Women entrepreneurs have made progress in recent years but still lag behind their male peers when it comes to financial planning, transition planning and financial literacy, according to a new BMO survey.
About 64% of women business owners do not have a detailed financial plan for their companies, compared with 59% of men, the survey found.
In addition, only a third (33%) of women business owners have a detailed plan, compared with over half (52%) of men. Among the 25% of women business owners who do not have a transition plan, the three main reasons cited were not having plans to sell their business (39%), never considering having a transition plan (25%) and not having plans to retire (21%).
"The importance for all business owners — but particularly women business owners — to have a financial plan for their companies cannot be overstated," said Shannon Kennedy, head of U.S. advisory and interim U.S. CEO of BMO Wealth Management U.S.
"Women tend to live longer, face industry-specific financial hurdles and center their wealth planning around their families. Having a detailed financial plan for their business is vital to ensuring continued growth and expansion, [the] business owner's overall personal financial well-being and making certain their families are taken care of.”