Women entrepreneurs are increasingly optimistic about the future and leading the digital transformation, according to the 2018 Bank of America Women Business Owner Spotlight.
The annual study of more than 1,000 entrepreneurs across the country found increased confidence toward future revenue growth, as 58 percent of women entrepreneurs expect their revenue to increase in the year ahead – up 14 percentage points from 2017. Optimism toward long-term growth, hiring and the economy is also on the rise.
“When it comes to small business, women entrepreneurs are at the forefront of the digital transformation,” said Sharon Miller, managing director and head of Small Business, Bank of America. “It is exciting to see how they are innovating and leveraging mobile tools to help their businesses succeed. Their increased optimism about the future and the potential for hiring and growth is also very encouraging.”
With half of small business owners foreseeing a complete transition to digital payments in the next five years, it is women who are leading the charge in using mobile devices to process payments and manage other transactions. The survey found that 33 percent of women entrepreneurs use a mobile device to process digital financial transactions, compared to 26 percent of men. Of those conducting business transactions on mobile devices, women business owners lead men on specific-use cases as well:
Beyond digital payments, women entrepreneurs are also ahead of the curve in managing other aspects of their business on their mobile devices, including social media updates and hiring:
This year’s survey also examined women’s perspectives on barriers to establishing and financing a small business – including the extent to which gender bias may play a role. Sixty-one percent of women entrepreneurs say it was more difficult for them to get their business off the ground than it was for male business owners they know. Sixty-eight percent say women face greater challenges than men when it comes to accessing capital.
Despite this, a strong majority believe conditions for women-owned businesses to start up and succeed have gotten better over the long term, with 84 percent reporting their belief that access to capital for women has improved in the last 10 years.
To continue progress in this area, the greatest number of women (42 percent) believe gender-blind financing (where the gender of an applicant seeking investment or loan funding is not known) has the greatest potential to level the playing field for equal access to capital. Runners-up on the list were more opportunities for education and training (24 percent) and access to government loan programs (16 percent).
“Access to capital is key to small business growth, but research shows that it can be tougher for women entrepreneurs than for men,” continued Miller. “The fact that the overwhelming majority of women business owners see progress in the last 10 years is encouraging. Bank of America intends to do our part to keep the momentum going by continuing to support and lend to women-owned businesses because their talents, ideas and leadership in the marketplace are essential.”
For a complete, in-depth look at the insights of women small business owners, read the 2018 Bank of America Women Business Owner Spotlight.
GfK Public Communications & Social Science conducted the Bank of America Women Business Owner Spotlight survey for 2018 online between February 12 and March 26, 2018 using a pre-recruited online sample of small business owners. GfK contacted a national sample of 1,031 small business owners in the United States with annual revenue between $100,000 and $4,999,999 and employing between two and 99 employees. In addition, a total of approximately 300 small business owners were also surveyed in each of 10 target markets: Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York, San Francisco and Washington, D.C. The sample was comprised of 655 male and 376 female small business owners. The final results were weighted to national benchmark standards for size, revenue and region.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small business clients with approximately 4,400 retail financial centers, including more than 1,700 lending centers, more than 1,900 Merrill Edge investment centers and more than 1,300 business centers; approximately 16,100 ATMs; and award-winning digital banking with approximately 36 million active users, including 25 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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Reporters may contact:
Don Vecchiarello, Bank of America