Key4Women Confidence Index Shows Improved Economic Optimism

WASHINGTON, June 14, 2011 /PRNewswire/ -- The women business owners surveyed by the Center for Women's Business Research for the fifth Key4Women Confidence Index this spring were overall more optimistic that the economy is recovering, with most indicators trending slightly upward.  The findings indicate that women business owners are starting from a more secure position in April 2011 as compared to 2010, and they are cautiously optimistic about additional economic improvements.

The Key4Women Confidence Index measured women business owners' confidence and challenges during the years following the economic collapse in September 2008. "The first year women business owners concentrated on getting back to basics and refocusing their businesses," said Patricia Greene, chair of the Center for Women's Business Research and Professor at Babson College.  "The second year they reported upgrading their product lines and technology, building business relationships and partnerships, and keeping a very close eye on their cash flow. In this latest index we see them positioning themselves for growth."

"The index results illustrate that women business owners used the economic slow-down to improve their businesses, adjust their practices, and poise themselves for growth in employment and into new markets," said Maria Coyne, Key's head of Business Banking and founder of Key4Women. "The index found that about 42 percent are planning to increase employment over the next twelve months. About 70 percent of women business owners reported that they will maintain current average selling prices while 26 percent plan to increase them."

The employment picture shows little change from Q1 2010 to Q1 2011. Seventy-five percent of women business owners reported that their total number of employees remained the same in Q1 2011, as did 67.6 percent in Q1 2010. Only 14.0 percent reported increasing employment, while 11.0 percent reported decreasing the number of employees.

However, planning for the next twelve months, 41.5 percent of women business owners reported that they plan to increase their number of employees during the next twelve months with only 4.9 percent reporting plans to decrease employment. 53.7 percent planned to keep their number of employees the same. 

Identifying the single most important problem facing their businesses today, 30.5 percent stated that poor sales, followed by competition from large businesses (17.1 percent), and taxes (9.8 percent). 

When asked about the most important thing they have learned about running their businesses over the past year, many women business owners cited issues related to cash flow, yet less than half of women business owners reported seeking credit. About 54 percent stated that they did not apply for any credit in the previous six months.  However, those who did seek credit were more likely to report receiving it with 11.6 percent stating that they received all the credit they wanted and 18.9 percent report receiving most or some of what they wanted. 

Women business owners are becoming more conservative in their fiscal management. Whether it pertains to  managing cash flow, watching costs, controlling inventory, staying on top of receivables, evaluating pricing strategies, or lowering overhead, women business owners are becoming more vigilant in watching their bottom line and doing whatever they can to stay afloat under the existing economic realities.

Over the past year, most women business owners have made significant investments to their businesses during the economic crisis, whether it was increased marketing or advertisements (57.3 percent), creating new products and services (54.9 percent), or investing in technology (37.2 percent). 

The Center for Women's Business Research partners with KeyBank on the Key4Women Confidence Index to investigate how women-owned firms are faring in the larger economy. The index is conducted in the spring and fall each year to track trends on specific variables of importance to business sustainability and growth.  

The survey for the current Key4Women Confidence Index was conducted from late April to mid-May with over 160 women business owners responding from a pool of more than 400 members of the W-Biz Insight panel. The W-Biz Insight panel is a diverse group of women business owners, including new and veteran business owners from a range of industries, whose companies have annual revenues from less than $25,000 to more than $15 million. The companies range from sole proprietorships to those with more than 100 employees. The panel includes, but is not limited to, Key4Women members.

About the Center for Women's Business Research 

The Center for Women's Business Research provides data-driven knowledge that advances the economic, social and political impact of women business owners.  The Center does this by setting the national agenda, creating insight on the status and achievements of women business owners, altering perceptions about the economic viability and progress of women-owned enterprises, and driving awareness of the economic and social impact of this vital business sector. The Center is continuing to accept new members of the W-Biz Insight panel. Women who own at least 25 percent of a business and would like to participate in future surveys can register at www.womensbusinessresearch.org.

About Key4Women

Key4Women is a KeyBank program dedicated to helping women business owners achieve success by providing them access to capital, customized solutions, ongoing education, and networking opportunities.  The program is grounded in research and insights that show women business owners face distinct challenges from, and do business differently than, their male counterparts.  Key4Women is delivered to the client by a dedicated team of Key4Women Relationship Managers throughout KeyBank's 14-state footprint.  Passionate about helping women business owners achieve success, Key4Women has, since 2005, lent $3 billion to qualified women-owned businesses, and has pledged to lend another $3 billion to women-owned businesses by 2012. Key4Women increases resources to women business owners through national and local partnerships, including those with the Women's President Organization (WPO), the Center for Women's Business Research, and the Women Impacting Public Policy (WIPP). For more information, visit https://www.key.com/women.

For more of Maria Coyne's thoughts on the Key4Women Confidence Index and other business topics, visit her "Maria on Money" blog at: www.mariaonmoney.com.

About KeyCorp

Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest bank-based financial services companies, with assets of approximately $90 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. For more information, visit https://www.key.com/.

SOURCE KeyCorp