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Women-Owned Businesses Surge, Led by Black and Latina Owners

September 25, 2018 By Locavesting

Women are creating more businesses than their male counterparts, and African American and Latina women are driving that trend. However, women, especially non-white women, still lag in  revenue and job creation.

Those are some of the top line findings from the 2018 State of Women-Owned Businesses Report, an annual report commissioned by American Express and prepared by Ventureneer with the support of CoreWoman.

From 2017 to 2018, women–owned firms—defined as firms that are at least 51% owned and controlled by women—grew by 6% compared to 1.6% growth by all firms. Women make up 40% of all firms, but their numbers have been growing at an average 4% per year for the past decade, compared to 1% for all firms. If that growth rate continues, women are on track to become  the majority of small business owners. 2018 State of Women Owned Business

These women-owned businesses employ 8% of the total private sector workforce and contribute 4.3% of total revenues. When firms that are equally owned by women and men are included, those numbers jump: firms at least 50% owned by women account for 48% of all businesses, employ 14% of the workforce and generate $3.1 trillion in revenues (7% of revenues).

The growth is being driven by women of color, who account for nearly half (47%) of all women-owned businesses.

Women Rising

Women have been notching significant gains over the past decade or more. According to the report, from 2007 to 2018:

• the number of women-owned businesses surged 58%, compared to 12% for all businesses

• Total employment by women-owned businesses rose 21%, while for all businesses it declined 0.8%.

• Total revenue of women-owned businesses jumped 46%, while revenue for all businesses increased 36%

The numbers paint a rosy picture. But digging deeper, the data suggests that women entrepreneurs are not reaching their full potential.[…]

The post Women-Owned Businesses Surge, Led by Black and Latina Owners appeared first on Locavesting.

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The full and original article can be viewed on Locavesting.com


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Filed Under: -Community Investing, -Impact Investing

About Locavesting

Locavesting - A book, a movement... now a media site! News, analysis and resources focused on the intersection of community + financial innovation. Founded by Amy Cortese.
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