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Summary of full report
Women in Business in Rural
and Remote Australia -
Growing Regional Economies
Prepared by Strategic
Economic Solutions
Researched and written
by Kim Houghton & Peter Strong
September 2004
RIRDC Publication No 04/130 RIRDC Project No SES–1A
This research project was
funded by RIRDC and carried out in late 2003 and early 2004. The project
involved:
The project found that
businesses run by women in rural and regional areas have a significant
local economic impact on employment and incomes, and add to the breadth
of a region’s business mix. The income derived by regional businesswomen
across Australia is in the order of $1.2 billion per annum.
The project found that these women are in diverse and economically significant businesses, far removed from the stereotypes of a generation ago.
Regions with many women active in their own business appear to have a broader base to their economy and are likely to be more resilient as a result. This resilience can only improve the capacity of a community to deal with changing situations—droughts, natural disasters and economic downturns—and stimulate greater flow of cash through the business sector.
The project identified
five key factors to these women being successful:
The research found
that female business managers are putting in long working hours, and have
many years of experience and clear motivations and desires for their business.
Most of the women see their business as a viable asset and a lifestyle
choice, not just a job alternative and certainly not a hobby.
‘After 25 years in teaching I want independence and I want to be creative’.
The majority of women running these businesses are multi skilled—often managing a challenging mix of responsibilities including family life, caring for children, assisting on the farm, providing traditional support to community activities, participating in networks, as well as running a growing business.
‘I did not manage in the past, [am] managing better now, better planning, prioritising and delegation.
Stress can be a big concern for me. I use massage for relief and put in effort to find relaxing activities....
Time is so valuable, I feel guilty about the amount of time spent on business over that spent with kids’.
We found great diversity in the types of businesses being run by women in rural and regional Australia—from the traditional bed & breakfast and ‘country craft’ businesses, to businesses in professional and health services, education, manufacturing, and personal & business services. While some businesses focus on local and regional services, others are bypassing local markets and rely on exporting.
In many cases the income from these businesses is crucial to the survival of the family, and for farming women it is also crucial to the survival of the farm especially with drought.
‘We wouldn’t have the farm without income from the business’.
Regional women are using the business option as a strategic vehicle for diversification of income sources and of farm and locally grown commodities. Regional economies are vulnerable to disasters like drought and bushfire, and many businesswomen feel that their own business is more resilient than a job. But disasters like drought cut both ways—especially when customers stop buying through lack of their own income. Exclusion of non-farm business from the main sources of drought relief is seen as a problem in drought affected areas. Inclusion of the income from these businesses in assessing eligibility for Exceptional Circumstance funding for farms is seen as some type of penalty for diversification, discriminating against women who seek their own incomes and life styles.
This brings some frustration, particularly as women running businesses in rural and regional Australia demonstrate a high level of organisational skills. Most are working over 35 hours per week while still meeting other responsibilities that can include family, farm and community activities.
But the project suggests that business success, and the demands it makes on time, is overwhelming operators and forcing vital businesses to close. Women looking to start a business told us they want to work under 35 hours a week, while most of the women in business reported working well over 35 hours per week. Significantly, those who had closed a business said they were working over 50 hours a week, and cited family commitments as the main reason for closure—not lack of sales. This is a loss of a vital part of a community’s economy, of a community’s ability to deal with change and stress, and of a woman’s access to career and lifestyle choice.
Aware of the balancing act between home and work, these women are actively seeking better business management skills.
‘[Aim is]... business running smoothly, good income, fitting family with business…’.
Many have accessed advice and help, and completed training (higher percentages than in other surveys of male/mixed businesses in metropolitan areas conducted by the project team). And many respondents are ‘doing the books’ on the family farm or partner’s business as well as their own.
These findings indicate that rural businesswomen are a lynchpin for rural economies.
A consistent theme from the primary research is that regional businesswomen do something, or make something, well—whether they are a pharmacist, a motel operator, a graphic designer or a florist. But this is only one part of being successful in business. They also need an active mix of entrepreneurial attributes along with technical, business management and administration expertise.
As a result there is strong demand from these women for support and training to build business skills—but regional businesswomen are discerning clients, they want training that is of high quality, is cost effective and is locally available.
Demand for skills development is high, particularly in financial, business and technology management.
Importantly these women are ‘opportunity entrepreneurs’ rather than ‘necessity entrepreneurs’, and the support provided must reflect these differences.
A challenge is how to best deliver this support. Focus group feedback showed that businesswomen look for a different emphasis in training—focusing on creative, interactive approaches that emphasise inspiration, confidence building, and being more than a busy working woman constantly juggling family responsibilities.
‘It is all pitched at farmer’s wives and their “on-farm” businesses, as if there is nothing in the region but farming. There are plenty of other businesses around, they need training as well’.
There is also evidence that out-dated stereotypes and gender bias in attitudes to women in business (from clients and customers, financiers and relatives) is an inhibiting factor for older businesswomen.
Younger businesswomen either do not notice such biases, or run right over them. This as an interesting outcome that warrants further investigation as it suggests there may be more women who want to start a business, and have the capacity to do so, but who are being held back.
These project findings indicate that it is crucial to get top quality support to women in business in regional areas—support that is attractive to and tailored for women. Given the multiple roles of many women in farm, off-farm and partner’s business activities, the flow-on effect from supporting regional businesswomen is likely to be very significant—more so than boosting support in metropolitan areas.
The project identified
five main policy issues:
We also see an
underlying need to promote the value of these businesses and to have communities,
decision makers and family members understand the importance of them, and
the value to be gained from supporting more regional women into their own
business activities.
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