International Journal of Diversity in Organisations, Communities and Nations Volume 4 Article: DC04-0099-2004

Cultural Copy: Visual Conversations on Indigenous Art and Cultural Appropriation

What “Glass Ceiling” How Women-Owned Small Businesses are Re-Defining True Female Empowerment Teresa A. Daniel, Instructor in Entrepreneurship, Division of Management & Marketing, Lewis College of Business, Marshall University, Huntington, USA Margie McInerney, Professor of Management, Division of Management & Marketing, Lewis College of Business, Marshall University, Huntington, USA Representing Global Diversity, Mediating Cultural Difference: Proceedings of the Diversity Conference 2004

International Journal of Diversity in Organisations, Communities and Nations, Volume 4

‘Cultural Copy’ Acknowledgements Cover Image: ‘Cultural Copy’ Exhibition and Diversity Conference Plenary Session Graphic Design: Alesia Massey. Image courtesy of BorderZone Arts, Inc. ‘Cultural Copy’ Exhibition, UCLA Fowler Museum of Cultural History, USA July 7 to September 12th, 2004 Launched as part of the Diversity Conference 2004 BorderZone Arts Inc., Common Ground, The Globalism Institute, RMIT University, Australia Exhibit Designer: Marco Centin Curators: Tressa Berman, Marie Bouchard, Jennifer Herd Curatorial Associates: Vivien Johnson, Matt McKinley, Fred Nahwooksy, Exhibiting Artists: Richard Bell, Jennifer Herd, Kathleen Petyarre with Ray Beamish, Fiona Foley, Gordon Syron, Vernon Ah Kee, Michael Eather and Michael Nelson Jagamarra, Jenny Fraser, Frank LaPena, Arthur Amiotte, Anthony White, Colleen Cutschall, Nora Naranjo-Morse, Greg Hill, Jaune Quick-to-See-Smith, Sam Toonoo, Roger Crait The Cultural Copy exhibition was made possible by the generous support of the National Endowment for the Arts, the California Council for the Humanities, The Christensen Fund, Rio Tinto, Canadian Consulate General, Los Angeles, Art Gallery of Southwest Manitoba, Fireworks Gallery and the UCLA Fowler Museum of Cultural History.

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This journal and individual papers published at www.Diversity-Journal.com a series imprint of theUniversityPress.com First published in Australia in 2004-2006 by Common Ground Publishing Pty Ltd at www.Diversity-Journal.com Selection and editorial matter copyright © Common Ground 2004-2006 Individual papers copyright © individual contributors 2004-2006 All rights reserved. Apart from fair dealing for the purposes of study, research, criticism or review as permitted under the Copyright Act, no part of this book may be reproduced by any process without written permission from the publisher.

ISSN 1447-9532 (Print) ISSN 1447-9583 (Online)

The International Journal of Diversity in Organisations, Communities and Nations is a peer-refereed journal which is published annually. Full papers submitted for publication are refereed by the Associate Editors through an anonymous referee process.

Papers presented at the Fourth International Conference on Diversity in Organisations, Communities and Nations, held at the University of California Los Angeles, 6-9 July 2004.

Editors Mary Kalantzis, Innovation Professor, RMIT University, Melbourne, Australia. Paul James, Globalism Institute, RMIT University, Melbourne, Australia.

Diversity Conference Advisory Committee and Editorial Advisory Board of the International Journal of Diversity in Organisations, Communities and Nations Andrew Jakubowicz, Faculty of Humanities, Faculty of Humanities and Social Sciences, University of Technology, Sydney, Australia. Jock Collins, Faculty of Business, University of Technology, Sydney, Australia. Geoff Stokes, Institute for Citizenship and Globalisation, Deakin University, Melbourne, Australia. Brendan O'Leary, Solomon Asch Center for the Study of Ethnopolitical Conflict, University of Pennsylvania, USA. Samuel Aroni, University of California, Los Angeles, USA. James Early, Smithsonian Institution, Washington, DC, USA. Peter Sellars, Theatre, Opera and Film Director. Barry Gills, University of Newcastle, UK. Walter Mignolo, Duke University, USA. Ien Ang, University of Western Sydney, Australia. Michael Shapiro, University of Hawai'i, USA. Duane Champagne, University of California, Los Angeles, USA. Peter McLaren, University of California, Los Angeles, USA. Owens Wiwa, African Environmental and Human Development Agency, Toronto, Canada. Jackie Huggins, Aboriginal and Torres Strait Islander Studies Unit, University of Queensland, Australia. Mililani Trask, Indigenous Expert to the Permanent Forum on Indigenous Issues for the Economic Council of the UN Assembly, Hawai’i, USA. Armareswar Galla, Australian National University, Canberra, Australia. Guosheng Y. Chen, Chinese Australian Studies Forum, RMIT University, Melbourne, Australia. Peter Phipps, Globalism Institute, RMIT University, Melbourne, Australia. Bill Cope, Common Ground and Visiting Fellow, Globalism Institute, RMIT University, Australia.

What “Glass Ceiling” How Women-Owned Small Businesses are Re-Defining True Female Empowerment Teresa A. Daniel, Instructor in Entrepreneurship, Division of Management & Marketing, Lewis College of Business, Marshall University, Huntington, USA Margie McInerney, Professor of Management, Division of Management & Marketing, Lewis College of Business, Marshall University, Huntington, USA

Abstract Whether their motivation is disenchantment with trying to break the “glass ceiling” in the corporate world, a desire for better work and family balance, or the need for greater challenge, women are leaving corporations and starting their own businesses in record numbers. The growth of women-owned businesses and the resulting economic strength of these female entrepreneurs can only be expected to accelerate in the future. With more than 9 million businesses now owned by women—with more than 40% of these businesses having gross sales of $25,000 or more and 2% having gross sales which exceed $1 million—the impact of female entrepreneurs on the growth of the national economy has become quite significant. The explosive growth of women-owned businesses is re-defining true female empowerment, as well as re-shaping the workplace, business networks, financial institutions and even our nation’s culture. Keywords: Entrepreneurship; Entrepreneurs; Gender; Females; Women-Owned Businesses; Women-Owned Small Business; Small Business Ownership; Glass Ceiling

I. Introduction The growth of women-owned businesses throughout the 1980’s and 1990’s has been nothing short of phenomenal. From 1987 to 1999, the number of businesses owned by women increased roughly 16% to an estimated 9 million, almost triple the rate of 6% increase for all firms.1 Their revenues increased 33% during this period, compared with a 24% increase for all firms.2 It is for this reason that a recent article in Bank Marketing stated that, “Women are becoming the engines of the New Economy”.3 The impact of this explosion of women into the small business world, both on the economy and employment, is substantial. By 1999, womenowned businesses were generating $3.6 trillion in revenue, an increase of more than 200% from 1987, after adjusting for inflation and nearly 27.5 million employees worked for women-owned firms.4 The

1

Donald F. Kuratko and Richard M. Hodgetts, Entrepreneurship (6th edition), 2004, 677. See also Teddy Gutner, “Finally Credit Where Credit Is Due,” Business Week, June 26, 2000, 250. 2 U.S. Census Bureau, 1997 Economic Census, Available at http://www.census.gov. 3 Janet Bigham Bernstel, “The Not So Small Business of Women,” Bank Marketing, May 2000, 20 – 26; see also Arthur L. Dolinsky, Richard K. Caputo and Kishore Pasumarty, “LongTerm Entrepreneurship Patterns: A National Study of Black and White Female Entry and Stayer Status Differences,” Journal of Small Business Management, January 1994. 4 Kuratko, 678; see also U.S. Small Business Administration, Office of Advocacy Report, “Women In Business, October 1998,

result is that employment in women-owned firms is now 35% to 40% greater than the employment in existence in Fortune 500 firms.5 There is no single reason for these dramatic increases in female entrepreneurship over the last 20 years; instead, it is the result of many factors that can be grouped into several major categories— dissatisfaction with the corporate environment, a desire for a more balanced life, and the need for a greater challenge.

II. Statistics about Women Entrepreneurs & Female Corporate Executives A. Women-Owned Businesses While various measures of the number of womenowned businesses exist, there are two primary reports that capture this type of information. The U.S. Census Bureau publishes data on businesses, while the Bureau of Labor Statistics publishes data on self-employment as a labor category. The U.S. Census Bureau reports that in 1997, women owned more than 50% of 5.4 million

Available at http://www.sba.gov/advo; see also Peggy A. Lambing and Charles R. Kuehl, Entrepreneurship (3rd Edition), Prentice Hall, 2003, 35. 5 Michael Lynch and Katherine Post, “What Glass Ceiling?” Public Interest, Summer 1996, 27 – 36.

International Journal of Diversity in Organisations, Communities and Nations, Volume 4 • www.Diversity-Journal.com Copyright © Common Ground • ISSN 1447-9532 (Print) • ISSN 1447-9583 (Online) Paper presented at the Fourth International Conference on Diversity in Organisations, Communities and Nations, held at the University of California Los Angeles, 6-9 July 2004 • www.Diversity-Conference.com

International Journal of Diversity in Organisations, Communities and Nations, Volume 4 businesses.6 In addition to these women-owned businesses, there were 3.6 million firms owned equally by men and women that employed 8.3 million workers and generated $943.9 billion in revenue.7 Women-owned businesses generated $819 billion in revenues in 2000.8 Among all women-owned businesses, 847,000 (15.6%) had paid employees; 7,439 of these firms (0.9%) had 100 or more employees, while roughly 559,402 (66.1%) had less than 5 employees. In all, these businesses employed more than 7 million workers and had nearly $150 billion in payroll in 1997.9 The majority (84.8%) of all women-owned firms were sole proprietorships in 1997 and were concentrated in the services and retail trade industries.10 As of 1999, women made up 46% of the labor force in the United States—the highest participation rate in the world.11 However, large disparities remain between men and women in terms of personal earnings and income. 52% of female householders earned less than $25,000, compared with 27% of male householders.12 Only 4% of female householders—but 11% of their male counterparts—earned as much as $85,000.13 Business ownership has been one of the most effective means of improving a woman’s economic well-being. In 1998, women-headed households with a business had an average income level 2.5 times that of those without a business; similarly, those with a business had average net worth nearly six times those without.14 Another interesting finding of the data shows that women-owned businesses are more likely to succeed than are those owned by men, as evidenced by the fact that nearly 75% of these businesses in existence in 1991 were still in operation three years later, compared to a survival rate of just 67% for all U.S. firms.15

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U.S. Census Bureau, 1997 Economic Census, Available at http://www.census.gov/ 7 Ibid. 8 Kuratko and Hodgetts, 677. 9 Ibid. 10 U.S. Small Business Administration, Office of Advocacy, “Women in Business,” 2001, Available at http://www.sba.gov/advo. 11 Ibid. 12 Ibid. 13 Ibid. 14 Kuratko and Hodgetts, 678. 15 Catalyst Study, “2001 Catalyst Census of Women Board Directors of the Fortune 1000,” 2001, Available at http://catalystwomen.org/research/censuses.htm , Accessed on 08/28/003; see also Joint Catalyst and National Foundation for Women Business Owners Report, “Women Entrepreneurs: Why Companies Lose Female Talent and What They Can Do About It, 1998, available at http://catalystwomen.org/research/leadership.htm; see also “Cracking the Glass Ceiling: Strategies for Success,” Catalyst Report, 1994, revised 2000. In this study, Catalyst attempted to identify the barriers in the corporate culture to the development and advancement of women. The report also provides a profile of exemplary corporate initiatives for eliminating the glass ceiling; see also John Kjeldsen and Kent Nielsen, “The Circumstances of

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Although the various data sources show different levels of female participation in business ownership, one thing is certain: all are at a significant level and climbing, indicating the increasing presence and success of women in the U.S. economy.

B. Female Corporate Executives

1. Board of Director Participation According to a 2001 Catalyst Census of Women Board Directors of the Fortune 1000, the percentage of board seats held by women in the Fortune 500 is 12.4%, up from 11.7% in 2000 and 11.2% in 1999.16 87% of the Fortune 500 companies have at least one woman board member, up from 86% in 2000 and 84% in 1999.17 Women of color hold 2.6% of all board seats at the 409 Fortune 500 companies on which data was obtained. In the Fortune 501–1000, women hold 8.9% of all seats, an increase of less than one-half a percentage point from 1999.18 61% of the Fortune 501–1000 companies have at least one woman board member, down from 62% in 1999. Women of color hold 1.3% of board seats at the 430 Fortune 501–1000 companies on which data was obtained.

In all of the Fortune 1000 companies, women hold 10.9% of all board seats, and 74% of the companies have at least one woman director.19 Women of color hold only 2% of the board seats at the 839 companies on which Catalyst had data.20

2. Corporate Officers

a. Catalyst Study and Securities & Exchange Commission Data Catalyst also provides a bi-annual comprehensive accounting of women corporate officers and the top five earners in each of the Fortune 500 companies. Despite the fact that women make up 51% of the total U.S. population and represent about 46% of today’s workforce,21 as of 2000, women represented

Women Entrepreneurs,” Available at http://www.ebst.dk/publikationer/rapporter/women_entrepreneurs /ren.html, Accessed 08/26/2003. 16 Ibid.; see also “Women Start Businesses to Test Ideas,” The St. Louis Post-Dispatch, February 26, 1998, D10. 17 Ibid. 18 Ibid.; see also Meg Lundstrom, “Mommy Do You Love Your Company More than Me?”, Business Week, December 20, 1999, 175. 19 Ibid. 20 Ibid.; see also NAALC Study- The Employment of Women in North America, Available at http://www.naalc.org/english/publications/ewna_part1.htm, Accessed on 09/04/2003. 21 Catalyst Study, “2000 Catalyst Census of Women Corporate Officers and Top Earners, 2000, Available at

What “Glass Ceiling” only 12.2% of the corporate officers among all Fortune 500 companies (as of March 31), compared to 11.9% in 1999. The same year, there were 83 companies with women corporate officers who are top earners, compared to a total of 72 in 1999. This amounts to 16.6% of Fortune 500 companies, in contrast to 14.4% in 1999.22 Women top earners represented only 4.1% of all top earners in 2000, compared to 3.3% in 1999.23 In 2000, 48.9% of all corporate officers had line responsibility (e.g. profit-and-loss or direct client responsibilities).24 Of all line officer jobs in 2000, 92.7% were held by men, while women filled the remaining 7.3%, up from 6.8% in 1999.25 Of the 6 female CEOs of Fortune 500 companies at that level today, and of the best-paid of the 24 executives working for those 6 CEO’s, only 3 are women.26 Among all Fortune 500 companies, 393 have no women among their top 5 executives.27

b. SBA Study, 2001 In a 2001 US Small Business Association Study, the Office of Advocacy reported similar findings. According to their study, in 1999, women made up 46% of total decision-making power.28 9.4 million women were in executive, administrative and managerial occupations.29 This study noted found that the smaller the business, the lower the percentage of women involved in decision-making.30 The SBA study reported that a large gender disparity still remained between female and male earnings in 1999. Only 5% of women executives earned more than $80,000, compared with 23% of men executives.31 Of the women, 26% earned less than $20,000, compared with 13% of the men.32

B. From Corporate Professional to Entrepreneur—Why Women Are Leaving the Corporate World Behind to Start New Businesses Given these numbers and trends, it is no real surprise that women are opting for a more entrepreneurial approach to corporate employment. Women decide to leave the corporate world behind to open a small business for many reasons— they frequently report barriers to advancement in corporations, including lack of a culture fit and being excluded from http://catalystwomen.org/research/censuses.htm, Accessed on 08/23/2003. 22 Ibid. 23 Ibid. 24 Ibid. 25 Ibid. 26 Ibid. 27 Ibid. 28 SBA Study, “Women in Business, 2001. 29 Ibid. 30 Ibid. 31 Ibid. 32 Ibid.

informal networks of communication (e.g. casual settings where conversations occur over drinks, during lunches, playing golf, etc.). They also report that there is a lack of mentors available to them to coach and groom them for advancement.33 Women also report that male stereotyping and preconceptions of women is one of the biggest barriers that they still face.34 The workplace is filled with men who believe women should be at home raising children.35 Couple this reality with the fact that our society in general has limiting expectations about how women should act and not act, and the result is that women are opting to leave the corporate environment in increasing numbers. In a key project about why women are leaving the corporate ranks to start new businesses (a study jointly sponsored by Catalyst and the National Foundation for Women Business Owners), the primary motivations were determined to be: (a) dissatisfaction with corporate life—focused on two key areas—unhappiness with the work environment (28%) and glass ceiling issues 29%); (b) a desire for more balance between work and home (e.g. lack of flexibility—51%); and (c) a desire for greater challenge (22%).36

Each of these motivations will be examined more closely as follows: a. Dissatisfaction with Corporate Life Women become disenchanted with corporate life for many reasons, including layoffs, sexual harassment, the “glass ceiling”,37 and conflicts between family and work responsibilities.38 By the 1980’s, many women had entered the workforce and had advanced educational backgrounds. They became part of middle management in corporations several years before these companies began massive layoffs. Many who saw their corporate jobs eliminated chose to become their own bosses. But even those were not laid off often found that corporate life did not always deliver meaningful work opportunities.

33 Del Jones, “Few Women Hold Top Executive Jobs, Even When CEOs are Female, USA Today, January 27, 2003, Available at http://www.usatoday.com/money/jobcenter/2003-01-26womenceos_x.htm, Accessed on 09/04/2003. 34 Ibid. 35 Ibid. 36 Joint Catalyst and National Foundation for Women Business Owners Report, “Women Entrepreneurs: Why Companies Lose Female Talent and What They Can Do About It, 1998, available at http://catalystwomen.org/research/leadership.htm. 37 The “glass ceiling” is a term coined in the 1990’s and used to describe issues in the corporate world that prevent women from advancing into higher-level positions in terms of promotions, pay and power. 38 Ibid.

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International Journal of Diversity in Organisations, Communities and Nations, Volume 4 Although women have made progress in the corporate world, it is still dominated by men.39 A study commissioned by three prominent women’s organizations—Catalyst, the National Foundation for Women Business Owners and the Committee of 200—found that 22% of women who started businesses between 1988 and 1997 were motivated to do so as a result of glass ceiling issues such as low pay and limited opportunities for advancement.40

b. Desire for More Balance between Work and Home Women leave the corporate world behind, searching in large part for greater flexibility and control over their time.41 However, many women have quickly found out how difficult it is to simultaneously grow a new business and raise young children. When a business it very new it is often easier to get away when necessary. If the business begins to take off, though, the flexibility that is so often desired often disappears.42 For that reason, women often choose to keep their company small until their responsibilities for child-rearing have subsided.

c. Desire for More Challenges As with male entrepreneurs, many women start a business because they have a good business idea.43 In the Catalyst study, 44% of the female entrepreneurs stated that they started in business in order to implement what they believed was a winning business idea, or because they realized they could do for themselves what they were doing for their employer and be successful at it.44

d. Desire for Higher Earnings Consistent with their dissatisfaction with corporate life, women also start new businesses in order to achieve greater financial success. The percentage of women who earn more than men is higher among self-employed women.45

39 “Probing the Glass Ceiling,” An Interview with Sheila Wellington, President of Catalyst, Available at http://www.womensmedia.com/business-glass-ceiling-panel.htm, Accessed on 09/04/2003. 40 Joint Catalyst and National Foundation for Women Business Owners Report, “Women Entrepreneurs: Why Companies Lose Female Talent and What They Can Do About It, 1998, available at http://catalystwomen.org/research/leadership.htm. 41 Karen S. Lyness and Donna E. Thompson, “Climbing the Corporate Ladder: Do Female and Male Executives Follow the Same Rules?,” Journal of Applied Psychology, 2000. 42 Probing the Glass Ceiling, Available at http://www.womensmedia.com/business-glass-ceiling-panel.htm, Accessed on 09/04/2003. 43 “Women Start Businesses to Test Ideas,” The St. Louis PostDispatch, February 26, 1998, D10. 44 Catalyst Study, 1998. 45 Meg Lundstrom, “Mommy Do You Love Your Company More than Me?”, Business Week, December 20, 1999, 175.

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III. Success Factors for Women as Business Owners A. Rutgers University Research Numerous factors have been cited in an attempt to explain the success of women as entrepreneurs. Research from Helen Fisher, an anthropologist at Rutgers University, has found that five qualities make women unique and can prove very important to their success.46 These special female “success factors” include: 1. Communication Skills- women tend to be better than their male counterparts at articulating ideas and expressing them verbally. 2. People Skills- many women tend to be very effective at reading emotions in the faces of others and in deciphering postures, gestures, and voice inflections. As a result, they are able to interact well with others. 3. Web Thinking- Women tend to have the ability to gather data from the environment and construct intricate relationships between the pieces of information. In contrast, men tend to compartmentalize information and focus only on what they feel is important. And because men tend to use linear thinking in problemsolving and women do not, women are usually able to view the complexity of the world and assess more of the factors that are critical to decision-making. 4. Consensus Building- successful entrepreneurial women tend to be good negotiators, viewing situations in “win-win” terms. They also seek to create harmonious relationships. 5. Ability to Build and Nurture Good Relationssuccessful female entrepreneurs tend to be very good at maintaining long-term client relationships and effective networking.

B. National Foundation for Women Business Owners (NFWBO) Study In this study by NFWBO, underwritten by American Express Small Business Services, the research revealed that men and women have different views about success. The study attempted to examine the similarities and differences between women and men entrepreneurs in both a qualitative and quantitative manner.47 The study confirms that men and women think differently, manage differently and frequently define success differently too. Despite these differences, 46 Helen E. Fisher, “The First Sex: The Natural Talents of Women and How they are Changing the World” (New York: Random House, 1999). 47 National Foundation for Women Business Owners (NFWBO), "Styles of Success: The Thinking and Management Styles of Women and Men Entrepreneurs." Available at http://www.womenof.com/News/cn071398.asp, Accessed on 09/04.2003.

What “Glass Ceiling” though, entrepreneurs as a group—men and women alike— share special characteristics unique to business owners which set them apart from the general working population.

Among the key findings of this NFWBO study: •

•

•

More than half of women business owners (53%) emphasize intuitive or "right-brain" thinking. This style stresses creativity, sensitivity and values-based decision making. Seven out of ten (71%) men business owners emphasize logical or "left-brain" thinking. This style stresses analysis, processing information methodically and developing procedures. The decision-making style for female business owners tends to be more "whole-brained" than their male counterparts— that is, more evenly distributed between right and left-brain thinking. Two-thirds (66%) of women business owners, compared to 56% of men business owners) tend to reflect on decisions, weighing options and outcomes before moving to action. In addition, women are more likely to gather information from business advisors and associates. More men business owners (44% compared to 34% of women business owners) emphasize action and give greater attention to external events and activities than reflection.

Despite these significant differences, the NFWBO study showed that as entrepreneurs, men and women are more like each other than they are like the general working population at large—in essence, entrepreneurs are more logical and analytical in their decision-making than are their working counterparts.

C. Research Institute for Small & Emerging Business, Inc. (RISEbusiness) Study In this study, the researchers found that there were significant differences between men and womenowned businesses in terms of the personal competencies, business strategies and educational levels of the owners.48 Women rated themselves higher on human resource management and communication skills, while men rated themselves higher on quantitative skills. Additional findings of this study revealed that women-owned businesses more often follow highquality and innovation strategies than men-owned businesses. In terms of education, women business owners are typically better educated than their male

counterparts; however, women and men business owners do not differ in terms of sales, employee growth or the profitability of their business.49 The study concluded that while male and female business owners do, indeed, have different business styles, when success is measured by traditional economic measures, their businesses are very similar.50 The conclusion to be drawn from this study is that while there are distinct differences in the strategies and business practices women and men implement as business owners, there are multiple styles that can be used to create success.

D. Business Source Premier In a recent study of Canada’s Top 100 women business owners, the top 100 women were reportedly gaining a competitive edge with an interactive, consensual management style that incorporates power-sharing, flexibility, open communication and nurturing relationships.51 Of the 100 firms in the top 100, 93 of them turned an operating profit.

V. Future Trends & Challenges In the U.S. Census Bureau’s 1997 data, four states— California, New York, Texas and Florida— accounted for 33% of the firms that were 51% or more owned by women. While California had the largest number of women-owned businesses (700,500), the District of Columbia showed the largest percentage of firms owned by women (31% or 14,000 of the District’s 45,300 firms were women-owned).52 The number of women starting new businesses can only be expected to increase. As a result, their presence will be felt in virtually every sector of the U.S. economy as well as abroad. In a recent study by researchers from Babson College, the London School of economics and the Ewing Marion Kauffman Foundation, the US only ranked 10th among the countries that were surveyed. Eight of the nine nations that ranked higher were emerging economies. Researchers have concluded that the high rate of female entrepreneurship in developing countries is mostly due to poverty. Worldwide, 44% of women business owners said they started their businesses out of economic necessity, compared with only 31% of male entrepreneurs.53 This trend toward business ownership is particularly evident in the service industry, where female entrepreneurs

49

Ibid. Ibid. 51 Myers, Jennifer, Style Matters, “Top 100 Women Business Owners,” Profit: The Magazine for Canadian Entrepreneurs, Volume 22, Issue 5 ( November 2003), p. 26. 52 U.S. Census Bureau, 1997 Economic Census, Available at http://www.census.gov/ 53 Gossage, Bobbie, Inc. Magazine, Volume 26, Issue 1, January 2004, p. 22 – 23. 50

48 Candida G. Brush, and Robert D. Hisrich, “Women-Owned Businesses: An Explanatory Study Comparing Factors Affecting Performance,” Working Paper Series 00-02, Study commissioned by the Research Institute for Small & Emerging Business, Inc, 2000, Available at www.riseb.org, Accessed on 09.04/2003.

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International Journal of Diversity in Organisations, Communities and Nations, Volume 4 have become increasingly prominent. A number of reasons explain this development: (1) The service industry is less capital-intensive than most other industries, so financial barriers to entry are lower; and (2) the service industry tends to offer more opportunities to develop selected niches that are critical during the start-up and growth phases of the operation of a new business.54 Many women business owners are part of a “new breed of entrepreneur whose goal is to identify a social cause, cultivate an opportunity and turn it into a profit”.55 This form of “social entrepreneurship” is leading women to form new businesses intended to “do good’. The philosophy of Anita Roddick, founder of the Body Shop International, a Londonbased cosmetics firm, exemplifies this new breed of female business owner: 1. Providing information and education to establish credibility; 2. Providing motivational training to empower employees with corporate knowledge; 3. Corporate activism, to demonstrate the belief that business should also help to solve social problems; and 4. Preservation of the entrepreneurial “start up” spirit.56 Steinem notes that women’s communally-based business enterprises tend to take a holistic approach, balancing work, family, economic and cultural values. They integrate economic techniques such as job training, job creation, marketing and management with workplace innovations such as flexible scheduling, child care and even language workshops for immigrants.57 These female entrepreneurs are bringing their values to work and are seeking to make a positive difference in the business world as a result. Despite the expected growth in women-owned businesses in the coming years, women entrepreneurs still face barriers not usually encountered by men. These challenges include a lack of socialization to entrepreneurship, not only in the home, but also in schools and society; exclusion from traditional business networks; lack of access to capital and information; discriminatory attitudes of lenders; gender stereotypes and expectations, such as that women are “dabblers” or hobbyists; socialized ambivalence about competition and profit; and a

54 OECD Conference on “Women Entrepreneurs in SMEs: A Major Force in Innovation and Job Creation,” http://www.oecd.org/document/37/0,2340,ed_2649_34197_18097 01_1_1_1_1,00.html, Accessed 8/26/2003. 55 P. Aburdene and J. Naisbitt, Megatrends for Women. New York: Villard Books, 1992. 56 B. Burlingham. “This Woman Has Changed Business Forever.” Inc., June 1990, pp. 34 – 46. 57 G. Steinem. “Creating Jobs We CAN’T Be Fired From.” MS 11, no. 5 (March-April 1992): 21, 23.

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lack of self-confidence.58 However, despite these inherent difficulties, entrepreneurship appears to be the most successful route toward real professional and personal fulfillment for women that exists today.

VI. Women and the Future of Entrepreneurship In this 21st Century, women entrepreneurs are strengthening their positions in the economy—in fact, they are shaping and re-defining the workplace, business networks, financial institutions and even our nation’s work culture. And importantly, in this process of building both a life and a business, they are changing the way that they feel about themselves—becoming more confident and financially secure tends to have that affect on people. Many women have long believed that their place is simultaneously at the head of a company and also at home with their families. In this new millennium, this belief is now becoming a reality for the millions of women who head their own firms. However, realizing the enormous potential of small businesses by women will require that we invest in the future by properly and accurately account for the numbers of women-owned businesses, ensuring their access to federal contracts, fostering diversity, developing girls (particularly those between the ages of 10 – 15) as entrepreneurs, and having women invest in other women.59 It is especially important for girls to be exposed to entrepreneurship and to role models in K- 12 curricula, so that they will have the appropriate skills and confidence to explore any type of new business venture and so that they will clearly understand that there are good options to the more traditional corporate career path. It is clear from the studies and data that women are achieving a level of success as small business owners not currently possible in most corporations. As stated by Ms. Betsy Myers, Director of the White House Office of Women’s Initiatives and Outreach: “Women’s equality is defined by women’s economic empowerment. And the ultimate empowerment is through entrepreneurship. Women-owned businesses are the fastest growing force in the U.S. economy, prompting President Clinton to call women business owners ‘the new face of our economy.’ Since 1992, our Small Business Administration (SBA) has increased its loans to women by almost 300%. More than 40% of all micro-loans are now going to women. When women thrive, their families thrive and the nation thrives.”60

58 J. Godfrey. Our Wildest Dreams. New York: HarperCollins, 1992. 59 Ibid. 60 OECD Conference on “Women Entrepreneurs in SMEs: A Major Force in Innovation and Job Creation,” http://www.oecd.org/document/37/0,2340,ed_2649_34197_18097 01_1_1_1_1,00.html, Accessed 8/26/2003.

What “Glass Ceiling” As women of all colors and at all economic levels find it difficult to have their needs met in the workplace, they are increasingly turning to entrepreneurship to create their own opportunities and to create their ideal work environments. As entrepreneurs, women are changing the very nature of work to accommodate their personal values and philosophies, as well as to deal with the reality of their principal responsibility for child-rearing.

Female business owners are finding this new work environment to be a good fit for their “whole life” philosophy of successfully blending both work and family. And in the process, they are also innovating, creating jobs and impacting both the economy and their own personal economic success at a rate that shows no signs of slowing down—on their own “kinder, gentler” terms and playing by their own rules.

VII. Bibliography & Additional Resources Articles & Reports Aburdene, P. and Naisbitt, J. Megatrends for Women. New York: Villard Books, 1992. Bernstel, Janet Bigham. “The Not So Small Business of Women,” Bank Marketing, May 2000, 20 – 26 Brush, Candida B. and Robert D. Hisrich, “Women-Owned Businesses: An Explanatory Study Comparing Factors Affecting Performance,” Working Paper Series 00-02, Study commissioned by the Research Institute for Small & Emerging Business, Inc, 2000, Available at www.riseb.org, Accessed on 09/042003. Burlingham, B. “This Woman Has Changed Business Forever.” Inc., June 1990, pp. 34 – 46. Catalyst Study, “2001 Catalyst Census of Women Board Directors of the Fortune 1000,” 2001, Available at , Accessed on 08/28/003. Catalyst Study, “2000 Catalyst Census of Women Corporate Officers and Top Earners, 2000, Available at http://catalystwomen.org/research/censuses.htm, Accessed on 08/23/2003. Dolinsky, Arthur L., Richard K. Caputo and Kishore Pasumarty, “Long-Term Entrepreneurship Patterns: A National Study of Black and White Female Entry and Stayer Status Differences,” Journal of Small Business Management, January 1994. Fisher, Helen E. “The First Sex: The Natural Talents of Women and How they are Changing the World” (New York: Random House, 1999). Glass, Neil. “Cracking the Glass Ceiling: Few Women CEOs but Change is Coming,” ABC News, Available at http://abcnews.go.com/sections/business/DailyNews?womenceos990104.html, Accessed on 09/04/2003. Gould, S. and Parzen, J. eds. Enterprising Women. Paris: organization for Economic Cooperation and Development, 1990. Joint Catalyst and National Foundation for Women Business Owners Report, “Women Entrepreneurs: Why Companies Lose Female Talent and What They Can Do About It, 1998, available at http://catalystwomen.org/research/leadership.htm; see also “Cracking the Glass Ceiling: Strategies for Success,” Catalyst Report, 1994, revised 2000. Jones, Del, “Few Women Hold Top Executive Jobs, Even When CEOs are Female, USA Today, January 27, 2003, Available at http://www.usatoday.com/money/jobcenter/2003-01-26-womenceos_x.htm, Accessed on 09/04/2003. Journal of Accountancy, “Women Entrepreneurs Get Know-How Their Own Way,” Volume 192, Issue 4 October 2001, p. 24. Kjeldsen, John and Kent Nielsen, “The Circumstances of Women Entrepreneurs,” Available at http://www.ebst.dk/publikationer/rapporter/women_entrepreneurs/ren.html, Accessed 08/26/2003. Kuratko, Donald F. and Richard M. Hodgetts, Entrepreneurship (6th edition), 2004,677. See also Teddy Gutner, “Finally Credit Where Credit Is Due,” Business Week, June 26, 2000, 250. Lambing, Peggy A. and Charles R. Kuehl, Entrepreneurship (3rd Edition), Prentice Hall, 2003, 35. Lundstrom, Meg. “Mommy Do You Love Your Company More than Me?”, Business Week, December 20, 1999, 175. Lynch, Michael and Katherine Post, “What Glass Ceiling?” Public Interest, Summer 1996, 27 – 36. Lyness, Karen S. and Donna E. Thompson, “Climbing the Corporate Ladder: Do Female and Male Executives Follow the Same Rules?,” Journal of Applied Psychology, 2000. Lyness, Karen S. and Michael K. Judiesch. “Are Female Managers Quitters? The Relationships of Gender, Promotions and Family Leaves of Absence to Voluntary Turnover,” Journal of Applied Psychology, Vol. 86, No. 6, December 2001. Martinez, Michelle. “Training Women for Corporate Leadership,” HR Magazine, April 1997. NAALC Report, “The Employment of Women in North America,” Available at http://www.naalc.org/english/publications/ewna_part1.htm, Accessed on 09/04/2003. NAALC Study- The Employment of Women in North America, Available at http://www.naalc.org/english/publications/ewna_part1.htm, Accessed on 09/04/2003. Nearhood, Donna. “Finding Your Niche”, Advisor Today, Volume 98, Issue 9, September 2003, p. 54. 885

International Journal of Diversity in Organisations, Communities and Nations, Volume 4 National Foundation for Women Business Owners, “Styles of Success: The Thinking and Management Styles of Women and Men Entrepreneurs,” Available at http://www.womenof.com/News/cn071398.asp, Accessed on 09/04/2003. National Foundation for Women Business Owners (NFWBO), "Styles of Success: The Thinking and Management Styles of Women and Men Entrepreneurs." Available at http://www.womenof.com/News/cn071398.asp, Accessed on 09/04.2003. OECD Conference on “Women Entrepreneurs in SMEs: A Major Force in Innovation and Job Creation,” http://www.oecd.org/document/37/0,2340,ed_2649_34197_1809701_1_1_1_1,00.html, Accessed 8/26/2003. Occupational Employment in Private Industry by Race/Ethnic Group/Sex, and by Industry, United States, 2001,” Available at http://www.eeoc.gov/stats/jobpat/2001/national.html, Accessed 08/28/2003. “Women Start Businesses to Test Ideas,” The St. Louis Post-Dispatch, February 26, 1998, D10. Probing the Glass Ceiling,” An Interview with Sheila Wellington, President of Catalyst, Available at http://www.womensmedia.com/business-glass-ceiling-panel.htm, Accessed on 09/04/2003. Profit: The Magazine for Canadian Entrepreneurs, November 2003, Volume 22, Issue 5, p. 26. SBA (1998). The State of Small Business, Washington, D.C.: United States Small Business Administration. Sherman, Aliza Pilar. “A Matter of Culture,” Entrepreneur Magazine, Volume 31, Issue 11, November 2003, p. 36. Steinem, G. “Creating Jobs We Can’t Be Fired From.” MS 11, No 5 (March – April 1992): 21, 23. Stoneman, Bill, How a Zions Unit Draws Female Business Owners, American Banker, Volume 168, Issue 189, October 1, 2003. U.S. Census Bureau, 1997 Economic Census, Available at http://www.census.gov. U.S. Small Business Administration, Office of Advocacy Report, “Women In Business, October 1998, Available at http://www.sba.gov/advo. U.S. Small Business Administration, Office of Advocacy, “Women in Business,” 2001, Available at http://www.sba.gov/advo. “Women in Business,” http://www.sba.gov/advo.

Books Mary Coulter, Entrepreneurship in Action (2nd Edition), Prentice Hall: 2003. Connie Sitterly, The Female Entrepreneur: Overcoming Challenges in the Business World, The Crisp Series, http://www.sittcom.com/negget-books/tfe.htm. Goffee, R. and Scase, R. (1985). Women in Charge: The Experience of Female Entrepreneurs, London: Allen and Unwin. Hisrich, R.D. and Brush, C.G. (1986). The Woman Entrepreneur: Starting, Financing and Managing a Successful New Business. Lexington, Mass: Lexington Books.

Websites Association of Women’s Business Centers (AWBC)

http://www.womensbusinesscenters.org Boardroom Bound

http://www.boardroombound.biz Business and Professional Women/USA

http://www.bpwusa.org Business Women's Network

http://www.bwni.com Catalyst

www.catylstwomen.org Center for Women's Business Research

http://www.womensbusinessresearch.org

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Feminist Majority Foundation

http://www.feminist.org/research/ National Association for Female Executives

www.nafe.org National Association for the Self-Employed

http://www.nase.org National Association of Women Business Owners

http://www.nawbo.org National Council for Research on Women

www.ncrw.org National Federation of Independent Business

http://www.nfib.org National Organization of Women

www.now.com National Women's Business Council

http://www.NWBC.gov National Women Business Owners Corporation

http://www.nwboc.org/ Small Business Survival Committee

http://www.sbsc.org/ United States Chamber of Commerce

http://www.uschamber.com United States Small Business Administration

http://www.sba.gov/ Women Entrepreneurs Inc.

http://www.we-inc.org/ Women Presidents' Organization

http://www.womenpresidentsorg.com Women's Business Enterprise National Council

http://www.wbenc.org/index.asp Women Entrepreneurship in the 21st Century

http://www.women-21.gov/about.asp

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About the Authors Teresa A. Daniel, J.D.—an Employment Lawyer, HR Consultant, Trainer & Published Author—is the President & Owner of InsideOut HR Solutions PLLC located in Ashland, KY (www.insideout.bz). Her firm specializes in providing HR consulting and training solutions to small and mid-sized businesses throughout the United States, China, India and Europe. She also teaches courses about Entrepreneurship, Entrepreneurial Law and Ethics and New Venture Dynamics to both undergraduate and MBA students in the Lewis College of Business at Marshall University in Huntington, WV. Dr. Daniel was also recently honored as a 2002 Distinguished Alumnus at Centre College, Danville, Kentucky and is the author of two books and numerous articles in the areas of entrepreneurship and human resources, with a particular emphasis on people and legal issues. Dr. Margie McInerney – Professor of Management obtained her Ph.D. in Business from The Ohio State University and has over 20 years of university teaching experience. She has taught graduate and undergraduate courses in human resources, compensation, organizational behavior, and industrial/employee relations. Dr. McInerney has served as a consultant to numerous regional and national companies concerning wage issues, grievance hearings, career management, and employment discrimination. She has authored articles on women in business, business ethics, employment arbitration, and health care management. She currently serves as an outside advisor to two emerging Internet companies owned, managed, and staffed by women.

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