Empowering Women Entrepreneurs: Unlocking Untapped Economic Potential.

Women entrepreneurs are driving economic growth and innovation at an unprecedented rate, reshaping the business landscape across the United States. This article explores a series of compelling statistics that underline the significant economic contributions made by women-owned businesses and the challenges they face in accessing financial resources. From impressive growth figures to disparities in funding, these statistics paint a comprehensive picture of the state of women entrepreneurship in the United States.

1. The US has 12.3 million women-owned businesses.

• The entrepreneurial spirit among women is flourishing, with millions taking the initiative to start and manage their own businesses. These enterprises span a wide range of industries, contributing to economic diversity.

2. US women-owned businesses generate $1.8 trillion a year.

• These businesses aren't just a presence; they're a powerhouse, collectively generating a staggering $1.8 trillion in annual revenue. Their economic impact is undeniable.

3. 40% of US businesses are women-owned.

• Nearly half of all businesses in the United States are owned and operated by women, indicating their substantial role in shaping the country's business landscape.

4. Women started 1,821 net new businesses every day last year.

• The rate at which women are starting new businesses is remarkable, with an average of over 1,800 new ventures launched every day.

5. 64% of new women-owned businesses were started by women of color last year.

• Women of color are increasingly taking the lead in entrepreneurship, contributing significantly to the growth of women-owned businesses.

6. Latina women-owned businesses grew more than 87%.

• The growth of Latina women-owned businesses highlights their entrepreneurial prowess and their potential to fuel economic expansion.

7. There are 114% more women entrepreneurs than there were 20 years ago.

• Over the past two decades, the number of women entrepreneurs has more than doubled, demonstrating the dynamic evolution of the business landscape.

8. 62% of women entrepreneurs cite their business as their primary source of income.

• Women entrepreneurs are not just dipping their toes into business ventures; many rely on their enterprises as their primary source of income.

9. Private tech companies led by women achieve 35% higher ROI.

• Women-led tech companies demonstrate a strong return on investment, showcasing the value of gender diversity in the tech sector.

10. Women-founded companies in First Round Capital’s portfolio outperformed companies founded by men by 63%. - This statistic reinforces the idea that women entrepreneurs are not only competitive but also excel in the business world.

11. Just 25% of women business owners seek business financing. - Despite their significant contributions, women entrepreneurs are less likely to seek external financing, which can hinder business growth.

12. Women-owned businesses added half a million jobs between 1997 and 2007. - These businesses play a crucial role in job creation, contributing to employment opportunities and economic stability.

13. Women receive just 7% of venture funds for their startups. - Gender disparities in venture funding persist, with women entrepreneurs receiving a disproportionately small share of investment capital.

14. In the United States, an astounding 17% of Black women are in the process of starting or running new businesses. - Black women exhibit remarkable entrepreneurial ambition, but there's still work to be done in ensuring their businesses thrive and grow.

15. Women have a 69.5% success rate of crowdfunding for their businesses while men have a 61.4% success rate. - Crowdfunding has emerged as a viable alternative for women entrepreneurs to secure funding and grow their businesses.

16. 57.4% of the SBA Microloan program’s loan went to women-owned or women-led businesses. - Government initiatives like the SBA Microloan program are helping bridge the funding gap for women entrepreneurs.

17. Female entrepreneurs ask for roughly $35,000 less in business financing than men. - Women entrepreneurs tend to seek smaller amounts of financing, potentially limiting the growth of their ventures.

18. Overall, men receive an average loan size of $43,916 while women receive an average loan size of $38,942 – almost $5,000 less. - The disparity in loan sizes further emphasizes the challenges women face in accessing adequate financial resources for their businesses.

What's next

The statistics presented here offer a comprehensive overview of the remarkable progress and persistent challenges faced by women entrepreneurs in the United States.

While women-owned businesses continue to thrive and contribute significantly to the economy, gender disparities in funding and access to resources persist. Empowering women entrepreneurs through greater access to financing, mentorship, and opportunities is not just a matter of equality; it's an investment in the future of our economy and innovation.

As these statistics show, there is untapped potential that can be unlocked by supporting and promoting women entrepreneurs, ultimately benefiting businesses, communities, and society as a whole.