Only 3% of women's businesses reach $1mil- glass ceiling?

[erobbins]

As a female entrepreneur, I was kind of appalled at hearing this news considering that the number of women entrepreneurs is increasing at an extraordinary rate, growing at four times the national pace of business formation between 1997 and 2002. Women owned firms now account for nearly 40 percent of U.S. businesses according to the Center for Women’s Leadership at Babson College http://www3.babson.edu/CWL/research/...repreneurs.cfm

Is this just another glass ceiling?

I really believe that better press, increased dialogue and sponsorship—from angel networks to corporations—is the key to establishing a strong women’s network.

And from seeing what the fabulous female entrepreneurs (Sandy Lerner, Cisco; Kay Koplovitz, USA Networks) are doing out there, that change is happening right now.

Let’s discuss, I would love to hear what others have to say about these statistics. Did they shock you as much as me?

[Heather]

They don't shock me at all. I run a business, a small service-based business, and it takes a lot of money to advertise. I think it's all about marketing, and for other businesses where you have to buy product, sell that product, ship it, etc. it takes money to make money. I think it's super hard to get ahead unless you have investors willing to take a risk for you. It's hard to not price yourself out of the market, depending on what you're offering (product or service) in order to just make ends meet, let alone trying to take that next step to drive your business forward.

I'm having a hard time right now... I have minimal overhead but for a lot of businesses I'm a "luxury". Until I can convince them that I'm a necessity I won't get very far aside from a few extra bucks each month. Granted, I'm teaching myself how to network with the "right" people and have been doing that more lately, but it's slow going in this economy...

ETA:
I do want to add that New York State is taking steps to improve this issue. As of January of this year, 50% of ALL contracts NYS hires (vendor companies), have to be women or minority owned. That's a pretty big deal because there aren't a lot of them in my area.

[NovemberGal]

I didn't see the three percent number in the link you posted, so my response depends a lot on the exact wording. If it is as you stated it, "only 3% of women's businesses reach $1 million"--well, a lot of businesses don't reach $1 million. I don't have time to look up any percentages, but given how many people do try to start their own business, how difficult it is to do so and and stay afloat much less succeed in the millions--sure, I'd believe only 3% of women's business reach that level.

IF the actual factoid is "only 3% of companies worth $1 million are owned by women" well, that's COMPLETELY different and yes, a little shocking and disappointing.