Competent countries like the United States, Spain, Greece and Great Britain continue to grapple with the economic slump while speculations about another economic recession are rife. Interest rates are at an all-time low and investors are in a fix regarding where to invest.
During these volatile economic times, we seek solace in different recession-management techniques. As an entrepreneur you may be wondering — will the European debt crisis threaten to derail the world and my small business? If so, it’s time to learn recession-management tips from those equipped to handle it best — women.
Surprised … possibly confused?
Here are some interesting, startling and helpful facts.
“Everyone knows that men and women are rarely thumbing through the same book, let alone settling on the same page,” according to Bill Morrow, Founder of the investment network Angels Den. “Speaking as a Y chromosome-toting entrepreneur, it is not easy for me to admit this, but facts are facts, and it is the more frugal and pragmatic attitude that women bring to their business planning that will see them succeed where many of their male counterparts may fail in the impending recession.”
Recent research conducted by Delta Economics has shown that female entrepreneurs fared better than their male counterparts during difficult recessionary times that we have faced in the past. Some researchers also pointed out that these women entrepreneurs were the key to leading us out of the previous economic recession. These revelations have come as a pleasant and encouraging surprise.
Role of Women: Changing Times
The past 50 years have witnessed a dramatic change in the role played by women in the world economy. Women, who were earlier seen as providers of supplementary income, are now earning almost 45% of all household income. Research has shown that more than seven million families today are relying solely on the income of women for survival.
Women have continued to struggle for equality over the years. The world is now witnessing an unprecedented role-reversal.
Rise of Women Entrepreneurs
Recession leads to financial crisis and has some of the worst effects on the economy. As job-hunting becomes perilous during a recession, many people take to entrepreneurship. Therefore, many women pursued their dream of becoming an entrepreneur, which gave them an unprecedented opportunity to survive the recession.
Impact of a Recession on Women
It’s no secret that a recession comes with many new challenges. But are women better poised to deal with them?
Recent findings indicate that women remain unfazed by the impact of recession, in comparison to their male counterparts. Recession influences the business practices of women entrepreneurs, who go on to further develop themselves to survive in the corporate world. The impact is felt by women devising to improve and manage effective strategies for survival in a financial crisis.
What Can We Learn from Women Entrepreneurs?
Here are five key things that we can learn from women entrepreneurs.
1. Dedication towards Employees
The key to achieving success in business is build a strong base. The workforce of any company plays a major role in strengthening the foundation of a company. In general, women are greatly concerned about their employees and build a good rapport with them. This increases their loyalty, and employees remain dedicated to their organizations even during difficult times.
2. Effective Public Relation Skills
Speaking from a male point of view, women are quite adept in getting their way — for everything. Why? Some may argue that a woman with effective communication skills can easily influence people.
Female business-owners possess unparalleled public relation skills and strong convincing powers. This makes women adept at marketing. During recession, when marketing is usually sidetracked, it is these women entrepreneurs who take the bull by its horns and emerge victorious.
3. Negotiation Skills
Women are extraordinarily good at negotiating, and often bag the best and most lucrative deals. Unlike their male counterparts, female entrepreneurs leave their egos aside and utilize their polished and refined manners while negotiating. This helps them procure the toughest deals, as (most) do not lose their cool easily.
4. Carefully Guarded Decision-Making
Women have a natural ability to remain calm and patient during the trickiest situations.
Their decisions are not influenced by rash, impulsive and over-ambitious behaviors. Being naturally adept at decision-making, women entrepreneurs think twice before taking any sort of risk. Women follow the risk-aversion technique and refrain from over-extending themselves.
This is an excellent approach during a recession. In prior recessionary periods, there were many cases where entrepreneurs downsized due to lack of funds. However, research indicated that women-led businesses underwent fewer office moves in comparison to their male counterparts.
5. Improved Access to Capital
Many of today’s women entrepreneurs have better access to finance. They have won trust of banks all over the world because of their cautious, well-planned approach towards business. Today if women have improved access to capital and are better funded, it is mainly because of their cautiousness in money matters.
Overall women have become more pragmatic and cautious while investing. They are passionate about their work and organize thorough market-research before investing in any business, no matter how lucrative it seems.
It is time that we battle the impending recession by incorporating the diplomatic approach of women entrepreneurs in business practices
From YFS Magazine
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