Women Owned Businesses: Statistics and Impact
The Impact of Female Entrepreneurs
In the United States economy women-owned businesses account for 39.2% of all enterprises and employing 12.9 million workers. These businesses are responsible for $3.3 trillion in annual revenue which highlights their growing influence in shaping the American business landscape.
Over the past 5 years, the number of women-owned businesses increased by 17.1% with employment increasing by 19.5% and revenue growing 53.8%. However, the impact on employment (9.6%) and revenue (6.2%) still lags behind their overall representation.
If women-owned businesses achieved the same average revenue as men-owned businesses in 2024 the US economy would see a $10.2 trillion in additional annual revenue.
Women Owned Business by Demographic Segment
| All | Asian American | Black/African American | Hispanic/Latino | |
| % Of the Women's Population | 100.0% | 7.0% | 13.0% | 19.0% |
| Firms | ||||
| Number | 14.5M | 1.4M | 2.0M | 2.1M |
| Share of women-owned businesses | 100.0% | 9.8% | 14.0% | 14.5% |
| Growth rate 2019-24 | 17.1% | 22.3% | 9.5% | 12.0% |
| Average growth rate 2019-24 | 3.2% | 4.2% | 2.0% | 2.5% |
| Growth rate 2023-24 | 4.7% | 5.7% | 7.1% | 1.3% |
| Employment | ||||
| % employers* of all firms | 9.8% | 14.1% | 5.0% | 6.2% |
| Employment | 12.9M | 1.6M | 648K | 873K |
| Employment growth rate 2019-24 | 19.5% | 28.4% | 44.4% | 19.4% |
| Avg employment growth rate 2019-24 | 3.7% | 4.6% | 8.1% | 3.7% |
| Employment growth rate 2023-24 | 4.4% | 5.9% | 6.7% | 5.5% |
| Average number of employees | 9.1 | 7.9 | 9 | 6.7 |
| Revenue | ||||
| Total revenue | $3.3M | $306.5B | $118.7B | 225.0B |
| Revenue growth rate 2019-24 | 53.8% | 40.9% | 80.8% | 61.7% |
| Avg revenue growth rate 2019-24 | 9.1% | 7.3% | 12.7% | 10.3% |
| Revenue growth rate 2023-24 | 9.7% | 8.5% | 9.1% | 9.4% |
| Average revenue | $226K | $216K | $59K | $108K |
*Women-owned employers are women-owned businesses with employees. Women-owned businesses include businesses without employees and with employees.
Women in Diverse Industries
Over the past few years there has been a noticeable shift as women entrepreneurs venture into diverse professional sectors. This diversification broadens entrepreneurial opportunities for women across sectors. Evolving social norms, supportive ecosystems, and flexible work arrangements are influencing women’s industry choices.
*Professional, scientific, and technical services
A Shrinking Path for High Potential Female Entrepreneurs
Data shows a stark gender disparity within becoming a middle market firm. Men owned businesses dominate at most stages to all businesses to those with $20 million in revenue. To expand into the middle market many firms seek funding from private equity and venture capitalist firms diluting ownership.
The representation of women-owned businesses dwindles dramatically at each milestone. Only 2.4% of women owned businesses make it to becoming a middle-market firm which illustrates a significant challenge for women entrepreneurs growing their business.
Overcoming Barriers
To address barriers faced by women entrepreneurs, a multi-faceted approach involving collaboration between policymakers, funders, and support organizations is crucial. Key initiatives include expanding access to capital through Community Development Financial Institutions (CDFIs) and government programs like the State Small Business Credit Initiative (SSBCI), which boosts funding for marginalized businesses. Additionally, venture capital funds and accelerators targeting women-led ventures aim to close the funding gap.
Supportive policies such as affordable childcare, flexible work arrangements, and family-friendly workplace policies can help women balance personal and professional responsibilities, enhancing productivity and well-being. AI-driven tools are also breaking language barriers, improving access to entrepreneurial education and skills development for immigrant entrepreneurs.
Efforts to promote gender parity in business ownership are not only a social necessity but also a potential economic driver, creating jobs and stimulating growth. However, challenges such as legal hurdles and economic fluctuations remain, requiring continued support and innovation. With sustained collective effort, women entrepreneurs can significantly contribute to a more inclusive, prosperous economy.
Ref: “The Impact of Women-Owned Businesses.” Wells Fargo & Company.
