Women are starting an average of 1,821 new U.S. businesses each day, according to the State of Women-Owned Business Report commissioned by American Express. That is roughly 655,560 businesses this year alone.
As of 2018, women own 12.3 million businesses (or 40 percent overall), according to that same report.
“This new data demonstrates not only the remarkable impact women entrepreneurs have on our economy when it comes to creating jobs and generating revenue but also the growing role of women-owned businesses in our communities,” said Julie Tomich, SVP, American Express Global Commercial Services. “Over the past 11 years, we’ve seen women’s entrepreneurship and economic impact increase — especially among the growing number of women-owned companies that generate more than $1 million in revenue.”
2018 has been an impactful year for female entrepreneurs who were forming new businesses, influencing the economy and generating a nice chunk of change. During the launch phase of each business, these female entrepreneurs decided which formal business entity was best for their needs — and many decided that a Limited Liability Company (LLC) was the best route for them.
An LLC is a popular choice for entrepreneurs, with over 80 percent of small businesses choosing this entity type over others. This is largely because an LLC offers liability protection for the company as well as the business owner’s personal assets.
Forming an LLC appears to be a solid choice for some of the fastest growing women-owned businesses around. In May, the Women’s Presidents’ Organization (WPO) announced their list of the fastest-growing women-owned businesses in 2018, which included these LLCs:
- Pinnacle Group is the number one fastest growing woman-owned/led business this year, according to WPO. Pinnacle Group is led by Chairman and CEO Nina Vaca and is an industry-leading workforce solutions firm in Dallas, TX.
- The second fastest growing women-owned/led company is Orangetheory Fitness, a fitness solutions company run by Ellen Latham and based in Boca Raton, FL. Chances are you know someone who is obsessed with OTF and works out there on a regular basis.
- Tribal Tech, LLC comes in at number 34 on the list. Vicki Vasques is the owner, president, and CEO who oversees this company’s top‐quality consulting services with their unique cultural understanding of the populations they serve — including specialized training and technical assistance, grants administration and peer review, and many other competencies provided to Indian Country.
- Goldfish Swim School, Franchising LLC may be number 49 on the list, but it is definitely one to note and watch. Co-founder Jenny McCuiston’s goal is to provide quality swim instruction for children, and Goldfish is proud to teach more than 100,000 students per week how to swim and be safer in and around the water.
Along with the list of the fastest growing women-owned/led businesses, WPO provided these additional facts about the demographics of their findings:
- The average age of woman-owners/leaders is 51; half of the fastest-growing business owners are in their 30s and 40s
- Aggregate revenue of women-owned businesses is $8.3 billion, up $1 billion from last year
- Funding sources at company start for woman-owned businesses include:
- 70% their own funds
- 12% funds from friends and family
- 4% bank loans
- 8% line of credit
- 4% credit card
- 4% private investors/angels
It’s never too late to start the next big woman-owned business. Women owners are resourceful, successful — and ready to build amazing companies based on exciting, inspiring ideas. Know of a women-owned business that formed as an LLC in 2018? Comment with the business and give them a shout out below!
If you’re a woman who’s looking to start her own fast-growing company, reach out to Incfile today — we have all the resources you need to start your business strong and manage it toward success.