“When I started my business, I took a significant risk by venturing into an unfamiliar and somewhat unknown industry,” said Judi Henderson-Townsend, founder and president of Mannequin Madness, the largest mannequin recycler in Northern California. They provide retailers with an alternative to throwing away their unwanted Mannequins in the landfill by renting and reselling used mannequins.

“Four years later, I am looking to expand my business to other cities,” said Henderson-Townsend. “I am confident about this next step, as I believe in this business and am willing to take smart risks to ensure its future success.”

The more than 400 women business owners surveyed were asked to determine whether they would take substantial or above average risks in regards to their business. Almost one of every four surveyed (21 percent) said they were willing to take substantial financial risks expecting substantial returns when saving or investing for their business, while forty-five percent were willing to take above average financial risks expecting above average returns.

“This report shows that, contrary to common belief, women business owners are indeed willing to take financial risks in order to expand their businesses,” said Marjorie Alfus, Chair, Centre for Women’s Business Research. “In fact, two thirds of the women in this study were willing to take above average or substantial risks to achieve their growth goals. The success of their risk taking is documented in the dynamic growth rates — employment by women-owned businesses expanding at twice the rate of all businesses (24% vs. 12%) and revenues growing 17% faster than all businesses.”

However, risk-taking among women business owners looking to expand their businesses is significantly higher than women business owners not looking to expand. This is particularly true of women business owners who seek external capital to expand their business and of those who had successfully sought this type of funding in the past.

Twenty-five percent of expansion-oriented business owners are willing to take substantial financial risks and an additional fifty-one percent are willing to take above average risks.

Risk-taking was consistent among all types of women-owned businesses in the study, regardless of company size, age of business, or personal characteristics of the business owner (age, education, ethnicity, etc.).

“As women-owned businesses continue growing at twice the national average, it’s important for us to understand the unique factors behind their growth,” said Joy Ott, regional president for Wells Fargo Bank in Montana and national spokesperson for Wells Fargo’s Women’s Business Services program. “Entrepreneurial culture defines this country and the spirit of small business owners in the U.S. today, and nowhere is this better personified than in women business owners.”