EMBARGOED UNTIL 10 A.M. EDT, APRIL 8, 1997 (TUESDAY) Public Information Office CB97-57 301-457-3030/301-457-3670 (fax) 301-457-4067 (TDD) e-mail: pio@census.gov Eddie Salyers 301-763-7234 Census Bureau Says Percent of Employer Businesses Owned by Women Continues to Increase Although smaller and younger, the percentage of women-owned firms with employees increased from 12 percent of all employer businesses established before 1980, to 18.5 percent of firms established between 1991 and 1994, according to a new national survey of businesses with employees by the Commerce Department's Census Bureau. The survey showed that 78.5 percent of women-owned firms had between one and nine employees, compared with 68.2 percent for all employer firms. Also, firms started after 1980 accounted for a larger share of all women-owned businesses than of male- or jointly owned firms. The 1994 Survey of Businesses by Gender of Ownership marks the first time the U.S. Census Bureau has focused on women-owned employer businesses and asked questions about expansion plans and access to capital. According to a 1992 study, women-owned firms with employees represented less than 20 percent of all women-owned firms but accounted for about 90 percent of their sales and receipts. "An interesting finding is that much of the stereotyping of women-owned businesses fades when contrasted to comparable male-owned firms, particularly with regard to credit availability and expansion plans," said Ruth Runyan, the analyst in charge of the 1994 Survey of Businesses by Gender of Ownership. Among the survey's main findings are: - Of the roughly 4.8 million employer businesses in the United States, 15.9 percent were owned by women. Women shared ownership of an additional 18.7 percent of businesses with men. - The survey showed no statistically significant difference between men and women business owners in their access to credit. Only 12.8 percent of women-owned firms said their ability to operate or expand had been hampered by credit difficulty. The percentage for all firms was 12 percent; for male-owned firms, 11.5 percent. - Sources of credit for women-owned businesses also were similar to those for all firms. To finance planned expansion, 65.5 percent of the women-owned firms reported plans to reinvest profits; 39 percent planned to invest their own assets; 37 percent, to obtain bank loans; and 26 percent, to use supplier credit. Other credit sources mentioned were business credit cards (18.5 percent) and government-guaranteed loans (11.9 percent). - Looking ahead to the next five years, 30.4 percent of the responding women-owned firms said they planned to increase their work force; 28.6 percent expect to add new products; 20 percent intend to increase the hours their employees work; 7.7 percent plan to increase the number of locations; 6.4 percent expect to expand government contracting; and 4.2 percent intend to expand into international markets. These plans mirror similar percentages for all firms and for male-owned firms in the survey. The survey was sponsored jointly by the Departments of Labor, Defense, Commerce, Transportation, Housing and Urban Development, and Health and Human Services, as well as the Federal Aviation Administration. The Office of Women's Business Ownership at the Small Business Administration, the National Women's Business Council and the Office of Business Liaison at the Commerce Department designed the survey content. The Census Bureau conducted the survey. Of the approximately 94,000 firms in the sample, about 29,000 returned completed questionnaires. Participation in the survey was voluntary. The data are subject to sampling variability as well as reporting and coverage errors. The data are available on the Internet at http://www.census.gov/csd/mwb/1992-X-The Census Bureau--pre-eminent collector and provider of timely, relevant, and quality data about the people and economy of the United States. In over 100 surveys annually and 20 censuses a decade, evolving from the first census in 1790, the Census Bureau provides official information about America's people, businesses, industries, and institutions.
