Skip to content Skip to sidebar Skip to footer

Ten Issues Facing Women-Owned Small Companies in 2023 and Suggestions for Solving Them


ADP has been requested to collaborate with the National Association of Women Business Owners (NAWBO) to carry out an online membership survey in December 2022. Respondents to the poll identified five key challenges: hiring, funding, access to resources for business growth, employee experience, and access to payroll and HR systems.

The constantly changing working and consumer scene of recent years hasn't made these difficulties any easier. The principles upon which these women-run small enterprises have been established—perseverance, enthusiasm, innovation, connection, and pure tenacity—will carry them a long way. But, these qualities by themselves are insufficient to keep enterprises expanding and thriving.

Women who run small businesses need to be up to date on market developments and industry trends so they can adjust their resources and business plans as needed. Access to resources such as funding, business development tools, software, and services that can enhance employee satisfaction and maximize time is essential for assisting women in building sustainable enterprises.

Learn more about the survey's findings and some coping mechanisms by reading on. 

hiring difficulties

Even though hiring has been difficult in many industries, survey results indicate that 41% of NAWBO members believe hiring is now more difficult than before. Numerous people reported losing a candidate to a rival. Losing an applicant could mean the difference between meeting or missing an order fulfillment deadline because 43 percent of businesses have no workers.

The good news is that there are methods for reducing hiring stress. According to Kiran Contractor, director of talent acquisition at ADP, a small company may even have an advantage in attracting candidates: "As a small corporation, you can take a personalized approach." She exhorts small business owners to make every effort to ascertain what potential customers value and include that in the offer.

Finances are limited.

Another difficulty facing female small company owners this year is financing. Only 10% of the 560 respondents said they have obtained a small business loan. An even smaller fraction relies on loans from friends and family or other private lenders, while more than half fund their businesses out of their funds.

This might not seem like a big concern at first, but picture (and some readers won't need to think) having to withdraw money from your bank account to keep the lights on in your new shop. This compromises the welfare of the family as well as the personal credit of women who run small businesses. Remarkably, even though the businesses covered in the survey had an average age of 14, fewer than a third of them had a business credit rating.

Women who operate small businesses may experience less financial stress if they develop a finance strategy. Experts advise drawing up a map that shows where money should be spent more and where it should be saved for the time being. Another strategy for addressing this issue is to make preparations to get funds. Starting small is the best course of action occasionally. A low-limit credit card or modest loan could be requested using the company's tax ID number to establish credit. Aim your spending budget toward areas where you know you'll see a return on your investment and make sure you only bite off more than you can chew.


Tools for training and growth are available

Another difficulty for female small company entrepreneurs is getting access to resources for training and expansion. Many people are curious to find out more about e-commerce support tools and other growth-related technology platforms. About half of the respondents said they would like to take advantage of social media training to advance their careers. Others mentioned the requirement for tools to locate, get in touch with, and hire new staff. Also, while hiring tools are more appealing to bigger women-owned small enterprises, technological training in particular is interesting to micro businesses. This demonstrates how difficult it is to obtain the appropriate resources.

When it comes to growth and training tools, small moves can make a great difference. Instead of stressing about what you lack, concentrate on one thing at a time. If social media marketing is the tool that appeals to you the most at the moment, you might want to try enrolling in a quick online course to learn more about social tools and how to apply them. If finding and hiring personnel is your priority, think about contacting a staffing firm.

When it comes to enhancing business operations that impact sales and total profit, training and growth tools can make a big difference. But the time savings can be even more crucial for small business owners who are already overworked. Investing in the appropriate tools can help you maximize your workday and reap significant rewards. 

enhancing employee satisfaction

Excellent employee experiences are prioritized by smaller businesses as well as larger, more financially secure ones. Small firms nowadays are aware that a healthy work environment aids in attracting and keeping top personnel. About 40% of those polled expressed interest in providing employee assistance programs, staff discounts, and employee recognition schemes. This demonstrates a desire to offer advantages that will enrich employees' lives and demonstrates knowledge of the fact that individuals value more from their jobs more than just a paycheck.

There are several ways to enhance the working environment for employees, some of which may involve providing greater benefits. If money is scarce, there are alternative options. Building a better employee experience starts with routine one-on-one check-ins with your staff. One method experts recommend for improving the overall employee experience is to take the time to learn about your employees' personal and professional aspirations.

better payroll and HR software

Accessing knowledge on payroll and HR-related issues is a challenge for women who run small businesses. For instance, less than 50% of respondents claimed to be aware of the Work Opportunity Tax Credit (WOTC) or the Research and Development (R&D) tax credits. Only 5% of those polled applied for the credits. This demonstrates how difficult it can be to find sound guidance on the payroll- and HR-related concerns.

Finding dependable advisors is the best course of action. Think about working with an accounting company or looking into third-party payroll and HR suppliers.

The summary

It's OK that most business owners are not experts in payroll, human resources, compliance, or tax law. Some professionals do. By collaborating with them, you may continue to be an authority in your field.

Post a Comment for "Ten Issues Facing Women-Owned Small Companies in 2023 and Suggestions for Solving Them "