41+ Women in Business Statistics

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41+ Women in Business Statistics

There’s no industry that women can’t touch. From tech startups to manufacturing companies, women entrepreneurs have begun to dominate the business world in the last few years, breaking into male-dominated spaces like they belong there (because they do).

The result? A huge increase in profits, diverse workforces and a greater push for work-life balance. Women in business aren’t here to mess around, and it’s clear that their influence is making positive changes in the business world as a whole. To learn more about the female influence in the business world, check out the women in business statistics below. All references for these stats are listed at the end of the blog.

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Women-Owned Business Statistics

Owning a business is no small feat. But in recent years, women have taken on starting their own businesses with stride, leaving their 9 to 5 to explore their passion and become an entrepreneur. In fact, they’re even more likely to start a business than men! 

From the most popular industries for women-owned businesses to their average annual revenue, these are the statistics on women-owned businesses you need to know. 

  1. 42% of all U.S. businesses are owned by women (13 million). [1]
  2. Women-owned businesses employ over 9.4 million workers. [2]
  3. Women are three percentage points more likely to start a business than men. [4]
  4. The top three motivations for women starting their own businesses are pursuing their passion, gaining financial independence and increasing their flexibility. [3]
  5. The states with the most women-owned businesses, employment and revenue are Georgia, Oregon, Idaho, Nevada and South Dakota. [8]
  6. 44% of women-owned businesses are in low-growth industries such as child care, beauty salons and home healthcare. [1]
  7. It’s estimated that 849 new women-owned businesses open every day. [5]
  8. Since the early 2000s, women-owned companies have increased by 114%. [5]
  9. In 2020, the average annual revenue for women-owned businesses was $330,226. [6]
  10. The majority (68.9%) of women business owners are from the Gen X generation. [7]
    1. 19.4% are Baby Boomers.
    2. 1% are Post War.
    3. 10.7% are Millennials.

Minority Women in Business: Facts and Figures

Minority women have been crushing the entrepreneurship game. In fact, the number of businesses owned by women of color has skyrocketed in recent years, even with the difficulties of the pandemic on their backs (not to mention the countless other obstacles minority women face). Take a deep dive into the revenue, employee pool and funding numbers of minority women business owners by checking out the data below.

Looking to start your own business but don’t know where to settle down? Our guide to the best cities for black entrepreneurs will help make sure you grow your roots in the right spot.

  1. The number of businesses owned by minority women has grown by over 163% since 2007. [13]
  2. Out of 12.9 million women-owned businesses in 2019: [9]
    1. 21% are owned by Black women. 
    2. 9% are owned by Asian women. 
    3. 18% are owned by Latina women. 
    4. 1.4% are owned by Native American women. 
    5. 0.3% are owned by Pacific Islander women. 
  3. Minority women-owned businesses made $422 billion in revenue in 2019. [9]
  4. Businesses owned by women of color employ over 2.2 million people. [12]
  5. 17% of Black women are in the process of starting a new business. [10]
  6. 4 million new jobs and $981 billion in revenue would be added to the economy if the average revenue of minority women-owned businesses matched that of white women-owned businesses. [9]
  7. Black and Latinx female-founded businesses have raised $3.1 billion in VC funding. [11]
  8. Black women own over 2.5 million businesses in the United States. [12]

Data on Women-Run Startups

Successful startups such as Canva and Beautycounter were started by women looking to solve a problem they saw in the market and become their own bosses. 

And while female-founded startups are less common than small businesses or traditional companies, they are still on the rise in recent years. Here are more stats about startups backed by brilliant women:

  1. In 2021, 49% of startups were formed by women. [18]
  2. Only 2.5% of startups have only female founders. [8]
  3. Since 2016, startups founded by women have received only 4.4% of venture capital backing. [14]
  4. 14% of startups have a female CEO. [15]
  5. In 2017, the rate of new entrepreneurs for women was 270 per 100,000 people. [16]
  6. During the startup phase, women-led companies use two-thirds less capital than male-led companies. [16] 
  7. Millennial women are 22% more likely to be a founder of a startup than Baby Boomers. [12]
  8. In 2020, 28% of startups had at least one female founder, a six percentage point increase from 2017. [17]
  9. 14% of unicorn startups in 2021 have female founders or co-founders. [19]

Funding Statistics for Women-Led Companies

Let’s face it: Businesses can’t last without cash. And when it comes to brand-new businesses, early-stage funding is crucial to long-term success.

From business grants to more traditional funding opportunities, the following funding statistics provide more insight into how women-led companies get the money they need to shine.

  1. Only 27% of women seek some sort of financing for their business. [20]
  2. Women-founded startups get less than half the funding as startups founded by men, but they generate 10% more income in a five-year period. [14]
  3. 73% of women entrepreneurs say they’ve experienced difficulty getting funding for their businesses. [3]
  4. Only 32% of the women who apply for business funds are approved. [8]
  5. While 61% of women founders reported self-funding their business, others funded their businesses through: [3]
    1. A small business loan (10%)
    2. Full funding from one investor (10%)
    3. Partial funding from multiple investors (8%)
    4. Full funding from multiple investors (7%)
    5. No funding from investors (4%)
  6. Women-owned businesses in California and Texas are the most likely to submit loan requests. [6]
  7. In 2020, women received loans an average of 33% smaller than their male counterparts. [6]
  8. Women receive an average loan of $59,857 to start their businesses. [8]
  9. 71% of female business owners said they aren’t concerned about receiving financial aid or other forms of funding. [18]
  10. 33% of female business leaders received financial aid during the COVID-19 pandemic, compared to only 30% of male business leaders. [21]

Small Business Owners: A Female Perspective

Here at Incfile, we have a soft spot for small business owners. While they may not bring in as much revenue as their unicorn startup counterparts, that doesn’t mean they aren’t a crucial part of our country’s economy. Check out the following facts and figures of women-owned small businesses to learn more.

  1. On average, women small business owners are 42 years old, have been in business for 11 years and have a household income of $110,000 or more. [3]
  2. Women own 39% of the small businesses operating across the U.S. [20]
  3. Female small business owners are six percentage points more likely to report that domestic responsibilities impact their work than male small business owners. [21]
  4. 66% of women business owners are the sole owners of their companies. [3]
  5. 32% of women entrepreneurs said their fellow small business owners were the most beneficial resource for navigating the pandemic. [22]
  6. Female-owned small businesses were 7% more likely to close their business during the COVID-19 pandemic than their male counterparts. [21]

women in business statistics

As you can clearly see, women entrepreneurs are a force to be reckoned with. If you’re feeling inspired and want to start your own women-run business — or if you’re already a business owner who needs a hand — Incfile is here to help.

In fact, we believe in your next big idea so much that we won't charge you anything to form your LLC. All you have to do is pay your state's fee and you're off to the races!

 

Resources:

  1. National Women’s Business Council Annual Report: 2020
  2. National Women’s Business Council Annual Report: 2019
  3. VISA State of Female Entrepreneurship: 2019
  4. SCORE: State of U.S. Women's Entrepreneurship
  5. Inc: There Are 114 Percent More Women Entrepreneurs Than 20 Years Ago and It's Not Necessarily a Good Thing
  6. Biz2credit: 2020 Women-Owned Business Study
  7. Guidant: 2022 Women in Business Trends
  8. Zippia: 37 Encouraging Women-Owned Business and Entrepreneurship Statistics
  9. American Express: 2019 State of Women-Owned Business Report
  10. Havard Business Review: Black Women Are More Likely to Start a Business Than White Men
  11. Statista: Total funds raised by Black and Latinx female-founded startups in the United States in 2018 and 2020
  12. UBL: Women Entrepreneurs Statistics: Equality in 2022
  13. American Express: 2018 State of Women-Owned Business Report
  14. BCG: Why Women-Owned Startups Are a Better Bet
  15. Statista: Share of Startups with a Woman in an Executive Position in the United States in 2020
  16. Kauffman Foundation: Access to Capital for Entrepreneurs
  17. Statista: Percentage of Startups with at Least One Female Founding Member in the United States Between 2017 and 2020
  18. Gusto Survey: Entrepreneurs Seizing New Business Opportunities Amid the Great Resignation
  19. Crunchbase: The Herd Of Female-Founded Unicorn Companies Continues To Grow in 2022
  20. SCORE: Women’s Entrepreneurship Infographic
  21. Global State of Small Business Report
  22. Bank of America: 2021 Women Business Owner Spotlight
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