Female entrepreneurs starting businesses for greater flexibility
Mums who turn their kitchens into boardrooms and set up businesses from home have become a powerful force within Britain PLC, with a combined turnover of £4.4 billion according to a new study of working mothers, released by Yellow Pages.
The research, developed in conjunction with experts at the London School of Economics, identifies a new breed of enterprising female entrepreneurs, dubbed ‘Kitchen Table Tycoons’ who successfully juggle the roles of mother and magnate.
Conducted following a sharp rise in Yellow Pages directory listings for businesses typically run by women, the research throws up interesting insights into the motivations behind a move into enterprise as well as the benefits and challenges.
According to the study, more than a third (36%) of female entrepreneurs are between 26 and 30 and three quarters (74%) were in employment prior to starting up their own venture. Motivated by a need for greater work flexibility at the birth of their first child, two thirds (66%) of ‘Kitchen Table Tycoons’ are more satisfied running their own business than in their previous jobs. The report also reveals:
- Nearly half (48%) opt to go it alone, whilst more than a third (37%) of business mums keep it in the family by setting up a business with their partners.
- 43 per cent of savvy business mums made sure they acquired relevant skills or training before they embarked on their new business venture. But when asked what factors are critical to the success of their start ups, one in five (20%) chose a supportive family ahead of fundamentals like sound financial advice (2%).
Top businesses for business mums
Childminding heads up the Top Ten most popular businesses for mums starting up at home, followed by businesses providing ‘Baby Goods & Services’, showing that family is at the heart of business mums’ lives, both in and out of working hours.
Other consultancy-based services prove popular, including those that exist under the Yellow Pages classifications of Internet Web Design, Marketing & Advertising, Party Planning and Wedding Organisers. Nearly one sixth (15%) of business mums claim to have set up their business because they spotted a gap in the market, with some of the more unusual business start ups including dog grooming and karate tuition.
The impact of the business mum boom can be seen in a separate analysis of the number of businesses listed under relevant classifications in Yellow Pages directories which reveals significant increases over the past five years:
Top Ten most common ‘business mum’ sectors
Ranking Classification % increase in number of Yellow Pages directory listings since 2000
1 Childminders & Crèches + 806 %
2 Baby Goods & Services + 36 %
3 Marketing & Advertising Consultants + 36 %
4 Accounting & Book Keeping Services + 144 %
5 Artists + 159 %
=6 Beauty Salons & Consultants + 108 %
=6 Designers – Advertising & Graphic + 42 %
7 Complementary Therapies + 351 %
=8 Tutoring + 191 %
=8 Party Planners & Organisers + 290 %
=8 Cleaning Services – Domestic + 229 %
=9 Hairdressers – Mobile + 57 %
=9 Weddings – Organisers & Planners + 436 %
=10 Internet Web Design + 196 %
=10 Secretarial Services + 42 %
The price of success
However, for some ‘Kitchen Table Tycoons’, success comes at a price. More than a quarter (27%) say they struggle to make quality time for their partner and more than a third (35%) are unable to enjoy ‘me time’. And in place of the glass ceiling their female counterparts face in the working world, the biggest bugbear for nearly half (47%) of business mums is lacking the time to wash the dishes and stay on top of household chores.
From boardroom table to kitchen table
The study suggests that business mums might be struggling to be self sufficient at the expense of their business as only 27% regularly use an accountant and just 16% invest in regular advertising, marketing or PR. When asked what factors are critical to the success of their start ups, 20% chose a supportive family ahead of fundamentals like sound financial advice (2%), a strong business plan (3%) and project management (3%).
Economics expert Tim Leunig, Lecturer in Economic History at the London School of Economics, said: “The findings of this study chime with recent government figures that show half of SMEs are run with women at the helm as an increasing number of mums dream of a career that they can enjoy in tandem with motherhood.”
Top Tips for Business Mums
Sally Preston, founder of Babylicious, a successful baby food company and mum of two children has some handy tips for mums thinking of starting out on their own:
1. Focus on your personal strengths when you’re brainstorming business ideas – Davina McCall’s fitness videos have been successful because she’s famous for getting into shape sensibly. We may not all be blessed with her finely honed physique but take her lead and focus on businesses that will play to your natural strengths and interests. Remember you are your company's best asset.
2. Recruit a business savvy friend or family member to give you advice and support for the first few months. Leila Wilcox, winner of ITV’s ‘Make me a Million’, couldn’t have made the leap from mum to owner of a multi-million pound business without the guidance of her mentor, judge and Group chief executive, Ivan Massow, so don’t be afraid to ask for help.
3. You can never do too much research. Check out your Yellow Pages, look on the web, talk to customers, get to know your competition inside out and work out how you're going to stand out against them. Starting a business is a bit like having a baby so put the same amount of energy into preparing for your new venture as you did with your new arrival.
4. Build marketing into your business plan from the start as it’s no good having a great idea that no-one knows about!
5. Learn to separate work and family time. If you're starting your own business in an effort to spend more time with your family make sure you plan your working hours.
6. Your office is the heart of your business, so make sure it's a space you feel comfortable in. Invest in a good quality desk and chair and add plants and personal items to create your own haven for hard work.
7. Don’t try to be superwoman. Running a business and home is hectic so make sure you regularly take time out to switch off and relax – you’ll be a better business mum for it!
Posted September 15, 2006
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