By Isaac Christiansen
It is safe to say that this is the golden age of women entrepreneurs. Robust ecosystems are presently churning out enterprising females who are equipped with technical know-how, inspiration, and funding. Today, the growth rate of female entrepreneurs is double that of their male counterparts.
Women are breaking boundaries and pushing themselves out of their safety zones by using their entrepreneurial talents to break into male dominated territories. According to the U.S. Census Bureau, over the last two decades, there has been a dramatic increase in women-owned businesses. This rate has held steadily at 68 percent since 1997.
Women’s rate of starting businesses is one and a half times more than the national average. This is because they are playing catch up after years of lagging behind men. What’s more inspiring is the fact that women now have an easier time securing venture capital.
Statistics of Women Entrepreneurs in the United States
As of 2015, over 9.4 million firms in the country were owned by women. They employed about 7.9 million people and generated over $1.5 trillion in sales. Women-owned firms account for at least 31 percent of the nation’s privately held businesses. They also contribute 12 percent of revenues and 14 percent of employment.
In recent years, there has been an overall net increase of 8.3 million new jobs. Large and publicly traded companies have created 9.2 million jobs while smaller, privately held companies have seen an employment decline of 893,000 jobs.
Today, 2.9 million U.S. firms are owned by women of color. They generate revenues to the tune of $226 billion and employ 1.4 million employees. Women own one in five businesses worth over $1 million. Additionally, 4.2 percent of women-owned businesses generate $1 million or more in revenues.
Bank of America’s Study on Women Business Ownership
The annual Bank of America study samples over 1,000 small business owners. In 2017, the study showed that women entrepreneurs expect to grow exponentially in the next 20 years. A majority believed that in the future, women would match or surpass men in several areas including the following:
- 80 percent of female entrepreneurs expect that compared to men, women will have greater or, at least, equal representation in STEM (science, technology, engineering, math) fields.
- 68 percent believe that women will match or surpass men in executive leadership positions.
- 66 percent believe that women owned businesses will surpass those owned by men.
- 61 percent believe that women’s wages will either be equal to or more than those of men.
All in all, the study showed that compared to previous years, female small business owners are optimistic that the local, national, and global economies will improve in the year ahead.
Global Statistics of Women Entrepreneurs
With women entrepreneurship hitting a media tipping point, it is essential to note the tremendous progress made by women in business. Today, women-owned entities within the formal sector represent an impressive 37 percent of global enterprises. This factor is worth the attention of policy makers and businesses alike.
Although aggregated data is challenging to find, statistics from the Global Entrepreneurship Monitor show that 126 million women have started or are running their businesses. Another 98 million women are operating established businesses that are over three years old. This totals to 224 million women changing and impacting the global economy – and this survey only sampled 67 countries.
These entrepreneurs are crossing the spectrum from micro to high growth. Instead of only supporting life, they are creating wealth. They include high tech visionaries, food vendors and everything in between. One school of belief is that women entrepreneurs are successful because they enjoy a trusted status within the community. Research shows that many women-owned businesses are outperforming those owned by men.
Entrepreneurship has witnessed a lot of changes within the Himalayan territory. Initially, it was dominated by upper-class men who received formal education and invested their money in building personal fortunes. Years later, educated women followed suit and managed to make a significant mark. However, in recent years, uneducated women have made tremendous progress by raising family incomes through small ventures and later reinvesting their earnings.
Unfortunately, unlike the developed world, women in third world countries like India are finding it difficult to access financial and technical support to take their businesses to a commercial level. Moreover, societal and cultural norms hinder them from participating in ventures that their male counterparts are undertaking.
In India, women fill only 30 percent of the country’s corporate senior management positions and represent 10 percent of entrepreneurs. However, despite these setbacks, entrepreneurial activity is creating growth, prosperity, and solutions for various social problems.
Today, more women have realized that entrepreneurship is a practical career path that is not only reserved for men. They also realize that their sensibility is an additive and not a deterrent. As the trends show, women will be crucial in driving entrepreneurial growth moving forward.
After graduating from the University of Michigan, Isaac Christiansen moved to Riverton Utah and has been their ever since. He is a private practice PT and enjoys spending time with his family and wood working when he’s not at the office.