Women use smart thinking to fight the recession

Women entrepreneurs are using innovative and flexible ways to avoid debt and survive the recession, making them more positive about coping with the economic crisis than men, according to a national Women's Enterprise Task Force (WETF) report.

The report was commissioned to illustrate the effects of the recession on women's enterprise in the UK. It showed that such things as accessing procurement in the private and public sectors and using flexible employment contracts to avoid high overhead costs are helping to ensure the sustainable growth of women-owned enterprises.

Pam Alexander and Dr Glenda Stone, co-Chairs of the Women's Enterprise Task Force, said: "Many women-owned enterprises have low debt and controlled overheads, enabling them to attract new business and be optimistic about their sustainability in a difficult economic environment."

A survey performed between August and November 2008 found that, while two-thirds of men are worried about the current economic environment, the figure for women was just over half. Similarly, nearly 50 per cent of male entrepreneurs were concerned about cash flow compared to fewer than 40 per cent of women.

The WETF report shows that women are fully aware of the difficult environment that they are working in, but many of the female case studies surveyed did not have high levels of debt. Instead, they were using flexible employment contracts to avoid high overhead costs, which meant that their revenues and sales were increasing. The fact that these female entrepreneurs operate in competitive sectors, such as retail and services, makes this low-cost, low-debt model attractive to larger companies who are looking to source from cheaper and more flexible suppliers.

Despite this optimism among female entrepreneurs, the research also highlighted that many women still operate and work in sectors that are most vulnerable in the recession. However, the report shows that women in these sectors are not being disproportionately affected compared to men.

Whilst recognising that the data in this current economic climate is volatile, the Task Force believes there are lessons to be learned. Accessing finance programmes, such as the ASPIRE women's co-investment fund, and seeking procurement options, are ways in which female entrepreneurs can save money and face the recession with more optimism.

Women are only half as likely as men to set up businesses, with only 13.6 per cent of entrepreneurs being female. Similarly, although 16 per cent of all UK companies are owned by women, just 3 per cent of all corporate and public sector contracts are awarded to women-owned businesses. However, despite this under-representation, it is estimated that women's enterprise currently contributes £130 billion per annum to the UK economy.