Since the 1970's, the number of women franchise owners has steadily grown. The International Franchise Association estimates that 25 percent of today's franchise owners are women and another 17 percent are jointly owned by men and women. Further, according to the Center for Women's Business Research, the increase in women-run businesses is not exclusive to franchises. The Center estimates that 40 percent of privately held U.S. businesses are female-owned.
What Accounts for the Rise in Female-Run Businesses?
The Small Business Administration (SBA) has been monitoring women in franchising for the last three decades and presents interesting conclusions behind the rise.
- Organization, organization, organization. Women tend to be good organizers, multi-taskers and prioritizers - personality traits any business owner would agree are essential to running a successful company. Women are also known for their communication, networking and collaboration skills.
- Passion for business. Some contend women are more likely to own businesses that they are passionate about, while men usually choose business models based more on the bottom line. It's no secret that in many cases, passion correlates directly to success.
- Taking control of their financial future. Many women see franchise ownership as an alternative and better way to make a living. Owning a franchise is appealing to, for example, stay-at-home moms looking to reenter the workforce or businesswomen tired of working for others. Starting a franchise does not necessarily take years of planning to get off of the ground and offers a relatively quick way for women to earn money. Home-based franchises, for instance, have low overhead and are fairly cheap to start up. Perhaps most importantly, franchises provide females the golden opportunity to be their own bosses, set their own hours and control their own financial futures.
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More franchising opportunities. Today, franchise opportunities are more readily available to women. Gone are the days when the only franchise opportunities open to women were beauty, health or female-centric businesses. Women currently own franchises in more than 80 different industries.
Contact an Experienced Franchise Law Attorney
If you have questions about owning a franchise or starting a business entity, seeking the assistance of an experienced franchise law attorney is essential. A lawyer knowledgeable in franchise ownership and entity formation can guide you through the steps needed to jumpstart your business objectives.
On Monday, April 16th, 2012, Julie Lusthaus was interviewed in a 30 minute segment about Franchising on WVOX 1460 AM radio by Marsha Gordon, President & CEO of The Business Council of Westchester.
