Misleading Female Entrepreneur Salary Stats

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Look, I’d very much like these statistics, published today in the Sunday Times, to be true, but frankly, I just don’t believe them.

  1. Is this the first year these statistics have been collected, from the same demographic sample?  If so, we might properly ask if women business owners have different attitudes (on the whole) to taking money out of their businesses. If not, then we can compare, and detect trends. 
  2. What precisely is the demographic of the sample, surveyed by Barclays Bank.  I know quite a few successful female entrepreneurs, and I’m sure most will be asking “Where is my £38,000?” This figure is reported as being 16.8% higher than the average of £327,000 for men.
  3. The recruitment industry is positively bursting with female business owners, but I would struggle to find enough high earners to arrive at an average of £383k.
  4. As business owners, this figure will clearly include hefty dividends.  Business owners and entrepreneurs are not quite the same thing.  This would therefore include a decent proportion of women who are registered share owners in their husband’s companies, or have inherited a business.
  5. As in point one, inherited companies, or shares therein, are much more likely to be disposed of, therefore making a very high taxable income, which isn’t necessarily repeated every year.  My view is that most ongoing entrepreneurs would rather reinvest, that withdraw large sums from their businesses.

I am very much a feminist, and in totally against the inequality in salaries suffered by the female sex.  However, whilst it would be nice to pounce upon this report as progress, I seriously doubt it is anything more than a statistical contrivance.

http://www.thesundaytimes.co.uk/sto/news/uk_news/Society/article1202565.ece

http://www.thesundaytimes.co.uk/sto/news/uk_news/Society/article1202507.ece

 

 More of my feminist views here.

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Stephen O'Donnell is a lifelong recruiter, internet enthusiast, fadgadget and peripatetic writer.

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