Why Women-Owned Businesses Don't Grow

NEW YORK (MainStreet) -- Women-owned businesses represent nearly 50% of privately held companies in the U.S., however, three quarters of these businesses are not able to grow their businesses past $50,000 in annual gross revenue.

This is a challenge that Nell Merlino, the founder and CEO of Count Me In for Women's Economic Independence, would like to solve. Count me In is a not-for-profit organization providing resources and support to women-owned businesses in need of funding for growth.

Consider that 17% of women-owned business owners don't have employees -- a major influence on why they can't increase revenue, Merlino says, citing U.S. Census statistics.

This finding is a main reason Merlino's organization is expanding its efforts to help grow women-owned businesses across the country.

"Our goal is growth and sustainability and obviously [to] increase employment," she says.

A big problem when it comes to women business owners is that many don't think of themselves as a CEO. Instead they think of themselves as sort of a chief multi-tasker and the person who should be doing everything in the business. While that may at times work on the home front, in a business that is not the best way to go. A CEO of a growing company has to be able to step back and make plans and engage other people in doing the work.

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"Too many women limit their vision and opportunities by getting overwhelmed," Merlino says. "They end up walking away from opportunities or clients or more work because they know there is only 24 hours in their day -- as opposed to, 'Who can I get to help me so I can go out to sell the company?"

Women who start out as seeing themselves as the boss are likely to get to the $1 million revenue mark quicker.

"If you think you have to do everything yourself you limit your vision to what you're capable of doing," Merlino adds.

Women-business owners also need help thinking about creative approaches to financing, instead of choosing not to do projects. Count Me In spends a lot of time counseling women on finding creative financing, particularly in the post-recession economy.

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