Women-owned businesses continue to grow in numbers as female entrepreneurs are turning their passion into profits. The number has risen dramatically throughout the years. For example, according to American Express’s 2019 State of Women-Owned Businesses Report, women-owned businesses are growing two times faster on average than all businesses nationwide. This number has increased 21 percent between 2014 and 2019. This is particularly impressive because the report states that all businesses during this time frame only increased by nine percent.
Let’s go one step further. Over the past five years, the number of women-owned businesses has grown an impressive 58 percent and doesn’t look like it is going to slow down anytime soon. In addition, the United States recorded 12.3 million women-owned businesses in 2020 that generated $1.9 trillion in revenue.
So, with all these statistics in mind, why are women-owned businesses important to our economy? In addition to generating more than a trillion dollars and creating thousands of jobs, women in business are a driving force in the nation’s flourishing economy. The United States is increasingly reliant on the work and devotion of female entrepreneurs. Take a look at how significant they truly are to fueling our economy:
Women Transform Hobbies Into Businesses
Many women who have a hobby or talent realize they can turn their passion into profits. These solopreneurs with a “sidepreneurship” attitude are taking their side hustle or part-time activity, leaving their full-time job and creating a new full-time business. This is in order to create a work-life balance and have more time to spend with their families. According to a survey conducted by SCORE (Service Corps of Retired Executives), 62 percent of women entrepreneurs reported depending on their business as their primary source of income. And according to Fundera Statistics Report titled, 17 Women Owned Business Stats You Need to Know, 62 percent of women entrepreneurs cite their business as their primary source of income. Women are taking ownership of their time, flexible schedules, and making money for their families instead of making money for someone else…and thriving while doing it.
Take a look at the industries women-owned businesses represent:
- Healthcare and Social Assistance: 1.9 million firms throughout the country in child and daycare, home health, and social assistance, which accounted for 15 percent of all women-owned businesses.
- Professional/Scientific/Technical Services: 1.6 million firms like lawyers, architects, bookkeepers, public relations, consultants, which accounted for 13 percent of all women-owned businesses.
- Other Services: 2.8 million firms like hair and nail salons, and pet care businesses accounted for 22 percent of all women-owned businesses.
Women Entrepreneurs Are Role Models
According to a blog, Why Women-Owned Business is a Big Deal on diverseid.com, the increasing number of women-owned small businesses is setting positive examples for young girls. “Daughters and young women now have role models to help them grow into strong leaders and minds that can make a positive impact. Additionally, women entrepreneurs of today are setting examples for our youth’s futures.
Women Entrepreneurs Support Women Entrepreneurs
Women are renowned for helping other women succeed. Women business owners like founder of Spanx is a perfect example. According to an article in Forbes, “Sarah started a Red Backpack Fund, making 1,000 grants of $5,000 each to female entrepreneurs in the U.S.” This was to help new startups as Sarah remembers how difficult it was in the beginning stages. Local organizations where women gather to learn more about entrepreneurship have grown in recent years. For example, The U.S. Chamber of Commerce Foundation works to build a network for women entrepreneurs to encourage peer-to-peer networking, education, and professional growth.