Back To Career News

Entrepreneurship and the Gender Pay Gap: Do Male and Female Business Owners Earn Equally?

Research on wages in the U.S. reveals that women in traditional office jobs earn about 76 cents to every dollar earned by men, but how about entrepreneurs? The latest insights from the American Express OPEN Small Business Monitor reveal a surprising statistic on the salaries female business owners pay themselves.

Research on wages in the U.S. reveals that women in traditional office jobs earn about 76 cents to every dollar earned by men, but how about entrepreneurs? The latest insights from the American Express OPEN Small Business Monitor reveal a surprising statistic on the salaries female business owners pay themselves.

You might think that women-owned businesses would help close the gender pay gap, but female CEOs pay themselves the same 76 cents on the dollar compared to what male CEOs pay themselves. “Across the board, there’s a tendency for female entrepreneurs to pay themselves last,” said Julie Weeks, the president and CEO of Womenable, to Forbes. “Any extra revenue is generally used to pay employees, bring on new hires or reinvest in the company.”

Want more bad news, ladies? Female entrepreneurs pay themselves a salary just 41 percent of the time, whereas male entrepreneurs pay themselves 53 percent of the time. What do you think it will take for women business owners to have more of a “me first” attitude when it comes to pay?

More From PayScale

Do You Know What You're Worth?

Are You Making This Presentation Mistake?

Creatives’ Common Phobias [infographic]

Having Trouble Getting Hired? Blame Talent Management Software

6829451467_2a43b266ea_z

(Photo credit: Victor1558/Flickr)

Marissa Brassfield
Read more from Marissa

1
Leave a Reply

avatar
1 Comment threads
0 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
0 Comment authors
anon Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
anon
Guest
anon

You are asserting that female CEOs invest more profits back in to the company and pay their workers more proportionately. Is there any evidence to back this up or did you just pull this out of your imagination? The logical reason why women may _on average_ make less than men would be a combination of factors, none of which involve blatant discrimination. The “76 cents” statistics you have presented are manipulative and obviously so, as I will demonstrate. For example, they have said janitors and lunch ladies are equivalent jobs, and that janitors get paid more because it is a… Read more »

What Am I Worth?

What your skills are worth in the job market is constantly changing.