The Seventh Annual State of Women-Owned
Businesses Report, Commissioned by American Express OPEN Finds
There are 114% More Women-Owned Businesses in the U.S. Than 20
Years Ago
Number of Firms Owned by Women of Color Has
Grown by 467% Over the Past 20 Years
The number of businesses owned by women in the U.S. has more
than doubled in twenty years, as has their revenue, according to
the annual State of Women-Owned Businesses report, commissioned by
American Express OPEN. Women are starting an average of 849 new
businesses per day, up 3% from last year.
This press release features multimedia. View
the full release here:
http://www.businesswire.com/news/home/20171108005232/en/
There are 11.6 million women-owned businesses, employing nearly
9 million people and generating more than $1.7 trillion in revenue.
The report is based on U.S. Census Bureau data adjusted by Gross
Domestic Product data each year.
“We're encouraged to see the amount of female-owned businesses
in the U.S. has more than doubled in twenty years,” said Susan
Sobbott, President of American Express Global Commercial Payments.
“Championing women-owned businesses strengthens our economy,
individual communities and helps inspire the next generation of
female entrepreneurs.”
The huge gain in the number of women-owned businesses and their
revenue growth has not been matched by employment growth,
particularly after the Great Recession. Over the past twenty years,
the number of women-owned firms increased 114% and revenues grew
103%, but employment grew only 27%. In the past year, job growth at
women-owned companies is nearly flat with an increase of only
0.1%.
Significant growth in firms owned by women of color
For the last twenty years, women of color have turned to
entrepreneurship at an astounding rate. While the number of
women-owned businesses grew 114% from 1997 to 2017, firms owned by
women of color grew at more than four times that rate (467%). In
addition, the 5.4 million businesses owned by minority women make
up almost half of all women-owned firms (46%). These businesses
employ more than two million workers and generate $361 billion in
annual revenue.
As of 2017, there are an estimated:
- 2.2 million African American,
women-owned firms;
- Almost 2 million Latina-owned
businesses;
- 1 million Asian American women-owned
companies;
- 161,500 Native American/Alaska Native
women-owned enterprises and;
- 34,200 Native Hawaiian/Pacific Islander
women-owned firms.
The report estimates that if revenues generated by minority,
women-owned firms matched those currently generated by other
women-owned businesses, they would add $1.1 trillion in revenues
and 3.8 million new jobs to the U.S. economy.
Location doesn’t determine success for U.S. women-owned
businesses
While states with large populations like California, Florida,
Texas, New York and Georgia have the most women-owned business,
many rural states are proving that they are a force to be reckoned
with when it comes to their growth rates of women-owned businesses.
This report examined economic clout, which in addition to growth in
the number of firms, includes growth in employment and revenues.
The top five states (including the District of Columbia) where
women-owned businesses most increased their economic clout between
1997 and 2017 are:
- Nevada
- District of Columbia
- South Dakota
- North Dakota
- Georgia
The top metropolitan areas where women-owned businesses
increased their economic clout from 2002 to 20171 are:
- Charlotte-Concord-Gastonia metro area,
NC/SC
- San Antonio, TX
- Austin, TX
- Indianapolis, IN
- Riverside, CA (tie)
- Salt Lake City, UT (tie)
Notably, the five states showing the highest employment vitality
- a measure of employment growth rate from 1997 to 2017 and average
number of employees at women-owned firms - tend to be rural. In
ranked order, they are:
- North Dakota
- Minnesota
- Maine
- Alaska
- Virginia
Industry trends
In the past year, the growth rate in the number of women-owned
firms increased the most for these three industries: construction
(15%), arts, entertainment & recreation (12%) and other
services (12%).
A majority of women-owned businesses can be found in three
industries:
- Other services (e.g., hair and nail
salons and pet care businesses): 23% of all women-owned firms (2.8
million firms)
- Health care and social assistance
(including child day care and home health care services): 15% of
all women-owned firms (1.8 million firms)
- Professional/scientific//technical
services (including lawyers, accountants, architects, public
relations firms and management consultants): 12% of all women-owned
firms (1.5 million firms)
Explore the 2017 State of Women-Owned Businesses Report,
here.
Methodology
The 2017 State of Women-Owned Businesses Report, commissioned by
American Express OPEN, is based on data from the United States
Census Bureau Survey of Business Owners (SBO), which is conducted
every five years in years ending in 2 and 7. Data from the 1997 and
2012 Census surveys were collated, analyzed and extrapolated
forward to 2017, 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 were obtained
from the Bureau of Economic Analysis (bea.gov) – another bureau,
like the Census Bureau, within the U.S. Department of Commerce.
Specifically, growth in GDP from 2002 to 2012 ($10.8 to $16
trillion) was compared to that from 2012 to the fourth quarter of
2016 ($16 to $18.7 trillion). Relative annual growth rates were
then used to estimate the growth in the number of firms over the
2012 to 2017 period – thus adjusting a straight-line extrapolation
to account for relative economic growth between the two time
periods. This was done not only at the national level, but also by
applying actual gross state, metro area and industry-level output
figures (which were available up to the fourth quarter of
2016).
About American Express OPEN
American Express OPEN offers the money, tools and know-how to
help you get business done. Through innovative products and
services, we help businesses with short-term financing, business
management tools, cross border payments, global currency solutions
and travel. Learn more about American Express OPEN at
www.OPEN.com.
# # #
1 The boundaries of metropolitan areas were changed after the
2000 Census, thus metropolitan area trends can only be analyzed
back as far as the 2002 Economic Census.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171108005232/en/
M BoothJohn McLaughlin, 212-481-7000JohnM@mbooth.comorAmerican
Express OPENFelicia Mowll, 212-640-1709Felicia.A.Mowll@aexp.com
American Express (NYSE:AXP)
Historical Stock Chart
From Apr 2024 to May 2024
American Express (NYSE:AXP)
Historical Stock Chart
From May 2023 to May 2024