Interesting Facts About
Woman Owned Businesses

Woman owned businesses are definitely on the rise. The business world has definitely changed during the last several decades. Today, more women are choosing to abandon their roles as employees to take the reigns of their own entrepreneurial endeavors. Unfortunately, the success of these women and their companies isn’t getting the publicity it deserves. Since you don’t hear much about them, you may not have realized the amazing contribution these businesses are making to the economy.

Here are some interesting facts about woman-owned businesses:

• More than 10 million companies are more than 50% owned by women in the United States – that’s equal to about 48% of all the privately held companies in the country (Center for Women's Business Research).

• Of those companies mentioned above, about 75% are majority owned by women. These nearly 7.7 million companies are currently bringing in over $1 trillion in sales and employing over 7 million workers (Center for Women's Business Research).

• The number of businesses in which a woman owns the majority of the company have seen more growth than other businesses during the last 20 years. Their growth rate is about 42% compared to 24% for other types of businesses (Center for Women's Business Research).

• About 83% of female business owners take a personal interest in choosing the technology used for their businesses. This runs counter to the idea that women just aren’t that interested in technology. Just like their male counterparts, female entrepreneurs know they need to take a hands-on approach to all of the aspects of their business (SME Toolkit).

• No difference exists between female and male business owners when it comes to the likelihood of adopting the latest technology. In fact, when these women were compared to the general population, it was found they (24%) were more likely than women in general (18%) to adopt new technology (SME Toolkit).

• One difference may be in how men and women use their business technology. Female business owners see technology as a way to increase workplace flexibility. For example, 44% of female business owners use technology to allow their employees to work at home or to incorporate other flexibility into their work schedules. More than 60% also use technology as a way to balance the responsibilities in their personal and professional lives (SME Toolkit).

• Female entrepreneurs have to ready to fight hard for the financing they need for their businesses. On average, women have to make four attempts in order to get a bank loan for their businesses and more than 20 tries to secure equity capital (SME Toolkit).

• Women also have faith in their own daughters to carry the torch. Female business owners are about twice as likely to pass on the company they have founded to their daughters (SME Toolkit).

• Contrary to popular belief, women in business don’t shy away from risk. Studies have shown that about two-thirds of female business owners are prepared to take substantial risks in terms of their business investment (SME Toolkit).

• Women don’t just start their business in a few select industries. Their companies can be found throughout the entire economy. However, more than 40% are categorized as “service companies” while another 16% are in retail. Slightly less than 10% of female entrepreneurs get started in the real estate, insurance, or finance industries (The New York Times).

• Surprisingly, 6% of female owned businesses are in the area of construction which is often thought to be one of the last male-dominated bastions of business. In fact, between 1997 and 2004, the number of construction companies owned by women increased by a whopping 30% (The New York Times).

• The number of women owned businesses is also increasing in other areas, including agriculture (24%) and transportation (28%) (The New York Times).

• Back in 2004, California was ranked the #1 state for female-owned companies. Texas, Florida, New York, and Illinois rounded out the top five (The New York Times).

• Women of color are becoming a strong force in minority-operated businesses. They own 42% of all the businesses owned by people of color. That’s a 6% increase between 2004 and 2008 (Center for Women's Business Research).

Return from Woman-Owned Businesses to the Your Small Business Guide Home Page.