Australian Women Small Business Owners Essay

Introduction

The Australian Bureau of Statistics defines a small enterprise as an actively trading business with less than 20 employees. Small businesses are important to the economy as estimations show that they account for about half of the employment opportunities in the trade business and contribute more than a third of the industry’s value added. Statistics show that, as at 2006, 31.5 percent of small business operators were female while 68.5 percent were male (Clark et al. 2011).

This is an indicator that there are very few female small business owners; this is a grave concern for the sector, and efforts are being made to determine the reasons behind this trend. Recently, there has been increased interest in understanding women-owned enterprises and their experiences in a male-dominated area. Economists acknowledge that policymakers tend to assume that all small businesses face similar issues irrespective of whether they are owned by females or males.

However, there is evidence that they face different challenges as it has been deduced that the structures and processes used to obtain resources to establish and expand businesses differed between both genders, which affected the success of female-owned businesses. This paper is a discussion of the available literature on female business owners in Australia, a summary of the views of one female entrepreneur, and recommendations that can be adapted to encourage more women to start establishments and succeed.

Women in Small Business

Studies have profiled women in small establishments on a number of factors such as demography, the amount of capital investment, and nature of business. Australian-based research has found that women are likely to run a service-providing company because of the flexibility of these ventures allowing them to work from home or combine them with family responsibilities, previous work exposure as employees, their customer service orientation, and the more general educational background of females (Stanger 2004).

Research shows that women are likely to invest in education, recreational services, dining business, accommodation, and health and community services. Some experts have also profiled businesswomen by demographics such as age, education, marital status, nationality, among other factors. An earlier study established that, in the early 1990s, female business operators were aged between 30 and 50, married, Australian born and had a tertiary education.

In addition, they worked in the family business during their childhood, had a self-employed father and an employed mother, and were either a first born or only child (Conway & Sheridan 2005).

In contrast, a later investigation deduced that the average self-employed female is aged over 35 years, has excellent schooling, Australian born, worked full-time in a family-owned business and is a wife and mother. It has also been found that majorities of the businesswomen operate from rented premises, started with less than $10,000, and face financial hurdles; nevertheless, most of these companies survive beyond 12 months.

Numerous studies have deduced that there are more women running their businesses from home than men. This conclusion is also backed by some findings that showed that 25 percent of the male respondents operated from home compared to 40 percent of women (Walker & Webster 2004). The researcher also found that most people who run home-based enterprises do so to balance work and family and to enjoy a flexible lifestyle.

In the general business environment, business and social networks are deemed critical for organizations. Social networks are the relationships that give rise to social capital, which enhances access to a range of resources and business opportunities. In contrast, business networks are relations between different enterprises, although they may or may not have a social network backing except when they have the support of the government (Farr-Wharton & Brunetto 2007).

The female entrepreneurship, networking literature has found that women rank networks as an important source of information because it is cheap for start-ups. Furthermore, women also consult their families before making business decisions. Surveys attribute the significance of networks of women to their structure because they are formally organized, making it possible to mentor, share information, and find solutions.

Unfortunately, females are known to have poor networking practices, which hinder their access to potential business opportunities. The Australian government has made efforts to promote female networking by developing a small range of business programs that support the business growth of women entrepreneurs.

Additionally, it formulates business policies at federal, local, state government levels to ensure that they achieve their growth objectives; nonetheless, there has been less use of government-sponsored networking programs (Farr-Wharton & Brunetto 2007).

There are myriads of cases of business failures and successes, which are often attributed to the level of past experience in the sector, finance and management capabilities, and strength of the proprietor’s network. However, some causes of failure are unique to women because they have a more general educational background and limited relevant work experience, which tend to limit their opportunities to build up the necessary experience and skills relevant for small business success (Walker & Webster 2007).

This means that women considering starting and managing small establishments are likely to gain invaluable skills through training, mentoring, and business assistance. Specialists cite that training in the form of an educational course imparts vocational or business knowledge and skills to women proprietors in any stage of small business development.

On the other hand, business support is offered by individuals or firms; this can be verbal or published advice or services relating to legal, taxation compliance, financing, financial statements preparation and management.

Female businesspersons need support to thrive in the male-dominated field. Unfortunately, they favor the use of specialists, community programs, independent sources, family members, colleagues, and friends. It is argued that women entrepreneurs make use of professionals such as accountants, tax experts and lawyers. In contrast, the use of government services by this group is low, though when used, they prefer generic sources from state and federal government.

These sources include universities, the New Enterprise Incentive Scheme, the Small Business Development Corporation, the Commonwealth Employment Service, and the National Industry Extension Service (Stanger 2004). It is assumed that government agencies have not been a useful source of guidance, support, or information, which explains why women do not approach them for help.

Moreover, it is known that these bodies are not appropriate or accessible to women even though colossal amounts of resources are used in creating awareness and marketing these assistance programs.

Interviewing Process

Since it has been proven that men and women go through different phenomenon in their quest to establish strong businesses in Australia, I decided to center on a number of factors that are likely to affect the successfulness of female-owned ventures. My respondent is Ms. Latham, who has been running an online design outlet for three years. I asked here the following questions;

Do you have an office or you work from home?

My interviewee works from home because she has two-year old twins who need her attention, and she strives to distribute her time with them throughout the day.

How much time do you put into the business?

Ms. Latham confirmed that she gave her enterprise a minimum and a maximum of six and eight hours a day respectively. She works five days a week and allocates her weekends to being a mother and wife.

In your opinion, does schooling, training, prior exposure, knowledge, and development influence the success of small establishments?

Her response supported existing findings, which posit that entrepreneurs with previous experience and knowledge in the field they are looking to enter do have an upper hand than novice ones. In addition, she cited that even beginners can flourish with proper training and formal education.

Prior to creating your own establishment, had you been actively involved in the running of a business?

In response to this query, she said that she was among the many entrepreneurs who entered the business world without previous business-related experience. She was quick to emphasize that she was never interested in leaving paid employment until after she got a family and she felt that she needed some flexibility to cater for their needs.

Coincidentally, at the time she was considering going into self-employment, she attended a mentorship forum where she met some flourishing businesspeople and she felt the conviction to follow. At that juncture, she made the decision to start her business and she says she intends to learn the ropes and thrive in her endeavor.

Do you think there is synergy in business and social networks?

My respondent strongly believes that social and business networks are vital for the success of any business because they give one access to business opportunities. Moreover, social networks can be a good source of capital and advice that can catapult small enterprises to higher levels. Ms. Latham quoted the Australian Businesswomen’s Network as one organization that uses the online platform to help female business owners overcome business related challenges and augment performance.

This website allows members to download free e-books that help small business operators acquire knowledge and new skills that can improve their ventures. She cited that she had downloaded numerous readings, for instance, she has read books that gave her insight on mobile marketing, which she uses to expand her reach. She has also read stirring stories of start-up successes and challenges, some articles from successful female business moguls, and several editorials about innovation and how it can work for a female entrepreneur.

In addition, she regularly visits the Women’s Network Australia website to get business mentorship and information about trade and exhibition opportunities. She summarized her views about this question by asserting that she had learnt a great deal from the online businesswomen platforms and had made contacts with people who have helped her develop strategies to grow her business.

Do you think there is enough government and non-government support for businesswomen?

Ms. Latham reckons that there is substantial non-government support mainly from professionals, social units, and private bodies. She cites that she regularly sources services from accountants, lawyers, business developers, bankers, marketers, and private organizations. Regrettably, she felt that the government had not shown serious initiative to support female entrepreneurs in their ventures.

Discussion of Findings

The interview results revealed that women are still the primary caregivers at home, even when they have to work explaining why they would rather be self-employed and where possible, run their enterprises from home. Female entrepreneurs doing this have more free time to attend to their families because they do not have to be away from them. However, they have to plan their hours well and to create a distinction between family and work time.

It is also evident that women value professional services such as accounting, tax advisory, legal counsel, and banking. They also enjoy family support, which is more critical for them than professional or government support in an environment where government support is almost absent.

Businesswomen also find social and business networks very useful because they are a source of advice, capital, business opportunities, contacts, and resources that are likely to increase their revenue. Ms. Latham prefers online networks because they do not take up much of her time as would be the case with person-to-person forums.

Finally, it is apparent that prior business experience, training and development opportunities, and an excellent education are crucial determinants when considering venturing in commerce and to some extent they influence the establishment’s success rate. All the same, they should not be a hindrance for women wishing to be self-employed because they can always invest in training and development to augment their knowledge and obtain skills that make them competitive.

Recommendations and Conclusion

Women entrepreneurs face many challenges starting and operating companies because they are pressured for time and resources. Furthermore, there are only a few females who have prior business experience, which increases their failure rate. In addition, government agencies and private bodies shy away from offering financial and business support to this group making it even harder for them to compete with their male counterparts.

All these issues notwithstanding, many women have succeeded in business, and more can if some recommendations were adopted. First, women ought to appreciate that technological advancements have made it possible to work remotely, making it possible to spare additional time for their families. Owners can take advantage of these improvements to work from home while retaining control of their businesses, and where possible, establish home-based enterprises.

Moreover, they can use the online platform to connect with potential business partners and mentors, study and research as well as well as market and sell their products. Professional service providers and the government should also see this segment as potential clients and employers and customize products and services that appeal to them; thus, encouraging them to do business. However, implementing the above recommendations would be futile in the absence of awareness campaigns and training programs.

The government should create business awareness among women to ensure entrepreneurs are conscious of the services they can get from them, where and how to reach them, and the benefits they would derive. It should also offer free or affordable vocational training for women in business. Though these strategies may take a while to realize tangible gains, they will empower more women to do business in the long run.

References

Clark, M., Eaton, M., Lind, W., Pye, E. & Bateman, L. 2011, Australian small business key Statistics, Department of Innovation Industry, Science and Research, pp. 1-42. Web.

Conway, L. & Sheridan, A. 2005, ‘Women, Small Business and Regional Location,’ Rural Society, vol.15, no.1, pp.55-76.

Farr-Wharton, R. & Brunetto, Y. 2007, ‘Women entrepreneurs, opportunity recognition and Government-sponsored business networks: A social capital perspective’, Women in Management Review, vol. 22, no.3, pp.187 – 207.

Stanger, A. 2004, ‘Gender-comparative use of small business training and assistance: a literature Review’, Education + Training, vol. 46, no.8/9, pp.464 – 473.

Walker, E. & Webster, B. 2004, ‘Gender issues in home-based businesses’, Women In Management Review, vol. 19, no.8, pp.404 – 412.

Walker, E. & Webster, B. 2007, ‘Gender, age and self-employment: some things change, some Stay the same’, Women in Management Review, vol. 22, no.2, pp.122 – 135.