Female Entrepreneurs are more Optimistic about the Economy than Male Entrepreneurs
According to recent research tabled by Spark Business Barometer Survey from Capital One, female entrepreneurs are more optimistic about the economy, compared to their male counterparts.
During the survey, 63 percent of the female correspondents said in their views the economic conditions were either excellent or good. The males’ optimism about the economy stood at 11 percent lower than this.
The same survey found out that men working in small firms were more likely to have a negative view of their current business conditions. 46 percent of men would say that the current conditions were fair or poor, while the number of women who would say the same stood at 35 percent.
It also emerged that 57 percent of small business owners (both male and female) considered the prevailing economic conditions to be either excellent or good. 46 percent of whom say they are considering giving raises come next year.
Head of Small Business Banking at Capital One, Keri Gohman said, “One of the things we’ve seen is just continued positive sentiment around the economic outlook, both women and men view current business conditions as improving.”
One key thing that has emerged from this survey is the considerable gender gap with regards to optimism to the economic conditions. The survey, however, falls short in revealing exactly why these differences exists, but it is said that the bank will soon be embarking in researching the reasons behind these differences.
But one speculation is that women have more optimism about the entrepreneurship world right now.
“More than one-third of business owners are women. We’re seeing a growth rate at about one and a half times the national rate,” said Gohman. “Women tend to be growing in the ecommerce and digital sectors, which we know are growing. That could have some influence.”
Other reasons behind the gender gap in optimism can be attributed to the fact that 21 percent of men have the perception that their organization is in a much worse financial condition than it was last year. For the women entrepreneurs, only 12 percent feel the same way.
Gohman notes, “Women are saying their financial condition is better than it was about a year ago. About 40 percent said it’s better than a year ago compared to 32 percent of men.”
Out of all the women entrepreneurs surveyed, 57 percent expect a better financial performance in the coming six months, while 48 percent are of a different opinion. The connection this has with the emerging different habits in cash management between men and women is still unclear. It has emerged that men are aggressively investing their money in businesses while the majority of women are holding onto their cash instead.
You can read more on this at Forbes.com.