Since its opening, Shop a Small Business and the Womens' Council of Entrepreneurs have dedicated their time and efforts to promote and support women-led small businesses and female entrepreneurs.
There has been an incredible push to support women-owned businesses by the government and non-governmental institutions and businesses. We applaud and support these efforts.
Check some recent statistics on women-led and owned businesses from Zen Business, and visit the Resources page for female entrepreneurs to check a compilation of great resources: everything from government and corporate grants to organizations that work and support women in business.
Women-owned businesses with an active payroll are a distinct minority, with around 19.9% (1.1 million) of the nation’s businesses owned by women, according to the United States Census Bureau. The majority (52%) of these had 1 to 4 employees, and 13.4% had no employees. Only 8% had 20 or more employees.
The total number of women-owned businesses has grown from approximately 4.6% in 1972 to 42% in 2019.
Women of color, which includes Black, Asian, Latina, Native American, and Pacific Islander women, accounted for around 50% of all women-owned businesses but generated a quarter of the revenue.
Average business revenue for all women: $142,900
Average business revenue for women of color: $65,800
Average business revenue for non-minority women: $218,800
These are significantly lower than the revenues generated by all businesses. Part of the issue is that 50% of all women-owned businesses are concentrated in three major categories:
Other services (nail salons, hair salons, and pet care): 22%
Health care and social assistance (child daycare and home healthcare services): 15%
Professional, scientific, and technical services (lawyers, bookkeepers, architects, public relations, and consultants): 13%
These tend to be lower-earning on average than other business categories, and a lot of these businesses are run part-time. As a result, their earning potential is similarly lower.
It’s also worth remembering that these numbers are likely to have been heavily affected by the COVID-19 pandemic.