‘Safer’ businesses run by female entrepreneurs

Women-owned businesses are more financially sound and risk-averse, and are less likely to fail than their male-owned counterparts, a new report suggests.

According to research by business insurer, SimplyBusiness.co.uk, male entrepreneurs are far more ‘bullish’ in the workplace than women, costing insurers 60% more to provide insurance cover for male-owned businesses than those owned by women.

The study revealed that less than a quarter of female entrepreneurs have had a company cease trading, be taken into administration or be declared bankrupt in the past, compared to over a third of men. Furthermore, fewer women identified access to credit as a major current barrier to growth than men.

Commenting on the report, Jason Stockwood, chief executive of SimplyBusiness.co.uk, said: “The fact that female business owners are less concerned about the availability of capital may be an indication that the banks are already ahead of the insurance industry in viewing them as a safer bet than their male counterparts.”

However, despite their weaker financial track-record, male entrepreneurs are more confident regarding growth plans, according to the research. 57% of male business owners plan to expand within the UK market this year, compared with 44% of women, while nearly twice as many men are preparing for overseas expansion than female entrepreneurs.

© Crimson Business Ltd. 2010