October is National Women’s Small Business Month, a time to celebrate, recognize and support female entrepreneurs. The U.S. Small Business Administration (SBA) counts companies with as much as $35.5 million in sales and 1,500 employees as “small businesses”, depending on the industry. Outside government, companies with less than $7 million in sales and fewer than five hundred employees are widely considered small businesses.
The SBA’s Office of Women’s Business Ownership empowers female entrepreneurs through advocacy, outreach, education and support, as well as business training, access to capital, and marketing opportunities. The SBA reports,
Today, women employ more than 9.2 million people and generate $1.7 trillion in revenue. Last year, 1,821 women-owned businesses were launched every day.
Women In Business: 2019 Women-Owned Business Trends
According to a new survey by Guidant Financial and Lending Club on female small business owners:
- Four of every 10 U.S. businesses are owned by women
- Female-led businesses having grown a spectacular 58% from 2007 to 2018
- Businesses owned by women generate $3.1 trillion in revenue
- There were a record number of women elected to both state and federal offices in the 2018 midterms
Women business owners are generally younger than their male counterparts:
- 52% of female small business owners are over 50, compared to 59% of men
- Women overtake men in the 40 to 49 segment at 29% to 24%
- 19% of women business owners are millennials versus 17% men
Women business owners tend to be more educated than men:
- 72% of female business owners have a higher degree, compared to 64% of male small business owners
- 38% more women have Associate’s degrees than men
- 20 % more women have Master’s degrees
- Men have 3% more Bachelor’s degrees than women
- 45 of both male and female small business owners have Doctorate degrees
Industry trends for women business owners:
- Female ownership of health, beauty, and fitness businesses had a 55% increase in share from the prior year
- 19% of female-owned small businesses were in the health, beauty, and fitness industry versus only 6% of male-owned small businesses.
- Women-owned food-related businesses and restaurants increased by 45%
- 14% of female-owned small businesses were food-related or restaurants, compared to 10% of male-owned businesses
- 58% of women start their business from scratch rather than buying an existing business or franchise, versus 51% of male small business owners purchase existing businesses or franchise locations
Financing Trends for Female Small Business Owners:
- Profitability of woman-owned businesses is up by 3%
- 71% of female-owned businesses reported profitability, compared to 80% of male-owned businesses
- 70% of female-owned businesses are acquired at under $100,000. Meanwhile, only 61% of male-owned businesses are acquired at under $100,000
- 35% of female small business owners report their greatest challenge is a lack of capital and cash flow
- 16% of woman small business owners say their greatest challenge is advertising and marketing
- 36% of female small business owners finance their business with cash, versus 32% of men
- 17% of women finance their business with money from family and friends, versus 11% of men
Learn More:
- 12 Million Reasons to Celebrate National Women’s Small Business Month
- October is National Women’s Small Business Month
