For Immediate Release

Contact: S. Bruce Hickman
Team Leader Pharmaceutical Marketing
The Center For Business Intelligence
PH: 781-939-2409 E: bruceh@cbinet.com

Woburn, MA - A major research study released today by Babson College and The Commonwealth Institute finds that woman-led businesses in Massachusetts are strong engines of economic growth, despite the challenging economic climate. Sixty-one percent of Massachusetts woman-led businesses in the study expanded from 2002 to 2003 and 42 percent grew by more than five percent, far exceeding the national economic expansion rate. The study underscores the fact that Massachusetts woman-led businesses are key contributors to the economy; the 237 companies surveyed generated more than $7.5 billion in 2003 and employed 25,288 people. CBI Research, Inc., a leading research-based conference organization brings together senior business executives and government officials in the Bio/Pharmaceutical and Risk and Insurance markets to discuss industry-specific topics of importance. CBI conferences are highly focused and information-intensive while providing networking opportunities between the buy and sell sides of targeted industries.

The 2003 Woman-Led Businesses in Massachusetts research study was co-developed by The Center for Women's Leadership at Babson College and The Commonwealth Institute. This study, which is being conducted for the third time, identifies the top 100 woman-led businesses in the state and includes quantitative and qualitative data from 237 woman-led organizations. According to the survey, the top five woman-led businesses in Massachusetts based on 2003 revenues are: Cumberland Farms Inc. and Massachusetts Electric Company (sharing the top spot), followed by Western Massachusetts Electric; Agar Supply Co., Inc. and Garber Travel.

The 2003 top 100 listing demonstrates the increasing growth and success of woman-led firms in Massachusetts. Company revenues are at increasingly higher thresholds at each decile on the ranking; for example, the revenue level for the 20th firm in 2003 is $41 million, compared with $30 million at that level in 2002. Additionally, the top 100 firms reflect substantially greater productivity than in previous years due to increased average revenues and significantly decreased average employment. Evaluating productivity exclusive of the top two firms, whose substantially larger size would skew results, 2003 represents an 86 percent productivity improvement over 2002. When the largest two firms on the list are excluded, average revenue increased to $32.5 million in 2003 from $30.8 million in 2002, while average employment in 2003 was 141 employees, down from 249 in 2002.

The successful growth of Massachusetts woman-led companies can be attributed to a strong focus on customer needs, cohesive organizations and savvy financing. Findings from the total group of 237 respondents uncovers key trends about woman-led businesses:

• These companies have flat organizational structures with open and collaborative management styles. The woman-led businesses have more women in top management positions than other businesses. While the percentage of women in senior positions declines in larger firms, it is still higher than in the general business population.
• Financing growth in woman-led businesses is primarily achieved through cash flow from operations, followed by short-term revolving credit and earnings reinvestment. Larger businesses in the study tend to rely more on bond offerings for their financing. These trends are consistent with other similar-sized firms and in some cases reflect the CEO's desire to maintain control over her organization. However, many CEOs recognize the need to seek outside funding sources as their businesses move to the next level of growth.
• Seventy-eight percent of the woman-led businesses studied are run by their founding entrepreneurs. The average tenure for these CEOs is 13 years, which is longer than that of businesses run by men.
• Woman-led businesses focus on creating favorable work environments to foster loyalty and productivity. Despite the down economy, these firms offer employee incentives such as profit sharing, professional development and flexible work schedules.
• Ninety-two percent of businesses surveyed anticipate growth over the next two years, with 62 percent expecting growth to be greater than five percent. Their strategies to drive growth include new clients or customer accounts, new products and strategic alliances. The largest companies also rely on acquisitions for expansion.
• While the woman-led businesses in the study span a number of industries, the top four were professional services, high-tech, construction and manufacturing.

"Women-led businesses are thriving in the Commonwealth and have contributed greatly to our economy," said Professor Nan S. Langowitz, Director of the Center for Women's Leadership at Babson College and chief researcher and author of the study. "In the midst of a challenging economy, woman-led organizations have not only grown consistently and steadily, but have outpaced general business growth. These businesses are on the move and are poised for further expansion. There is a lot that the business community can learn from the organizational, financing and growth strategies of these companies."

"Women have demonstrated their success in building companies for long-term growth," said Lois E. Silverman, founder of The Commonwealth Institute and in 1995 was one of the first women in Massachusetts to take a company public while she was CEO of CRA Managed Care. "These firms, in business for an average of 19 years, have continued to achieve solid gains despite the ups and downs of numerous business cycles. Women CEOs' management acumen, commitment to building their businesses for the long term and their focus on creating exceptional workplaces are some of the factors that have led to their success."

"Women CEOs provide excellent role models for business leadership and success," said Aileen Gorman, executive director of The Commonwealth Institute. "The organizations in the study confirm the general perception that woman-led businesses benefit from open, non-hierarchal management styles. Women executives value collaboration, communication and are open to diversity and different points of view. These leadership traits not only engender employee loyalty and productivity but also contribute to sound business decisions and long-term business success."

About the Study
This is the third study conducted by Babson College and The Commonwealth Institute on woman-led businesses in Massachusetts. Qualified participant companies have a woman chief executive who is the senior executive decision maker of the firm, are headquartered in Massachusetts and are either independent businesses or legal subsidiaries of larger corporations. Medical, law and banking firms as well as non-profits were not included in the study. The full research report is available from Babson's Center for Women's Leadership and can be downloaded at www.babson.edu/cwl.

About CBI Research, Inc.
CBI is a privately held, world-class conference company that focuses on producing high-level programs for executive decision-makers who face strategic issues in domestic and international markets. CBI has provided information and networking opportunities for thousands of senior- level executives in various industries for nearly ten years. More information is available at www.cbinet.com

About Babson College
The Center for Women's Leadership at Babson College is the first center dedicated to women in business and entrepreneurship at a leading school of management. Babson College in Wellesley, Massachusetts was founded in 1919 and is recognized internationally as the leader in entrepreneurial management education.

About The Commonwealth Institute
The Commonwealth Institute is a dynamic, non-profit organization founded in 1997 to help women entrepreneurs, CEOs and senior corporate executives build successful businesses. The goal of The Commonwealth Institute is to reach women leaders during the critical stages of their businesses and to provide them with the tools and resources they need for growth. Further information on The Commonwealth Institute can be found at www.commonwealthinstitute.org.

Sponsors
Sponsors of a private reception honoring the Top 100 Woman-Led Businesses in Massachusetts include Deloitte; Harvard Pilgrim Health Care and Mintz Levin Cohn Ferris Glovsky and Popeo, P.C.

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