Look for an accounting firm or third-party payroll and HR providers.
If you’re a woman entrepreneur or you work for a woman-owned company, it’s important to stay current on business trends and insights. When you can spot challenges ahead of time, you can stay nimble and focus on growth.
Compiled by Audrey Sellers
Source: Hannah Beppel is a content designer at ADP.