growth in women-owned businesses can
SUCCESSFUL WOMEN ENTREPRENEURS ARE CHANGING THE FACE AND THE PACE OF SMALL BUSINESS GROWTH IN THE UNITED STATES
THE NUMBER OF WOMEN-OWNED BUSINESSES IS ON THE RISE. Since 1997, the number of women-owned businesses has increased 59%, outpacing the 41% growth rate among all new businesses. Women-owned businesses added 175,000 jobs to the economy from 2007 to 2013.
59%
2013
41%
1997
In 2013, women-owned businesses: accounted for
generated
employed
8.6 MILLION
7.8 MILLION
businesses in the U.S.
$
1.3 TRILLION in revenue
workers
GROWTH IN WOMEN-OWNED BUSINESSES CAN BE FOUND ACROSS THE COUNTRY. 5
THE TOP 10 STATES FOR WOMEN-OWNED BUSINESSES ARE: 1. California 2. Texas 3. New York 4. Florida 5. Illinois
3
10
6. Georgia 7. Pennsylvania 8. North Carolina 9. Ohio 10. Michigan
7 9 8
1 6 4
2
STATES WITH THE HIGHEST GROWTH OF WOMEN-OWNED BUSINESSES:
120%
STATES WITH THE LOWEST GROWTH OF WOMEN-OWNED BUSINESSES:
112%
100%
93 %
80%
91%
84 %
84 %
60% 40% 20%
23 %
12%
0%
GE
A GI R O
T
A EX
N
S
T OR
H
CA
R
I OL
NA LO
UI
A SI
NA N
AD V E
A AL
K AS W
A E
ST
IN RG I V
IA
27 %
27 %
23 %
A W O I
IO
OH
KA
A NS
S
MINORITY WOMEN-OWNED BUSINESSES HAVE GROWN ESPECIALLY QUICKLY. The number of businesses owned by minority women grew 188% from 1997 to 2013. Of the 2.6 million businesses owned by minority women in 2013:
1.1 MILLION
944,000
businesses were owned by African-American women
620,300
businesses were owned by Hispanic women
businesses were owned by Asian-American women
BUT THERE IS ROOM TO GROW. While women-owned businesses have grown at a rate greater than the national average since 1997: The portion of total U.S. business revenue generated by women-owned businesses has hovered around 4%
4
6%
%
Women-owned businesses only employ 6% of the nation’s workforce
2013 ANNUAL REVENUE OF WOMEN-OWNED BUSINESSES 69.5 %
earned $25,000 or less
12%
earned $25,000–$49,999
7.6 %
earned $50,000–$99,999
8.7 %
earned $100,000–$499,999 earned $500,000–$999,999
1.7 %
earned $1 million or more
1.8 % 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
THE LARGEST PORTION OF WOMEN-OWNED BUSINESSES ARE IN THE: healthcare or social services sector
17 % other services
15 % administrative, support or waste management services
10 %
Women tend to be less prevalent in industries such as transportation and wholesale trade.
HOWEVER, THERE’S A BRIGHT FUTURE FOR WOMEN ENTREPRENEURS.
70% of women small business owners expect revenue to increase in 2014, compared to 66% of male small business owners.
68% of women business owners plan to grow their business over the next five years, compared to 63% of male business owners.
56% of women business owners plan to hire more employees, compared to 50% of male business owners.
In its 2013 annual report, National Women’s Business Council recommended improving access to capital, target markets and business incubator programs to continue to foster the creation of women-owned businesses and spur economic growth. NWBC RECOMMENDS: Increasing lending from credit unions and community banks to women-owned businesses
Researching industries that are not often targeted by women entrepreneurs
Sources: “The 2013 State of Women-Owned Businesses Report,” 2013, American Express Open; “2013 Annual Report,” 2013, National Women’s Business Council; “Small Business Owner Report,” 2014, Bank of America.
Referring women entrepreneurs to local business accelerators or incubators
THE NUMBER OF WOMEN-OWNED BUSINESSES IS ON THE RISE. Since 1997, the number of women-owned businesses has increased 59%, outpacing the 41% growth rate among all new businesses. Women-owned businesses added 175,000 jobs to the economy from 2007 to 2013.
59%
2013
41%
1997
In 2013, women-owned businesses: accounted for
generated
employed
8.6 MILLION
7.8 MILLION
businesses in the U.S.
$
1.3 TRILLION in revenue
workers
GROWTH IN WOMEN-OWNED BUSINESSES CAN BE FOUND ACROSS THE COUNTRY. 5
THE TOP 10 STATES FOR WOMEN-OWNED BUSINESSES ARE: 1. California 2. Texas 3. New York 4. Florida 5. Illinois
3
10
6. Georgia 7. Pennsylvania 8. North Carolina 9. Ohio 10. Michigan
7 9 8
1 6 4
2
STATES WITH THE HIGHEST GROWTH OF WOMEN-OWNED BUSINESSES:
120%
STATES WITH THE LOWEST GROWTH OF WOMEN-OWNED BUSINESSES:
112%
100%
93 %
80%
91%
84 %
84 %
60% 40% 20%
23 %
12%
0%
GE
A GI R O
T
A EX
N
S
T OR
H
CA
R
I OL
NA LO
UI
A SI
NA N
AD V E
A AL
K AS W
A E
ST
IN RG I V
IA
27 %
27 %
23 %
A W O I
IO
OH
KA
A NS
S
MINORITY WOMEN-OWNED BUSINESSES HAVE GROWN ESPECIALLY QUICKLY. The number of businesses owned by minority women grew 188% from 1997 to 2013. Of the 2.6 million businesses owned by minority women in 2013:
1.1 MILLION
944,000
businesses were owned by African-American women
620,300
businesses were owned by Hispanic women
businesses were owned by Asian-American women
BUT THERE IS ROOM TO GROW. While women-owned businesses have grown at a rate greater than the national average since 1997: The portion of total U.S. business revenue generated by women-owned businesses has hovered around 4%
4
6%
%
Women-owned businesses only employ 6% of the nation’s workforce
2013 ANNUAL REVENUE OF WOMEN-OWNED BUSINESSES 69.5 %
earned $25,000 or less
12%
earned $25,000–$49,999
7.6 %
earned $50,000–$99,999
8.7 %
earned $100,000–$499,999 earned $500,000–$999,999
1.7 %
earned $1 million or more
1.8 % 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
THE LARGEST PORTION OF WOMEN-OWNED BUSINESSES ARE IN THE: healthcare or social services sector
17 % other services
15 % administrative, support or waste management services
10 %
Women tend to be less prevalent in industries such as transportation and wholesale trade.
HOWEVER, THERE’S A BRIGHT FUTURE FOR WOMEN ENTREPRENEURS.
70% of women small business owners expect revenue to increase in 2014, compared to 66% of male small business owners.
68% of women business owners plan to grow their business over the next five years, compared to 63% of male business owners.
56% of women business owners plan to hire more employees, compared to 50% of male business owners.
In its 2013 annual report, National Women’s Business Council recommended improving access to capital, target markets and business incubator programs to continue to foster the creation of women-owned businesses and spur economic growth. NWBC RECOMMENDS: Increasing lending from credit unions and community banks to women-owned businesses
Researching industries that are not often targeted by women entrepreneurs
Sources: “The 2013 State of Women-Owned Businesses Report,” 2013, American Express Open; “2013 Annual Report,” 2013, National Women’s Business Council; “Small Business Owner Report,” 2014, Bank of America.
Referring women entrepreneurs to local business accelerators or incubators
