The Department of Trade and Industry has set up a taskforce that will provide a model for women entrepreneurs and help them break away from the mind set of owning small businesses that are more to do with passion and less to do with profits.
The taskforce is led by Australian Glenda Stone, who says that women usually start businesses for the wrong reasons; they are guided by passion for their venture rather than the basic principles of finance and profits.
The taskforce aims to change the trend of ‘cottage industries’, that women entrepreneurs usually focus on, to new ones that generate more wealth and jobs, and plan to grow and expand.
Surveys and studies by the Warwick Business School and the Global Entrepreneurship Monitor reveal that women entrepreneurs prefer to invest small amounts of capital and are averse to taking high risks.
Ms. Stone adds that women entrepreneurs need to focus on business finance and technology and should not restrict themselves only to retailing and personal business; ‘profits before passion’ she says should be the mantra of businesswomen.
A misconception she says that mumpreneurs seem to have is that a home business allows them more time and flexibility. While it does give them flexibility, the business requires dedicated work hours to make it a success.