Celebrating Achievements of Women Business Owners and Entrepreneurs

“Think equal, build smart, innovate for change.”

That’s a powerful statement and a fitting theme for this year’s International Women’s Day, which just so happens to be today.

That same theme is also an appropriate mantra for the millions of women business owners and entrepreneurs in the US.

There’s no question that women-owned businesses play a significant role in contributing to the vibrancy and success of the business landscape across the country. But there’s also no question that achieving that role hasn’t been an easy feat, as women business owners and entrepreneurs have had to face many adversities to succeed.

However, women business owners and entrepreneurs have continuously risen to the challenge, and their perseverance and remarkable strides are certainly worth celebrating.

In honor of International Women’s Day, we took at look at some of the outstanding achievements and interesting facts about women-owned businesses in the US.

Growth

Women are more likely than men to start their own business.

• Between 1997 and 2017, the number of women-owned businesses in the US increased by 114%, while the growth rate for all companies was 44%.
• Back in 1972, there were 402,000 women-owned businesses, which represented 4.6% of all firms. Fast forward to 2018, and there are now 12.3 million businesses owned by women, accounting for 40% of all companies. That means women own four out of every 10 businesses in the US.
• The combination of women-owned businesses and companies equally owned by men and women account for 48% of all US businesses.
• Women in the US are starting businesses at an impressive rate of more than 1,800 (net) per day.
• States with the fastest growth rate for the number of businesses owned by women are Florida, Georgia, Michigan, Tennessee, and South Carolina.

Economic Impact

• As of 2018, women-owned businesses employ 9.2 million Americans. What’s more, total employment by women-owned firms rose by 21% between 2007 and 2018, while it declined for all firms by 0.8%.
• Women-owned businesses now employ 8% of the total US workforce.
• In 1972, businesses owned by women brought in $8.1 billion in revenue. By 2018, the total had soared to $1.8 trillion– 217 times greater from 1972.

Financing and Revenue

• Businesses founded by women deliver higher revenue — more than twice as much per dollar invested — than those established by only men.
• Companies founded or co-founded by women often receive substantially less in investment funds compared to firms started by men. Despite this gap, one study found that startups with female leadership performed better over time, generating 10% more in cumulative revenue over five years.
• Between 2007 and 2018, total revenue of women-owned businesses jumped 46%, compared to a 36% increase for all businesses.
• Five years ago, the femtech industry (a term used to describe technologies designed for women’s health) had barely received $100 million in global funding. It’s estimated that by 2025, femtech will reach a market size of up to $50 billion.

Between 2007 and 2018, total revenue of women-owned businesses jumped 46%, compared to a 36% increase for all businesses.

Where They Work

• 62% of women entrepreneurs depend on their business as their primary source of income. What’s interesting about that is, as one report says, this finding “challenges the old assumption that women entrepreneurs are more likely to run ‘lifestyle businesses’ that provide additional income as opposed to serving as a primary source of revenue.”
• Women are significantly more likely to launch businesses within the healthcare or education sectors than men.
• Women-owned businesses have the highest total revenue in wholesale trade (17%), retail trade (15%), and professional, scientific and technical services (10%).
• Industries with the highest growth rates for the number of women-owned businesses are: utilities (151%); other services, which includes salons and pet care (126%); construction (94%); accommodations and food services (85%); and administrative, support, and waste management services (70%).

Diversity

Firms owned by minority women grew at a staggering rate of 163% between 2007 and 2018.

• Over the past 11 years, minority women have been the driving force behind the growth of women-owned businesses.
• Firms owned by minority women grew at a staggering rate of 163% between 2007 and 2018.
• As of 2018, women of color account for 47% of all women business owners.
• Nearly half of all women business owners are between the ages of 45 and 65 (48%) and two-thirds (67%) are 45 or older. The next largest age group, 25 to 44 years old, accounts for 31% of women business owners.

The numbers don’t lie: there is a lot to celebrate when it comes to the achievements of women business owners and entrepreneurs.

Is there still more that needs to be done to promote and support women-owned businesses? Yes, absolutely.

But these figures are an indication that change is moving in the right direction. And that’s a trend we need to ensure continues.