There are approximately 13.94 million businesses owned by women in 2023 which is approximately according to our calculation from data gathered from National Women’s Business Council, Incfile, The Motley Fool , Fundera , and the Census Bureau.
Women-owned businesses employ over 9.4 million workers, and women are three percentage points more likely to start a business than men, reported by Incfile.
The number of women-owned businesses has been increasing in recent years. According to American Express, since 2014, the number of women-owned businesses grew by 21% to nearly 13 million in 2019. In addition, the National Association of Women Business Owners reports that there were only 402,000 women-owned businesses in the US in 1972 reported by Businesswire.
Minority women-owned businesses have also been growing rapidly. In fact, according to Fundera, 64% of the businesses started last year by women were started by women of color. Minority-owned companies account for 50% of all women-owned businesses and generate 23% of all women-owned business revenue.
What Is The Average Annual Revenue For Women-Owned Businesses
The average annual revenue for women-owned businesses varies depending on the source. According to LaConte Consulting and Forbes, in 2021, the overall average annual revenue of women-owned companies was $475,707.
However, according to the US Census Bureau, in 2018, women-owned firms earned an average of $1.6 million in sales, shipments or revenue. It is important to note that these figures are averages and may vary depending on factors such as industry and location.
How Does The Average Annual Revenue Of Women-Owned Businesses Compare To Male-Owned Businesses
According to various reports, the average annual revenue of women-owned businesses is lower than that of male-owned businesses.
In 2021, the average annual revenue for women-owned businesses was $475,707, while men-owned businesses made $675,643 according to Rieva Lesonsky reported by Score.
However, it is important to note that these figures are averages and may vary depending on factors such as industry and location.
Additionally, according to LaConte Consulting, the median revenue for female-owned small businesses in the first year ($50,000) was 34% lower than that of male-owned small businesses.
According to a Biz2Credit report cited by CNBC in 2020, men-owned businesses made $367,795 more revenue than women-owned businesses.
What Are Some Possible Reasons For The Disparity In Revenue Between Women-Owned And Men-Owned Businesses
The disparity in revenue between businesses owned by men and women could be caused by a number of factors.
One reason is the type of businesses that women tend to start, which may be smaller or in industries with lower profit margins according to the Office on the Economic Status of Women.
Women-owned businesses also tend to experience slower growth and are less likely to receive external financing(JPmorganchase).
Additionally, research shows that women tend to view debt as a “bad thing” to be avoided and rely more on business earnings for expansion capital, reported in the Wall Street Journal.
Another survey from AIbees cited by Score.org, 62% of women started their own business because they wanted more control over their career, while only 38% of men cited this as a reason.
Some statistics indicate that women-owned businesses grow at a slower pace and earn less than businesses owned by men, but there are also factors such as industry and location that may contribute to these differences(Cofco Group).
