126 - Number of Women-Owned Businesses Growing at Highest Pace Since the Recession
The Sixth Annual State of Women-Owned Businesses Report, Commissioned by American Express OPEN Finds More than 1,000 Women-Owned Businesses are Formed Each Day
1. Significant growth in firms owned by women of color
Among women-owned firms, one of the fastest growing sectors are businesses owned by women of color. Over the past nine years, the number of firms owned by women of color more than doubled, increasing by 126%. In addition, the nearly five million businesses owned by women of color make up almost half of all women-owned firms. These businesses employ two million workers and generate $344 billion in annual revenue.
2. Women-owned firms are geographically dispersed
The five states home to the greatest number of women-owned firms as of 2016 are:
- California
- Texas
- Florida
- New York
- Georgia
The top metropolitan areas by number of women-owned firms as of 2016 are:
- New York City
- Los Angeles
- Miami
- Chicago
- Atlanta
Since the recession, the greatest growth in number of women-owned firms was seen in the South. Eight out of the 10 fastest-growing states for number of women-owned firms between 2007 and 2016 are located in that region and are: Florida, Georgia, Texas, Michigan, Mississippi, South Carolina, Tennessee, The District of Columbia, South Dakota and Louisiana.
3. Industry trends
In the wake of the recession, women are turning to traditional industries such as lifestyle and services companies. Between 2007 and 2016, the following four industries saw the greatest increase in the number of women-owned firms:
- other services (e.g. home care to hair and nail salons and pet care businesses), up 98%;
- administrative, support and waste management services (including janitorial and landscaping businesses as well as office administrative support and travel agencies), up 64%;
- accommodation and food services, up 62%;
- and construction, up 56%.
New in this year’s report is a look at the industry composition of women of color, which found that there are more African American women-owned firms in both the other services sector and health care and social assistance sector than any other ethnic group. Additionally, female Asian American-owned businesses are more concentrated in the accommodation and food service sector, while most Latina-owned firms are found in administrative, support and waste management services businesses.
Read the full article here: American Express
All the best!
Patty Block
