Florida heads the growth of women-owed businesses in the last 10 years, a survey suggests.
Women started an average of 1,821 new businesses per day in the United States between 2017 and 2018. That is according to the 2018 State of Women-Owned Businesses Report.
This beats the daily average before the recession, from 2002 to 2007 (714). It also beats the recession and recovery period from 2007-2012 (1,143), and the post-recession period from 2012-2017 (952).
Florida heads the growth of women-owed businesses
Florida heads the growth of women-owed businesses between 2007 and 2018, according to the study commissioned by American Express.
Over 48 years the number of women-owned businesses increased 31 times from 402,000 to 12.3 million in 2018. During that time, employment for these firms grew 40-fold from 230,000 to 9.2 million. In addition, revenues rose from $8.1 billion to $1.8 trillion– 217 times greater.
Julie Tomich, SVP, American Express Global Commercial Services, says, “This new data demonstrates not only the remarkable impact women entrepreneurs have on our economy when it comes to creating jobs and generating revenue, but also the growing role of women-owned businesses in our communities.
“Over the past 11 years, we’ve seen women’s entrepreneurship and economic impact increase – especially among the growing number of women-owned companies that generate more than $1 million in revenue.”
Notably in 2018, women-owned businesses that generated $1 million-plus revenues increased 46% over the past 11 years. The rise for all U.S. businesses was 12%. While these high-earning firms make up only 1.7% of all women-owned businesses, they now account for 68% of total employment. They also account for 69% of revenue among all women-owned businesses.
Ratio of women-owned businesses rising fast
Over the past 11 years, the ratio of women-owned businesses to total businesses in the U.S. increased much faster than their employment and revenue growth.
While the share of women-owned businesses leapt from 29% in 2007 to 40% in 2018, the proportion of total employment and revenues for all businesses grew by only a few percentage points. Over this period, the total proportion of employment increased from 6% to 8%. Meanwhile, total revenues increased from 4.0% to 4.3%.
Nearly half of women business owners are between the ages of 45 and 65 (48%). Two-thirds (67%) are 45 or older. The next largest age group, 25-44 years old, account for 31% of women business owners.
The report is based on data from the United States Census Bureau Survey of Business Owners (SBO). This is conducted every five years in years ending in two and seven. Data from the 2007 and 2012 Census surveys were collated, analyzed and extrapolated forward to 2018, factoring in relative changes in Gross Domestic Product (GDP) not only nationally but also at industry, state and metropolitan statistical area levels. All GDP data was obtained from the U.S. Bureau of Economic Analysis (bea.gov).