Women-owned business statistics prove that female entrepreneurs aren’t to be underestimated. Not only do they account for over 12 million of the businesses in the U.S., they also tend to generate higher revenues, create more jobs, and improve company performance compared to their male counterparts.
Check out the women-owned business statistics below to get a taste of the current environment female business owners face.
General women-owned business statistics
There’s no shortage of impressive women-owned business statistics we could cover, but here are a few bigger picture stats to get started. These data points highlight the state of women-owned businesses in the U.S. today and give us an idea of where the world could be headed in terms of female entrepreneurship.
1. There are 12.3 million women-owned businesses in the U.S. (1)
According to the National Association of Women Business Owners, there are over 12 million women-owned businesses in the U.S. alone, which is about 40% of all the businesses in the country. That, compared to the 402,000 just 50 years ago, is a huge step in the right direction for female entrepreneurship.
2. Women-owned businesses generate $1.8 trillion each year (1)
Women-owned businesses bring in nearly $2 trillion every year. Although this accounts to just 4.3% of annual private sector revenue, we can expect this number to keep growing as more and more women start their own businesses.
3. Women started over 1,800 new businesses a day in 2021 (1)
There were 1,821 net new businesses started by women each day in 2021. Given the current growth of female entrepreneurship in the U.S., we can expect to see millions more women-owned businesses across the country in the coming years.
4. 64% of new women-owned businesses are started by women of color
Over 60% of all new women-owned businesses are started by women of color. In fact, according to a study by McKinsey, Black Americans are more likely to start businesses than any other ethnic group. With more and more opportunities becoming available to women of all racial and cultural backgrounds, we have high hopes for the future of the U.S. economy.
5. There are 114% more female entrepreneurs than there were 20 years ago (3)
The National Women’s Business Council found that the number of female entrepreneurs has increased by 114% compared to just 2 decades ago. Although there is still more work to be done to make the business world a more diverse, inclusive place, we’re certainly on the right track.
6. 62% of female entrepreneurs claim their business as their primary income source
Over 60% of female entrepreneurs claim their business as their primary source of income. This means that most of the women-owned businesses in the country are full-time ventures that meaningfully contribute to our economy and communities.
7. Women-led tech companies achieve a 35% higher ROI (2)
It’s widely considered that female business leaders have specific qualities and skills that make them better entrepreneurs than their male counterparts. In fact, Forbes found that women-owned tech companies have a 35% higher ROI than those run by men.
8. Female-founded businesses outperform those founded by men by 63% (2)
The success of female business leaders is seen beyond the tech industry, too. A Forbes study with venture capital firm First Round Capital concluded that the female-founded businesses in their portfolio outperformed male-founded companies by over 60%.
Women-owned business statistics for financing
Despite their obvious success, women-owned businesses have a harder time when it comes to securing financing. Check out these surprising women-owned business statistics that bring to light the realities of capital funding for female entrepreneurs.
9. Only 25% of women-owned businesses seek financing (1)
While 33% of male business owners secure a loan to get their business up and running, only 25% of female entrepreneurs do the same. Since access to capital is the lifeblood of a small business, it’s important to ensure that all businesses have fair and equal financing opportunities.
10. Women-owned startups pay a higher interest rate (7)
A 2018 study by the Kauffman Foundation found that women seeking financing for startup businesses paid a higher interest rate on loans than men. This adds an extra barrier for female entrepreneurs to overcome, making it that much harder to start and grow their businesses.
11. Women have a 69.5% success rate in crowdfunding (5)
Many female entrepreneurs have turned to crowdfunding to get their businesses off the ground. With a 69.5% success rate, women have an 8% better chance of financing their business solely through crowdfunding than men do.
12. Female entrepreneurs ask for less financing than males (6)
Regardless of where they go looking for funding, be it through a traditional lender or a crowdfunding project, female business owners tend to ask for $33,000 less than men, on average.
Small business banking for women-owned businesses
If these women-owned business statistics have you excited about starting your own business, be sure to look into the small business banking options available through NorthOne. Our easy-to-use platform is trusted by more than 320,000 small businesses across the United States. Talk to our team today to see how we can help you get started.