Stats on Women in Business

Women Entrepreneurs

Overview

  • 10.1 million women-owned firms, as of 2005
  • 18.2 million people employed by women as of 2005
  • $2.32 trillion in sales, as of 2005
  • 28 percent of all businesses as of 2005

Business Growth

  • Between 1997 and 2002, women-owned firms grew by 19.8 percent while all U.S. firms grew by seven percent.
  • Employment increased by 30 percent—1½ times the U.S. rate—and sales grew by 40 percent—the same rate as all firms in the U.S.

Women of Color

  • Between 1997 and 2004, the number of firms owned by women of color grew by 54.6 percent.
  • Growth in women's business ownership is growing. Up 63.9 percent for Hispanic women & up 69.3 percent for Asian owned firms.
  • Just over 1 in 5 women-owned businesses (21 percent) are owned by women of color.

Sole Proprietorships

  • 84.8 percent of all businesses owned by women are sole proprietorships.

U.S.  Stats

  • Women-owned businesses are as financially sound and creditworthy as the typical firm in the U.S. economy, and are more likely to remain in business than the average U.S. firm.
  • Since 1987, women-owned firms in the U.S. have doubled, employment has increased four-fold and their revenues have risen five-fold.
  • Women-owned firms with 100 employees grew 44 percent from 1997-2002.
  • Women hold 13.6 percent of board seats at Fortune 500 companies. The number of seats held by women of color has increased from 2.5 percent in 1999 to 3 percent in 2003. Of the Fortune 500, 54 companies have 25 percent or more women directors in 2003.
  • Women comprise 46.6 percent of the U.S. labor force.
  • Women comprise 50 percent of the managerial & professional jobs.
  • Women-owned firms accounted for 6.5 percent of total employment in U.S. firms in 2002 and 4.2 percent of total receipts.
  • Women-owned firms continue to diversify across industries, with the fastest growth rates seen in nontraditional industries, including construction, agricultural services and transportation.
  • The number of women-owned firms continues to grow at twice the rate of all U.S. firms (23 percent vs. 9 percent). There are an estimated 10 million women-owned, privately-held U.S. businesses. The greatest challenge for women-owned firms is access to capital, credit and equity. Women start businesses on both lifestyle and financial reasons. Many run businesses from home to keep overhead low.
  • Women are more likely to seek business advice—69 percent women vs. 47 percent men.

Global Stats

  • Women represent more than 1/3 of all people involved in entrepreneurial activity.
  • Worldwide, women-owned firms typically comprise between one quarter and one-third of the business population.
  • According to 2002 data, significant proportions of women-owned businesses were in professional, scientific and technical services, and in health care and social assistance.

Sources:  Center for Women’s Business Research, Business Women's Network, Global Entrepreneurship Monitor (GEM) 2005 Report on Women and Entrepreneurship, SBA Office of Advocacy, American Express and the Dynamics of Women-Owned Sole Proprietorships by Dr. Ying Lowrey.

U.S. News & World Report features a special advertorial about women in business. Read Women Entrepreneurs Growing in Numbers & Importance. This special section was sponsored by The United States Postal Service.