Female small business owners much prefer working with female financial advisors, and ditto for male small business owners with male financial advisors. According to a recent survey released by the American College, that can be a problem for the distaff side considering the dearth of female advisors and the notion that the financial industry composition is out of sync with the future demands of small business owners.
February 3, 2012
The study cited stats from the Center for Women's Business Research that show women own 50% or more of 10.1 million U.S. companies, and that 20% of businesses that earn more than $1 million in revenue are female-owned. It also found that female business owners are more concerned about retirement planning than men. Yet the financial advisory industry is notoriously male-dominated.
"The financial services industry needs to do a better job of recruiting, training and retaining women as financial advisors if it is going to successfully meet the demand of women small business owners," said Mary Quist-Newins, director of the State Farm Center for Women and Financial Services at the American College, which conducted the study. "Failing to diversify could lead to significant missed economic opportunities for financial services companies and reduced levels of financial security for women small business owners."