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MasterCard Survey Reveals Motivations, Payment Needs, Business Challenges of Wom
Posted by randy on: 2005-11-12 17:50:45
PURCHASE, N.Y.--(BUSINESS WIRE)--Oct. 18, 2005--The desires to lead, generate income, and have greater flexibility in their schedules are the primary factors motivating women to start their own small businesses, according to the results of a survey commissioned by MasterCard International and released today in recognition of October as "Women's Small Business Month." In fact, women are starting businesses at a rate double that of men according to the U.S. Bureau of Labor Statistics.
Women business owners are critically important to the American economy, as is gaining an understanding of their unique needs and challenges. The survey, conducted by Ipsos Insight, offers a look at the reasons why women are starting their own businesses, how they pay for business-related expenses, and the challenges women face in trying to establish and run successful businesses. Among the survey's key findings:
-- The opportunity to be their own boss (38%), generate income for their households (19%), have more schedule flexibility (19%) and more time for family and personal interests (13%) were the main reasons women cited for starting their own businesses;
-- Fully two-thirds (66%) of women small business owners said they operate out of their homes;
-- Nearly six in 10 (56%) hold a business credit card, while only 28% hold a business debit card;
-- Four out of 10 (40%) said they use a business credit or business debit card to pay for the majority of their business purchases.
"The MasterCard survey illustrates the power and economic impact of women business owners, as well as the unique challenges and issues they face on a daily basis," said Dennis Alter, chairman and CEO of Advanta, one of the nation's largest issuers (through Advanta Bank Corp.) of MasterCard business credit cards for small businesses and business professionals. "Advanta salutes the entrepreneurial spirit of the millions of women in business in this country, and remains committed, as we have been for more than 50 years, to serving the needs of this influential and growing population."
The main challenges women entrepreneurs said they face are effectively managing cash flow while expanding their businesses (28%) and balancing family and work responsibilities (24%). While 40% of women said they pay for the majority of their business-related purchases with a business credit or business debit card, about one-third (34%) said they had neither a business credit nor a business debit card.
While businesses owned by women have made great strides in achieving financing and leveraging commercial credit, they still tend to rely predominantly on business earnings (35%) and personal savings (30%) as their primary funding source for business expenses. Two out of three (63%) female respondents also used personal savings to finance the start-up of their companies. All the survey respondents were owners of U.S. small businesses with 100 or fewer employees.
"Women small business owners are a driving force in the U.S. economy and, as the results of the survey show, have their own unique needs for financial and payment solutions," said Lori C. Byrne, vice president, Business Development, Corporate Payment Solutions, MasterCard International. "MasterCard and its member financial institutions remain committed to providing women business owners, and entrepreneurs everywhere, the most comprehensive, innovative spectrum of payment solutions they need to succeed. Having what it takes to start and successfully run a small business is priceless, and MasterCard wants to make it easier for entrepreneurs to focus on achieving their business goals."
MasterCard Small Business Solutions
MasterCard offers a complete suite of payment card solutions for small business owners. For complete information about all MasterCard small business payment solutions and programs, visit http://www.mastercardbusiness.com/mcbizdocs/smallbiz/index.html.
About the Ipsos-Insight Survey
MasterCard commissioned the Ipsos-Insight study as a part of an ongoing effort to better understand the attitudes and behaviors of small business owners with regard to spending and money management. From August 24 to September 2, 2005, Ipsos conducted phone interviews with 500 small business owners (defined as having 100 or fewer employees). To interview 500 small business owners, Ipsos used its Home Testing Institute (HTI) panel of respondents. Our HTI panel consists of approximately 400,000 pre-recruited U.S. households which affords access to over 1 million individuals. These respondents have agreed to complete mail and phone surveys with us. The margin of error for 500 completed interviews is +/- 4.38 percent.
About MasterCard International
MasterCard International is a leading global payments solutions company that provides a broad variety of innovative services in support of our global members' credit, deposit access, electronic cash, business-to-business and related payment programs. MasterCard, through its principal operating subsidiary, MasterCard International Incorporated, manages a family of well-known, widely accepted payment card brands including MasterCard(R), Maestro(R) and Cirrus(R) and serves financial institutions, consumers and businesses in over 210 countries and territories. The MasterCard award-winning Priceless(R) advertising campaign is now seen in 105 countries and in 48 languages, giving the MasterCard brand a truly global reach and scope. For more information go to www.mastercardinternational.com.
About Ipsos
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2004, Ipsos generated global revenues of EUR 605.6 million ($752.8 million U.S.). To learn more, visit: www.ipsos.com
Contacts
MasterCard International
Barbara Coleman, 914-249-6607
Barbara_Coleman@MasterCard.com
or
Waggener Edstrom
Sarah Ely, 203-353-7028
SarahE@WaggEd.com
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