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IMA is celebrating International Women's Day on March 8th to commemorate the cultural, political, and socioeconomic achievements of women. In this special Count Me In podcast Yvonne Barber, CFO, HR Knowledge Source, discusses how the pandemic affected female small business owners and how some used management accounting strategies to help them become more resilient.
Connect with Yvonne: https://www.linkedin.com/in/yvonnebarber/
Episode Transcript:
Connect with Yvonne: https://www.linkedin.com/in/yvonnebarber/
Episode Transcript:
Margaret: Hello, and welcome to Count Me In. I'm your host, Margaret Michaels. Every March, IMA celebrates International Women's Day. A day recognizing the unique contributions and accomplishments of women.
Embracing equity is the theme of this year's celebration. Questions of equity are prevalent when speaking about women and the workplace. Nowhere is equity defined as the promotion of justice, impartiality, and fairness. Within the procedures, processes, and distribution of resources, according to IMA's Diversifying U.S. Accounting Talent Report.
More important than in the realm of small business. Where female, small business owners account for 21.4% or 1.24 million of all small businesses in the U.S., according to the Census Bureau.
Today, I am here with Yvonne Barber, CFO of HR Knowledge Source and IMA's Small Business Committee Chair. To discuss how the pandemic affected female small business owners. And how some used management accounting strategies to help them become more resilient.
We will consider the challenges these owners face in a competitive, post-pandemic business environment. And the ways strong management accounting principles, can help them operate their businesses more efficiently and profitably. Thank you for being here today, Yvonne.
Yvonne: Thank you for having me.
Margaret: So I guess we'll start with looking back at the pandemic. Which really did bring a lot of attention to small business owners and their challenges. At the height of the pandemic, you worked for Blue Abacus Solutions. An accounting services firm specializing in small businesses. Small businesses took a huge hit during the pandemic. With quarantines, social distancing rules, and employee turnover affecting their ability to operate and stay profitable.
According to the World Economic Forum's Global Entrepreneurship Monitor, female small business owners were hit harder than men. With women 20% more likely than men to report business closures, due to the pandemic. Can you offer some perspective on why female-owned businesses were especially at risk?
Yvonne: Sure, in addition to the resource that you mentioned. I've researched this topic to develop a better understanding of the challenges faced by small businesses. So that the IMA's Small Business Committee, where I serve, can offer the support needed to the small business community.
And I found that the biggest factor to be the lack of access to funding and capital. A majority of female entrepreneurs self-fund their business. And this can limit the ability to scale their business or invest in the needed resources, to improve operations.
One of the things that small businesses, in general, struggle with is looking forward at what's coming, as opposed to reacting to what's currently on their plate. And I think that is where a lot of small businesses found themselves.
They just weren't in a position to handle what the pandemic served out to them, and that is one of the biggest factors. But among that, bias among customers was also listed as another factor.
Now, this may not be a great obstacle for some women. Especially, here in the United States, I think we've made a lot of progress in that area. But I found several studies, throughout the world, that found customers are less likely to purchase goods or services from women-owned businesses.
So there's a variety of reasons that women were impacted as they were. And I think it's difficult to offer a one-size-fits-all approach to this. I think, instead, it's good to look at each individual item. And address as it pertains to your business, as a female-owned business or a small business owner in general.
Margaret: Yes, those are great points and I think the funding issue is very top of mind. And that's really interesting, the bias, I never thought about that. But women experience bias in a lot of realms. So it shouldn't be surprising that it's also prevalent in small business ownership and customer choices. Those are great points.
Yvonne: Yes, that surprised me as well. Just because my perspective here, being in the United States, I think that we've learned to navigate that a little better. But in that The Small Business Committee, we serve a global membership. I am interested in what the challenges are for our membership. All over the world, not just here in the United States. So that was surprising to me. But it was helpful to see the information, so that I'm in a better position to offer what's needed for our members.
Margaret: And the IMA's Small Business Committee does a great job, with helping members who are struggling with these issues. In fact, IMA's Small Business Committee published two important reports, to help guide small businesses through the COVID crisis, and to help them stay resilient post pandemic.
I wonder what differentiated the businesses, who managed through the crisis versus the ones who failed? And from your perspective, why is it difficult, when you are a small business owner, to address both short-term crises and long-term strategy?
Yvonne: I think the businesses who survived focused on sustainability and leveraged strong relationships, and a diverse network of sources to meet their needs. Those who prioritized relationships were just better positioned to survive the storm. The relationships include the customers, suppliers, as well as employees. And it can be tough to think about tomorrow when you're just trying to survive another week.
I know a lot of small business owners. I know they're just trying to make payroll. But making short-term decisions that impact the long-term sustainability of a company, they may seem to help the short-term, but ultimately they do end up hurting the company.
Margaret: I think that's something that even mid and large-sized businesses grapple with, is that balance between the short-term and the long-term. And not having those short-term decisions affect your ability to operate in the long-term. So that's absolutely on point.
And now, as the immediate crisis of COVID passes, new risks are also emerging for small businesses. These include worker shortages, failure to embrace digitization, inflation, and supply chain disruptions. And without the resources that larger size companies enjoy. How can small businesses mitigate these risks?
Yvonne: A good sustainability plan can help with this. Many small business owners think of sustainability as something that impacts large businesses. With little to no impact on what they do on a day-to-day basis. But sustainability is all about efficiently using resources, and developing a strong and a diverse network of resources. And that may seem like a very pragmatic way to describe this. But buzzwords may not always be relatable to small business owners, but they understand the bottom line and how planning can impact it.
So by developing and implementing a sustainability strategy. A company can plan for a diverse network of suppliers that minimize the impact of supply chain disruptions. They can also lead, perhaps, with a competitive edge for those who may have the opportunity to bid for government contracts, or provide goods or services to larger companies. Who may be required to provide reporting on the sustainability practices of the suppliers they use.
Technology can be used to streamline processes to avoid the need for additional employees. Which in a small business, that's particularly important because they don't, necessarily, have the budget for a large staff. And it's difficult to make a decision to increase headcount. And they can also avoid overloading existing employees who could otherwise burn out.
When there's a labor shortage, retention can be the most economical means to address the shortage. So it's important to find ways to get the job done without burning out your existing employees.
Margaret: Absolutely, and I know that sustainability is an area of focus for IMA. We have courses, research papers. We really have looked, in depth, at how we can help businesses implement sustainability strategies. Which, to your point, can help mitigate all of these risks that this volatile global environment is now generating.
So I wonder if we can shift to your personal professional experience in accounting and finance. You're currently working as a Fractional CFO for HR Knowledge Services. What do you see as the strengths of working for your own small business, as a CFO for hire? And in working for many small businesses, both male and female-owned, do you see differences in company culture based on gender?
Yvonne: Working as a Fractional CFO, it's allowed me to create a little more balanced lifestyle. That reflects the priorities that I have in my own life. I can choose who I work for and how much I want to work. And, for me, that's something that's particularly important at this stage in my career. I think that I do see a difference in companies that are led by male or female owners, or CEOs, in my limited experience. And, again, I can speak only from those companies that I've worked with, specifically.
The female entrepreneurs that I've worked with tend to be more focused on balance, which is my own priority. Whereas some of the male-led companies tend to be more focused on results that do not necessarily take balance into consideration.
Margaret: That's very interesting because that's exactly what The U.S. Small Business Bureau has found. In terms of the motivations for owning a small business, when you look at women versus men. And the U.S. Small Business Bureau says that women have different motivations for being business owners.
For men, the motivation stemmed from wanting to be their own boss and earning a greater income. But for women, the top reason for becoming an owner was work and family balance. In total, 59% of the women felt that this was a very important reason to own their own business. So that finding seems to align exactly with your own motivations.
That balance that you can strike when you're a small business owner. Did you have any additional thoughts on what the U.S. Small Business Bureau found?
Yvonne: As I said, it aligns with my own priorities as well. I think that men have done a great job, by the way. In the last few decades of making things a little more equitable, as far as the responsibilities in the household and balancing in the household. But I think we, as women, put more pressure on ourselves. I know, I personally grew up watching this, it's a perfume commercial of a woman in a silver dress. Where she sings about bringing home the bacon, frying it up in a pan, and basically doing it all.
And I think that sometimes we, as women, put more pressure on ourselves to do it all and be good at it all. And we can, but I think sometimes it's difficult to do everything well, at the same time. And finding that balance, where we can honor those things that are the greatest priority to us is the biggest challenge. And I think that that's one of the reasons why women, in general, look to open their own businesses and work for themselves. So that they can do better with that balancing act.
Margaret: That's very well said. And IMA is a resource that, hopefully, some female small business owners will take advantage of as a result of this podcast. Because, like you just said, we put a lot of pressure on ourselves to do it all. But sometimes you do need support and you do need to ask for help. And, so, surrounding yourself with people that have committed to doing that can be a good strategy.
This was a fantastic conversation and I really appreciate you, spending the time with us here today to discuss this topic. And thank you for all the work you're doing on The Small Business Committee. And for those listeners who are small business owners be sure to check out all the great resources, that The IMA's Small Business Committee has to offer.
Margaret: Thank you and have a great International Women's Day.
Yvonne: Thank you.
Announcer: This has been Count Me In, IMA's podcast, providing you with the latest perspectives of thought leaders from the accounting and finance profession. If you like what you heard, and you'd like to be counted in for more relevant accounting and finance education, visit IMA's website at www.ima.org.
Creators & Guests
What is Count Me In®?
IMA® (Institute of Management Accountants) brings you the latest perspectives and learnings on all things affecting the accounting and finance world, as told by the experts working in the field and the thought leaders shaping the profession. Listen in to gain valuable insight and be included in the future of accounting and finance!
< Intro >
– Hello, and welcome to Count Me In.
I'm your host, Margaret Michaels.
Every March, IMA celebrates
International Women's Day.
A day recognizing
the unique contributions
and accomplishments of women.
Embracing equity is the theme
of this year's celebration.
Questions of equity are
prevalent when speaking
about women and the workplace.
Nowhere is equity defined
as the promotion
of justice, impartiality, and fairness.
Within the procedures, processes,
and distribution of resources,
according to IMA's Diversifying U.S.
Accounting Talent Report.
More important than in the
realm of small business.
Where female, small business
owners account for 21.4%
or 1.24 million of all small
businesses in the U.S.,
according to the Census Bureau.
< Music >
Today, I am here with Yvonne Barber,
CFO of HR Knowledge Source
and IMA's Small Business
Committee Chair.
To discuss how the pandemic
affected female small business owners.
And how some used management
accounting strategies
to help them become more resilient.
We will consider the challenges
these owners face in a competitive,
post-pandemic business environment.
And the ways strong management
accounting principles,
can help them operate their businesses
more efficiently and profitably.
Thank you for being here today, Yvonne.
– Thank you for having me.
– So I guess we'll start with
looking back at the pandemic.
Which really did bring a lot of attention
to small business owners
and their challenges.
At the height of the pandemic,
you worked for Blue Abacus Solutions.
An accounting services firm
specializing in small businesses.
Small businesses took a huge hit
during the pandemic.
With quarantines, social distancing rules,
and employee turnover affecting
their ability to operate and stay profitable.
According to the World Economic
Forum's Global Entrepreneurship Monitor,
female, small business owners
were hit harder than men.
With women 20% more likely
than men to report
business closures, due to the pandemic.
Can you offer some perspective
on why female-owned businesses
were especially at risk?
– Sure, in addition to the resource
that you mentioned.
I've researched this topic to develop
a better understanding
of the challenges faced
by small businesses.
So that the IMA's Small Business
Committee, where I serve,
can offer the support needed
to the small business community.
And I found that the biggest factor
to be the lack of access
to funding and capital.
A majority of female entrepreneurs
self-fund their business.
And this can limit the ability
to scale their business
or invest in the needed resources,
to improve operations.
One of the things that small businesses,
in general, struggle with is looking
forward at what's coming,
as opposed to reacting to
what's currently on their plate.
And I think that is where a lot
of small businesses found themselves.
They just weren't in a position
to handle what the pandemic
served out to them,
and that is one of the biggest factors.
But among that, bias among customers
was also listed as another factor.
Now, this may not be a great
obstacle for some women.
Especially, here in the United States,
I think we've made a lot
of progress in that area.
But I found several studies,
throughout the world,
that found customers are less likely
to purchase goods or services
from women-owned businesses.
So there's a variety of reasons
that women were impacted as they were.
And I think it's difficult to offer
a one-size-fits-all approach to this.
I think, instead, it's good to look
at each individual item.
And address as it pertains
to your business,
as a female-owned business
or a small business owner in general.
– Yes, those are great points
and I think the funding issue
is very top of mind.
And that's really interesting, the bias,
I never thought about that.
But women experience bias
in a lot of realms
So it shouldn't be surprising
that it's also prevalent
in small business ownership
and customer choices.
Those are great points.
– Yes, that surprised me as well.
just because my perspective here,
being in the United States,
I think that we've learned to
navigate that a little better.
But in that The Small
Business Committee,
we serve a global membership.
I am interested in what the
challenges are for our membership.
All over the world, not just here
in the United States.
So that was surprising to me.
But it was helpful to see the information,
so that I'm in a better position to offer
what's needed for our members.
– And the IMA's Small
Business Committee
does a great job, with helping members
who are struggling with these issues.
In fact, IMA's Small Business Committee
published two important reports,
to help guide small businesses
through the COVID crisis,
and to help them stay
resilient post-pandemic.
I wonder what differentiated
the businesses,
who managed through the crisis
versus the ones who failed?
And from your perspective,
why is it difficult,
when you are a small business owner,
to address both short-term crises
and long-term strategy?
– I think the businesses who survived
focused on sustainability
and leveraged strong relationships,
and a diverse network of sources
to meet their needs.
Those who prioritized relationships
were just better positioned
to survive the storm.
The relationships include the customers,
suppliers, as well as employees.
And it can be tough to
think about tomorrow
when you're just trying
to survive another week.
I know a lot of small business owners.
I know they're just trying to make payroll.
But making short-term decisions
that impact the long-term
sustainability of a company,
they may seem to help the short term,
but ultimately they do end up
hurting the company.
– I think that's something that even mid
and large-sized businesses grapple with,
is that balance between the
short-term and the long-term.
And not having those
short-term decisions
affect your ability to operate
in the long term.
So that's absolutely on point.
And now, as the immediate
crisis of COVID passes,
new risks are also emerging
for small businesses.
These include worker shortages,
failure to embrace digitization,
inflation, and supply chain disruptions.
And without the resources that
larger size companies enjoy.
How can small businesses
mitigate these risks?
– A good sustainability plan
can help with this.
Many small business owners
think of sustainability
as something that impacts
large businesses.
With little to no impact
on what they do on a day-to-day basis.
But sustainability is all about
efficiently using resources,
and developing a strong and
a diverse network of resources.
And that may seem like a very
pragmatic way to describe this.
But buzzwords may not
always be relatable
to small business owners,
but they understand the bottom line
and how planning can impact it.
So by developing and implementing
a sustainability strategy.
A company can plan for a
diverse network of suppliers
that minimize the impact of
supply chain disruptions.
They can also lead, perhaps,
with a competitive edge
for those who may have the opportunity
to bid for government contracts,
or provide goods or services
to larger companies.
Who may be required to provide reporting
on the sustainability practices
of the suppliers they use.
Technology can be used
to streamline processes
to avoid the need for
additional employees.
Which in a small business,
that's particularly important
because they don't, necessarily,
have the budget for a large staff.
And it's difficult to make a decision
to increase headcount.
And they can also avoid
overloading existing employees
who could otherwise burn out.
When there's a labor shortage,
retention can be the
most economical means
to address the shortage.
So it's important to find
ways to get the job done
without burning out
your existing employees.
– Absolutely, and I know
that sustainability
is an area of focus for IMA.
We have courses, research papers.
We really have looked,
in-depth, at how we can help
businesses implement
sustainability strategies.
Which, to your point, can help
mitigate all of these risks
that this volatile global
environment is now generating.
So I wonder if we can shift
to your personal,
professional experience in
accounting and finance.
You're currently working
as a Fractional CFO
for HR Knowledge Services.
What do you see as
the strengths of working
for your own small business,
as a CFO for hire?
And in working for many
small businesses,
both male and female-owned,
do you see differences in company
culture based on gender?
– Working as a Fractional CFO,
it's allowed me
to create a little more balanced lifestyle.
That reflects the priorities
that I have in my own life.
I can choose who I work for
and how much I want to work.
And, for me, that's something
that's particularly important
at this stage in my career.
I think that I do see a
difference in companies
that are led by male or female owners,
or CEOs, in my limited experience.
And, again, I can speak only
from those companies
that I've worked with, specifically.
The female entrepreneurs
that I've worked with
tend to be more focused on balance,
which is my own priority.
Whereas some of the male-led companies
tend to be more focused on results
that do not necessarily take
balance into consideration.
– That's very interesting because
that's exactly what The U.S.
Small Business Bureau has found.
In terms of the motivations
for owning a small business,
when you look at women versus men.
And the U.S. Small Business Bureau
says that women have
different motivations
for being business owners.
For men, the motivation
stemmed from wanting
to be their own boss and
earning a greater income.
But for women, the top reason
for becoming an owner was
work and family balance.
In total, 59% of the women felt that
this was a very important reason
to own their own business.
So that finding seems to align exactly
with your own motivations.
That balance that you can strike
when you're a small business owner.
Did you have any additional
thoughts on what
the U.S. Small Business Bureau found?
– As I said, it aligns with
my own priorities as well.
I think that men have done
a great job, by the way.
In the last few decades of making
things a little more equitable,
as far as the responsibilities
in the household
and balancing in the household.
But I think we, as women, put
more pressure on ourselves.
I know, I personally grew up watching this,
it's a perfume commercial of
a woman in a silver dress.
Where she sings about
bringing home the bacon,
frying it up in a pan,
and basically doing it all.
And I think that sometimes we,
as women, put more pressure
on ourselves to do it all
and be good at it all.
And we can, but I think sometimes
it's difficult to do everything
well, at the same time.
And finding that balance,
where we can honor those things
that are the greatest priority to us
is the biggest challenge.
And I think that that's one of the reasons
why women, in general, look
to open their own businesses
and work for themselves.
So that they can do better
with that balancing act.
– That's very well said.
And IMA is a resource that, hopefully,
some female small business owners
will take advantage of as
a result of this podcast.
Because, like you just said,
we put a lot of pressure
on ourselves to do it all.
But sometimes you do need support
and you do need to ask for help.
And, so, surrounding yourself with people
that have committed to doing
that can be a good strategy.
This was a fantastic conversation
and I really appreciate you,
spending the time
with us here today to discuss this topic.
And thank you for all
the work you're doing
on The Small Business Committee.
And for those listeners who
are small business owners
be sure to check out
all the great resources,
that The IMA's Small Business
Committee has to offer.
– Thank you.
– And have a great
International Women's Day.
– Thank you.
< Outro >
– This has been Count Me In,
IMA's podcast,
providing you with the latest perspectives
of thought leaders from the accounting
and finance profession.
If you like what you heard,
and you'd like to be counted in
for more relevant accounting
and finance education,
visit IMA's website at www.ima.org.