The Megaphone of Main Street: Women's Entrepreneurship report highlights the experiences of women entrepreneurs in the United States. The report includes key findings related to the challenges, successes, and goals of women entrepreneurs, as well as their use of technology, access to capital, and networking habits.
Key research findings include:
Part 1: Women-Owned Business Success
- Women are slightly more likely than men to start businesses.
- Among mentored businesses, women-owned businesses are as successful as men-owned businesses as measured by business starts, revenue growth, job creation, and number of years in business.
- Women are significantly more likely to launch businesses within the healthcare (10%) or education sectors (9%) than men (5% in both cases). In contrast, men are significantly more likely to start businesses in the construction and manufacturing industries (12%) than women (4%).
Part 2: Financing and Female Entrepreneurs
- 62% of women entrepreneurs depend on their business as their primary source of income.
- Among entrepreneurs seeking financing over the lifespan of their business, men were more likely to try to seek financing for their business (34% as compared to 25% of women).
- Among those entrepreneurs who sought financing in the past year, men were again more likely to obtain loans or equity financing than women (38%, versus 31% of women).
- Male and female entrepreneurs sought financing for similar reasons related to starting or growing their business, with the exception of one: Men were more likely than women to seek financing for the purpose of launching a new product (26%, as compared to 22%).
Part 3: The Impact of Mentoring on Business Success
- Mentorship increases the likelihood of a business opening and staying open.
- Working with a mentor for five or more hours greatly increases an entrepreneur’s likelihood of business success.
- Women entrepreneurs experience greater success when they are mentored, regardless of their mentor’s gender.
Part 4: How and Why Women Start Businesses
- Small businesses have been significantly impacted by the pandemic, with over half experiencing revenue declines and nearly one-third having to temporarily close.
- Many small businesses have adapted to the pandemic by implementing new safety measures and pivoting to online sales, but these changes have come with additional costs.
- Government support programs like the Paycheck Protection Program have helped some small businesses stay afloat, but there is still a need for additional financial assistance and guidance.
The Megaphone of Main Street data report series by SCORE provides insights into small business trends and challenges in the United States. The reports cover a range of topics such as the impact of the COVID-19 pandemic on small businesses, financial management strategies, and marketing tactics. The data is collected through surveys of small business owners, providing valuable information for entrepreneurs, policymakers, and other stakeholders interested in the success of small businesses.