Running your own small business is rewarding, but it comes with many challenges. A new survey commissioned by Progressive Insurance looks at the role gender and age play in this segment, revealing some distinct differences.
The survey revealed men are more financially secure about running a small business, by a 14% margin of 84% to 70%. Meanwhile 32% women responding to the survey say they wish they had learned more about financial management sooner compared to 23% of men.
With 30.2 million small businesses operating in the US in 2018, understanding the different dynamics of gender and age will help current and future entrepreneurs manage their businesses more effectively.
Progressive commissioned the survey to understand the challenges and complexities of being a small business owner. One thousand business owners took part in the survey.
Male vs Female Entrepreneurs Statistics
Continuing with the differences between the genders, 48% of female small business owners will seek business advice from friends and family while only 35% of their male counterparts will do the same.
When hiring workers, 21% of female small business owners look for intangibles such as great fit, passion and enthusiasm. However this was important to only 16% of the male small business owners surveyed.
Another difference is how male and female small business owners attempt to protect their companies. Seventy-two percent of males will insure their business when they first establish it, while only 64% of the women do the same.
Of those who wait until they make a profit to insure their business, women lead in this category with 13% compared to males at 7%.
So what do men and women small business owners have most in common? The problem of cash flow is common to both genders, with 65% stating it is a top financial concern.
The Importance of Identifying the Differences
Identifying the differences between gender, race, age and other demographics in the small business sector allows private organizations, public entities and policymakers to recognize problems and find solutions for them.
Small businesses can create products and services for the underserved group while policymakers and public entities can provide incentives such as tax breaks, regulation and more to encourage their growth.
You can look at the infographic below for the rest of the data from the survey.
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