Women-owned small businesses are on the rise, and their impact is undeniable. In fact, in 2019 alone, women-owned nearly 12 million businesses that employed nearly 9 million people and generated over $1.9 trillion in revenue. From retail to technology to finance, these inspiring business owners are showing that anything is possible when you put your mind to it.
Women-Owned Small Business Statistics
The numbers speak for themselves. According to the most recent report from American Express, women-owned small businesses make up 39% of all U.S. businesses. This figure has grown significantly since 2007 when it was just 29%. These businesses employ 8.9 million people and generate $1.9 trillion in revenue—that’s twice as much as the Fortune 500 companies combined! Additionally, the number of women-owned firms with paid employees grew by 36% between 2007 and 2018 while the total number of firms only increased by 18%. Clearly, women are making an impact on small business ownership!
In addition to the impressive growth in these numbers over time, there are several other notable trends among women-owned small businesses that warrant attention. For example, according to American Express’s report, “Women of Color Are Leading Business Growth”: African American owned firms have seen a 63% increase in revenues; Latinas have seen a 56% increase; Asian American/Pacific Islanders saw a 45% increase; and Native Americans saw a 32% increase since 2007. Additionally, 60% of all new women-owned firms were founded by entrepreneurs of color during this same timeframe!
The Impact of Women-Owned Small Businesses
The impact that these business owners have had on their local economies cannot be understated—they are creating jobs and providing goods and services that help stimulate economic growth within their communities. Moreover, they often provide mentorship opportunities for young female entrepreneurs who may not otherwise have access to resources or guidance that can help grow their own business ideas into reality. And finally, by owning their own businesses and becoming financially independent, these female entrepreneurs can serve as role models for young girls who may not otherwise see themselves as capable of achieving such success in life or business.
Women-owned small businesses are having a considerable impact on the local economy. According to recent research, small businesses owned by women make up nearly one-third of small business proprietors in the United States and account for around 8 million jobs. Furthermore, these businesses create positive economic ripple effects by increasing tax revenue and creating countless new employment opportunities throughout their respective local economies. Not only have small business owners increased small business inventory in many areas, they have also introduced a much-needed diversity of services and products; employees with different backgrounds, gender orientations, and points of view are now being hired due to the rise of small business ownership among women entrepreneurs. Consequently, small businesses owned by women are helping to improve the strength, quality of life, and vibrancy of many localities on a sustainable basis.
