The rate at which women are opening new businesses has doubled in the last three years. Female entrepreneurs start over 1,000 businesses a day accounting for 30% of all new companies, according to a new study.
Women have made, and continue to make, a big impact on the economy according to the fourth annual State of Women-Owned Businesses Report commissioned by American Express Open. All told, there are 9 million businesses owned by women in the United States with nearly 8 million employees and $1.4 trillion dollars in revenue.
That number has been on the rise for quite a few years. The number of women opening businesses has increased by 68% since 1997, while revenues have gone up 72%. Throughout the recession the trend continued and made strong gains when it came to job creation adding 274,000 new jobs over the last seven years.
A third of all women-owned businesses are headed by women of color, and their growth rates in terms of income and job creation surpass those experienced by other firms owned by women. In the past 17 years, women of color went from owning 1 million businesses to just under 3 million. These businesses have experiencing an 85% growth rate when it came to jobs created, with revenues increasing 168%.
The state of growth
Some states have been better at growing women-led businesses than others. The states with the fastest growth rates are:
North Carolina (91%)
And the bottom five are:
West Virginia (23%)
When you look at the overall economic impact of the businesses owned by women on a state’s economy using employment and revenue statistics as well as the number of businesses in the state the top 5 states are North Dakota, District of Columbia, Nevada, Arizona and Georgia, while Kentucky, Wisconsin, Ohio, Rhode Island, Vermont and Iowa end up at the bottom of the list.
The report was written by Womenable, a research, program and policy development practice, specializing in helping improve the atmosphere for the development of women-owned businesses around the globe. They developed the report using data from the United States Census Bureau Survey of Business Owners (SBO).