SURVEY OF WOMEN-OWNED BUSINESSES IN
LOWELL
Sponsored by the
UMass Lowell Center for Women and Work
Meg A. Bond, Jean L. Pyle,
Brandy Jablonski, Theresa Milewski, Jennifer Santos, & Cathy
Ferreira
March 5, 2001
The
number of women-owned businesses grew rapidly in the period from 1977-1992,
becoming one-third of all businesses in the US.
Some women established their own income earning enterprises to try to
balance work-family concerns while others perceived them as a way around the
`glass ceilings’ women often encountered in corporations. The constraints and concerns of women-owned
businesses are important, yet not well-recognized, issues. There is a need for women researchers,
business owners, and community workers to participate in shaping new forms and
cultures of business to address the real world problems that these business
owners face. Thus the UMass Lowell Center for Women and Work (CWW),
in collaboration with the UML Center for Family, Work, and Community (CFWC),
decided to conduct a study of women-owned businesses from various ethnic and
cultural backgrounds in the Greater Lowell community.
Women have always been important to Lowell’s
growth, yet they have often been overlooked as important contributors to the
city’s economy. Thus, the goal of our
study was to look at established women-owned businesses, and ask about what
resources these organizations have required in the past to become viable
enterprises, what resources they currently need to sustain and grow their
organizations, and where they typically obtain these necessary supports. With respect to starting new businesses, this
study aimed to determine what owners perceive as their greatest start-up needs,
where they believe support might be provided, and how they go about finding out
about available resources. This study
also sought to identify the contributions that women entrepreneurs make to the
economic development of the city of Lowell and what strategies they employ to
balance their work and family responsibilities.
An initial list of potential
participants was obtained from the Lowell City Office of Planning and
Development. The list included all
current Lowell businesses, and was reviewed to identify which of these were
owned by women. We considered as many
types of formal businesses as we could identify. We also worked from a word-of-mouth, snowball
technique to identify additional women-owned businesses that were not on the
city list. During the summer of 1999, a
team of two graduate students and two multilingual high school assistants were
successful in interviewing thirty of these women business owners.
Given the relatively small number of women
business owners that we were able to reach during phase one, we expanded our
survey during the spring and summer of 2000.
Not only was the initial sample small, but it also consisted
predominately of hair and nail salons.
We wanted to reach a broader spectrum of industries within the city to
gain a better understanding of Lowell’s wide range of women-owned
businesses.
We changed our approach from a face-to-face
interview to a survey that could be completed and mailed back. In addition, we expanded our list of
potential organizations in several different ways. All businesses on the previous list that were
not contacted because of time constraints or difficulty in reaching the owners
were contacted in 2000. Additionally, we
obtained updated lists from the Lowell City Office of Planning and Development
and from the Chamber of Commerce. We
also generated a list of independent home day care providers and centers. These lists were filtered to identify
women-owned businesses within the city.
We again used a word of mouth approach to identify additional businesses
owned by women. When all of the
information was compiled and reviewed, we had a list containing about 90
confirmed women-owned businesses and another 210 that were possibly
woman-owned. During this phase, we sent
the survey to all 300 and heard back from 44 additional women business owners.
The Interview & Survey Process
For the first phase,
UMass Lowell Psychology graduate students and Lowell High School research
assistants conducted one-on-one interviews with the thirty business
owners. Potential participants were
contacted in person. Members of the
research team visited each business and requested participation in the
study. They explained the purpose of the
study and reviewed the manner in which the information gathered would be
used. They assured the business owners
that participation was entirely voluntary and that results would be kept
confidential. Some business owners were
available to respond to the questions during this first visit. Others preferred to set a time for the
interviewers to return on another day.
In some cases, the owner responded to the interview questions in writing
and the research team simply picked up the completed form on a return
visit. Women business owners who chose
to participate in the study were interviewed by two members of the multilingual
research team. While we were prepared to
interview non-English speaking owners, all thirty women who agreed to
participate responded in English.
The interview addressed five related issues:
1) the reasons why women started their own business, 2) problems faced in
starting and keeping their business in operation, 3) strategies for balancing
work and family responsibilities, 4) supports and resources that would be
helpful as compared to what is currently available in the community, and 5)
contributions of women-owned businesses to the local economy.
During phase two,
potential participants were contacted by mail.
Women business owners were asked to fill out a survey and submit it via
an enclosed envelope. The survey
addressed the same five issues as the phase one interviews but was modified to
be more self-explanatory. In keeping
with proper research procedures, a cover letter explained that participation in
the study was entirely voluntary, and that results would be kept confidential.
All potential participants were invited to
be included in a women’s business directory whether they completed the survey
or not. The Center for Women and Work
compiled The Greater Lowell
Women-Owned Business Directory,
which includes information on resources available for assisting small
businesses as well as the listing of women-owned businesses. A copy was sent to all participating
businesses.[1]
In all, we heard from 74 women business owners. Forty-eight of the women who participated
lived in Lowell, and eleven lived in the Greater Lowell area. Another nine lived in other Massachusetts
cities, and four lived in southern New Hampshire. The majority of respondents (59) were born in
the mainland United States. Two were
born in Puerto Rico. Other countries of
origin include Cambodia (3), Vietnam (2), the Dominican Republic (2), Portugal
(2), Costa Rica (1), and Germany (1).
Among the 13 women born outside the mainland United States, 4 have been
here for over 20 years and 6 for between 16 and 20 years. At the other end of the continuum, only one
respondent has been in the U.S. for less than five years. The vast majority of respondents were
Caucasian (74%, number of respondents or n=55).
Seven described themselves as Asian, four as Hispanic, and one as
African American. The others described
themselves as biracial (with American Indian ancestry) and/or specified a
particular European ethnic identity (e.g., Franco-American).
The majority (45) of the business owners
surveyed were between the ages of thirty-one and forty-five. Twenty respondents were between forty-six and
sixty years old. Nine were under thirty. In terms of educational background, 14 women
had completed high school, 26 had attended some college, 22 had completed
college, and 6 had completed graduate school degrees (mostly master’s
degrees). Thirty-three of the women
indicated that they had also attended special training programs to acquire
skills relevant to their business.
Most of the
participants either provided childcare (28%, n=21) or owned a beauty salon
(20%, n=15). We also heard from 13
owners of retail stores (e.g., stores selling books, gifts, clothing, women’s
accessories; 18%) and four
women who owned restaurants (5%). The
rest of the participants owned a wide range of businesses including home health
care services, medical or dental practices, construction firms, fitness
centers, and independent consulting practices.
RESULTS:
WHAT DID WE LEARN?
The women surveyed became business owners
for a variety of reasons, and each person typically stated multiple reasons for
starting her business. Many described
how starting their own business was the fulfillment of a long held dream (23%,
n=17). The most frequently stated
motivation was “to be happier being my own boss” (61%, n=45). Related to being happier, respondents also
indicated a desire to establish workplaces that were consistent with their
values (45%, n=33) and to be more challenged than in previous jobs (16%, n=12).
Over half of the women (53%, n=39) indicated
that they started their own business with the hope of having more balance
between their work and family responsibilities.
Twenty-seven women (37%) were motivated by the hope that they would make
more money being in business than they otherwise would. Nineteen (26%) indicated that the work
environment at their previous place of employment played a role in starting
their own business. The problems these
women spoke of ranged from not being satisfied with their employment position,
not receiving a proper wage advancement compared to male counterparts, to a
lack of challenging work. A few (n=3) started their business to fill a need
that they felt was not being addressed in the areas of child or health care.
These women work long hours and are
balancing a lot of demands. The vast
majority put in over 40 hours per week in their business (68%, n=50). Over 40% (n=30) indicated that they worked
more than fifty hours a week in their businesses. Twelve also have other paid jobs, most of
whom work 20 or more hours in those other positions. Out of the 74 women surveyed, fifty were
currently married or had primary life partners.
Sixty-one (82%) of the respondents had children. Twenty-three had children under the age of
five.
The owners with children reported a variety of means of meeting their
childcare needs. Most women stated that
their children were in school, daycare, or with a babysitter. Nine women stated that family members took
care of their children when not in school, and an additional 21 women used
independent childcare providers (e.g., family day care or day care
centers). Twenty-eight mothers reported
that their schedules allowed them to take care of their children themselves. A few respondents reported that they
sometimes take their children to work with them, but one woman spoke of the
difficulties this caused in terms of getting her work done. While the mean rating of satisfaction (or
average satisfaction) with child care arrangements was relatively high (mean =
4.21 on a 5 point scale, where 5 is very satisfied), several people described
finding adequate care and/or dealing with interruptions in care as a serious
source of stress (11%, n=4).
When asked if they had any problems
balancing work and family life, 37 of the women stated, “yes.” Of the twenty-two women who responded “no,”
two women mentioned that they had had difficulties when their children were
younger. Others mentioned that, although
balance is not a constant concern, they sometimes experience difficulties
achieving this balance. By far the most
problematic situation described was dealing with medical and personal
emergencies. Almost 84% (n=31) of the 37
who indicated that they have concerns about balance list dealing with personal
emergencies and/or sick children as a central area of concern. General scheduling and juggling multiple
demands was a close second (76%, n=28).
Many of the women (60%, n=22) were stressed by “just not having any down
time,” “no social life,” and “no time for vacations or holiday trips.” Related to all these other areas of concern
was the lack of time to simply enjoy family.
More
than half of the business owners had used some form of business assistance in
the past. Most went to family, friends,
attorneys, and accountants for needed help and advice. Given the issues raised about financial
matters, it is not surprising that banks were also high on the list of needed
sources of assistance. Many fewer of
these women also sought assistance through organizations including the Small
Business Administration, Chamber of Commerce, the Greater Lowell Women’s
Network, the City Office for Planning and Development, the Lowell Development
and Financial Corporation, UMass Lowell and Middlesex Community College.
Family members
provided a variety of supports to business owners. Partners/spouses provided assistance to 32 percent of the women (n=24). This assistance came in the form of advice,
financial assistance, childcare, and working directly in the business. Eighteen percent of the owners had received
assistance from their parents and 18 percent from their children respectively
(n=13).
The types of additional supports that the
women indicated would be helpful included:
courses to foster skill development, networking, insurance related
assistance, financial help, and access to experienced employees. A couple of women indicated that what they
needed most was “two years off” and “free child care” – reflecting perhaps both
a good sense of humor and the overall feeling of overload.
Women-owned businesses are clearly
contributing to the economy of Lowell.
The participating entrepreneurs started 61 new establishments in
Lowell. Nine business owners purchased
pre-existing businesses; three took over family businesses. Twenty-two out of the 74 business owners had
previously owned another business. The type
of business ownership these women held included full proprietorship, partnership,
corporation, publicly or privately held firm, and franchise. Sixty-two percent of these owners (n=46) were
sole proprietors. A couple of the
businesses were family-run. Twenty-eight
were home based. Some were fairly new
businesses (i.e., 6 had owned their business less than six months). Over a third of the respondents reported that
they had owned their business between three and nine years (40%, n=30). Slightly less than a third had owned their
business for more than ten years (31%, n=23), and roughly another third owned
their business for less than two years (28%, n=21).
Thirty-eight of the businesses surveyed had employees. Thirty-six employed some full time help, and nineteen employed some part time help. The most common arrangement was to have one full time employee (n=25). Two businesses employed 10 or more full time people. A total of 171 people were employed by these businesses. Thirty indicated they had increased hiring since 1999. Nineteen owners planned to increase employment in the near future. Over half (n=41) of the women reported that at least eighty-six percent of their workers resided in Lowell.
Over a third (n=27) of the businesses surveyed stated that their customers were from the immediate neighborhood. About two thirds of the owners reported that their customers were from Lowell and the Greater Lowell/Merrimack Valley area (n=48). About a quarter responded that they had customers from other parts of Massachusetts, and fifteen owners reported having out-of-state customers as well.
Forty of the businesses surveyed reported increases in sales over the previous year. Forty-four business owners predicted increases in their sales in the coming year. In addition to increases in sales and employment, some of the businesses had future growth plans in product services (30%), construction of a new facility (12%), and building an addition to existing space (15%).
Many of the women surveyed had words of advice for other women who are thinking of starting their own businesses. Many of these women mentioned the hard work that is required of a business owner, but also emphasized the positive aspects of ownership and included notes of encouragement. The women commented on the importance of having enough money, networking, patience, and perseverance as well as dreams, choices and the energy and strength to pursue them. Some commented on the importance of acquiring professional advice and training prior to start-up, and one woman spoke of the importance of developing good rapport with customers and living in the city that you work in.
While one woman emphasized the importance of not being intimidated by men, another felt there were no critical differences between female and male owners. Another respondent felt that women should stop trying to make themselves into the image of businessmen. She elaborated on this by talking about how women business owners should be thinking about other ways to fight “the glass ceiling” and by finding other ways to help women and children. A final word of advice was to “save, invest, and enjoy your money.”
The participants in this survey have been willing to take risks to achieve their goals. They are creative, hard working, and capable of balancing significant demands. The reasons these women started their own businesses include: striking a better work-family balance, establishing a workplace consistent with their own values, making more money than they otherwise would, fulfilling a dream of owning their own business, and escaping their dissatisfaction with previous working conditions. The majority are much happier being their own bosses.
Their businesses contribute considerably to economic growth of the city of Lowell as well as to its diversity and stability. Over 80% were established as new enterprises in the community, adding to the economic base. In addition, they employ many city residents. Over 40% of them have been in business for more than six years, over 70% for more than three years, suggesting that they are well-established businesses. More than half anticipate growth via adding employees or increasing their space.
The challenges facing these women in starting their businesses were considerable. Financial concerns – financing the business, cash flows, and accounting practices - topped the list. In addition, they indicated that a major problem was lack of information on how to start a business. They wanted to know such things as how to run it in compliance with regulations and what the most appropriate technologies were. They were equally challenged by employee-related issues such as hiring, training, managing, and retention. They also encountered stressful issues of work-life or work-family balance.
The current challenges they report revolve more around financial and employee-related concerns. Time management problems were the third most common area of concern. Not surprisingly, most of the women business owners reported at least some difficulties balancing work and family responsibilities. Respondents were using a variety of strategies for managing the many daily challenges that the dual role of mother and business owner entails. Unexpected personal or child-related emergencies are key sources of stress. Many also expressed a strong desire to simply find time for themselves – some down time, some social life or maybe even a vacation. Interestingly, the percentages of women encountering problems in all these areas was lower than reported when starting the business.
When asked about where they obtain business help and advice, the top sources they reported were two distinctly different types – one professional (accountants, attorneys or bankers), the other personal (networks such as family and friends). Surprisingly, they relied much less on programs and agencies sponsored by government or non-profits in the community – initiatives developed in the last few decades to serve the needs of small businesses. A key question raised by this research is why the women business owners do not rely more on these organizations.
Women owned businesses are a vital component of the national economy, but their contributions and needs are typically overlooked. This survey helps to provide some information about the contributions of women-owned businesses in Lowell. In spite of the limitations we encountered in surveying all women-owned businesses in Lowell, this report indicates women establish new businesses, generate employment and income, and provide a more diversified business base that can cushion fluctuations in the economy. Given this, it is clearly important to understand their needs in starting and running their businesses and to support their endeavors.
Women-business owners, women thinking about starting their own businesses, community groups and agencies, and the university could collaboratively explore ways of making existing resources more available to women business owners and more effective in meeting their needs. For example, initially, the new women entrepreneurs in this survey clearly wanted more information on how to set up their businesses. This survey shows, however, there are sources of support and networking within Lowell that could have been tapped by more of them. It would be useful to explore why these resources were not and are not utilized more. This could lead to the development of useful strategies such as making more people aware of the wide range of resources available within the community and/or adapting services as necessary to the needs of the business owners. This collaboration could also require developing special efforts to understand and explore the needs of businesses owned by women from diverse ethnic, cultural, and immigrant groups. They are often extremely difficult to reach, yet vital to the local economy.
Number of
participants (N) = 74
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