Women-owned Businesses : An Overview
By Ginger Sherman
As we enter the month that has been dedicated to women in business, I have had an
opportunity to look at where women have been and how far we’ve come.
In doing this research, I found myself extremely proud of the thousands
of women – the ones I know and those I don’t – who cleared the way and
have changed the perceptions of women in the workplace, and women who
have taken up the entrpreneurial spirit to own more and more of today’s
total businesses.
As a senior vice president for The Prudential Real Estate Affiliates, Inc., I have the
pleasure of daily contact with successful women business owners,
particularly real estate business owners. In doing reserach for this
months dedication to profession women, I naturally gravitated towards
an analysis of the progress of women and indexed it against the real
estate industry.
First, I looked at the sum of women who are successful entrepreneurs and business
owners. Then, I compared that to the real estate industry as one
illustration, from macro to micro, of women’s ability to succeed. I
also evaluated some of the uniquely held characteristics that
contributed to success of women in real estate and looked to the
challenges faced by most professionals today, such as the increased
role of technology and the rapid consolidation trends that are
impacting every major business sector. My goal here was to look at the
distinct reaction of women business owners within real estate to these
next ‘millenium’ business issues.
When you step back and take a look at the phenomenal progress women have made within
the business sector and beyond, you see that these strides have been
made in a remarkably short period of time. For women, the foray into
the business world has not been without stereotype or struggle and yet,
the accomplishments speak for themselves.
Economically, women are working in numbers that are almost equal to men, they are
owning businesses and paying taxes and above all, women create a market
opportunity for many companies to target their products and services
to. Add to all of that the fact that women are taking as much as 55%
per cent of the candidate spots for Ph.D. and medical schools.
Increasingly, women are as educated or more so then a number of their
male counterparts. This phenomenon has been referred to as the ‘New
Economy.’ The concept attempts to illustrate the significant impact
women have had on the North American, and to some extent, the global
economy.
As such, women have also begun to move into owning and operating non-traditional
business arenas and excelled. Markets, such as agriculture or sporting
goods are now being started by women.
If we go back a little in time just 15 years ago, in 1983, the number of women employed
as executives, administrators and managers was about 3.5 million. A
1992 survey on women owned businesses stated that women were starting
there own businesses at a rate of 1,600 per day, alerting the 1992
Census research team to the fact that women-owned businesses had
increased by 43 per cent. Today, women owned businesses have been
estimated at eight million, employing more than 35 per cent more people
than all of the Fortune 500 companies combined — worldwide.
As of 1996, women-owned firms in the top 50 metropolitan markets throughout the US
numbered more than six million, and generated more than $2 trillion in
sales. The US Department of Labor projects that women will own 37 per
cent of all sole proprietorships by the millennium. Wow!
However, when one researches vertical markets, you also are enlightened
by the industries that ushered in and, more than that, welcomed women
into the business. As an individual who is closely connected to the
real estate industry, I have found it very interesting to note that the
real estate industry was one of the very first industries that embraced
women. Not only that, but women excelled in it.
The characteristics that are strong in many women would still be
written in a ‘wanted’ ad today. Let’s assume that the knowledge base
and skill between the genders is equal, women were able to succeed and
outsell in real estate due to some of their uniquely held
characteristics. It is widely accepted that men and women differ in
their approaches to operating and managing their businesses. For women
in real estate, the desire to build relationships, to listen, to hone
in on details, to work as a team – to build open lines of
communication, and to identify with what makes a house a home —
presented a win-win situation.
In retrospect, here was a career that was ‘acceptable’ and one that
allowed women complete freedom to pursue work as much as they wanted
and make a very decent living. Real estate represented a very healthy,
stimulating and inviting work environment – and still does.
Part of that success is the ability to identify with the concerns of
moving. Outside of the death of a spouse or significant other, the
purchase or sale of a home is the largest and most stressful
transaction of a lifetime. It is fraught with anxieties, skepticism
and the consumer is looking for the expertise, professionalism and
comfort that will make it as painless and, simplified as possible. What
is inextricably linked to the success of the Realtor and the real
estate company is the ability to ‘connect’ with the consumer.
Real estate is a relationship and people driven business. Because of
what has been called our ‘innate’ abilities to foster cooperative and
relationship based environments, women enjoy the platform of teamwork,
research and the detail oriented aspects of finding a family or
individual a place where they will be able to spend their free
time.
As a comparative illustration of the massive successes of women owned
businesses in real estate we researched those figures against the
overall women owned businesses. Today, women own more than 457,000
real estate companies. Of the eight million women owned businesses,
six per cent are real estate related. This places real estate
approximately fourth, with retail / miscellaneous retail, business
services and personal services pulling up the top three.
Even with the incredible inroads women have made, professional women
and men face many challenges in today’s fast paced business climate.
And, real estate is no exception. The demands of being technologically
savvy and coping with the tentative situations that consolidation
trends present, have an impact on the ability of an individual to feel
like they can succeed. For the professional Realtor, this is as much a
concern.
However, I believe that women are well equipped and prepared to take on
the challenges of the new millenium. I also believe that the success
of women-owned businesses and women owned real estate businesses
specifically, will continue to rise as women meet the technology and
business trend challenges. Women embrace learning and change. The
onslaught of technology – inside corporate American and now, permeating
every household and school system, has presented every business sector
with a serious challenge to shift the way business is conducted.
A recent qualitative survey of women owned real-estate business jointly
conducted by The Prudential Real Estate and Real Trends, noted that
there was little resistance to adapting technology into their business
paradigm. This included providing training and evaluating how
technology would change the way the real estate transaction is
conducted. Overwhelmingly, these women responded to the fact that
technology needs to be incorporated into their daily tool kit if their
businesses are to succeed.
In addition, there was an equal commitment to finding the balance
between technology and maintaining the ‘personal touch’ that every
homebuyer and seller needs.
One additional factor that professional women have demonstrated is
their commitment to coaching younger women entering the business.
Again, as we surveyed the women-owned real estate businesses, we found
that these business owners had a strong commitment to mentoring or
coaching those who are new to the business. This phenomenon helps to
shape the future. I helps young professionals find their way with a
little experience guidance. It also reflects the desire to build
meaningful relationships and aid in the success of other people.
Clearly, the real estate industry is one sample among a diverse number
of thriving businesses. However, as this month is dedicated to women
in business, owners and employees alike, it was interesting for me to
analyze the support the real estate industry has given women.
Ginger Sherman is with Senior Vice President with the Prudential Real Estate Affiliates, Inc.
