Women's Careers and Career Goals: An Intra-Group Comparison of Managers, Entrepreneurs, and Women with Entrepreneurial Aspirations (1998)

ABSTRACT While many studies have indicated that almost twice as many businesses are started by women in today's economy as compared to men, little is understood about some of the motives for women choosing entrepreneurial pursuits. Although reasons such as the glass ceiling and family roles have often been posited for the trend toward entrepreneurship, more research is needed into characteristics and motives of women moving into entrepreneurship, and how the entrepreneurs compare to women choosing more traditional corporate pursuits. An understanding of these issues will allow programs promoting entrepreneurship to better focus their efforts, screen applicants, and prepare women for successful entrepreneurial activities. In this study, women who either owned their own business, who were employed in supervisory/managerial positions in local corporations, or who had participated in a university entrepreneurial counseling/mentoring program were surveyed. Data were gathered on personal characteristics, demographics, and attitudes towards business issues. The study examined the personal traits of entrepreneurs, aspiring entrepreneurs, and corporate managers, as well as their motives. Using a combination of ANOVA and factor analysis, important profiles of the three respondent groups were identified and intra-group issues are contrasted to address and advance this important entrepreneurial topic. INTRODUCTION Since the right to work laws were passed in the 1970's, women have entered the workplace in record numbers. While many women have joined the corporate ranks in both hourly and salaried positions, self employment is now a growing career choice for women. In fact, recent studies have demonstrated the rate of increase in women-owned businesses is double that of their male counterparts (National Foundation for Women Business owners [NFWBO], 1995). Women entrepreneurs are a major contributing force to entrepreneurship in the United States and will continue to play that role throughout the twenty-first century. In no other country have women undertaken business ownership in such large numbers. By the end of the century, analysts predict that almost eight million women will have their own business, employing fifteen million people, with sales in excess of $1.4 trillion each year. The Small Business Administration predicts that women will own over fifty percent of the small businesses in the next century. In addition, women's business studies are becoming more important due to their business success stories, corporate culture changes, and societal changes. A number of studies have explored women as entrepreneurs. In a study that compared male and female business, owners Hagen, Rivchum, and Sexton (1989) found similarities between men and women in demographic characteristics, business skills, and some psychological traits; however, differences are found between men and women in their education and occupational backgrounds, motivations for business ownership, business goals, business growth, and approaches to business creation. Studies have considered the differences between men and women entrepreneurs in regard to previous work experience (Kalleberg & Leicht, 1991; Neider, 1987; Hisrich & Brush, 1983); business management skills (Birley, Moss, & Sanders, 1987); and business goals (Holmquist & Sundin, 1990). In addition to gender comparison studies, researchers have studied women entrepreneurs and their personal value systems and business strategies (Olson & Currie, 1992), the self-employment survivorship of women entrepreneurs (Dolinsky, Caputo, & Pasumarty, 1994), and perceptions of the stereotypical characteristics of entrepreneurs (Fagenson & Marcus, 1991). While women are moving in many career directions, only one study has examined the profile of women who choose entrepreneurial pursuits versus those who enter the corporate work world (Brush, 1992). …