One in four female small business owners have taken a pay cut in the past year, according to new research.
The survey of 1,000 women small business owners explored how their experiences have changed over the past year and found that the economic downturn has forced a quarter of these owners to cut their own pay to keep their businesses afloat.
Many small businesses that have been in business for at least a year have increased the prices of their products and services (37%), and more than a quarter are actively seeking cheaper resources (27%). %).
Conducted by Talker Research office depotAccording to the survey, 53% of female business owners said the past year had been the most difficult for their business.
In 2023, respondents cited challenges around financing (42%) and business expansion (30%), which remain the top challenges this year (39% and 30%, respectively).
Experiencing fatigue was a bigger challenge last year (23%), while marketing is proving to be a bigger challenge this year (25%).
However, this year, the efforts of many female small business owners have been rewarded, with the 2023 goals of increasing profits (target 59%, achievement rate 26%) and increasing customer acquisition (target 53%, achievement rate 41%). ), we were able to achieve business expansion (target 28%, achievement rate 12%).
And to maintain this momentum, respondents expect to continue leveling up and succeeding through continued revenue growth (63%), customer acquisition (54%) and business expansion (27%) .
But success is also about money and more than money. Twenty-one percent of respondents said success means having a positive impact on their community, and one in five (21%) included innovation as a measure of success.
Next year looks brighter for women small business owners, but there will still be challenges to overcome, with inflation (39%) and access to financing (25%) remaining their top concerns.
To overcome these challenges, female SBOs are dedicating themselves to work more often, but how much is too much?
Improvements in work-life balance have slowed by 15% since last year, with 58% of people saying their work-life balance has improved since becoming a business owner so far this year, compared to 73% last year.
Women surveyed feel they have to choose between family and work multiple times each month, with one in eight feeling this way each week.
And overall, 42% said becoming a business owner has made it more difficult to balance outside work responsibilities.
To achieve a better balance between work and home life, those surveyed are working to “shorten their working hours,” “take time for quiet reflection,” and “be willing to take time off when needed.” .
For respondents who started a business in the past year, the top reasons were: wanting to be their own boss (59%), deciding to pursue a passion or hobby (46%), and wanting to put an idea into action (41%).
“The number of women entrepreneurs has increased significantly in recent years, and it is our honor to help these business owners position themselves for future growth,” said ODP Corporation Executive Vice President and Office said Kevin Moffitt, President of Depot. “Small businesses are the foundation of this country. Our goal is to help all small businesses succeed.”
One in six also said they are less confident about the long-term health of their business and less confident in their own abilities than they were this time last year.
For many, dealing with the challenges of being a female business owner is a source of this uncertainty, with only 5% of respondents believing that women have more opportunities than men. less than 1 (18%).
To deal with this uncertainty, respondents sit back and consider their finances (74%), time and work-life balance (59%), and mental health (46%) when setting goals.
“The most successful small business owners are those who identify reliable support, including employees, vendors, and partners, to keep things moving forward and free them to focus on other parts of their lives,” Moffitt says. said.
Challenges faced by women small business owners
FY2023 FY2024
1. Insufficient funds — 42% 1. Insufficient funds — 39%
2. Difficulty in growing — 30% 2. Difficulty in growing — 30%
3. Fatigue — 23% 3. Marketing — 25%
4. Work-life balance — 23% 4. Fatigue — 23%
5. Money management — 22% 5. Networking — 20%
How women small business owners measure success
FY2023 FY2024
1. Increase in revenue/profit — 59% 1. Increase in revenue/profit — 63%
2. Acquire more customers/customers — 53% 2. Acquire more customers/customers – 53%
3. Business expansion and expansion — 28% 3. Business expansion and expansion — 27%
4. Positively impact the community — 21% 4. Positively impact the community — 25%
5. Improved brand awareness — 21% 5. Improved brand awareness — 20%
Research method:
This randomized, double-opt-in survey was commissioned by Office Depot and surveyed 1,000 female small business owners, half of whom are minorities, from April 3, 2024 to April 12, 2024. Conducted by a market research company. talker researchteam members are from the Market Research Association (Mrs.) and the European Association for Public Opinion and Marketing Research (esomal).
