What’s New: In brief (July 28, 2005)

Many women business owners are willing to take substantial risks to ensure the success of their business, according to a new study from the Center for Women’s Business Research underwritten by Wells Fargo. “Women Entrepreneurs Savvy About Risk,” says women business owners are much more willing to take risks in running their businesses than in their personal finances. The more than 400 women business owners surveyed were asked to determine whether they would take substantial or above average risks in regards to their business. Almost one of every four surveyed (21%) said they were willing to take substantial financial risks expecting substantial returns when saving or investing for their business, while forty-five% were willing to take above average financial risks expecting above average returns. “Two thirds of the women in this study were willing to take above average or substantial risks to achieve their growth goals.,” Marjorie Alfus, Chair, Center for Women’s Business Research, says. “The success of their risk taking is documented in the dynamic growth rates — employment by women-owned businesses expanding at twice the rate of all businesses (24% vs. 12%) and revenues growing 17% faster than all businesses.” However, risk-taking among women business owners looking to expand their businesses is significantly higher than women business owners not looking to expand. This is particularly true of women business owners who seek external capital to expand their business and of those who had successfully sought this type of funding in the past. Of expansion-oriented business owners, 25% are willing to take substantial financial risks and an additional 51% are willing to take above average risks. Risk-taking was consistent among all types of women-owned businesses in the study, regardless of company size, age of business, or personal characteristics of the business owner (age, education, ethnicity, etc.).

American International Group recently signed an agreement to provide funding to rebuild Peunayong Market, the biggest fish market in Banda Aceh, Indonesia. The total value of the Peunayong Market project is estimated at $525,000. The project is expected to be complete by February 2006. The goal is to rebuild the 2,000 square meter market area, restore the drainage system, and construct permanent buildings, which can accommodate around 200 merchants. The recovery of the market will help revive the fishery industry, which was badly hit by the tsunami. CHF International, collaborating with American International Group, Inc. (AIG), the Banda Aceh Mayor, Banda Aceh City Planning, and Banda Aceh’s Market Department, will rebuild 2,000 m2 market area, restore the drainage system, and construct permanent buildings.