Growth projections by women entrepreneurs remain positive

More than a third of women entrepreneurs in the United Kingdom are projecting positive revenue growth this year, according to figures from Deloitte, the business advisory firm.

A key finding of Deloitte’s annual report dedicated to entrepreneurial fast growing businesses, Entrepreneurship UK: 2009/10 – On your Marks, is that 36.7% of women entrepreneurs are forecasting up to 10% revenue growth in 2009/10. Although the majority of women entrepreneurs polled remained cautious in their outlook, 6.7% expect in excess of 50% growth for their businesses this year, and a total of 32.3% anticipate growth of between 50 and 200% over the next three years.

In contrast, men appear to be more bullish in their outlook for the year ahead, with 14% predicting 50%-plus growth, while at the other extreme, only nine per cent are estimating less than 10% growth. Confidence for the long-term is 12% higher amongst men, with 42.3% expecting growth of between 50 and 200% over the next three years.

Debbie Griffiths, entrepreneurial business partner at Deloitte, commented: “Expectations amongst women entrepreneurs are relatively guarded at this point, a sentiment that is only heightened when compared with the confidence displayed of their male counterparts. However conservative this outlook may seem, growth remains a key theme for many female led organisations. One would hope that as the wider economy stabilises, a more bullish stance will emerge.”

Other key findings from the survey includes:

• 32.3% and 29% of women entrepreneurs cite entry into new markets and increased productivity, respectively, as the key drivers for growth strategy in the next 12 months, compared to 20.5% and 16.7% of men;
• Women and men are roughly equal (27.5% / 28.2%) in their outlook that the development of new products and services will form the basis of growth strategies over the next three years;
• 25.9% of women entrepreneurs expect economic recovery to begin in the first half of 2010, with an equal amount forecasting the second half of 2010. (Men: 36.7% / 17.3%).
• Twice as many women as men stated that they are founders of their business, 50% versus 25%, with 59.4% of women holding a majority stake in the business compared with 46.6% of men.

Case study: Target Parking

London-based Target Parking, specialists in the car park industry, is set to achieve a six figure turnover in 2010, following a successful first year of operations. Led from its headquarters in Mayfair by chief executive officer, Emma Sinclair, its team of experienced parking and real estate professionals manage sites across the United Kingdom for private and public sector clients.

Despite having only been established in August 2008, Target Parking’s achievements include winning high profile contracts for the likes of DTZ, ROM Capital and iQ, Quintain’s student accommodation fund. In addition, Sinclair has been tipped for industry awards such as the British Parking Association’s ‘Parking Person of the Year’, ranked 11th in the ‘Hot 100 under 35’s’ by Property week and included in The Observer’s Future 500: 50 ‘To Watch’ in the business category.

Sinclair gained her initial experience at NM Rothschild in mergers and acquisitions. She cites her exposure to the real estate sector and investment banking background, as well as her operational experience in business, as being fundamental in setting up and achieving success at Target Parking whilst faced with a recession.

Sinclair said: “Starting a new business at the height of the financial crisis was always going to present some challenges and many questioned our reasons for doing so. But, I was confident that my professional background, skill set and ability to proactively seek and win new business would place us well to succeed. That, together with our focus on excellent customer service, has proved to be a recipe for success.

“I believe that a recessionary environment is actually a unique platform for promoting innovation within a business. Complacency runs rife in ’good times’ when the business just rolls in, whereas the current climate provides lateral thinkers and proactive businesses with an opportunity to excel. Customers are not willing to pay for second rate services when every penny counts and are inclined to look hard at who they give their business to. That, coupled with so many businesses missing out on opportunities for growth by taking a ‘holding down the fort’ mentality, has allowed us to win new business from blue chip clients.

“We chose to expand to offer full facilities management services as well as parking management and invested heavily in marketing and our online presence. We have also looked to create innovative services to help our clients where our competitors cannot. For example, we offer a service through www.ineedtopark.co.uk, which allows clients and anyone with web access to promote their parking permits nationally to potential customers at no cost. With 18,000 spaces online, this initiative has truly differentiated our business from others in the sector as we are the only integrated car park and facilities management company with such a platform. Together with our core business services, this innovation has allowed the business to grow exponentially since our inception – something that we’re very proud of and confident we’ll be able to continue in the future.

When asked what advice she’d give to other women entrepreneurs, Sinclair commented: “My advice is not gender specific; if you are confident in your business offering and are ready to work harder than your competitors, success is possible. However, there is the misconception that being your own boss is glamorous. Don’t be fooled into thinking that it’s an easy life. I left a job working 60 hours a week for someone else to work 100 hours for myself.

“Also, financial security is critical when starting a new business. I would advise anyone contemplating a start up to be prepared for a long period of little or no income and save enough money to sustain you and your business for whatever lies ahead. Finally, find one or two good mentors to rely on and don’t be afraid to ask for their help. Experience and contacts are priceless and those who have been in your shoes before will be well placed to give you good advice. Yes, the work is hard but the rewards are extremely empowering and satisfying once they come to fruition.”

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About Deloitte

In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms. Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other's acts or omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte LLP is authorised and regulated by the Financial Services Authority.

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