The proof is in the numbers: from main street to the board room, women are the future of business. That’s especially true for entrepreneurs and small business owners: according to American Express, women represent 42% of all businesses. As women-owned companies are generating $1.9 trillion of revenue, women are making an impact that’s impossible to shrug off.
For Women’s History Month, we’re celebrating how women’s businesses are soaring now—and poised to make even more of a splash in the future.
1. Women-owned businesses are growing—quickly.
Researchers at American Express found that growth of women-owned firms is accelerating at more than the rate of all businesses. In 2019, women-owned businesses increased at a rate of 5%—nearly triple the growth of all businesses over the last five years.
Importantly, according to the U.S. Small Business Administration, the increase in women-owned businesses has been buoyed by a wave of minority women setting up shop: minority-women-owned firms increased 14% in the last few years.
2. Women business owners are creating jobs.
Women are employing workers at record numbers: in 2019, women employed 9.4 million people. Women also employ more people than men across the healthcare, accommodations, and administrative support sectors.
3. Entrepreneurial women of color are making a huge impact.
All women-owned businesses grew at a rate of 21% from 2014 to 2019—but businesses owned by women of color soared. Across all races and ethnicities, they grew 43%, which is more than double the growth rate of women in general.
4. Young, educated women business owners are leading the charge.
Research from Guidant Financial shows that women business owners are also more educated than their male counterparts. A whopping 72% of women have a higher degree, whereas men ring in at 64%. Women business owners also hold more Master’s degrees and Associate’s degrees, too.
5. Women-owned startups are outperforming those owned by men.
Investors are starting to realize the outsized returns on investments in women-owned businesses. According to BCG, startups that were either founded or co-founded by women-led performance—they generated more than 10% more revenue over five years than firms led by men. That statistic is especially impressive since women receive significantly fewer venture capital dollars than men.
6. Women’s access to capital is soaring.
Much of women’s growth is being propelled by their access to capital hitting major heights. VC investment in women’s companies hit an all-time high in 2019, according to TechCrunch. Additionally, 43.7% of SBA Microloans, which provide small business owners access to loans up to $50,00, went to women.
These facts and figures tell an exciting story about the momentum of women business owners. They’re riding high, with plenty more opportunity to soar.
Learn about the different financing choices for women business owners.
Sources: American Express, U.S. Small Business Administration, Guidant Financial, Boston Consulting Group, TechCrunch, Congressional Research Service