Magazine article American Banker

Study: Most Rich Female Business Owners Started Them

Magazine article American Banker

Study: Most Rich Female Business Owners Started Them

Article excerpt

Don't underestimate women entrepreneurs.

Loraine B. Tsavaris, head of client services at U.S. Trust Company of New York, learned that lesson from a survey it sponsored of the richest women who own businesses.

Of the richest 1% of women, 18,000 own businesses, she said. And surprisingly, only 15% of these women inherited their businesses, the survey indicated.

Those who started their own businesses "can probably see through a service provider better than someone who is not self-made," Ms. Tsavaris said.

That's a trait that bank-affiliated money managers may want to take note of in their efforts to capture the assets of this target market, she said.

The study - based on interviews with 150 female entrepreneurs whose businesses generate annual sales of at least $2.5 million - found that 77% of them grew up poor or middle-class.

The survey also found that these women, who had annual incomes of $200,000 or net worth of more than $3 million, are more educated than their male counterparts.

Fifty-eight percent of the respondents said they had college degrees.

Only 45% of male business owners surveyed for U.S. Trust in a study published last month had college diplomas.

The survey of female business owners was U.S. Trust's ninth in a series that began in 1993. The series is meant to profile affluent Americans and find out their opinions on various financial issues.

The latest survey was the first in which the bank studied wealthy women who own businesses.

Like their male counterparts, these women are looking for banks to manage their company pension plans and advise them on business succession, estate planning, and retirement planning. …

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