by Yolanda Goodloe | February 1, 2024
March is not only a month of blossoming spring but also a time to celebrate the resilience, innovation, and determination of women entrepreneurs. In recent years, women have been breaking barriers and forging their paths, leaving the traditional 9-to-5 behind to embark on the exhilarating journey of entrepreneurship. As we delve into the statistics surrounding women-owned businesses, this Women’s History Month, we take pride in acknowledging their remarkable achievements.
The Rising Tide of Women-Owned Businesses
Owning a business is no small feat, and women across the United States have been embracing the challenge with remarkable gusto. Statistics reveal that an impressive 42% of all U.S. businesses, totaling a staggering 13 million, are owned by women. What’s even more remarkable is that women-owned businesses employ over 9.4 million workers, showcasing the significant impact these ventures have on the job market.
Moreover, women entrepreneurs are proving to be trailblazers, as they are three percentage points more likely to start a business than their male counterparts. The motivations driving them are equally inspiring, with pursuing passion, gaining financial independence, and increasing flexibility ranking as the top three reasons for venturing into entrepreneurship. The financial success of women-owned businesses is evident in the substantial growth of gross receipts, which surged by 51.9% from 2012 to 2019. In contrast, men-owned firms only experienced a 34.2% increase during the same period. The states with the most women-owned businesses, employment, and revenue are Georgia, Oregon, Idaho, Nevada, and South Dakota, underscoring the diverse landscape of women’s entrepreneurship across the nation.
Despite the challenges, women entrepreneurs are not shying away from low-growth industries, with 44% of women-owned businesses thriving in sectors such as childcare, beauty salons, and home healthcare. On average, a remarkable 849 new women-owned businesses open their doors every day, a testament to the growing influence and determination of women in the business world.
The Triumph of Minority Women in Business
As we celebrate Women’s History Month, it is crucial to spotlight the exceptional achievements of minority women in the entrepreneurial arena. The statistics tell a compelling story of triumph and progress. In 2019 alone, minority women-owned businesses generated an impressive $422 billion in revenue, marking a significant milestone in their journey towards economic empowerment.
The growth is undeniable, with the number of businesses owned by minority women surging by over 163% since 2007. The breakdown of these 12.9 million businesses in 2019 showcases the diversity within this entrepreneurial force – 21% owned by Black women, 9% by Asian women, 18% by Latina women, 1.4% by Native American women, and 0.3% by Pacific Islander women. The impact of these businesses reverberates through the employment sector, as they collectively employ over 2.2 million people. Despite facing unique challenges, minority women are not only establishing businesses but also securing funding and raising significant capital. Black and Latino female-founded businesses have raised an impressive $3.1 billion in venture capital funding, contributing to the diversification of the startup landscape.
This Women’s History Month, let us celebrate the triumphs, acknowledge the challenges, and pave the way for a future where women entrepreneurs continue to thrive. Aspiring entrepreneurs, take heed – the landscape is evolving, and the world is ready for your next big idea. Whether you are contemplating starting your own business or seeking support for an existing venture, the time is now.
Resource for statistics: https://bizee.com/blog/women-in-business-statistics