The Fifth Annual State of Women-Owned
Businesses Report
Finds Women-Owned Firms Have Added 340,000
Jobs Since 2007
Women entrepreneurs now own 30% of all enterprises in the United
States and have started, on average, 887 net new firms per day last
year, according to the 2015 State of Women-Owned Businesses Report,
commissioned by American Express OPEN. The report includes detailed
analysis of data from the U.S. Census Bureau and finds that in many
regions women-owned businesses have surpassed their pre-recession
levels of revenue and employment growth.
The start-up rate among women-owned firms shows that business
creation has recovered from the recession. The number of
women-owned firms has increased by 21% since 2007, close to the 20%
increase in the 2002 - 2007 period and up from only 7% between 2007
and 2012. Over the entire 18-year period from 1997 to 2015
women-owned businesses have:
- increased in number by 74%,
- grown revenues by 79%, and
- added nearly 1 million (847,000) more
jobs.
As of 2015, it is estimated that there are just over 9.4 million
women-owned businesses in the United States, generating nearly $1.5
trillion in revenues and employing more than 7.9 million
people.
“Women-owned businesses are key contributors to the
post-recession recovery,” said Lisette Bernstein, Vice President at
American Express OPEN. “With this report, we hope to draw attention
to the growing diversity of women-owned enterprises and inspire
even more women entrepreneurs to reach their full potential.”
Significant Growth Driver is Multicultural Women-Owned
Firms
Within the population of women-owned firms, a major driver of
growth and diversity is multicultural enterprises. In fact, in 1997
there were 929,445 multicultural women-owned firms, accounting for
one in six (17%) women-owned firms. That number has skyrocketed to
an estimated 3,111,300 as of 2015, now comprising one in three
(33%) women-owned firms. These 3.1 million firms employ 1.6 million
workers in addition to the owner and generate an estimated $268
billion in revenues. And, looking at just the past year, nearly 500
of the 887 net new women-owned firms started each day were started
by minority women – for a 55% majority of net new women-owned
firms.
Some additional findings from the 2015 State of Women-Owned
Businesses analysis include:
Industry Trends
The industries with the highest concentration of women-owned
firms are health care and social assistance (53% of firms in this
sector are women-owned, compared to a 30% share overall),
educational services (45%), other services (42%), and
administrative support and waste management services (37%).
Geographic Trends
The states with the fastest growth
in the number of women-owned firms between 1997 and 2015 are:
1.
Georgia (132%)
2.
Texas (116%)
3.
North Carolina (98%)
4.
North Dakota (89%)
5.
New York (89%)
The states with the slowest growth
in the number of women-owned businesses between 1997 and 2015
are:
47.
Alaska (14%)
48.
West Virginia (26%)
49.
Iowa (27%)
50.
Kansas (32%)
51.
Maine (36%)
Combining growth in the number of women-owned firms as well as
revenue and employment growth over the 1997-2015 period finds that
the states with the highest combined
economic clout for women-owned firms are:
1.
North Dakota
2.
Wyoming
3.
District of Columbia
4.
Arizona (tied for fourth)
4.
Georgia (tied for fourth)
4.
Nevada (tied for fourth)
Among the 25 most populous metropolitan areas, the cities with
the highest combined economic clout
for women-owned firms over the 2002-2015 period are:
1.
San Antonio, TX
2.
Portland, OR
3.
Houston, TX
4.
Atlanta, GA
5.
Riverside, CA
Study Methodology
The State of Women-Owned Business Report, commissioned by
American Express OPEN, is based on data from the United States
Census Bureau, specifically their business census, the Survey of
Business Owners (SBO), which is conducted every five years in years
ending in 2 and 7. Data from the past three censuses – 1997, 2002
and 2007 – were collated, analyzed and projected forward to 2015
factoring in relative changes in Gross Domestic Product (GDP) not
only nationally but also at industry and state levels. State-level
GDP changes over the period of analysis are applied to our
estimates of change at the metropolitan level. Please note the
metropolitan area trends can only be analyzed back as far as the
2002 Economic Census because the boundaries of metropolitan areas
were changed after the 2000 Census. Also note that prior to 1997,
women-owned firms were defined differently by the U.S. Census
Bureau, and the trend analysis cannot be compared to data earlier
than 1997.
This report was prepared for American Express OPEN by Womenable,
a research, program and policy development consultancy whose
mission is to improve the environment for women-owned businesses
worldwide. Womenable pursues this mission by working with the
stewards of women's entrepreneurship around the world – policy
makers, multilateral organizations, corporate decision makers,
entrepreneurial support organizations and the women's business
community – to evaluate, implement and improve policies and
programs to support women's enterprise development. Learn more at
www.womenable.com.
The report was published in May of 2015. The report along with
the data included in this press release is provided solely for
informational purposes and is not to be construed as providing
advice, recommendations, endorsements, representations or
warranties of any kind whatsoever. Opinions and analysis contained
in the report represent the opinions and analysis of Womenable, and
do not necessarily represent the opinions or analysis of American
Express Company or any of its affiliates, subsidiaries or divisions
(including, without limitation, American Express OPEN).
For detailed information on the 1997, 2002 and 2007 economic
censuses, visit:
http://www.census.gov/econ/census07/www/get_data.html. (The 1997
economic census is no longer available electronically). A preview
of upcoming changes for the 2012 economic census may be found at:
http://www.census.gov/econ/census/new_for_2012.html.
About American Express OPEN
American Express OPEN is the leading payment card issuer for
small businesses in the United States and supports business owners
and entrepreneurs with products and services to help them run and
grow their businesses. This includes business charge and credit
cards that deliver purchasing power, flexibility, rewards, savings
on business services from an expanded lineup of partners and online
tools and services designed to help improve profitability. Learn
more at www.OPEN.com and connect with us at openforum.com and
twitter.com/openforum.
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more
at americanexpress.com and connect with us
on facebook.com/americanexpress,
foursquare.com/americanexpress, linkedin.com/company/american-express,
twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products and services: charge and credit cards,
business credit cards, Plenti rewards program, travel services,
gift cards, prepaid cards, merchant services, corporate card and
business travel.
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version on businesswire.com: http://www.businesswire.com/news/home/20150518005246/en/
M BoothAlex Della Rocca212-539-3203Alexd@mbooth.comorAmerican Express OPENHeather
Norton212-640-0496Heather.A.Norton@aexp.com
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