Women-owned firms are growing faster than the national average, and much of that growth came from minority firms, according to a study commissioned by American Express Open.
The 2013 State of Women-Owned Business Report examined the period between 1997 and 2013 and found some astonishing growth trends, as well as areas of weakness that need to be firmed up. We’ll highlight some of the top growth statistics and trends in this blog, and explore more of the report in detail over the next few weeks.
One of the most notable stats is the growth of businesses started by women of color. In 1997, they accounted for just 17 percent of women-owned businesses. Today they make up a third.
Other important growth trends from the report include:
- The rate of growth in the number of women-owned enterprises over the past 16 years remains higher than the national average. Between 1997 and 2013, the number of women-owned firms is growing at 1½ times the national average.
- As of 2013, it is estimated that there are over 8.6 million women-owned businesses in the United States, generating over $1.3 trillion in revenues and employing nearly 7.8 million people.
- The states with the fastest growth in the number, employment and revenues of women-owned firms are the District of Columbia, North Dakota, Nevada, Wyoming and Georgia. The fastest growing metropolitan areas for women-owned firms are San Antonio TX, Portland OR, Houston TX, Riverside CA, and Washington DC/MD/VA.
- The states with the fastest growth in the number of women-owned firms over the past 16 years are: Georgia (up 112%), Texas (93%), North Carolina (91%), louisiana (94%) and Nevada (84%). The states with the lowest growth in the number of women-owned firms between 1997 and 2013 are: Alaska (12%), West Virginia (23%), Iowa (23%), Ohio (27%) and Kansas (27%).
- Firms owned by African American women number an estimated 1,119,400 as of 2013. These 1.1 million firms employ 272,000 workers in addition to the owner and generate an estimated $44.9 billion in revenue.
- African American women own fully 49% of all African American owned firms, employ 28% of the workers employed by African American-owned firms, and contribute 28% of the revenue generated by African American-owned businesses. While nationally African American women comprise 13% of all women-owned firms, African American women comprise the greatest share of all women-owned firms in Georgia (34%), Maryland (31%) and Illinois (21%).
- Firms owned by latinas number an estimated 944,000 as of 2013. These firms employ 408,100 workers in addition to the owner and generate an estimated $65.5 billion in revenue. Latina women own 36% of all latino owned firms, employ 20% of the workers employed by latino-owned firms, and contribute 16% of the revenue generated by latino-owned businesses.
- While nationally 11% of women-owned firms are owned by latinas, latinas comprise the greatest share of all women owned firms in New Mexico (29%), Texas (25%), florida (24%) and California (20%).
- Firms owned by Asian American women number an estimated 620,300 as of 2013. These firms employ 649,000 workers in addition to the owner and generate an estimated $105 billion in revenue.
- Asian American women own 35% of all Asian American owned firms, employ 21% of the workers employed by Asian American-owned firms, and contribute 18% of the revenue generated by Asian American-owned businesses.
- While nationally Asian American women own 7% of women-owned firms, the greatest share of Asian American women-owned firms (compared to all women-owned firms in the state) can be found in Hawaii (54%), California (17%), New Jersey and New York (both 10%).
Web-based service ConnXus, based in Mason, Ohio, helps corporations locate, evaluate and engage small, woman- and minority-owned businesses. A fully-integrated solution, ConnXus provides corporations with a host of services including Targeted diverse supplier outreach, Tier 1 & Tier 2 diversity spend reporting and supplier registration portals. For more information, go to www.ConnXus.com. Also, connect via Facebook and on Twitter.