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Women Owned Businesses: Fastest Growing Segment of the Market

February 22nd, 2007 | Author: Erin Olson | Permalink
  • There are 10.6 million women-owned businesses in the US today
  • These firms employ 19.1 million people and generate nearly $2.5 trillion in sales.
  • Between 1997 and 2004, the number of 50% or more women-owned firms increased at nearly twice the rate of all firms.
  • Women-owned businesses spend an estimated $546 billion on salaries and benefits annually ($492 billion on salaries and $54 billion for employee benefits  health, retirement and insurance). Health benefits comprise the largest share of benefit expenditures, with 2004 spending estimated at $38 billion.
  • Women emphasize relationship building as well as gathering facts; are more likely to consult with others, including experts, employees, and fellow business owners; and may take more time to make decisions.
  • Women owners of businesses with revenues of $1 million or more are more likely to belong to formal business organizations, associations, or networks than other women business owners (81% vs. 61%).
  • Women-owned businesses with $1 million or more in revenues are more likely than smaller businesses owned by women to have large corporations (34% vs. 12%) and the government (31% vs. 8%) as their primary clients.
  • Fifteen percent of women-owned businesses with revenues of $1 million or more characterize their primary market as international. More than two-thirds of these women (69%) are involved in international contracts and almost half of them (49%) export directly.
  • Women business owners are more willing than other women or men to take above average or substantial financial risks when saving or investing for their households (57% of women business owners, 14% of women in general and 26% of men in general).
  • Women business owners are even more risk-tolerant when investing for their business than their households. Most women business owners (66%) are willing to take above average or substantial risks when investing for their businesses.
  • Annual expenditures by women-owned enterprises for just four areas  information technology, telecommunications, human resources services, and shipping are estimated to be $103 billion.
  • Although a majority of both women and men owners of businesses with revenues of $1 million or more started their firms, women owners were more likely to have started their companies than men owners (73% vs. 60%), rather than have purchased, inherited, or acquired in some other way.
  • The majority (72%) of women business owners surveyed in 2003 who were successful in obtaining expansion capital and had set specific expansion goals were found to have achieved or exceeded their goals.
  • Eighty-six percent (86%) of women entrepreneurs say they use the same products and services at home as they do in their businesses.
  • Women business owners are philanthropically active: 68% volunteer at least once a month; 31% contribute $5,000 or more annually to charities and 15% give $10,000 or more.
  • Women-owned businesses are just as financially strong and creditworthy as the average U.S. firm, with similar performance on bill payment and similar levels of credit risk, and are just as likely to remain in business.

*From the Center for Women’s Business Research (www.centerforwomensbusinessresearch.org)

2 Comments

  1. It is great to see more grants and growth in resources supporting women-owned businesses. I recently helped several woman-owned businesses set up new offices. The SBA grants available to women provide great financing terms on purchasing the entire suite of office furniture. Buying from a woman-owned furniture group will not only help you save time and money, but you will gain a design team that will help you create a productive workspace for your organization.

    Cheryl's Office January 9th, 2008 at 8:28 pm
  2. I have spent 10 years working under an SBA grant helping women get started in business and telling women there are no SBA grants to start a business, so I wonder about the SBA grants Cheryl mentions to buy office furntiure. Could she give me more information on these grants?

    Thanks, Nancy

    Nancy Mitchell January 21st, 2008 at 2:46 pm

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