{"id":7838,"date":"2019-11-10T09:20:04","date_gmt":"2019-11-10T13:20:04","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=7838"},"modified":"2019-11-11T09:22:16","modified_gmt":"2019-11-11T13:22:16","slug":"the-hot-trend-for-female-entrepreneurs","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=7838","title":{"rendered":"The Hot Trend for Female Entrepreneurs"},"content":{"rendered":"<header class=\"entry-header\"><span style=\"font-family: inherit; font-weight: inherit;\">\u201cSidepreneurs\u201d is a new term to me, but it\u2019s getting traction in the realm of female entrepreneurs.<\/span><\/header>\n<div class=\"entry-content resizable\">\n<div class=\"main-post-content no-margin-first-paragraph\">\n<p>For the first time, the annual American Express report on women-owned businesses in America looked at \u201csidepreneurs,\u201d part-time entrepreneurs who work fewer than 20 hours per week on their businesses. What it found was pretty stunning.<\/p>\n<div class=\"media-credit-container aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-262742\" src=\"https:\/\/i0.wp.com\/www.nextavenue.org\/wp-content\/uploads\/2019\/10\/Screenshot-2019-10-23-17.06.57-750x598.png?resize=640%2C510&#038;ssl=1\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" srcset=\"https:\/\/www.nextavenue.org\/wp-content\/uploads\/2019\/10\/Screenshot-2019-10-23-17.06.57-750x598.png 750w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2019\/10\/Screenshot-2019-10-23-17.06.57-140x112.png 140w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2019\/10\/Screenshot-2019-10-23-17.06.57-300x239.png 300w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2019\/10\/Screenshot-2019-10-23-17.06.57-768x613.png 768w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2019\/10\/Screenshot-2019-10-23-17.06.57.png 1414w\" alt=\"The State of Women-Owned Businesses, 2019\" width=\"640\" height=\"510\" \/><span class=\"media-credit\">Credit: The State of Women-Owned Businesses, 2019<\/span><\/div>\n<p><a href=\"https:\/\/about.americanexpress.com\/sites\/americanexpress.newshq.businesswire.com\/files\/doc_library\/file\/2019-state-of-women-owned-businesses-report.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><em>The 2019 State of Women-Owned Business Report\u00a0<\/em><\/a>said the growth rate of sidepreneurship for women between 2014 and 2019 has been far greater than for all women-owned businesses: 39% vs. 21%.<\/p>\n<h3>The Growth of Sidepreneurship for Women<\/h3>\n<p>It\u2019s also been stronger than for all adult sidepreneurs (32%). And it was twice as high for\u00a0<a href=\"https:\/\/www.nextavenue.org\/black-women-entrepreneurs-news\/\">minority women-owned businesses<\/a>\u00a0than all sidepreneur businesses (65%). By far, the highest growth rate in the number of sidepreneur ventures has been among African-American women \u2014 triple that for all businesses.<\/p>\n<blockquote><p>As someone who writes often about midlife entrepreneurship, I always encourage people, if possible, to start small and launch their businesses on the side, while keeping their paid, full-time positions.<\/p><\/blockquote>\n<p>I was curious to explore what\u2019s behind the sharp rise of female sidepreneurship and the pros as well as the cons of the trend. And I wanted to offer advice for women planning to take this path.<\/p>\n<p><strong><a href=\"https:\/\/www.nextavenue.org\/sidepreneurship-trend-for-women\/\">Read on Next Avenue<\/a><\/strong><\/p>\n<p>To do so, I reached out to these two experts:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.nextavenue.org\/women-entrepreneurs-over-50\/\">Kimberly A. Eddleston<\/a><strong>,<\/strong>\u00a0a professor of entrepreneurship and innovation at Northeastern University and a senior editor on the EIX Editorial Board of the Schulze School of Entrepreneurship at the University of St. Thomas in Minneapolis (EIX is a funder of Next Avenue).<\/li>\n<li>Dell Gines, author of the Federal Reserve Bank of Kansas City report,\u00a0<em>Black Women Business StartUps<\/em>, that I\u00a0<a href=\"https:\/\/www.nextavenue.org\/black-women-entrepreneurs-news\/\">wrote about in an an earlier Next Avenue column<\/a>.<\/li>\n<\/ul>\n<p>First, the big picture: Women-owned businesses are exploding, according to the Amex report. Between 2014 and 2019, the number of women-owned businesses climbed 21%, to nearly 13 million; by contrast, the number of U.S. businesses \u00a0overall increased just 9%. Firms owned by women of color grew even more, by 43%.<\/p>\n<h3>What Explains the Surge?<\/h3>\n<p>But what\u2019s spurring the growth in sidepreneurship, specifically?<\/p>\n<figure id=\"attachment_224771\" class=\"wp-caption alignright\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-224771\" src=\"https:\/\/i0.wp.com\/www.nextavenue.org\/wp-content\/uploads\/2017\/10\/Eddleston-Kimberly-194x199-1.jpg?resize=194%2C199&#038;ssl=1\" sizes=\"auto, (max-width: 194px) 100vw, 194px\" srcset=\"https:\/\/www.nextavenue.org\/wp-content\/uploads\/2017\/10\/Eddleston-Kimberly-194x199-1.jpg 194w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2017\/10\/Eddleston-Kimberly-194x199-1-136x140.jpg 136w\" alt=\"Eddleston-Kimberly-194x199\" width=\"194\" height=\"199\" \/><figcaption class=\"wp-caption-text\">Kimberly Eddleston<\/figcaption><\/figure>\n<p>\u201cSidepreneurs may be testing a business idea while holding down a job or supplementing income or seeking a creative outlet or an additional challenge,\u201d according to the Amex report. \u201cThey may also want flexibility because they have caregiving responsibilities or want a certain lifestyle.\u201d<\/p>\n<p>I get it. And as someone who writes often about midlife entrepreneurship, I always encourage people, if possible, to start small and launch their businesses on the side, while keeping their paid, full-time positions. That\u2019s simply a good strategy allowing a new venture to slowly gain traction.<\/p>\n<p>Many of the entrepreneurs I profiled in my book,\u00a0<em>Never Too Old to Get Rich: The Entrepreneur\u2019s Guide to Starting a Business Mid-Life<\/em>\u00a0(full disclosure: Next Avenue co-branded the book with Wiley) took that approach.<\/p>\n<h3>Concerns About Sidepreneurship for Women<\/h3>\n<p>So, I was a little surprised when I told a few colleagues about this column and they said they thought sidepreneurship was\u00a0<em>not\u00a0<\/em>a great thing \u00ad\u2013 especially for low-income and minority women. They felt such women are pulling down two jobs and adding stress to their lives because they need the money and can\u2019t afford to quit their day (or sometimes night) job.<\/p>\n<p>I don\u2019t see it that way for the reason I noted above, but also because I believe entrepreneurship can be empowering, offer an income boost and provide flexible hours.<\/p>\n<p>I asked Eddleston and Gines what they thought.<\/p>\n<p>\u201cAfter looking at the report, it is really hard to interpret,\u201d Eddleston said. \u201cFor example, [the researchers] do not give information on whether the sidepreneurs have children \u2014 and if so, how many and their ages \u2014 and whether these women have a spouse. I would want to know if their part-time business is for necessity or to supplement the household income.\u201d<\/p>\n<p>Her explanation for the female sidepreneurship growth is mine, too. \u201cWhat likely attracts women to these sidepreneur opportunities is their lack of risk,\u201d Eddleston told me. \u201cResearch repeatedly shows that women have a lower tolerance for risk than men, and when deciding to become entrepreneurs, are strongly motivated by autonomy and flexibility.\u201d<\/p>\n<p>Sidepreneurship allows \u201cwomen to test the waters and see if they like the business before taking the plunge and going full time,\u201d she added. \u201cThey can also see if the money earned is worth their time. Further, with all of the many ways to create a part-time business or become a part-time business associated with a larger sharing-economy firm, women can easily identify ways to capitalize on their interests, hobbies and skills.\u201d<\/p>\n<figure id=\"attachment_248246\" class=\"wp-caption alignright\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"wp-image-248246\" src=\"https:\/\/i0.wp.com\/www.nextavenue.org\/wp-content\/uploads\/2018\/09\/Dell-Gines-Bio-Photo-232x300.jpg?resize=198%2C256&#038;ssl=1\" sizes=\"auto, (max-width: 198px) 100vw, 198px\" srcset=\"https:\/\/www.nextavenue.org\/wp-content\/uploads\/2018\/09\/Dell-Gines-Bio-Photo-232x300.jpg 232w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2018\/09\/Dell-Gines-Bio-Photo-108x140.jpg 108w, https:\/\/www.nextavenue.org\/wp-content\/uploads\/2018\/09\/Dell-Gines-Bio-Photo.jpg 298w\" alt=\"Dell Gines Bio Photo\" width=\"198\" height=\"256\" \/><figcaption class=\"wp-caption-text\">Dell Gines<\/figcaption><\/figure>\n<h3>A Low-Risk Strategy<\/h3>\n<p>It\u2019s a \u201clow-risk strategy that a woman can pursue at her own pace, based on her own schedule, without requiring a heavy investment,\u201d Eddleston said. \u201cThat means, an older woman who is not ready to fully retire can keep working as a sidepreneur.\u201d<\/p>\n<p>Gines, too, took the positive view.<\/p>\n<p>\u201cThe growth of sidepreneurship is a good thing,\u201d he said. \u201cAs a general rule, any time you get people starting an entrepreneurial venture, it\u2019s good for the economy.\u201d<\/p>\n<h3>Stats on Black Women Entrepreneurship<\/h3>\n<p>That said, many black women business owners launch their firms as side businesses out of financial necessity, according to Gines. Most black women entrepreneurs work part-time in their businesses, less than 39 hours a week, according to his Federal Reserve report.<\/p>\n<p>\u201cMany black women founders may be single parents and need to have this dual income to support the household needs,\u201d Gines said. \u201cBecause the women are taking care of their families, they need to have a level of confidence before they can make that jump completely. Woman who are responsible for the household tend to keep the size of businesses artificially low because they need health insurance from a primary employer and want to make sure everything is absolutely appropriate before taking the jump.\u201d<\/p>\n<h3>Advice for Women on Becoming Sidepreneurs<\/h3>\n<p>Here\u2019s advice Eddleston and Gines shared for midlife women interested in starting side businesses:<\/p>\n<p><strong>Go for it.<\/strong>\u00a0\u201cBecause of the\u00a0<a href=\"https:\/\/www.nextavenue.org\/how-get-sharing-economy\/\">sharing economy<\/a>, there are endless possibilities for women over fifty to become part-time entrepreneurs,\u201d Eddleston said. They \u201ctend to have less childcare responsibilities than their younger counterparts, so it\u2019s a perfect time to venture out on one\u2019s own. By starting part-time, the investment is often very low and with little risk, but the potential to earn extra cash is often great.\u201d<\/p>\n<p><strong>Do a gut-search<\/strong>. Assess your interests, hobbies and skills and then brainstorm how you can build a side business around that, Eddleston advised. I call this doing your inner MRI: Why me? Why now? Why this business or service? Is there a market out there for what I have in mind?<\/p>\n<p><strong>Do some sleuthing.<\/strong>\u00a0Women should also consider how they can capitalize on entrepreneurial opportunities already out there, such as eBay, Poshmark, Uber, Lift, Airbnb and Rover, Eddleston said.<\/p>\n<p>\u201cThe increase in women\u2019s sidepreneurship is partly a reflection of the sharing economy. It has become easier and more acceptable for individuals to take advantage of entrepreneurial opportunities created by the sharing economy,\u201d she noted.<\/p>\n<p><strong>Seek out help.<\/strong>\u00a0Women should look to local colleges to see if they have outreach programs for aspiring women entrepreneurs. Other alternatives: programs offered by the\u00a0<a href=\"https:\/\/www.cweonline.org\/\">Center for Women &amp; Enterprise<\/a>\u00a0and those supported by the Small Business Association\u2019s\u00a0<a href=\"https:\/\/www.nextavenue.org\/women-entrepreneurs-can-successful\/\">Women Business Centers<\/a>\u00a0and women\u2019s business owner associations. Look for support providers in your community, too, such as the local Rotary Club, or Chamber of Commerce, Gines said.<\/p>\n<p>You might take courses on entrepreneurship at a community college and get\u00a0<a href=\"https:\/\/www.nextavenue.org\/women-entrepreneurs-certified-woman-owned-business\/\">certified<\/a>\u00a0as a women\u2019s business on the federal, state and city level, to qualify for more projects.<\/p>\n<p>Finally, \u201cIt\u2019s important to\u00a0<a href=\"https:\/\/www.nextavenue.org\/find-a-small-business-mentor\/\">connect with mentors<\/a>. Some might provide business knowledge, others emotional support,\u201d Gines said. \u201cThere is a lower rate of failure if you start small, learn your skills and craft and then scale.\u201d<\/p>\n<p><em>\u00a0<\/em><em>(This article is part of\u00a0<\/em><a href=\"https:\/\/www.nextavenue.org\/special-report\/americas-entrepreneurs-a-special-report-from-richard-m-schulze-family-foundation\/\"><em>America\u2019s Entrepreneurs<\/em><\/a><em>, a Next Avenue initiative made possible by the\u00a0<\/em><a href=\"https:\/\/www.schulzefamilyfoundation.org\/\"><em>Richard M. Schulze Family Foundation<\/em><\/a><em>\u00a0and\u00a0<\/em><a href=\"https:\/\/eiexchange.com\/\"><em>EIX, the Entrepreneur and Innovation Exchange<\/em><\/a><em>.)<\/em><\/p>\n<div class=\"writer-info-block\">\n<div class=\"writer-info\">\n<div class=\"writer-info-image\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"attachment-60x60 size-60x60\" src=\"https:\/\/i0.wp.com\/www.nextavenue.org\/wp-content\/uploads\/2016\/01\/Kerry.jpg?resize=60%2C60&#038;ssl=1\" alt=\"\" width=\"60\" height=\"60\" \/><\/div>\n<p><span class=\"writer-info-name\">By\u00a0<a href=\"https:\/\/www.nextavenue.org\/writer\/kerry-hannon\">Kerry Hannon,\u00a0<span class=\"writer-block-title desktop-only\">Entrepreneurship and Personal Finance Expert<\/span><\/a><\/span><\/p>\n<div class=\"writer-info-description\">Kerry Hannon is the author of\u00a0<a href=\"https:\/\/www.amazon.com\/Never-Too-Old-Rich-Entrepreneurs\/dp\/1119547903\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Never Too Old to Get Rich: The Entrepreneur&#8217;s Guide to Starting a Business Mid-Life<\/em><\/a>. She\u00a0 has covered personal finance, retirement and careers for The New York Times, Forbes, Money, U.S. News &amp; World Report and USA Today, among other publications. She is the author of a dozen books including\u00a0<a href=\"https:\/\/www.amazon.com\/Seizing-Financial-Control-Smart-Single\/dp\/1682614336\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Money Confidence: Really Smart Financial Moves for Newly Single Women<\/em><\/a>\u00a0and\u00a0<a href=\"https:\/\/www.amazon.com\/Whats-Next-Updated-Finding-Passion\/dp\/0425271471\" target=\"_blank\" rel=\"noopener noreferrer\"><em>What&#8217;s Next? Finding Your Passion and Your Dream Job in Your Forties, Fifties and Beyond<\/em><\/a>. Her website is\u00a0<a href=\"https:\/\/kerryhannon.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">kerryhannon.com<\/a>. Follow her on Twitter\u00a0<a href=\"http:\/\/twitter.com\/#!\/KerryHannon\" target=\"_blank\" rel=\"noopener noreferrer\">@kerryhannon<\/a>.<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/static.hupso.com\/share\/buttons\/share-small.png?w=640&#038;ssl=1\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"The Hot Trend for Female Entrepreneurs\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"excerpt":{"rendered":"<p>\u201cSidepreneurs may be testing a business idea while holding down a job or supplementing income or seeking a creative outlet or an additional challenge,\u201d according to the Amex report. <\/p>\n<div style=\"padding-bottom:20px; padding-top:10px;\" class=\"hupso-share-buttons\"><!-- Hupso Share Buttons - http:\/\/www.hupso.com\/share\/ --><a class=\"hupso_toolbar\" href=\"http:\/\/www.hupso.com\/share\/\"><img src=\"https:\/\/static.hupso.com\/share\/buttons\/share-small.png\" style=\"border:0px; padding-top:5px; float:left;\" alt=\"Share Button\"\/><\/a><script type=\"text\/javascript\">var hupso_services_t=new Array(\"Twitter\",\"Facebook\",\"Google Plus\",\"Pinterest\",\"Linkedin\",\"StumbleUpon\",\"Digg\",\"Reddit\",\"Bebo\",\"Delicious\");var hupso_background_t=\"#EAF4FF\";var hupso_border_t=\"#66CCFF\";var hupso_toolbar_size_t=\"small\";var hupso_image_folder_url = \"\";var hupso_url_t=\"\";var hupso_title_t=\"The Hot Trend for Female Entrepreneurs\";<\/script><script type=\"text\/javascript\" src=\"https:\/\/static.hupso.com\/share\/js\/share_toolbar.js\"><\/script><!-- Hupso Share Buttons --><\/div>","protected":false},"author":2,"featured_media":7035,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[7,59,36],"tags":[111,68],"class_list":["post-7838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boomers","category-careers","category-entrepreneur","tag-entrepreneur-2","tag-women"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/kerryhannon.com\/wp-content\/uploads\/2018\/08\/download-1-1-150x135.jpeg?fit=150%2C135&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p3YFQS-22q","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/7838","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7838"}],"version-history":[{"count":5,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/7838\/revisions"}],"predecessor-version":[{"id":7845,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/posts\/7838\/revisions\/7845"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=\/wp\/v2\/media\/7035"}],"wp:attachment":[{"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7838"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7838"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kerryhannon.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7838"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}