I am reading Elizabeth Gordon's book "The Chic Entrepreneur" after a reminder comment and email from Elizabeth yesterday and I've just been jolted.
On page 90 Elizabeth writes "women-only businesses yield much lower profits than those owned by men."
Now I know that men are better drivers than women and better chefs than women but it had never occurred to me that men were better at business. (Just joking ladies, what good is a car driver who is incapable of stopping and asking for directions.)
A very quick Google search has revealed that Elizabeth could be right.
A small business entrepreneur profiles report by the government of Canada (see here) reveals that male owned businesses yield nearly double the profit of female owned businesses. This appears to be mainly because men build bigger businesses with revenues 110% higher in male owned businesses.
This is interesting.
It is also at odds with another report I found by the AACSB (?) which revealed that female owned businesses are 1.7 times more productive than male owned businesses using turnover per employee as a guide - see here for details.
So what could be causing this anomaly?
Can women owned businesses really be more productive (better people skills) but less profitable (less financially aware)?. Elizabeth attributes part of the problem to the fact that many women hate dealing with the finances and don't stay on top of their numbers.
And if so, what causes the lower growth and profitability? It can't be the massive costs for shoes, clothes and handbags can it?
Elizabeth Gordon has piqued my curiosity so what do you think? Me I need to finish Elizabeth's book first before I do much more research.
Are men better at business than women?