Statement of Service
Female-owned business 'pose lower risk'
Businesses owned by women are less risky, more financially sound, and less likely to fail than those run by men, according to figures published this month.
Less than a quarter of female entrepreneurs have had a business fail. Some 34 per cent of male entrepreneurs, however, have seen a business go under.
This discrepancy in failure rates seems to be directly linked to men and women’s relative attitudes to risk.
50 per cent of male business owners consider themselves to have a “risk confident” attitude to business, while just 30 per cent of women would describe themselves in the same terms.
This has an impact on insurance claims, with male entrepreneurs costing insurers around 60 per cent more on average than female business owners. Organisations have called for reduced premiums for female business owners in line with the reduced risk, a practice which already exists in the car insurance market.
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September 2, 2010
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