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Women in Franchising 2016

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Women famously hold up half of the sky, and franchisors are keen to recruit more of them. Women started out as a minority in franchising, but we are quickly becoming the decision makers, and play a huge role in the franchising world.Women are forging ahead in the franchising sector -- their strengths in multi-tasking, business preparation and customer relations are translating into business success stories.

The Statistics General

There’s a recent wealth of data and studies and reports showing that women-led companies tend to outperform those led by men. Women-led private technology companies are more capital-efficient, achieving 35% higher return on investment, and, when venture-backed, bringing in 12% higher revenue than male-owned tech companies, according to Women in Technology: Evolving, Ready to Save the World, research conducted by the Kauffman Foundation.

The high-tech companies women build are more capital-efficient than the norm. The average venture-backed company run by a woman had achieved comparable early-year revenues, using an average of one-third less committed capital, according to research conducted by Illuminate Ventures.

And there’s a small but growing list of male investors who are proudly, publicly bragging about the success of the female-led companies in their portfolios — and acknowledging the barriers and biases they face. There’s a growing cohort of female business leaders who are all daring to do things their own way, from Google alum Kim Scott’s showing us how radical candor can make us better leaders to Anu Duggal’s leading a fund for women founders to Girls Who Code founder Reshma Saujani’s urging young women to be brave and not perfect.

Ireland

According to statistics by the Small Enterprise Development Agency, approximately 72% of micro-enterprises and 40% of small enterprises are owned by women. The latest Global Entrepreneurship Monitor (GEM) Report for Ireland, shows that, of the 20,400 individuals who started a business in Ireland in 2014, 14,400 are men (70.5%) and 6,000 are women (29.5%). A much higher proportion of employed women (90%) compared to employed men (63%) in Ireland are engaged in the services orientated sector. And almost one in every two early stage female entrepreneurs is focused on consumer orientated services (48%).

In the Franchise World

The Small Business Administration (SBA), a US institution, has been keeping tabs on women in franchising since the 1970s. The group has noted that women starting their own businesses have been on the rise for decades now. One study found that 10 percent of all companies established between 1975 and 2000 were female-owned franchises. Five years ago, the International Franchise Association (IFA) estimated the percentage of women operating franchises to be 25% and that doesn’t include another 17% of the population where men and women operate franchises together as partners.

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Though the numbers still lean decidedly toward men, the state of women in franchising today is largely on the up and up, thanks to shifting demographics, growing female independence, and franchisors’ desire for a stronger female presence in their company. And many believe the industry stands to prosper from the trend.

Female Advantage

From skills to personality traits there are many reasons why women are set up for success in the world of franchising. Here are some of the many reasons why franchising is a natural fit for women:

Although things like product appeal, advertising and pricing are the keys for tapping into that spending power, female franchise owners can also have a subtle advantage over their male counterparts by being seen as more approachable and having a better understanding of the needs of other women. Franchisors value skills such as marketing and communication, which come natural to women.

In running a franchise business, there are other strengths that come into play. According to a National Board of Employment, Education and Training report, small businesses operated by women have significantly higher survival rates. This is due to "better preparation prior to start-up -- including research into financial and management advice, and keeping debts and overheads low". The report also says women are more likely than men to adopt a deliberate strategy to remain small rather than pursue a high-growth strategy.

Mutitasking

Although a generalisation, women have also long been acknowledged as being far better at multi-tasking, with men tending to prefer to focus on one thing at a time. From raising families, to exceling in the office, women do well when they have a full plate on their hands. We are great at multi-tasking, which is one of the reasons we do so well in the world of franchising.

When we have multiple priorities, roles and tasks, we don’t give in to stress. Instead, we create a plan of attack and accomplish everything that needs to be done. A full plate doesn’t scare us off! Franchisees have multifaceted roles, and multi-tasking is a career requirement.

One thing that goes hand in hand with multi-tasking is adapting. Franchising is a brand new world when you enter it, so it can be daunting when you begin your journey. Luckily, women do well when it comes adapting, making them naturally well equipped to begin their franchise.

Operating a franchise involves a large variety of tasks that frequently overlap and the ability to juggle two or three things at once can be invaluable. Women franchisees can also display advantages over men in using research and information to move forward to get results, rather than getting stuck in what could be labelled "analysis paralysis".

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Diverse group of business people walking through office corridor. Team of corporate professionals walking and talking in modern office hallway.
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Team Playing

One of the reasons women are so successful in the industry is because we are team players. We know that while success can be self-made, it doesn’t come from just one person, and we do an excellent job of building networks of strong men and women.

Whether working with other franchisors, vendors or customers, women make an effort to make sure everyone is working cohesively in order for success to take place. It takes a village to create a successful business, and we know the importance of every person who is involved in the success. Women are supportive of their coworkers and peers, and constantly encourage them to succeed.

A huge part of being a team player is giving credit where credit is due.  Women are great at making their employees feel valued for their work, input and effort, which makes them wonderful bosses not just in the world of franchising, but everywhere.

Mentoring

One of the many unique aspects of franchising is the access franchisees have to so many people who have been through the same experiences. Women naturally view each other as peers instead of competition, which is why they see the value in finding a mentor.

Every job has the potential for finding a mentor, but franchising takes mentorship to the next level. Franchisees have contact to a huge network of people who have gone through similar experiences when creating their company, and franchises have close relationships with each other, making it easy to connect with others in the industry when you need guidance or advice.

This access to so many people in the industry gives women in franchising so many opportunities to be mentored. When going through a stage of reinvention, having a mentor is often even more valuable than it would be in an everyday job.

There are, of course, many male franchisees who share these strengths, particularly if they come from strong sales backgrounds. But by and large, women running small businesses and franchises do tend to display these skills more often.

Work/Life Balancing

Women in franchising can make lifestyle and family choices not readily available to women in full-time salaried employment. Many franchises involve home-working - handy if you have domestic responsibilities - and some involve only part-time or school term-time working. An abundance of lifestyle-type franchise opportunities, such as dog walking and children’s entertainment, provide the flexibility for combining business and family life, and have huge appeal for women .

In a world where more women need to work but are increasingly reluctant to sacrifice their family time, this can be a strong motivating factor for women to take up opportunities and comprise a larger part of the dynamic franchise industry.

If you’re looking to make a change in your career, be your own boss or reinvent yourself in a new stage in life, then you owe it to yourself to consider franchise business ownership to be that next step.

As you can see, women are a natural fit for the job.  We are team players, leaders, multi-taskers and are willing to work hard. We also know how important it is to have a mentor to lead us by example. If now is your time, then your franchise is waiting!

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#Inspo

“In an industry and a culture that value a more ruthless machismo, daring to follow a different path can be a revolutionary act — one that certainly has all the hallmarks of courage and irreverence that define the most successful Silicon Valley entrepreneurs. So, like the men who came before us, I think women entrepreneurs should find the courage to pursue our goals in the best way we know how. It’s the start of a new kind of success story, one that can open up our sector to a more diverse set of leaders. And it may help lead to the creation of more inclusive technology that transforms people’s lives across the world.”

Shivani Siroya is the founder and CEO of Tala

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