Firms run by women have better rating, are more stable – analysis
There are 11,885 companies in the Czech Republic controlled and headed by women. Turnover of around 400 of them exceeds Kc10m, according to the analysis whose results were presented to journalists by CRIF board of directors member Pavel Finger today.
According to findings made by company NSG Morison, companies owned by women do not expand at such a fast pace as companies owned by men, but they are more stable and do not go bankrupt, NSG Morison partner Petr Sima said.
There are a total of 390,000 companies operating in the Czech Republic, of which 53,310 are owned by men.
"Women have already entered all business segments. There are three women operating in the energy industry and four in the mining industry, for example," said Finger who is the guarantor of the Czech Businesswomen Award (OCP).
A total of 397 companies owned by women and with a turnover exceeding Kc10m can enter the contest. CRIF's analysis is based on the companies' financial statements for the years 2009 to 2011, turnover in 2011 and iRating ranging from 1 to 11 points, that is from A to C2.
A number of financial as well as non-financial indicators are evaluated in this assessment, and a rate or risk as well as weak and strong points are monitored.
"The rating of women is a part of percentage point better," Finger said.
The rating of businesswomen with an annual turnover from Kc10m to Kc30m was about 7 points on average, while the rating of other companies was almost 7.5.
The rating of businesswomen with a turnover from Kc30m to Kc80m was about 6.7 points on average, while the rating of the other firms exceeded 7 percent.
And women heading companies with a turnover of over Kc80m received a rating of less than 6.5 points on average, while the rating of other companies was more than 7 points.
A total of 24 percent of companies run by women have no turnover, while the share of companies without a turnover among the remaining companies is 41 percent.
"Women are not considerably inclined to having a company for formal reasons only. They take running a business seriously," Finger said.
Moreover, companies controlled by women are more transparent, according to Finger. The three last financial statements could be obtained from 24 percent of them, but only from 21 percent of the other companies.
Women make up 51 percent of the Czech Republic's population. They account for 61 percent of university graduates. Women's earnings are about one-quarter lower on average than earnings of men.
Smid said the number of employed women with children not older than 6 years in the Czech Republic is the lowest in the EU and part-time jobs are not common in the country.
"Very few countries are so rich to afford not to use women's potential," Smid said.
Thirty percent of entrepreneurs in Europe are women. A total of 87 percent of women run a micro-business with at most nine employees. One-tenth of businesswomen employ from 10 to 79 people, 2 percent of businesswomen employ 50 to 250 people and less than 1 percent of businesswomen employ more than 250 people.
Women in medium-level developed countries start a business earlier as they need extra income. In contrast, women in richer countries start their own business when they are 40 to 55 years old because they perceive a business as another step in their career.
While the share of businesswomen on the adult population is gradually growing elsewhere, it is stagnating in the Czech Republic, according to Sima.
Women in the Czech Republic are discouraged from starting their own business by the impossibility to achieve a work-life balance and by bad access to loans, for example.
"The position of women when they want to start a business is a little worse compared with men in our country," Sima said.
Many women also fear failure and have no self-confidence. While men focus on profit in business, women have social goals and values, and do not expect as big expansion as men.
"If women run a business, their companies are more stable. They do not grow as fast, but neither go bust. It is a very solid base for the economy," Sima added.
The deadline for sending applications to the Czech Businesswomen Award is September 24. The winner of the award will be ceremonially announced on November 7.
Companies will be for the first time evaluated by the amount of turnover, and not by the number of employees in the sixth annual round of the contest.
Source: Zpravodajství ČTK, 20.6.2013, Section ČTK: cce bns, Author: kou