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6 March 2008

Westpac says women should back themselves in business

Women are better managers of money than their male business counterparts, better prepared in business and prefer to work for themselves, according to research released today by Westpac.

Women are extremely effective and working in small business really suits them, but if they haven't started their business by the time they're 45, they're unlikely to give up their 'day job.'

The Westpac research also shows women are better equipped to manage a crisis or emergency. They have also had a more varied working life and fully research their proposed business venture before starting out.

"What we'd say to women is 'back yourself'. You've done the research, you're prepared for any emergency and have a variety of experience in business – have a go, you aren't in this alone," Larke Riemer, Head of Westpac's Women's Markets, said.

According to Australian Women in Business – New Insights, commissioned by Westpac and conducted by research agency TNS, women are much more likely to have worked in a different industry and this suggests they are prepared to give new things a try and have a higher level of flexibility.

But they do worry about the unknown.

"Women in small business plan more effectively and focus on the long term, as well as short term planning – and this goes back to their higher levels of concern about the unknown.

"But that's got its upside.

"It means that women are better prepared for emergencies and have some form of financial 'back-up plan'. They manage their cash flow more closely and they don't need to use their back-up as often as men.

"Men believe that if they have a good business, cash flow will take care of itself. Men seem to trust in themselves and take the plunge, whereas women consider the long and short term outcomes and do much more research.

"It means they're much better prepared to handle the challenges of running a business.

"Women start their business younger - with more than half the number of women in small business starting their company when they were under 35.

"Two thirds of women in small business would not consider returning to a larger corporation compared with 42 per cent of men."

This is Westpac's second survey and confirms that cash flow is still a major issue for small businesses generally.

"This year staffing has emerged as a key issue for small businesses and managing the work/life balance is perceived to be a challenge by a higher proportion of women," Ms Riemer said.

"This research reinforces that as a bank we must make sure we share information and advice with our customers and we are tailoring solutions to fit different customer needs.

"At Westpac, it's not a one size fits all approach, we really take the time to partner with our customers so that we can build a sustainable business with them," she said.

About Westpac's Women's Markets Unit
In 2002, Westpac's Women's Markets Unit was restructured to comprise a dedicated team of female business development managers, who work alongside women to help them build and grow their businesses.

The Women's Markets team is led by Larke Riemer and was established to address the concerns of a growing force in Australian business – female business owners and operators.

It's an independent business unit with its own objectives and client base, creating its own strategies for business acquisition. No other Australian bank has a unit solely dedicated to female customers.

About Australian Women in Business – New Insights research
A total of 200 interviews were conducted amongst female and male business owners and financial decision-makers Australia-wide during January 2008. The study was covered businesses with between five and up to 50 employees. Businesses had a turnover of up to $100 million.