For as long as can be remembered, there have been challenges regarding women’s salaries and wages in the workforce compared to those of men. There has always been a salary gap between men, and women.
In 2010, women earned 77 cents to every dollar that men made. A recent study from Babson College suggests that female entrepreneurs could possibly be the cause of this problem themselves because they are actually paying ‘themselves’ less than they pay their male counterparts.
Babson’s College’s report analyzed Goldman Sachs’ 10,000 Small Businesses program. Babson has been the key academic partner with this company since it first opened in 2009. Goldman Sachs’ goal is “unlocking the growth and job-creation of the country’s potential small businesses”. So far the program has had more than 1,500 entrepreneurs graduate with half of those graduates being women.
The study reported over 63% of program participants have been increasing their revenue, and are constantly adding more jobs within their company. This may seem encouraging, but the salary findings and pay gap has been unexpected.
Upon entering the Goldman program, women were paying themselves an average of 80% of the salary compared to those of men. According to The Institute for Women’s Policy Research, women’s median weekly wages were 81 percent of men’s 2 years ago. But the good news is that six months after graduating from the Goldman program, women’s average salaries rose to 92% of the male participants, thus reducing the gender gap by 60%. The only bad news coming from this is that not every women entrepreneur goes through the 10,000 Small Businesses Program meaning that a salary gap will for now remain.
Reference article: http://bostinno.streetwise.co/2014/02/21/salary-gap-between-male-and-female-entrepreneurs-babson-study/