CHICAGO, ILLINOIS--(Marketwired - Sept. 29, 2016) - BMO Wealth Management (U.S.) today released a report which explores the similarities and differences between male and female business owners.
The report - titled Are there gender differences among entrepreneurs? - found that 77 percent of female entrepreneurs felt very or somewhat confident in making risk-related business decisions, compared to 66 percent of male entrepreneurs.
"We learned that for many people, regardless of gender, the main driver to become small business owners is the desire for greater freedom and flexibility," said Jason Miller, National Head of Wealth Planning, BMO Wealth Management (U.S.). "All businesses can be volatile at some point and business owners need to plan accordingly for those times - especially when a majority of people use their own savings to start or grow the business. Nonetheless, it's encouraging to see that entrepreneurs prudently assess and manage risks to advance their business interests."
The report also showed that two fifths (40 percent) of women business owners describe themselves as doing something they enjoy, compared to 35 percent of their male counterparts. Similarly, 30 percent of female entrepreneurs define success in business by doing something they feel passionate about, compared to 24 percent of male entrepreneurs.
The biggest challenges highlighted by entrepreneurs are:
- Managing everything themselves (36 percent)
- Growing or expanding their business (33 percent)
- Arranging or accessing financing (9 percent)
Miller added, "It takes a lot to manage a business and what business owners need to remember is that they don't have to do it on their own. I recommend establishing your circle of trusted advisors who can help you make critical decisions that will contribute to a flourishing business."
BMO offers the following financial planning tips for entrepreneurs:
Creating a Business Plan: A business plan is a great tool to help you envision how your business will function and grow. It is also a necessary document that lenders need to review prior to lending money.
Corporately Owned Life Insurance: Life insurance can be used to protect your business in the event of loss of control on the death of one of the owners. If that is the case, the life insurance can buy out the interest of a surviving spouse or family member.
Sourcing Capital: Business lines of credit, business credit cards, government loans and venture capital are all ways of sourcing capital. A financial professional can work with you to find the most suitable type of credit that fits with your business.
Tax Planning: A tax professional can help you to enhance your personal wealth through your business by discussing the use of corporate structures and individual pension plans.
To view a copy of the full report, please visit: https://www.bmo.com/privatebank/us/insights/newsletters/bmo-wealth-institute.
For more information about BMO Wealth Management or to learn more about wealth planning, please visit: https://www.bmoharris.com/main/personal and the Your Wealth Your Way resource center at www.bmoharris.com/yourwealth.
About BMO Wealth Management
BMO Wealth Management serves mass affluent, high net worth and ultra-high net worth individuals and families with a full suite of wealth management solutions including wealth planning, banking, investment management and trust and estate services. With 35 offices across 12 states and international offices in Canada, Hong Kong, and Singapore, BMO Wealth Management provides guidance and planning advice combined with individualized service and local expertise. As of July 31, 2016, BMO Wealth Management had assets under management of US$48.6billion and assets under administration of US$56.2 billion. BMO Wealth Management is supported by the resources and stability of one of North America's premier financial services organizations-BMO Financial Group. Visit www.bmowealthmanagement.com.
BMO Private Bank is a brand name used in the United States by BMO Harris Bank N.A. Member FDIC. Not all products and services are available in every state and/or location.