A Woman’s Touch: How Female-Owned Small Businesses Are Faring
Not only are women-owned small business growing in number, they're also outpacing male-owned firms in job creation. We take a look at how female-owned firms are growing.
Women-owned businesses in the U.S
Businesses owned by women have been growing more quickly than all businesses over the last decade.
- By the numbers. As of 2011 there are: 1) 8.125.800 women-owned businesses; 2) Generating nearly $1.3 trillion in revenues; 3) Employing 7.650.400 people.
- Women-owned businesses outpace national growth. 1997-2011 growth in number of businesses: 1) All businesses - 34%; 2) Women-owned businesses - 50%.
Small business sweet spot
A significant portion of women-owned businesses are small businesses.
- Women-owned businesses account for 29 percent of all enterprises.
- They employ only 6 percent of the U.S. workforce.
- 99% of women-owned businesses employ fewer than 100 people.
Top 10 states for women-owned businesses
- #1 California.
- #2 Texas.
- #3 New York.
- #4 Florida.
- #5 Illinois.
- #6 Georgia.
- #7 Pennsylvania.
- #8 Ohio.
- #9 Michigan.
- #10 North Carolina.
Women drive small business job creation
According to recent studies, women-owned small businesses will generate a majority.
- Small business job growth. Women-owned businesses will generate up to 57% of the 9.72 million small business jobs that the U.S. Bureau of labor Statistics expects will be created between 2009 and 2018.
- Industries ripe for women-owned businesses. Distribution of women-owned firms by industry in 2011: Health Care and Social Assistance - 16%; Professional, Scientific, Technical Services - 14%; Retail Trade - 11%;
Administrative Support, Waste Services - 10%; real Estate, Rental, Leasing - 9%; Arts, Entertainment, Recreation - 5%; Educational Services - 4%; Construction - 4%; Finance and Insurance - 3%; Accommodation and
Food Services - 2%; Wholesale Trade - 2%; Transporting and Warehousing - 2%; Information - 1%; Manufacturing - 1%; Other industries - 16%.
Men versus women entrepreneurs
A study conducted by the U.S. Small Business Administration examined characteristics of male and female small business owners. The group identified a few key differences.
- Men : 1) Men had more experience prior to starting their business; 2) Men had higher expectations regarding their business; 3) Men were more likely to spend extra effort looking for business opportunities.
- Women: 1) Women were more likely to have positive revenues; 2) women were less likely to purchase their business; 3) Women were more likely to prefer low-risk businesses.
Sources: American Express Open | U.S. Census Bureau | Bureaus Of Labor Statistics | Small Business Administration.