While men still dominate the business world, women-owned and women-led firms are quickly growing in the United States and abroad.
Women entrepreneurs statistics in 2023 show that there is a positive influence being seen and felt as female entrepreneurs drive a good portion of the overall economy.
That said, it’s still challenging to become an entrepreneur, especially for women.
While a lot of progress has been made, there is still a way to go.
Anyone who wants to enjoy being their own boss and the sense of accomplishment and freedom that it comes with should be able to do so.
- In 1972, 402,000 women owned a business compared to 12.3 million today.
- Female entrepreneurs make up 43% of all global entrepreneurs.
- The largest percentage of female entrepreneurs are between 40 and 59 years old.
- 10 women-owned firms became unicorns in the first half of 2019.
- More than 35% of women entrepreneurs have directly dealt with gender bias.
- In 2021, 31% of franchises or small businesses are female-owned and operated in the United States.
- 62% of female-owned businesses rely exclusively on their firm as a main source of income.
- Only a quarter of women will ask for business funding.
- 88% of women-owned firms generate less than $100,000 annually.
- Only 13% of industrial, construction, admin support, and waste management services are owned or run by women.
Top Women Entrepreneurs Statistics in 2023
Let’s find out about the progress that’s been made over the past 50 years for women in business.
1. In 1972, 402,000 Women Owned a Business Compared to 12.3 Million Today.
Speaking of the difference between today and 50 years ago, women-owned businesses have definitely grown.
In 1972, there were 402,000 female-owned businesses in America.
Today, there are 12.3 million women-owned or women-led firms. That does seem to represent quite a lot of progress.
2. Female Entrepreneurs Make up 43% of All Global Entrepreneurs.
Data from 2021, shows that women now make up 43% of all business owners in the world.
While women entrepreneurs are closing the gender gap in business ownership, they still aren’t quite halfway there.
However, 43% show there is potential for a halfway mark in the coming years.
3. The Largest Percentage of Female Entrepreneurs Are Between 40 and 59 Years Old.
The largest percentage of women entrepreneurs are 40 to 59 years old, making up 62% of all women business owners.
About 80% of these female business owners have college degrees.
Only 30% of all women-owned firms are younger than 40 years old.
This is due to the fact that it takes years of hard work, experience, determination, and commitment to build a successful business.
This includes building relationships, networks, connections, and maintaining capital.
4. 10 Women-Owned Firms Became Unicorns in The First Half of 2019.
In the first six months of 2019, 10 female-owned companies reached unicorn status.
Unicorn companies are startups that generate more than $1 billion in revenue.
By the end of 2019, there were 21 women-owned businesses that had reached unicorn status.
5. More than 35% of Women Entrepreneurs Have Directly Dealt with Gender Bias.
Even with the uptake in women-owned and female-led firms, getting the capital to start a business is still a big issue, especially through conventional bank loans.
More than a third of them have experienced gender bias.
They get 5% less than their male counterparts in funding.
6. In 2021, 31% of Franchises or Small Businesses Were Female-Owned and Operated in The United States.
A Small Business Trends survey reported that women-owned small businesses are up from 2020’s 27%.
An impressive 30% of these female-run businesses have enjoyed success for over 10 years. In 2020, 17% of women started a business.
7. 62% of Female-Owned Businesses Rely Exclusively on Their Firm as A Main Source of Income.
Reports from SCORE also show that 62% of women-owned businesses rely on their firm’s revenue as their only and main source of income.
Women entrepreneurs get 8% less in equity capital from investors than their male counterparts.
Also, they charge 7% more on their credit cards for business funding.
8. Only A Quarter of Women Will Ask for Business Funding.
A meager 25% of women will ask for financing to start a business.
Only one out of every four applicants asking for business financing were women.
Women also ask for $35,000 less on average than their male counterparts. In the workplace, women tend to ask for smaller raises than men do.
9. 88% of Women-Owned Firms Generate Less than $100,000 Annually.
The Women’s Business Enterprise National Council reports that 88% of businesses owned by women make less than $100,000 in revenue annually.
Only 1.7% generated over $1 million. More women are taking leadership roles and many minority women are stepping into these roles.
10. Only 13% of Industrial, Construction, Admin Support, and Waste Management Services Are Owned or Run by Women.
However, these are all industries that are experiencing some high growth rates among women entrepreneurs.
Even with such a small percentage, women-owned businesses in industrial sectors and construction generated higher revenues within their first year of business.
Male vs Female Entrepreneurs Statistics
Now, we will cover more differences between men and women in business. Let’s see how gender bias and the gender gap impact one over the other.
11. Men and Women Equally Have Entrepreneurial Spirit at 32%.
Both 32% of all men and 32% of all women surveyed have an entrepreneurial spirit.
So, in the areas of passion and desire to own a business, women and men are on equal ground.
Other things about men and women entrepreneurs may not be as equally pronounced.
12. Crowdfunding Success for Women Entrepreneurs Is 69.5% Compared to 61.4% for Men.
Crowdfunding is obviously a good solution for women who want to go into business.
Female-driven crowdfunding campaigns obtain 1.3 more contributors, plus they get 10.75% more funding than men’s campaigns. So, women excel in crowdfunding.
13. In 2022, Females Will Get an Average Loan of $39,000, While Men Will Get an Average of $44,000.
When it comes to business funding, men dominate that venture. Female entrepreneurs seeking venture capital receive, on average, $39,000 in loans.
Their male counterparts receive an average loan amount of $44,000.
Even though women-owned firms are known to earn twice as much per dollar invested, men still have the upper hand in funding.
Overall, women entrepreneurs generate more than 10% more revenue over 5 years than men.
14. Workplace Data Shows that Women Stress More than Men in The Workplace, but Women Stress 26% More About Their Own Businesses than Men.
Starting a business, getting funding, maintaining a business, challenges and struggles resulting from operating a business, balancing work and family, and other stressors impact women entrepreneurs more than men entrepreneurs by 26%.
However, as more women start businesses, that figure may improve.
15. Female Startups Generate 63% Higher ROI for Investors than Male Startups.
In the face of getting business funding, women-owned firms give investors and lenders a higher ROI than male businesses do.
That alone should say a lot about where investors should be putting their money, doesn’t it?
Women of Color Entrepreneurs Statistics
Now that we have addressed the gender gap and imbalances in that area of business, we will discuss how women of color, Hispanic and African American women in the business world are affected.
16. In 2019, The US Census Bureau Showed that 18.3% of All Businesses in The Country Were Minority-Owned.
Besides that, statistics also show that 19.9% of all companies were operated by women.
That represents about 1.1 million women-owned firms.
Women of color are rapidly narrowing the racial gap in business. Hispanic women are following closely behind.
17. In 2019, 89% of All New Businesses Were Started by Women of Color.
That said, much like women in general, obtaining funding is the biggest challenge for women of color.
In the past 45-plus years, African-American business women have increased by almost 163%.
Around 260 women of color open new businesses each day.
18. 400 Female-Owned Businesses Are Created Each Day by Hispanic Women.
Speaking of women of color, it’s reported that 400 Hispanic, female-owned businesses are started every day in the US.
Hispanic female-owned businesses employ more than 550,400 people and generate about $155 billion in yearly revenues.
While this data is all from 2018, it’s not likely that it has declined, nor will it decline.
19. African-American Women Own More than 2.5 Million Businesses.
While non-minority women business owners have yet to catch up to their male counterparts, African-American women outnumber their male counterparts in the realm of business ownership.
They are the only ethnic group that has more businesses than men.
20. Minority Women’s Side Hustle Jobs Increased by 65% in Five Years.
The percentage of side hustles among minority women has climbed from 32% five years ago up to 65% today.
That is significant growth. There are several side hustles in which these women partake.
They can include customer service, bookkeepers, pet care, healthcare, technical or professional consultations, lawyers, and nail and hair salons.
Women Entrepreneurs in the COVID-19 Crisis
We already know that women stress about their businesses more than men, but how does that translate into the pandemic and how it affected women-owned businesses?
We will discuss that element in this section.
21. 70% of Women Entrepreneurs with Businesses Stress Over the Negative Effects of COVID.
Many small- and medium-sized businesses were negatively impacted during the pandemic, but female-owned businesses took the hardest hit.
Most of these women, 70% of them, are worried over their current and future financial outlook.
22. Canada’s Government Has Dedicated $15 Million to Supporting Women Entrepreneurs in The Wake of The Pandemic.
The Canadian government had committed itself to supporting its female business owners.
Over $10 million was already allocated in extra capital for the Women Entrepreneurship Strategy Ecosystem Fund WES organizations.
23. 33% of All Saudi Businesses Are Female-Owned.
Saudi Arabian female entrepreneurs are alive and well in this country. One-third of successful businesses in Saudi Arabia are owned by women.
Statistics have proven that the number of women-owned businesses account for 33% of all the businesses in Saudi Arabia.
24. The Global Income for Women Is Estimated to Grow from $13 Trillion to $18 Trillion Over the Next Five Years.
India’s statistics have estimated that global income for women will rise from $13 trillion to $18 trillion over the next five years.
This growth is expected to come mostly from China and India women-owned firms.
25. Female Businesses Fell by 13 Points in Overall Business Health in 2020 Due to The Pandemic.
According to a study done by the US Chamber of Commerce, female business owners who had formerly ranked their business health as “somewhat or very good” at 60%, are now claiming a drop to 47% in the health of their businesses.
Their male counterparts reported only a five-point drop.
Women Entrepreneurs & Employment Statistics
It’s obvious that women-owned businesses contribute positively to employment, but by how much?
26. Women Entrepreneurs Employ Over 9 Million People.
Women who own businesses contribute to the employment rate by employing over 9 million people, which is about 8% of the total private work sector.
When you combine this with male-owned businesses, the percentage climbs to 14%.
So, women are positively impacting the employment market.
27. Women of Color Employ 2,230,600 Workers.
Out of the nearly 6 million businesses owned by women of color, they employ over 2 million workers.
They also generate revenues of $386.6 billion. African-American and Hispanic-American women-owned businesses are the fastest growing in the realm of business.
For reference, Latina-owned firms accounted for 2.1 million, and Hawaiian women-owned firms accounted for 36,800 companies.
28. 22% of Women Look for Financing to Launch New Products and To Hire More Employees.
Females may not ask for funding as much as men, but they are more apt to look for external funding when they want to launch new products.
The funding is also used to hire more employees, refinance loans, get working capital, and buy equipment.
How Many Women Entrepreneurs Are in The UK?
Out of 22,257 surveyed businesses in the UK, 7,205 were owned by women.
The current percentage of female-owned UK businesses is 32.37%, which is a marked increase from the 17% from just four years ago.
Statistics show that one out of every three UK entrepreneurs are women.
Like in the US, UK entrepreneurship is dominated by men at 67.63%.
Where Are the Most Women Entrepreneurs?
This is one of those answers that might surprise you. Angola is the country with the most women entrepreneurs, at 40.7%.
The study included female entrepreneurships across 40 countries where necessity-driven entrepreneurship exists.
These are countries with a lack of employment opportunities.
In innovation-driven countries, Chile has the most women entrepreneurs, at 32.4%. For some perspective, America is third at 16.6%.
How Many Female Entrepreneurs Are There Worldwide?
According to global statistics, there are about 252 million female entrepreneurs in the world.
These women own and operate 153 established and successful businesses. This comes from data conducted across 59 countries.
Who Is the Most Famous Women Entrepreneur?
Hancock Prospecting Group’s owner, Gina Rinehart, is the most famous women entrepreneur.
Hancock Prospecting Group is a mining company that produces 30 million tons of iron ore annually.
Rinehart is also the wealthiest person in Australia and the 6th wealthiest female in the world.
Rinehart’s net worth is $16.5 billion.
Who Was the First African-American Women Entrepreneur?
Sarah Breedlove was her given name at birth, but you might know her better as Madam C.J. Walker.
She was an African American female entrepreneur and social and political activist.
The Guiness Book of World Records has her recorded as the first female self-made millionaire in America.
How Many Women CEOs Are There?
Data from 2021 shows that there are currently 41 female CEOs working at Fortune 500 companies.
This represents 8% of female CEOs.
For the first time ever, there are two African-American women leading Fortune 500 companies.
What Are the Primary Challenges Facing Women in Business?
Even in these modern times, there is still a lack of support for women who want to start a business.
Support and encouragement are two crucial elements for building successful businesses.
Women also face challenges getting business loans through conventional means, which results in them turning to the SBA and government grants.
Work-life balance is a huge challenge for women with children.
Is the Pandemic Still Impacting Women Entrepreneurs?
Women-owned businesses were the hardest hit during the pandemic.
About 49.12% of women think the pandemic is still impacting their businesses.
Another 31% aren’t sure if the pandemic’s effects are over yet, and 20.18% are sure that the effects of the pandemic on their business are over.
Around 82.3% feel confident that they will survive, while 2.65% think they won’t make it.
What Are the Industries with The Highest Number of Women Owners?
Women entrepreneurs are highest in the healthcare and social assistance industries.
Not all women are successful in only one industry.
Female founders of companies have been known to cross over into multiple industries and become successful.
Many have even become more successful than men in certain realms.
What City Is the Best for Women Entrepreneurs?
San Francisco ranks number one as the best city for female business owners.
Number two is New York City, and number three is London.
It’s said that women can get better funding options in San Francisco.
The women entrepreneurs statistics presented in this resource clearly demonstrate the significant progress and potential of women entrepreneurs.
While there are still challenges to overcome, such as access to funding and resources, it is encouraging to see the increasing number of women-owned businesses and their positive impact on the economy.
As we continue to support and empower women entrepreneurs, we can look forward to a more diverse and thriving business landscape.