Women Starting Businesses At Nearly Twice The Average Rate

It's every entrepreneur's dream: No time card to punch, no vacation days to keep track of, no mandatory phone call to the office when sick.

Of course, for every dream there is a corresponding nightmare: Work days that last only eight hours are few and far between, vacation days are unheard of and there's not enough time to get sick.

Still, the promise of greater independence, flexibility and profit is motivating more women than ever before to hang up their time cards and start their own businesses.

According to the National Foundation for Women Business Owners (NFWBO), women are currently starting businesses at nearly twice the average rate, accounting for 38 percent of all U.S. firms in 1999. These businesses, more than 9 million of them, employ nearly 28 million people and generate $3.6 trillion in sales. In Minnesota there are 98,000 self-employed women, representing 39 percent of total self-employment, according to the U.S. Department of Labor.

Of these entrepreneurs, women of color lead the way, starting businesses at three times the average rate. Hispanic women in particular are the fastest-growing segment of this economy. From 1987 to 1996, NFWBO found that the number of Latina-owned firms in the U.S. grew by more than 200 percent, while firms owned by Asian and African-American women grew by approximately 140 percent. In 1996, the most current year statistics from NFWBO are available, nearly 383,000 Latina-owned businesses employed 671,000 people and generated $67 billion in sales.

"It's just going to get bigger and better for the (Hispanic) community," said Liliana Padilla, a customer service representative for WomenVenture, citing a report from the state demographer that projects Minnesota's Hispanic population at 132,000. "There is an influx of new Hispanics coming into this state. They want to secure their own income, want to take control, and don't want to depend on an employer."

That influx is obvious at 1515 E. Lake St. in South Minneapolis, home of Mercado Central. This cooperatively owned retail business incubator houses nearly 50 Hispanic vendors, approximately half of whom are women. "Women have been key in developing the project and ensuring its success, " said Megan Bartlett, communications coordinator for the Neighborhood Development Center, a partner of Mercado Central.

The strong presence of Latina business owners reflects Hispanic culture and tradition, Padilla continued. In Central America and South America, men typically work for someone else outside of their home while women operate corner stores and markets. Free to set their own hours and care for their children at work, these women simultaneously look after and provide for their families, Padilla explained.

"That translates once people are here," Padilla said, citing a trend in women-owned grocery stores, arts and craft shops and restaurants as a "way of bringing home to Minnesota."

Indeed, a recent survey of Latina entrepreneurs conducted by NFWBO revealed that ethnicity plays an important role in women-owned businesses. Seventy-five percent of the survey's 400 respondents said that a spouse, children or parents are involved in their business. More than 60 percent use both English and Spanish in their business activities and report that their cultural heritage is an asset.

For many, however, that same heritage can also be a barrier, Padilla said. While Latinas face the same challenges as women entrepreneurs in generalaccess to capital, technology and training, to name a few -- they have additional hurdles to overcome. Some are not proficient in English or are unfamiliar with U.S. business laws and regulations. Others fear that having their business on record with the Internal Revenue Service (IRS) might endanger family members who have crossed the border illegally. "I think (Latinas) find that really scary," Padilla said.

Many of the participants indicated interest in starting their own businesses but didn't know where to begin and how to access resources. "The biggest barrier right now is figuring out how to disseminate information to Hispanic women," Padilla said. "WomenVenture feels strongly that this population is burgeoning. They are hard workers and they need some help."

One woman already has. Beatrice M. Barajas Beckman (see photo above) began designing three-dimensional greeting cards in her home four years ago and is hoping to expand her business to the Internet. Beckman currently sells cards out of her home, at craft shows and at boutiques in other people's homes. She also participates in a vendor program sponsored by Blue Cross/Blue Shield that allows local artists to sell their work once a month at a booth near the employee cafeteria.

At her husband's urging, Beckman took a business course at WomenVenture and then dove in. "There are the doers and the talkers," Beckman said. "Just do it."

The rewards are worth it, she continued. "Being your own boss, that's the biggest one." As such, Beckman can work around the schedules of her two sons, ages 4 and 8, another important benefit. Her business is also something that could be financially lucrative one day. For now, Beckman is content to keep things small; she covers expenses out of her own pocket but plans eventually to apply for a bank loan.

Beckman also hopes her success as an entrepreneur will persuade other Hispanic women to pursue their dreams. "I want to be a resource and role model for the Hispanic community," she said. "I want to say, 'If I can do it, you can do it.' There are women who dream, but sometimes they don't know there are resources for this. ... I want women to know they don't have to just get married, have a family and do any type of job. They can seize opportunity."

Respond to this story at thaney@womenspress.com.

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