2013 state-of-women-owned businesses-survey

Women Business Owners Decidedly Optimistic About 2013

Women Business Owners Decidedly Optimistic About 2013 Web.com and NAWBO survey

reveals the primary factors impacting women business owners

WASHINGTON, D.C. – February 11, 2013 – A national survey of women business owners

(WBOs) conducted by Web.com Group, Inc. (Nasdaq: WWWW) and the National Association of

Women Business Owners (NAWBO) found a pervasive sense of economic optimism, including

a prediction by most WBOs (85 percent) that more women will become entrepreneurs in 2013

than in past years. WBOs also plan to invest more (38 percent) or the same (54 percent) in

hiring this year than they did in 2012 – a positive sign for the economy.

2013, the Year of the Female Entrepreneur The State of Women-Owned Businesses survey

found that the large majority of WBOs were optimistic about their business’ overall performance

(81 percent) for the year ahead. They were also optimistic, though slightly less so, about the

broader economic outlook (74 percent) in 2013.

“The 2013 State of Women-Owned Businesses Survey reveals that even in these tough

economic times, women entrepreneurs are optimistic about business opportunities for the year

ahead,” said NAWBO President, Diane L. Tomb. “This survey informs us of the challenges and

opportunities facing NAWBO members as well as women business owners in general. At

NAWBO we will strive to address these issues on behalf of all women entrepreneurs.”

The survey also uncovered serious challenges facing WBOs, including the need to reach new

customers. Web.com and NAWBO developed the survey to better understand the state of

women entrepreneurship, including: women business owners’ (WBO) motivations for starting

their businesses, what business challenges they face, what and how micro- and

macroeconomic factors impact their businesses, what investment plans they have for the year

ahead and what public policy issues are of greatest concern.

What Keeps Women Business Owners Up at Night? With regard to public policy matters, the

top four issues on the minds of WBOs are: the state of the economy (57 percent), health

insurance cost and affordability (40 percent), business tax issues (36 percent), and access to a

quality workforce (36 percent). Though two in five WBOs said that health insurance costs and

affordability are important issues to them, many (71 percent) feel that the Patient Protection and

Affordable Care Act (“Obamacare”) will have no impact upon the way they do business.

Financing Options to Meet Business Capital Needs More than three quarters (78 percent) of

WBOs did not seek a new or extended line of credit in the past year. Of these 78 percent, more

than half (68 percent) indicated they did not want additional credit in the first place, and the

others (32 percent) did not think they could get credit if they tried. Most WBOs financed their

businesses through credit cards (45 percent), business earnings (40 percent), or private

sources such as personal savings or contributions from family or friends (37 percent).

Who Should Become an Entrepreneur? Survey respondents assert that women start their

own businesses for a variety of reasons, including: having a vision for a business idea or a

passion for solving a specific industry problem, wanting control or a more flexible work-life

balance, and being in the right place at the right time. When asked the biggest motivation for

starting their business, the most common answer was that they were following their vision (28

percent), followed by finding an idea that allowed them to become an entrepreneur (21 percent).

The survey found that the most important traits for running a successful business are to have a

passion for an idea (1st), to have a vision to succeed long-term after the business is launched

(2nd) and a willingness and attitude to fail before you succeed and to take risks (3rd).

Finding New Customers through Online Investments and Social Media Marketing When

asked what they see as their biggest challenge to running their business in 2013, nearly two in

five (39 percent) of WBOs said that it was gaining new customers. To gain customers, nearly

three quarters (73 percent) of WBOs plan to invest more in marketing in 2013. Specifically, they

will invest in social media marketing (36 percent) and search engine optimization (SEO) (36

percent). This is not surprising, as nearly half (44 percent) predict that social media and SEO

are the future of small business marketing. Conversely, WBOs anticipated that traditional

outreach approaches, including print and direct mail (1.6 percent), online advertising (4.4

percent) and email marketing (6.2 percent), will have less impact on small business marketing in

the future.

When considering what marketing tactics currently have the greatest impact on a business’

bottom line, more than half (52 percent) of respondents indicated that website design and

maintenance was very important, followed by social media marketing and SEO (38 percent) and

email marketing (25 percent). And WBOs indicated that LinkedIn (27 percent) is the most

valuable social media platform to them, followed by Facebook (26 percent), YouTube (18

percent) and Twitter (17 percent).

“Women business owners are laser focused on reaching new customers, and their strategy for

doing so is focused on improving their businesses’ online presence,” said Web.com Executive

Vice President and Chief People Officer, Roseann Duran. “This is great news for time-strapped

consumers, as they can expect to have an improved and more socially engaged online

experience with many of their favorite businesses in 2013.”

The State of Women-Owned Businesses Survey Infographic For full survey results and to view

and share the 2013 State of Women-Owned Businesses infographic, visit

www.web.com/community.

Monday, February 11 “Ask the Experts” Tweetchat Join Web.com’s Roseann Duran and

NAWBO’s Diane L. Tomb for the 2013 State of Women-Owned Businesses tweetchat (#wgbiz

#WBOchat) today to further discuss the survey findings and the issues that face WBOs today.

Methodology The survey was conducted online within 552 NAWBO members between

December 14, 2012 and January 4, 2013. For complete survey methodology, please contact

Lab42 at [email protected].

About Web.com Web.com Group, Inc. (Nasdaq: WWWW) is a leading provider of online

marketing for small businesses. Web.com meets the needs of small businesses anywhere along

their lifecycle by offering a full range of online services and support, including domain name

http://www.web.com/community/women-business-owners/

registration services, website design, logo design, search engine optimization, search engine

marketing and local sales leads, email marketing, general contractor leads, franchise and

homeowner association websites, shopping cart software, eCommerce website design and call

center services. For more information on the company, please visit http://www.web.com.

About NAWBO Founded in 1975, the National Association of Women Business Owners

(NAWBO) is the unified voice of America's more than 10 million women-owned businesses

representing the fastest growing segment of the economy. NAWBO is the only dues-based

organization representing the interests of all women entrepreneurs across all industries.

NAWBO develops programs that help navigate women entrepreneurs thought the various

stages of their business growth.

Note to Editors: Web.com is a registered trademark of Web.com Group, Inc.

Contact: Susan Datz Edelman

Web.com (Nasdaq: WWWW)

Director, Investor Relations and Corporate Communications

(904) 680-6909

[email protected]

Joy Lutes

NAWBO

Public Policy and Public Relations

703-362-0150

[email protected]

http://www.web.com/

mailto:[email protected]

mailto:[email protected]

2013 State of Women-Owned Businesses Survey Findings

The survey was conducted online within 552 NAWBO members between December 14, 2012 and January 4, 2013. For complete survey methodology, please contact Lab42 at [email protected].

FINAL Summary Report - Web.com NAWBO (552 respondents) Survey: Web.com-NAWBO

On a scale of 1-5 with 1 being very pessimistic and 5 being very optimistic, please indicate your level of optimism regarding the following:

1-Very

pessimistic 2-Somewhat pessimistic

3-Unsure

4-Somewhat optimistic

5-Very optimistic

Responses

Your business' overall performance

for 2013.

2.4% 13

5.1% 28

11.4% 63

42.4% 234

38.8% 214

552

Your business' economic outlook

for 2013.

2.9% 16

6.2% 34

16.7% 92

45.3% 250

29.0% 160

552

Compared to 2012, how optimistic are you about your business as we enter 2013?



Value Count Percent

More optimistic 365 66.1%

Less optimistic 56 10.1%

The same level of optimism 131 23.7%

Statistics

Total Responses 552

What do you see as your biggest challenge to running your business in 2013?



Value Count Percent

Gaining new customers 217 39.3%

State of the economy 94 17.0%

Generating revenue 89 16.1%

Other, please specify: 50 9.1%

Hiring qualified employees 46 8.3%

Access to capital 23 4.2%

Product/service innovation 23 4.2%

Maintaining existing customers 10 1.8%

Statistics

Total Responses 552

Do you predict that in 2013, more women will venture to start their own businesses?



Value Count Percent

Yes 467 84.6%

No 85 15.4%

Statistics

Total Responses 552

Hiring



Value Count Percent

More 211 38.2%

Less 43 7.8%

The same 298 54.0%

Statistics

Total Responses 552

Customer Service



Value Count Percent

More 313 56.7%

Less 8 1.5%

The same 231 41.9%

Statistics

Total Responses 552

Marketing



Value Count Percent

More 403 73.0%

Less 16 2.9%

The same 133 24.1%

Statistics

Total Responses 552

Product/Service Development



Value Count Percent

More 303 54.9%

Less 17 3.1%

The same 232 42.0%

Statistics

Total Responses 552

Please indicate the level of importance of the following areas to your 2013 marketing investment plans.

1-Very

unimportant 2-Somewhat unimportant

3-Unsure

4-Somewhat important

5-Very important

Responses

Website 5.8%

32

5.3% 29

3.6% 20

31.0% 171

54.3% 300

552

Search Engine Optimization

(SEO)

8.3% 46

10.7% 59

12.3% 68

33.0% 182

35.7% 197

552

Social media presence

7.1% 39

12.0% 66

10.3% 57

34.8% 192

35.9% 198

552



Mobile presence 13.6%

75

17.8% 98

24.5% 135

24.5% 135

19.7% 109

552

Ecommerce (online sales)

36.2% 200

18.8% 104

13.6% 75

16.5% 91

14.9% 82

552

Which of the following do you consider to be the future of small business marketing?

Value Count Percent

Social Media Marketing & Search Engine Optimization 245 44.4%


Websites Design and Maintenance 85 15.4%

Mobile Marketing 62 11.2%

Email Marketing 34 6.2%

Online Advertising 24 4.4%

Print & Direct Mail 9 1.6%

Statistics

Total Responses 552



Please indicate your level of perceived value to your company's bottom line for the following areas.

1-Not at all valuable

2-Not very valuable

3-Unsure

4-Somewhat valuable

5-Very valuable

Responses

Email Marketing 7.8%

43

7.8% 43

18.3% 101

40.9% 226

25.2% 139

552

Mobile Marketing 18.1%

100

15.2% 84

33.0% 182

21.7% 120

12.0% 66

552

Social Media Marketing & Search Engine Optimization

4.2% 23

7.2% 40

13.8% 76

37.0% 204

37.9% 209

552

Online Advertising 17.2%

95

15.4% 85

24.5% 135

28.4% 157

14.5% 80

552

Websites Design and Maintenance

3.1% 17

2.9% 16

6.9% 38

35.0% 193

52.2% 288

552

Print & Direct Mail 21.4%

118

19.2% 106

21.4% 118

29.5% 163

8.5% 47

552

Please indicate your level of confidence in your ability to implement the following capabilities for your business.

1-Very unsure

2-Somewhat unsure

3-Neutral

4-Somewhat confident

5-Very confident

Responses

Email Marketing 3.6%

20

8.3% 46

14.7% 81

34.8% 192

38.6% 213

552

Mobile Marketing 16.8%

93

19.7% 109

30.6% 169

20.3% 112

12.5% 69

552

Social Media Marketing & Search Engine Optimization

5.8% 32

11.1% 61

16.3% 90

37.7% 208

29.2% 161

552

Online Advertising 9.2%

51

14.7% 81

31.7% 175

25.0% 138

19.4% 107

552



Websites Design and Maintenance

4.0% 22

7.4% 41

11.6% 64

33.3% 184

43.7% 241

552

Print & Direct Mail 6.0%

33

7.2% 40

27.7% 153

24.6% 136

34.4% 190

552

Please indicate your level of perceived value of the following social media sites. Please drag the sites from the left to the right with the most valuable at the top and the least valuable at the bottom

Item Total

Score1

Overall Rank

LinkedIn 2143 1

Facebook 2046 2

YouTube 1425 3

Twitter 1393 4

Pinterest 1003 5

Total Respondents: 1 Score is a weighted calculation. Items ranked first are valued higher than

the following ranks, the score is the sum of all weighted rank counts.

What was your biggest motivation to start your own business?



Value Count Percent

I had a vision for a business idea that I wanted to implement. 152 27.5%


I have always seen myself as an entrepreneur so I looked for an idea that would enable me to become one.

115 20.8%

I wanted to solve a specific industry problem. 78 14.1%

I needed a break from my day job and wanted to start something on my own. 61 11.1%

Statistics

Total Responses 552

Please rank the below key personality traits a woman needs to successfully run her own business. Please drag the traits from the left side to the right side with the most important key personality trait at the top and the least important key personality trait at the bottom.

Item Total

Score1

Overall Rank

Passion for the business idea 2082 1

Vision to succeed long-term after the business is launched 1808 2



Item Total

Score1

Overall Rank

Risk-taking attitude and willingness to fail before you succeed 1781 3

Networking abilities to attract new customers 1554 4

Assertiveness to gain respect as a businesswoman 984 5

Total Respondents: 1 Score is a weighted calculation. Items ranked first are valued higher than

the following ranks, the score is the sum of all weighted rank counts.

How important is each of the following issues for you as a business owner at the present time?

1-Very

unimportant 2-Somewhat unimportant

3-Unsure

4-Somewhat important

5-Very important

Responses

The state of the economy

2.5% 14

5.4% 30

3.1% 17

32.4% 179

56.5% 312

552

Regulatory burdens 15.6%

86

16.3% 90

16.1% 89

27.5% 152

24.5% 135

552

Business tax issues 8.7%

48

12.0% 66

10.7% 59

32.8% 181

35.9% 198

552

Health insurance cost and affordability

10.0% 55

12.1% 67

9.2% 51

28.6% 158

40.0% 221

552

Access to capital 11.6%

64

22.6% 125

10.1% 56

31.7% 175

23.9% 132

552

Access to a quality workforce

10.3% 57

13.4% 74

8.3% 46

31.5% 174

36.4% 201

552

Fuel and other energy costs

18.8% 104

27.0% 149

12.9% 71

26.4% 146

14.9% 82

552

Increasing access to federal contract

opportunities

33.3% 184

16.1% 89

16.3% 90

18.5% 102

15.8% 87

552

Compared to 2012, how optimistic are you about economic and business conditions as we enter 2013?



Value Count Percent

More optimistic 305 55.3%

Less optimistic 107 19.4%

The same level of optimism 140 25.4%

Statistics

Total Responses 552

In what way, if any, will the implementation of the Patient Protection and Affordable Care Act (commonly referred to as "Obamacare") affect your business decisions?



Value Count Percent

Will have no impact at all upon the way I do business 391 70.8%

Will lead me to hire part-time rather than full-time employees 64 11.6%

Will cause me to freeze or delay hiring new employees 44 8.0%

Will cause me to delay or cancel other expansions or investments 44 8.0%

Will cause me to move some or all full-time employees to part-time 9 1.6%

Statistics

Total Responses 552

Which of the following types of financing have you used in the past 12 months to meet your business' capital needs? Please select all that apply.



Value Count Percent

Credit cards 250 45.3%

Business earnings 220 39.9%

Private sources (personal savings, family, friends) 202 36.6%

Used no financing in last 12 months 137 24.8%

Business line of credit 112 20.3%

Vendor credit 66 12.0%

Business/commercial bank loan 45 8.2%

Leasing equipment 35 6.3%

Personal bank loan 34 6.2%


SBA-guaranteed loan 19 3.4%

Equity capital (angel, venture capital) 10 1.8%

Statistics

Total Responses 552

If you sought either a new or extended loan or line of credit over the past year, what was the outcome?



Value Count Percent

I obtained the loan/line of credit for the amount I sought with satisfactory terms 79 14.3%

I obtained a loan/line of credit, but for a lower amount than desired or less satisfactory terms 19 3.4%

I tried, but was unsuccessful in obtaining a new loan or line of credit 24 4.4%

I did not seek a new loan or line of credit in the past year because I did not want additional credit 293 53.1%

I did not seek a new loan or line of credit in the past year because I did not think I could get credit 137 24.8%

Statistics

Total Responses 552

Please indicate your age:



Value Count Percent

21 and younger 2 0.4%

22-30 16 2.9%

31-40 64 11.6%

41-50 157 28.4%

51-60 215 39.0%

61 and older 91 16.5%

Prefer not to respond 7 1.3%

Statistics

Total Responses 552

For classification purposes only, what is your race or ethnicity?



Value Count Percent

Caucasian 448 81.2%

African American 35 6.3%


Hispanic/Latina 19 3.4%

Asian/Pacific Islander 16 2.9%


Native American/Alaska Native 1 0.2%

Statistics

Total Responses 552

How many employees work at your business, including yourself?



Value Count Percent

1 188 34.1%

2 - 20 313 56.7%

21- 49 26 4.7%

50 - 99 13 2.4%

100 or more 12 2.2%

Statistics

Total Responses 552

How long have you owned your business?



Value Count Percent

Less than 2 years 109 19.8%

2-5 years 146 26.5%

6-10 years 114 20.7%

11-15 years 68 12.3%

More than 15 years 115 20.8%

Statistics

Total Responses 552

What industry does your business represent?



Value Count Percent


Business Services 116 21.0%

Marketing/Advertising 66 12.0%

Finance/Insurance 62 11.2%

Retail/Goods/Producing 36 6.5%

Technology 33 6.0%

Arts/Design 17 3.1%

Food/Beverage 11 2.0%

Event/Entertainment 10 1.8%

W-R Trade 0 0.0%

Statistics

Total Responses 552

What were the approximate gross annual sales of your business in 2012?



Value Count Percent

Under $100,000 214 38.8%

$100,000-$499,999 138 25.0%

$500,000-$999,999 46 8.3%

$1,000,000+ 97 17.6%


Statistics

Total Responses 552

In which state is your business located?



Value Count Percent

California 115 20.8%

Arizona 54 9.8%

Ohio 33 6.0%

Illinois 29 5.3%

Florida 28 5.1%

Indiana 27 4.9%

Texas 23 4.2%

New Jersey 22 4.0%

Kentucky 19 3.4%

Virginia 18 3.3%

Pennsylvania 18 3.3%

North Carolina 16 2.9%

Michigan 16 2.9%

Tennessee 15 2.7%

New York 12 2.2%

Missouri 12 2.2%

Maryland 12 2.2%

Washington 11 2.0%

Georgia 9 1.6%

Nevada 8 1.5%

Kansas 8 1.5%



Iowa 8 1.5%

New Mexico 8 1.5%

Minnesota 6 1.1%

Idaho 4 0.7%

South Carolina 3 0.5%

Utah 3 0.5%

Vermont 2 0.4%

Maine 2 0.4%

Louisiana 2 0.4%

Wisconsin 1 0.2%

Rhode Island 1 0.2%

Oklahoma 1 0.2%

Oregon 1 0.2%

Connecticut 1 0.2%

Alabama 1 0.2%

District of Columbia 1 0.2%

Delaware 1 0.2%

Massachusetts 1 0.2%

Palau 0 0.0%

Puerto Rico 0 0.0%

Northern Mariana Islands 0 0.0%

North Dakota 0 0.0%

New Hampshire 0 0.0%

Wyoming 0 0.0%

Nebraska 0 0.0%

West Virginia 0 0.0%

Virgin Islands 0 0.0%

South Dakota 0 0.0%

Colorado 0 0.0%

Arkansas 0 0.0%

American Samoa 0 0.0%

Alaska 0 0.0%

Federated States of Micronesia 0 0.0%

Guam 0 0.0%

Mississippi 0 0.0%



Marshall Islands 0 0.0%

Hawaii 0 0.0%

Montana 0 0.0%

Statistics

Total Responses 552

OPEN

HEALTH INSURANCE COST AND AFFORDABILITY

BUSINESS TAX ISSUES

ACCESS TO A QUALITY WORKFORCE

22

43

21

TOP 4 ISSUES FOR WOMEN BUSINESS OWNERS TODAY

STATE OF THE ECONOMY

2%

69%

SEO

THE YEAR FOR WOMEN BUSINESS OWNERS

LEVEL OF OPTIMISM ENTERING 2013, COMPARED TO 2012

66%ARE MORE OPTIMISTIC

24%ARE THE SAME

10%ARE LESS OPTIMISTIC

74% ARE OPTIMISTIC ABOUT THEIR BUSINESS’ ECONOMIC OUTLOOK FOR 2013

85% PREDICT MORE WOMEN WILL START THEIR OWN BUSINESSES IN 2013

73% PLAN TO INVEST MORE IN MARKETING IN 2013

81% ARE OPTIMISTIC ABOUT

THEIR BUSINESS’ OVERALL

PERFORMANCE IN 2013

OPEN

MOST VALUABLE TO THE COMPANY’S BOTTOM LINE

85%

WEBSITE

44%

MOBILE

31%

ECOMMERCE

71%

SOCIAL MEDIA

44% CONSIDER SOCIAL MEDIA MARKETING AND SEO THE FUTURE OF SMALL BUSINESS MARKETING

WE SPOKE WITH OVER 550 OF MORE THAN 5,000 NAWBO MEMBERS ACROSS THE COUNTRY

THE BREAKDOWN:

THE STATE OF WOMEN-OWNED BUSINESSES SURVEY IS BROUGHT TO YOU BY WEB.COM AND NAWBO

87%WEBSITE DESIGN

AND MAINTENANCE

75%SOCIAL MEDIA

MARKETING AND SEO

66%EMAIL MARKETING

WOMEN BUSINESS OWNERS VALUE LINKEDIN MORE THAN FACEBOOK AND TWITTER

SHE’S OWNED HER BUSINESS SHE EMPLOYSINCLUDING HERSELF

20% LESS THAN 2 YEARS 1 EMPLOYEE34%

47% 2–10 YEARS 2–100 EMPLOYEES64%

33% MORE THAN 10 YEARS MORE THAN 100 EMPLOYEES

Study conducted among 552 NAWBO members, 12/14/12-1/4/13.

WE SPOKE WITH OVER 550 FEMALE BUSINESS OWNERS

BUSINESS OWNERS TO FOCUS ON MARKETING IN 2013

The State of Women-Owned Businesses

The State of Women-Owned Businesses

To join the conversation about small businesses, visit

www.web.com/community.

To learn more about NAWBO, visit

www.nawbo.org.

2013 state-of-women-owned businesses-survey

Documents

percent of wbos

business challenges

business opportunities

business earnings

business idea

business tax issues

nawbo survey

business capital needs