Friday, August 29, 2014

Why Are Women-Owned Businesses So Small?

When Arabel Alva Rosales started her own technology consulting company, she had many advantages: a law degree from Chicago's DePaul University, experience working in state government, a family history of entrepreneurship, and business contacts eager to join her team. But statistically speaking, as a Hispanic woman she faced long odds.

Women now start businesses at higher rates than men do, and minority women start businesses at the highest rate of all. Yet women-owned businesses have fewer employees, lower sales, and less chance of survival than male-owned businesses, according to a 2010 Commerce Department report. The report found that women-owned businesses are smaller across every sector of the economy, from educational services to manufacturing.

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