Female-owned firms proliferate in Idaho – ranked fourth in the nation for women-owned business growth

Idaho is one of the top states in the country in the growth of businesses which are majority- or wholly-owned by women.

A study by the Center for Women’s Business Research ranked Idaho fourth in the nation for women-owned business growth.

http://www.cdapress.com/articles/2004/05/03/business/bus01.txt

"Women-owned firms are growing and increasing their employment faster than the general market," said Pat McMurray, president and CEO for Wells Fargo Idaho. "These firms are driving growth in Idaho and across the country, while generating revenues at a similar rate to all firms. This is a powerful statement about this fast-growing segment of American small business owners."

The study, sponsored by Wells Fargo and using data from the U.S. Bureau of the Census, measured growth of privately-held companies with 50 percent or more ownership by women, and it ranked states overall and in terms of the number of these firms, their employment and sales.

Idaho ranked fourth in overall growth, behind Utah, Arizona and Nevada, followed by New Mexico and Kentucky, which tied for fifth place.

In Idaho between 1997 and 2004, the number of women-owned businesses has grown 28.2 percent, compared with 17.4 percent nationally. The number of employer firms has expanded 44.9 percent, compared with 28.1 percent nationally.

Employment has increased by half, compared with 24.2 percent nationally, earning Idaho a number one ranking in this category. Sales of these firms grew 70.6 percent, compared with 39.3 percent for women-owned businesses nationally, earning Idaho a number three ranking.

The study results offer a comprehensive view of the growth and expansion of women-owned businesses, tracking information including composition, spending habits and core industries of women entrepreneurs nationwide.

The center shares its knowledge of the economic and social aspects of women’s entrepreneurship with policy makers, financial institutions, corporate leaders, government agencies, academia, and the media through research reports, press releases, newsletter publications, seminars, speaking engagements, and worldwide on the Internet at http://www.womensbusinessresearch.org.

The increase in women-owned business is creating an expanded market for the banking industry, too.

"We are committed to initiating and supporting financial programs and services that benefit women," said McMurray. "Last year Wells Fargo announced a new goal to lend $20 billion over 10 years to women-owned businesses across the nation, and I believe it sends a strong message about Wells Fargo’s unwavering commitment to women business owners."

Its targeted business services programs provide outreach and education to women, African American, Latino, and Asian business owners about financial services. Since 1995, Wells Fargo has loaned more than $18 billion to women and minority business owners.

There are now more than 74,000 privately-held Idaho businesses owned 50 percent or more by women, representing 59 percent of all private firms in the state.

They generate $17 billion in annual sales, and employ 140,743, said the study.

"Businesses that are 50 percent or more women-owned are growing at twice the rate of all firms — 17 percent compared with 9 percent. These businesses are a vital component of the national economy, in terms of their sheer numbers and in terms of their impact on employment and revenue generation," said Sharon Hadary, executive director of the center. "As employers of 19.1 million people, these women-owned firms spend over half a trillion dollars annually on just payroll and benefits."

In Kootenai County alone there are enough women in business to have formed the Northwest Women in Business Network. The group now includes 90 members, no two from the same type of business.

They meet twice a month at the Coeur d’Alene Inn to share business ideas, and with hopes of doing some business-to-business commerce.

For some women, starting their own businesses just made economic sense over working for someone else.

Diana Tuttle opened American Mortgage in Coeur d’Alene more than a year ago after 20 years of working in a bank.

"Half of what you earn goes to the employer," she said. "All the marketing I was doing for the bank — why not do it for me?"

Now, with help from her husband Don, instead of splitting commissions with the bank, she uses the other half of the company’s income to run the business and improve her own earnings.

Women are meeting little resistance to their authority in the business world, said Carol Griffin, owner of HomeStyle Lighting on Government Way.

Role reversal among spouses is not uncommon, either. While Griffin runs the business, her semiretired husband putters around the house.

"He helps me out when he feels like working," said Griffin.

It’s not her first time in commerce, as the couple previously ran an automotive business, and she grew up in a family that operated a restaurant.

She bought the lighting store late last year, and runs it with the help of about a dozen employees, with just over half of them women.

But gender is not what determines who gets ahead in the store — Griffin’s manager is a male and offers her some respite from the daily grind of running a business.

"I’m here six days a week," she said. "I’m trying to break away to get some time off."