Women do business their own way

USA Today (Society for the Advancement of Education), July, 1998

A study by Conning & Co., a Hartford, Conn., research and asset management firm, shows that one-third of all businesses in the U.S. are owned by women and account for 25% of all sales receipts. Moreover, they are growing at twice the rate of all other American businesses, both in numbers and revenues. According to Claude Fongemie, the study's author, the implications of this trend are enormous, particularly for companies selling goods and services, such as commercial insurance, to these businesses.

"If you're trying to segment the world of businesses to sell to, the study tells you first that the gender of the owner is a powerful differentiator," he indicates. "It also tells you that women are a large, rapidly growing, and successful group of business owners who make decisions based on similar needs and expectations. A company that customizes its products, services, and marketing around their needs and expectations will develop brand identification, gain pricing power, and at the same time achieve enormous distribution efficiencies. While we were primarily interested in women-owned businesses as a market for commercial insurance, we found substantive differences on what motivates women business owners when they buy other goods and services." Other findings include:

* When hiring or purchasing goods, services, or insurance, female business owners generally are much more concerned about quality and value than males and less with price as an absolute.

* Women have a greater tendency to seek advice before making business decisions. In general, they also spend more time gathering information and tend to make decisions that are more thought out than their male counterparts.

* Women business owners are more likely to place a much higher value on relationships with employees, vendors, and consultants. They tend to be more hands-on and personally involved in their businesses than men, who are more apt to delegate. This is especially true in selecting and using vendors.