Women-owned small businesses operating in their first year have lower revenues, experience slower growth and are less likely to receive external financing than those owned by men, according to a report issued by JPMorgan Chase.
Despite those hurdles, as The Houston Chronicle reports, good cash management strategies over time generally allow women-owned businesses to achieve the same survival rates as male-owned small businesses.Those strategies include the ability to hold emergency cash.
Nationally, the report found women-owned small businesses have 34% lower first-year revenues than male-owned small businesses, or $50,000 for women and $75,000 for men.
The report, from the JPMorgan Chase Institute, a think tank funded by the banking giant that frequently focuses on economic trends, used transactional-level data on daily revenues, expenses and financing flows of 138,000 small businesses founded in 2013. The report explored the outcomes of small businesses broken down by their owner’s gender, age and location. The report did not consider types of industries when examining the disparity in first-year revenues. Read the full story.