Bureau of Labor Statistics data indicate that only 12 percent of self-employed women had employees in 2010, as compared to 19 percent of self-employed men (see figure below). Almost 16 percent of men in business for themselves had one-to-four employees and 2 percent had five-to-nine workers, while the numbers were 10 percent and 1 percent respectively for women.
What accounts for lower level of hiring by women in business for themselves? Research shows that it isn’t a lack of access to capital or lesser experience as some have suggested. Rather studies point to two factors: First, men are more likely to start businesses in industries where hiring employees is important. Second, women are more likely to start small scale, part-time businesses to balance work and family.
Photo by Tom F