Business women drive consumer purchasing

Business women are the primary decision-makers in their households fully two-thirds or more of the time when purchasing a variety of goods and services for their homes such as telephone services, television/cable services, and insurance policies, as well as clothing. In addition, they take the lead

These findings, from a new report by the NFWBO, demonstrate the economic impact of working women. The report is based on a nationally-representative survey of women entrepreneurs and women employees that was sponsored by AT&T and the Principal Financial Group.

"The study also identified significant differences between the consumer practices of women business owners and women employees," explained Lois E. Haber, CLU, ChFC, NFWBO immediate past chair and president & CEO of Delaware Valley Financial Services, Inc. of Berwyn, Pa. "Women business owners are more likely than women employees to purchase online, invest in stocks and bonds, and pay for services that make their lives easier."

Women business owners and women employees are both active Internet users. "Six in ten women business owners and women employees say they use the Internet with some frequency," explained Esther Silver-Parker, president of the AT&T Foundation. "Threefourths of business women who use the Internet are going online to gather information prior to making purchases." The most frequent online purchases for business women are leisure items, computer equipment, and travel reservations. One-third of women business owners and women employees who make purchases online are also conducting banking transactions and paying bills online.

"However, women business owners are more likely than women employees to make purchases online," added AT&T's Silver-Parker. "A 57% majority of women business owners who use the Internet have purchased products or services online, compared to only 40% of women employees."

Andi Donaghy, assistant director for individual marketing for the Principal Fi nancial Group, noted that, "business women

are also active in the investment arena. The NFWBO survey shows that women business owners are significantly more likely than women employees to invest in stocks and bonds; nearly three-quarters (72%) of women business owners have investments in stocks, bonds or mutual funds, compared to 58% of women employees."

NFWBO's Haber explained that "Women business owners are less I ikely to shop at malls, more likely to shop from catalogs, and more likely to say they want to get in and out of stores quickly than women employees."

Forty-two percent (42%) of women business owners frequent malls compared to 59% of women employees; 30% of women business owners shop from catalogs at least once a month compared to 23% of women employees; and 67% of entrepreneurs, compared to 56% of employees, say that when they shop they want to get in and out of stores quickly.

Women business owners are also more likely to contract for house cleaning and lawn services. Forty-six percent (46%) of women entrepreneurs employ a house cleaning service, compared to only 19% of women employees. Forty-seven percent (47%) of women business owners employ a service to take care of their yard, compared to only 2% of women employees.

The Principal 'Financial Group's Donaghy also noted, "Although three-quarters of all business men surveyed currently have life insurance and two-thirds have a retirement plan, less than half of women business owners and women employees have disability insurance. Since disability is an important form of protection, it is of concern to us that just 46% of women employees and 44% of women business owners currently have disability insurance."

Another significant difference between women business owners and women employees, according to the NFWBO study, is that only 27% of women business owners say that they "love going shopping," compared to 38% of women employees.