According to a 2020 study, Memphis is a top town for female entrepreneurs. It’s not surprising. Women entrepreneurs are on the rise nationally. But don’t take our word for it! We’ve compiled a compelling list of recent statistics that reflect this trend.
13 Impressive Stats on Female Entrepreneurship in the US
- There are approximately 13 million women-owned businesses in the U.S: When you consider the fact that there were only 402,000 women-owned businesses in 1972, this number is absolutely mind-blowing. As more women venture into entrepreneurship, they can begin chipping away at the gaps women historically have faced. The past year was pivotal in bringing important issues to light. From #MeToo to #TimesUp and the unprecedented number of women running for public office, it was a great year for change.
- US women-owned businesses generate $1.8 trillion a year: Women-owned businesses make up 39% of all total businesses, leading many to think that women do have a large impact in the business world. However, there’s still plenty of room to grow. Women-owned businesses only employ 8% of all US workers and the $1.8 trillion revenue is roughly 4% of the total annual revenue.
- Between 2014 and 2019, the number of women-owned businesses increased 21%, while all businesses increased only 9%.
- 64% of new women-owned businesses were started by women of color in 2017. This double-digit soaring isn’t stopping anytime soon, according to Shelley Zalis, founder of the consulting firm Female Quotient, who predicts that this trend will only become more impressive. “More women and minorities are writing their own rules of work, and bringing products and services that will help to fill the wants and needs of other women, who influence more than 85% of all purchasing decisions,” she shares. “Tapping into these various markets by speaking the language firsthand and understanding the specific needs of marginalized communities gives these women a unique perspective and an incredible opportunity for success.”
- Latina women-owned businesses grew more than 87% between 2007 and 2012 further strengthening the case for the value of diversity.
- In case you’re still skeptical, there are 114% more women entrepreneurs than there were 20 years ago
- With tech sector expansion in Memphis, it’s great to see that women are getting a piece of the pie. Private tech companies led by women achieve 35% higher ROI: According to Forbes, when private tech companies are run by women, they render a 35% higher return on investment than those run by men.
- Women-founded companies in First Round Capital’s portfolio outperformed companies founded by men by 63%: Forbes also finds that women-founded companies in the venture capital firm First Round Capital’s portfolio outperformed those founded by men by 63%.
- As reported in 2018, Just 25% of women business owners seek business financing: Imagine this, if more women business owners seek and gain access to business financing for growth opportunities, their contribution to total US revenue will skyrocket.
- Women have a 69.5% success rate of crowdfunding for their businesses while men have a 61.4% success rate: Women have a higher success rate in crowdfunding than men by about 8%. Crowdfunding is an excellent channel for women entrepreneurs currently and certainly one that they should consider when pursuing funding.
- 57.4% of the SBA Microloan program’s 2014 loan went to women-owned or women-led businesses: Despite women’s difficulty attaining conventional loans, well over half of the SBA Microloan program’s loans went to women-owned or women-led businesses. This program is a prosperous channel for females in need of capital.
- Women-owned businesses are growing at a rate of 5%: This growth rate is more than twice as fast as the growth rate of all other firms.
- Nearly 9 million Americans are employed by women-owned businesses: Act like a lady and think like a boss…If you then include the firms that are co-owned equally by men and women, the percentage of total U.S. employment jumps to 14%.
If you’re interested in becoming a member of the National Association Of Women Business Owners-Memphis or supporting women in business, please visit https://nawbomemphis.org/