Study: Small Business Owners Prefer Same-Sex Advisers

A study by The American College reveals small business owners show a strong bias for financial advisers of the same gender, with men exhibiting a stronger gender bias.

Approximately 61% of female small business owners prefer speaking to a financial adviser who is a woman, yet only 24% of men prefer to speak to female financial advisers. According to 2010 data from the Bureau of Labor Statistics, women made up 30.8% of the personal financial adviser population.

Conversely, 75% of men prefer to speak to male financial advisers, while only 40% of women exhibit the same preference.

Other results from the study include:

•  Women are more concerned about retirement planning than men (84% women vs. 76% men) and report taking more action to address this issue;

•  More women have consulted with a financial adviser about maximizing business-owner benefits (44% women vs. 33% men);

•  More women have consulted with an adviser about starting a retirement plan (41% women vs. 29% men);

•  More women than men list not having enough money in retirement as one of their top three concerns;

•  Women and men said they take an active role in understanding needs in retirement planning (75% women vs. 85% men);

•  Many have not estimated how much capital they will need to be able to retire (34% women vs. 26% men);

•  Only a few have a formal, written financial plan for managing income and expenses in retirement (24% women vs. 34% men) or have a formal, written plan for transitioning their business at retirement (11% women vs. 28% men); and

•  Most small business owners have not consulted with an adviser about retirement planning (44% women vs. 33% men) but those who have report being satisfied with their adviser relationship (76% women vs. 85% men).

For the survey, “businesses owners” were defined as individuals who own 50% or more of the business, and who make or share in financial and other business decisions. The survey included 1,255 interviews (835 women and 420 men).