Business is the lifeblood of the economy which drives our nation. In recent years, we have witnessed rapid statistical growth that shows women are carving out their own place in traditionally male-dominated industries. Now, women are founding and running businesses at an astonishing rate.
Entrepreneurship, as we know it, is evolving beyond an outdated perception. Modern advances in technology have empowered entrepreneurs to establish a brand identity and start selling product in little time. Women have seized this opportunity more than men – in fact, the global population of female entrepreneurs has increased more rapidly than that of male entrepreneurs. Below, we break down a few statistics celebrating the success of female entrepreneurs and women-owned businesses.
How Women-Owned Companies Are Performing
- Since 2014, the number of women-owned companies has grown by 21% and now stands at nearly 13 million.
- Since 2014, employment of women-owned companies has grown by 8%. Now, job opportunities created by women employ 9.4 million people. Employment for all other businesses increased 1.8% in that same timeframe.
- Since 2014, revenue of women-owned companies has risen 21% for an eye-popping yearly figure of $1.9 trillion.
- In 1972, women-owned companies represented 4.6% of all U.S. businesses. Now, they represent 42% of that figure.
- In the last twenty years, the number of female entrepreneurs has increased by 114%.
These statistics are pulled from the State of Women-Owned Businesses Report commissioned by American Express.
Challenges Facing Female Entrepreneurs
Though women are often more likely than men to start companies to meet a need in the market, they face more obstacles than entrepreneurs in general when starting their business. Eliminating barriers biased against women is something that will help stimulate innovation, productivity, and economic growth. Until that happens, female entrepreneurs have had to overcome barriers, such as the following:
- Female entrepreneurs receive less venture capital funding than male entrepreneurs.
- Women-owned startup companies pay higher interest rates than men-owned companies do.
- Female entrepreneurs are more commonly asked “how will you not lose,” whereas men are often asked “how will you win.”
Trends Defining Female Entrepreneurship
Per the State of Women-Owned Businesses Report, these statistics highlight some innovative trends that have defined the growth of women-owned companies.
- “Sidepreneurs” are individuals who practice entrepreneurship part-time. Since 2014, growth in sidepreneurship has nearly doubled that of full-time female entrepreneurship. Sidepreneurship enables company-leading women to balance business with their personal life.
- Since 2014, women-owned companies have hired fewer permanent employees. Instead, female entrepreneurs are turning to freelancer workers and part-time employees to take advantage of collaborative technologies and facilitate remote work.
- Women-owned companies help other women-owned companies. 65% of female entrepreneurs know another female entrepreneur. Of those, 91% solicit advice from one another.
Celebrating Trailblazing Women-Owned Companies
In 2020, the Women Presidents’ Organization (WPO) released their 13th annual ranking of the 50 Fastest-Growing Women-Owned/Led Companies. To cap off our celebration of women in the workplace, we will highlight the top three awardees who were recognized as trailblazers in female entrepreneurship.
- TKT & Associates, Inc. is the fastest growing woman-owned business and seized the top spot after coming in at the number two ranking the previous year. Founded in 2006, this Louisville-based company saw incredible growth from 2017 to 2019. During that time, TKT & Associates, Inc. quintupled their workforce and grew their revenue to over $130 million.
- Enspire Energy, an energy marketing company in Virginia, is the second fastest growing women-owned company. Owners Mary Hensley and Julie Hashagen used their tremendous industry experience to yield great success, and they continue to see incredible business growth.
- Despite not being listed in the previous year’s rankings, lifestyle brand Modere landed in 2020’s rankings as the third fastest-growing company. Owner Asma Ishaq has guided her company to impressive revenue and hiring growth. Modere creates unique opportunities for emerging product categories in the health and wellness space.
If you’re a female entrepreneur just starting to take off, then your next steps should be considering how to grow your company. Statistics show that it is in your best interest to network with other women-owned companies, like EEI Manufacturing. Since 2010, EEI Manufacturing has been recognized as a Top 100 Fastest Growing Woman-Owned Business in Tampa Bay, as well as a Top Ranked Woman-Owned Business. Changing perception of female entrepreneurs will go a long way in helping to grow women-owned companies.
