Women-Owned Business Growing 5X Faster Than National Average

Over the past nine years, the number of women-owned firms has grown at a rate five times faster than the national average, reaching a post-recession high, according to the 2016 State of Women-Owned Businesses Report, commissioned by American Express Open. The sixth annual report, which is based on historical and current U.S. Census Bureau data and Gross Domestic Product data, found that between 2007 and 2016, the number of women-owned firms rose by 42% with women starting 1,072 (net) new businesses per day.

Additionally, the report indicates that women-owned firms now number 11.3 million, employ nearly 9 million people and are generating more than $1.6 trillion in revenue.
 
Women-owned firms are outpacing the national average in both job creation and revenue generation post-recession. Employment growth among women-owned firms is strong with an increase of 18% since 2007, while hiring declined 1% among all businesses during the same time period. In addition, business revenues among women-owned firms increased by 35% since 2007, compared to 27% among all U.S. firms. With this growth, women are now the majority owners of 38% of the country’s businesses, up from 29% in 2007.
 
Among women-owned firms, one of the fastest growing sectors are businesses owned by women of color. Over the past nine years, the number of firms owned by women of color more than doubled, increasing by 126%. In addition, the nearly five million businesses owned by women of color make up almost half of all women-owned firms. These businesses employ two million workers and generate $344 billion in annual revenue.
 
In the wake of the recession, women are turning to traditional industries such as lifestyle and services companies, according to the data. Between 2007 and 2016, one of the four industries that saw the greatest increase in the number of women-owned firms was “other services.” This sector, which includes home care to hair and nail salons and pet care businesses, was up 98%, according to the American Express data.