Even facing inflationary pressures, supply chain disruptions, and economic uncertainty, women business owners and executives of small and medium-sized enterprises predominantly owned by women have an optimistic outlook on the short-term future of their businesses, according to a recent survey.
The PNC Bank survey found that the expectations of women business owners (WBOs) for their own companies remain strong, with 41% feeling highly optimistic – an increase from 29% in the fall of 2020, but a decrease from 67% in the fall of 2021 – while the proportion of those who feel pessimistic has remained steady at just 1%.
The survey also indicated that more than eight in ten women business owners are very confident in their future success, and nearly half say that this comes from their own hard work and determination. Similarly, 79% of WBOs are very satisfied with their role as business owners or leaders, compared to 67% of male business owners (MBOs).
“We are seeing a new pattern of self-empowerment among women business owners that is very encouraging,” said Beth Marcello, director of Women’s Business Development at PNC. “Their own hard work to survive the pandemic is the source of their confidence and optimism today.”
The survey suggests that women have a proactive and “I can do it” attitude. When it was difficult to find employees, 49% of WBOs versus one-third of MBOs say that they or their managers stepped in to cover the hours of vacant employees. Additionally, they are focused on growth: 81% of respondents are Woman Business Enterprise-certified, 73% promote their certification, and 88% say that certification has been a useful business development tool.
“For the first time, we have evidence of greater financial confidence among women business owners. They are twice as likely as men to say they are considering a new loan or line of credit to support business growth,” Marcello said. “They are monitoring their cash position and have a cash reserve, but they are investing excess cash rather than hoarding it; they are continuing to leverage the greater efficiency of the digital financial tools they migrated to during the pandemic; and they are confidently raising prices as the economy allows.”
Facing Challenges
Although WBOs have concerns about inflation, profitability, and the supply chain, they believe they are prepared for these challenges. While similar portions of WBOs and MBOs faced supply chain issues over the past year, 79% of WBOs believe they have the right amount of inventory needed to succeed.
WBOs also intend to maintain or expand policies they initiated during the pandemic, including allowing flexible work arrangements (48%), increasing compensation (38%), and implementing improvements in employee health or safety (33%). WBOs are more likely than MBOs to adopt Corporate Social Responsibility policies or practices, including gender pay equity (34% vs. 9%) and diversity and inclusion (29% vs. 14%). These disparities may indicate why fewer WBOs (30%) than MBOs (43%) are finding it harder to hire new employees compared to six months ago.
Identifying and addressing the challenges faced by women financial decision-makers is a component of Project 257: Accelerating Women’s Financial Equality, by PNC, an initiative to help close the 257-year economic gender gap. More information about these efforts, as well as helpful resources for women financial decision-makers, can be found at pnc.com/women. To connect with Project 257, follow PNC on social media: Facebook, Instagram, LinkedIn, and Twitter.
Although the pandemic has created new economic challenges, many with lasting effects, women business owners have largely overcome these obstacles, taking lessons that inspire their optimism and confidence today.
Source: StatePoint