The growth of women’s entrepreneurship in the last few decades has been extraordinary. According to the Small Business Administration, women-owned businesses accounted for a mere 4.5 percent of all businesses in 1977. In 2008, more than 40 percent of all businesses are 51 percent women-owned. However, only 3 percent of these companies gross more than a million in annual revenue.

The Center for Women’s Business Research studied this elite group (those businesses grossing over a million in annual revenue) and determined some key characteristics that were common in all of the companies. These characteristics are as follows:

· Investment in professional advisors

· Application of sophisticated management practices

· Utilization of current technology

· Diversification of funding sources

· Certification as a woman-owned business

· Involvement in professional organizations

Investment in professional advisors

Leading-edge women-owned companies are willing to invest their resources in unbiased professional advisors both when they are launching their companies and continuously throughout their growth. These advisors prove worthwhile in their diligence when developing human resource protocol, financial reporting systems and bylaw details.

Application of sophisticated management practices

It is important in a growing business to have clearly outlined and updated divisions of labor as well as human resource materials. As the company grows and changes, the clearer the policies are internally, the easier they will be to adapt to new challenges and needs.

Utilization of current technology

Technology today changes and adapts at an astonishing rate. Those who are able to keep up with these changes will be able to benefit their company and utilize new marketing techniques. This is evident within the WPO in that nearly all of our members have Web sites, many invest in e-commerce and all of them are involved and aware of advancements of media technology.

Diversification of funding sources

Similarly to the importance of using professional advisors throughout the course of your business development as well as during its launch, it is important to use a variety of funding sources to support your business growth. These sources can be diversified through the three "F’s" – friends, family and personal fortune, as well as credit card investment and angel investors.

Certification as a woman-owned business

Accomplished women entrepreneurs frequently do business with their local and national government entities and invest the time in certification as a woman-owned business, such as that from the Women’s Business Enterprise National Council (WBENC). In fact, leading-edge companies are 2.5 percent more likely to be certified as a woman-owned business than those that are not.

Involvement in professional organizations

A common theme in all of the aforementioned characteristics is that these women take a proactive approach to learning, investing and adapting as they face new challenges and opportunities. They are more likely to be involved in their industry trade and professional organizations, such as w2wlink.com and the WPO. And they use their involvement both as an educational tool and as an arena to promote their companies and investigate new resources.

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Written originally for w2wlink.com by Dr. Marsha Firestone on behalf of the WPO.

More about Dr. Firestone:  Dr. Firestone is founder and president of the Women Presidents' Organization www.womenpresidentsorg.com (WPO) for women whose businesses annually gross over two million dollars. The WPO is currently operating in 50 locations nationwide and in Canada. In 1998, Dr. Firestone was executive director of The Women's Economic Summit whose work resulted in a master plan for accelerating the growth of women's business and was presented to Congress and the public in March, 1999.

She has published research on adult learning theory, nonverbal communication and managerial competency appearing in both business and educational journals, and "The Busy Woman's Guide to Successful Self-Employment," an interactive, easy-to-read resource. Click here to find a copy.