According to a recent study by the Center for Women's Business Research, which was underwritten by Wells Fargo & Co., No. 26 on The 2008 DiversityInc Top 50 Companies for Diversity® list, businesses owned by Latinas, African Americans and Asian women have substantially outpaced all U.S. firms in the growth of revenues and number of employees.
But the question remains: Why are they leaving corporate America in the first place? Aside from the lack of jobs caused by the current economy, working women speculate that a lack of diversity can be another cause for talented women packing their corporate bags and diving into entrepreneurship.
"I am not surprised at the findings," says Ana Mollinedo Mims, managing director of The Hunting Ridge Group and former vice president of global communications, community affairs and diversity for Starwood Hotels & Resorts Worldwide, No. 19 in the DiversityInc Top 50. "When you consider that minority females have not made the inroads to senior corporate jobs, there grows a sense that it is better to work for yourself than for an organization where your potential and mobility will be limited."
"Most young women go to work for corporations first and get some very good experience [but] they recognize while they're there that they don't really have control of their time, they don't have control of who makes the decisions and they don't have as much influence as they would like," says Marsha Firestone, president and founder of the Women's President's Organization and a speaker during the "Women Entrepreneurs Leading Innovation Globally" webcast, hosted by IBM, No. 9 in the DiversityInc Top 50. "They realize that they can do it better by having their own company. They can make more money, have more influence, more power, and they can control the hours that they work."
Regardless of whether it's for work/life balance or a crusade to obtain senior roles, women entrepreneurs--and specifically, those from traditionally underrepresented groups--are starting businesses and proving their worth to the country. (Click here to read "What New Moms Should Look For in a Company.")
"Women of color represent 26 percent of all women business owners--up from 20 percent just a few years ago," says Margaret A. Smith, chair, Center for Women's Business Research. "These business owners are a vital driver of economic growth in every community and a vibrant source of suppliers and customers. As of 2008, there are 2.3 million firms, 50 percent or more of which are owned by women of color, providing 1.7 million jobs and generating $235 billion in revenues."
Among the women from traditionally underrepresented groups, Latinas own the largest number of businesses, an estimated 747,108 firms, employing 430,000 workers and generating revenues of nearly $62 billion as of 2008.
Firms owned by Asian-American women outpaced all other firms in growth in numbers, employment and receipts. Asian-American women own the third-largest number of firms (627,837), employ 898,240 people and have revenues totaling $128 billion. African-American women own the second-highest number of firms (734,664), employ 281,055 people and have revenues of more than $32 billion.
Their successes are a direct indication of the corporate sector dropping the ball on a talented pool of diverse women with the potential to reach senior executive roles and execute them. But while the numbers are extremely impressive, starting your own business is not an easy task.
"I have had a number of friends that left corporate America because of work/life issues, and the transition has not been an easy one," Mims says. "The difficulty is really a matter of personality and adaptability. And then there remains the reality that balance is illusive; it is something you always have to work on. Some days, you might have more life than work, and other days, work completely consumes your life. The key is to look at the total sum of your months and years and decide if you have achieved the balance between the things that are important to you."
Other challenges include start-up capital. "Starting a business is extremely demanding," Firestone says. "There are access-to-capital issues. The other issues relate to growing the company, and especially in the beginning, it's very intense, takes a lot of work and long hours."
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