Women-Owned Small Businesses Faring Better Than Men-Owned Small Businesses

Scarsdale, N.Y., – Capital Access Network, Inc.’s (CAN) Data Services Division Small Business Credit Sales Report indicates the nation’s women-owned small businesses are experiencing less of a decline during this recession than men-owned small businesses. CAN’s examination of thousands of small businesses show that Main Street businesses lost 3.4 percent of their card sales in Q2 2011, compared to Q2 2010, but that women-owned small businesses saw a decline of only 1.5 percent (compared to men-owned businesses which saw a 3.6 percent drop).

The findings were released in CAN’s Q2 2011 Small Business Credit Sales Report (SBCS Report) and is available at

“This is the first time we have reported year-over-year card sales broken down by the gender of the business owner,” said Glenn Goldman, CEO of Capital Access Network. “Our findings indicate that, this past quarter, women-owned small businesses seem to be rebounding faster out of the recession than those owned by men.”

Despite the decline, the recent report indicates a positive turnaround in certain areas of the country. “The Plains region showed the strongest growth with a 2.2 percent increase in year-over-year card sales,” said Goldman.

Card sales increased by 0.1 percent in Metropolitan Statistical Areas (MSAs) with populations between 100,000 and 249,999, which is the first positive report for that category since the second quarter of 2008.

Added Goldman, “Overall, consumers appear to be spending more on their cards, but just not at Main Street businesses.  Others have published information suggesting that increased gas and energy prices may account for this additional off-Main Street spending.”

Key findings of the report include:

1. “Main Street” businesses saw their same store credit and signature debit card sales decline 3.4 percent in Q2 2011 from their Q2 2010 levels.  The 3.4 percent decline reflects the second straight quarter of accelerating declines for Main Street restaurants, retailers and service providers.  In Q1 2011, their card sales dropped 3.1 percent. 

Main Street businesses began to lose share of the available consumer credit card float nationwide, reversing the trend of the last several quarters. According to the Federal Reserve’s July 8, 2011 G.19 Release (Consumer Credit), revolving consumer debt fell 1.3 percent in April and is projected to have risen 5.1 percent in May.  Main Street card sales in April fell 5.3 percent and again 1.5 percent in May.  Many card processors and issuers have recently reported increased consumer credit card usage figures.  Taken with the Fed release, this would indicate consumers are spending more with their cards, just not at Main Street businesses.

2. Main Street restaurants are faring better.  For the third consecutive quarter, card sales at Main Street restaurants increased, although by a small amount.  Restaurants saw card sales rise 0.1 percent in Q2 2011.  In comparison, retail and service providers reported a 6.0 percent decline in Q2 2011.

Consumers are choosing less expensive restaurants in which to use their cards.  “Fine Dining” establishments experienced a 4.4 percent decline in card sales in Q2 2011, while those with an average ticket size of less than $25 reported a 2.8 percent increase. Moderately priced restaurants reported essentially no changes in Q2 2011 (average ticket sizes between $25 to $50 decreased 0.5 percent, and those with average tickets between $50 and $100 were flat.)

3. In Q2 2011, three out of four MSA* categories continued to show declines in same store credit sales, and the fourth was essentially flat.  Card sales increased marginally (0.1 percent) in MSAs with populations between 100,000 and 249,999, the first positive report for that category since Q2 2008.  Consumers in the nation’s urban areas (MSA population of 250,000 to 999,999 and 1+ million) are slowing their card purchases more rapidly than other categories, with a decline of 4.2 percent and 3.7 percent respectively. 

4. Seven of eight regions continued to show declines in same store card sales, posting declines ranging from 0.8 percent to 7.4 percent.  The Plains region reported positive year-over-year (YoY) card sales of 2.2 percent.  Q2 2011 was the first time the Plains region showed the strongest card sales results compared to the other regions since Q4 2009.  The Southeast region’s card sales were hit hardest, declining 7.4 percent, followed by the Pacific Region (4.0 percent decline), and the Mideast Region (2.8% decline).

5. Newer businesses (less than 5 years in business) posted essentially flat card sales in Q2 2011, increasing 0.6 percent. The other “Time in Business” categories saw YOY card sales declines of between 1.3 percent and 4.9 percent.  Businesses open less than 5 years and those in the 7-to -10 years category are trending well.  Both have experienced slower rates of decline for each of the past four quarters, with businesses less than 5 years old actually crossing over to card sales growth in Q2 2011.

6. Businesses considered to represent the lowest risk band (“A” risk businesses on an “A–D” scale), were in the only grouping to experience a card sales increase in Q2 2011 (1.9 percent), their fifth consecutive quarter of YOY growth. “B” risk businesses saw a 2.9 percent decline. “C” risk businesses posted a 5.9 percent decline and “D” risk businesses lost 8.0 percent of their card sales in Q2 2011.

 7. Women-owned small businesses are faring better in card sales when compared to their male-owned counterparts.  While overall Main Street businesses lost 3.4 percent of their card sales in Q2 2011 compared to Q2 2010, women-owned small businesses saw an only 1.5 percent decline.  For the same period, male-owned small businesses dropped 3.6 percent in card sales.  This Q2 2011 Small Business Credit Sales Report is the first time CAN’s Data Services Division has reported YOY card sales broken out by the gender of the business owner.

*Metropolitan and Micropolitan Statistical Areas as defined by the Office of Management and Budget based on U.S. Census Bureau data.

About Small Business Credit Sales (SBCS) Report

The Small Business Credit Sales (SBCS) Report is a quarterly report highlighting credit and signature debit card sales trends within small to mid-sized businesses (SMBs) nationwide. Sponsored by the Data Services Division of Capital Access Network, Inc. (CAN), a New York-based financial technology company, the SBCS Report features analysis of credit and debit card sales trends based on same store card sales data housed in CAN’s data warehouses, which retain 12 years of data and include more than 50,000 businesses and the “daily” card sales data collected from more than 80,000 working capital transactions. Most same store sales retail reports focus on or include data from big-box retail and nationwide/regional department stores, either ignoring or obscuring the trends of the majority of SMBs. The SBCS Report was designed to assist business owners, the processing industry, associations, analysts and media interested in tracking and benchmarking credit and debit card sales trends among SMBs. Data published includes:

• Average Same Store Credit Sales – Overall

• Average Same Store Credit Sales – by Population Size

• Average Same Store Credit Sales – by Industry and Ticket Size

• Average Same Store Credit Sales – by Geographic Region

• Average Same Store Credit Sales – by Time in Business

• Average Same Store Credit Sales – by Risk Category

• Average Same Store Credit Sales – by Gender of Owner

About Capital Access Network, Inc.

Capital Access Network, Inc. (CAN) leverages leading edge data, systems and technology, combined with a unique and highly effective Daily Remittance Platform ™, to deliver innovative financial products and services geared to small and mid-sized businesses (SMBs) and SMB capital providers. The Financial Technologies Group (FinTech Group) offers SMB lenders, credit card issuers and other capital providers customized platforms and hosted services that enable Daily Remittance-powered financial products, improving underwriting decisioning and delivery, extending customer lifecycles, controlling costs and enhancing portfolio performance. The Data Services Division draws upon the data gathered by CAN’s subsidiaries through more than a decade of collecting and analyzing the sales trends and firmographics of tens of thousands of SMBs. CAN also provides merchant capital options powered by its Daily Remittance Platform through its wholly-owned subsidiaries: AdvanceMe, Inc,, the leader in Merchant Cash Advances and NewLogic Business Loans, Inc., Headquartered in New York, CAN and its subsidiaries currently employ 390 people in four locations in New York, Georgia, Massachusetts and Costa Rica. Learn more at

More News