As of 2005, there are an estimated 10.1 million majority-owned, privately-held, women-owned firms in the U.S., employing 18.2 million people and generating $2.32 trillion in sales. Women-owned businesses account for 28 percent of all businesses in the United States and represent about 775,000 new startups per year and account for 55 percent of new startups.
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.
Between 1997 and 2004, the number of privately held firms owned by women of color grew by 54.6 percent. Meanwhile, the overall number of firms in the United States grew by only 9 percent over this period. Women's business ownership is up among all groups, but the number of Hispanic (up 63.9 percent) and Asian owned firms (69.3 percent) has grown especially fast. An estimated one in five (21 percent) women-owned businesses are owned by women of color.
84.8 percent of all businesses owned by women are sole proprietorships. Sole proprietorships operated by women in the United States underwent dramatic increases from 1990 to 1998 in terms of numbers, gross receipts and net income.
Across the world, 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.
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, the number of women-owned firms in the U.S. has doubled, employment has increased four-fold and their revenues have risen five-fold.
Between 1997 and 2002, the number of women-owned businesses with more than 100 employees rose by 44 percent.
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, 50 percent of the managerial and professional specialty positions.
Women-owned firms continue to diversify across industries, with the fastest growth rates seen in nontraditional industries, including construction, agricultural services and transportation.
Sources: Center for Women’s Business Research, Business Women's Network and the Dynamics of Women-Owned Sole Proprietorships by Dr. Ying Lowrey. |
