Traits: women owners of fast-growth businesses. (An Advertising Supplement).

Women who own fast-growth businesses are more likely than women who own slower-growing firms to access a wide range of credit sources and to borrow to finance their businesses. These fast-growth women entrepreneurs access this capital much differently than their male counterparts. Fast-growth women entrepreneurs are more likely than fast-growth men entrepreneurs to depend on their business earnings and personal debt for business financing; men are more likely to have a business or commercial bank loan.

The survey among 1,194 business owners - 602 women and 592 men - was conducted last year by the National Foundation for Women Business Owners. The survey shows that women and men owners of fast-growing businesses - firms that achieved revenue or employee growth of 30% or more over the past three years - are similar in that they have a larger appetite for capital than those who own slower-growing firms.

"However, only 39% of women who own fast-growth firms have a commercial bank loan compared to 52% of men owners of fast-growth firms," noted Nina McLemore, President of Regent Capital. "One-third (32%) of women owners of fast-growth firms use personal credit cards to finance their firms compared to only 21% of men who own fast-growth firms."

The study, "Entrepreneurial Vision in Action: Exploring Growth Among Women- and Men-Owned Firms," was conducted by the Center for Women's Business Research.

Teri Cavanagh, Director of the Women Entrepreneurs' Connection at FleetBoston Financial, the primary underwriter of the study, observed that "this reliance on personal debt is holding women business owners back. The study clearly indicates that women who understand how to leverage debt and equity have a far greater chance of becoming owners of fast-growing -- or 'gazelle' -- businesses. This confirms Fleet's experience that access to capital is key for women entrepreneurs today."

The study was also underwritten by the Edward Lowe Foundation and the Kauffman Center for Entrepreneurial Leadership.

Most fast-growing firms are not in high-tech fields, nor are high-tech firms necessarily fast growing, the study concluded. Most of the high-tech-related businesses surveyed did not meet the study's criteria for fast growth. However, women are more likely to own those high-tech firms that are also fast-growing - 48% of high-tech firms owned by women are fast growth, compared to 28% of high-tech men-owned firms.

Furthermore, the high-tech-related women owned firms are more likely to be in the fields of biotechnology or life sciences, while information technology dominates men-owned tech-related firms.

Mark Lange, Executive Director of the Edward Lowe Foundation, a study underwriter, noted that "women owners of fast-growing firms differ from other women owners in their desire for independence and more money as motivations for becoming owners. These women owners of fast-growth businesses are also better educated and younger than other entrepreneurs who were surveyed."

Most women entrepreneurs who have achieved fast growth for their firms have a greater diversity of business-related characteristics and life experiences than men business owners. "Women owners of fast-growth firms are less likely than their male counterparts to have had an entrepreneurial role model, a managerial or executive professional background, or past experience in owning a business," said Trish Costello, Director of Women's and Venture Capital Initiatives at the Kauffman Center. "It is critically important that women have access to mentors as well as to knowledge and information about entrepreneurship to be successful in growing their businesses."

Although keeping up with technology is a key business concern, only about 20% of all business owners surveyed consider the Internet and e-commerce to be critical elements of their business growth strategy. Even among owners who have identified growth as a primary business goal over the next five years, only 44% each of women and men owners have a web site; just under one-third of firms that are less growth-oriented have a web site.

"Women owners of fast-growth firms are less likely to share ownership of their firms with outside investors than their male counterparts--only 28% of women compared to 49% of men share owner-ship," McLemore added. "Women entrepreneurs should recognize that bringing in expansion capital is an important factor in achieving high growth, even if they must relinquish some equity."

Other findings from the survey include:

Among the fast-growth firms surveyed, 21% each of women- and men-owned firms have annual gross sales of $1 million or more;

Women owners of fast-growing businesses are more likely than other owners to consult outside sources on business management and growth issues. For example, 60% of women owners of fast-growing firms consult with accountants compared to 44% of their male counterparts; and

Businesses that have achieved recent fast growth tend to be younger, have higher revenues, and employ more workers than firms that are not growth-oriented. Likewise, firms that expect to grow in the future are younger and have higher revenues than firms that are not growth-oriented.

Information for this article was provided by the Center For Women's Business Research. The report, Entrepreneurial Vision in Action: Exploring Growth Among Women-and Men-Owned Firms. is available for $90. Contact the Center via e-mail at [e-mail].