Women in business statistics for 2023 show that female entrepreneurs are strong and courageous people even in the wake of being underestimated and often underappreciated.
All women-owned businesses have their ups and downs like any other business, but due to the lack of resources and opportunities, they are often left behind.
During the COVID-19 pandemic, female entrepreneurs suffered losses.
However, there is good news that goes alongside the bad news in the realm of women in business, as you will read in the next few paragraphs.
Entrepreneurial women are highly determined, wildly passionate, and have the enthusiasm and strength to persevere under any circumstances.
Way back in 1739, when women didn’t have the opportunities they have today, Eliza Lucas Pinckney had to take control of her family’s plantations at the tender age of 16 in South Carolina.
Eliza is considered the first woman in America to own a business.
In 1963, Katharine Graham had to take over The Post as its CEO and publisher after the death of her husband.
She was not the most qualified person to take on this role, but under her leadership, The Post generated revenues of $1 billion.
She is considered one of the first women to take on the role of publisher for an American publication.
The following statistics will enlighten you to the data about female entrepreneurs, their struggles, and their success.
Key Women in Business Statistics 2023
- In 2018, there were 12.3 million female-owned businesses in the United States.
- 42% of all American small businesses are women-owned and operated.
- Women-owned businesses grew by 114% between 1997 and 2017.
- Female entrepreneurship has been growing at a rate of 5%.
- In 2021, 1,821 new female-owned businesses were started each day.
- Texas is home to nearly 1 million female entrepreneurs.
- Women own 4 out of 10 firms in America.
- Women are more apt to launch a business than men 47% to 44%.
- 50% of women-owned firms are focused in 3 industries.
- The women-owned business sector with the highest growth rate is in healthcare, at 151% growth.
Detailed Women in Business Statistics 2023
Gender inequality is real, and it’s resulted in women being underestimated and underrepresented in the business world.
Women are often viewed as the “weaker” sex, but that’s not how it is in the business realm.
The rise of female entrepreneurs over the past decade has proved that women are amazing business people.
1. In 2018, There Were 12.3 Million Female-Owned Businesses in The United States.
In comparison, in 1972, there were only 402,000 female entrepreneurs. That number represents 4.6% of all companies.
According to statistics, the 12.3 female-owned businesses generate $1.8 trillion in revenue each year, and they employ 9.2 million people.
2. 42% of All American Small Businesses Are Women-Owned and Operated.
Since this is data from American Express for 2019, we can only hope this percentage has increased even in the wake of the pandemic.
This percentage is nearly equal to male-owned businesses, which means that the business world has opened up opportunities for women in the last 50-plus years.
In only the past decade, women-owned businesses have grown. For instance, in 2010, the percentage of female-owned businesses was 29%.
3. Women-Owned Businesses Grew by 114% Between 1997 and 2017.
According to women-owned business statistics, female entrepreneurship grew by 114%. This occurred when the total national growth rate for all businesses only accounted for 44%.
Therefore, the realm of women’s entrepreneurship has enjoyed a rapidly expanding growth rate.
4. Female Entrepreneurship Has Been Growing at A Rate of 5%.
Women-owned businesses were already growing at a rate of 21% between 2014 and 2019, while all companies grew at a rate of 9%.
The 5% growth rate was most noticeable between 2018 and 2019. The percentage of all firms grew by 2.3%.
5. In 2021, 1,821 New Female-Owned Businesses Were Started Each Day.
Of the 1,821 new women-owned businesses, 64% of them were started by women of color.
5.4 million firms are owned by women of color.
These companies employ 2.1 million people and they produce $361 billion in annual revenue.
In 2019, Hispanic women accounted for 18% of women-owned firms and Asian American women accounted for 9%.
Around 50% of female entrepreneurs are Caucasian or other non-minorities.
6. Texas Is Home to Nearly 1 Million Female Entrepreneurs.
Recent statistics report that Texas ranks third among all the states for female-owned firms.
This number has grown 146% over the last 20 years.
Women in Texas account for almost half of Texas’ total workforce. Therefore, Texas women have a large impact on the state.
7. Women Own 4 out Of 10 Firms in America.
Women-owned firms have increased by 58% since 2007.
That’s even better than the 12% increase for all businesses.
This should come as no surprise, with over 1,800 new female entrepreneurs launching businesses each year.
8. Women Are More Apt to Launch a Business than Men 47% to 44%.
Women in business stats show that 47% of women launched a business in the past year. In comparison, 44% of men started a business.
The most common reason women claim to enter the business realm is their desire to go after their passion. That reason was the main motivator in women by 48%.
9. 50% of Women-Owned Firms Are Focused in 3 Industries.
The three areas of concentration of women-owned businesses include, service-related businesses. social assistance and health care, and professional and technical services.
As a matter of fact, statistics say that women are most likely to launch a business in the healthcare industry.
On the other side, men are more likely to start manufacturing or construction businesses.
10. The Women-Owned Business Sector with The Highest Growth Rate Is in Healthcare, at 151% Growth.
Other service-related offerings by female entrepreneurs came in second at 126%.
Female-driven construction companies rank third at 94%. 85% of accommodations and food services rank fourth among women-owned businesses with the highest growth rate.
Also, 70% of women-owned businesses in the waste management and support industries rank fifth.
The Challenges of Women in Business Statistics 2023
Becoming successful as a female entrepreneur doesn’t come without challenges.
Some days are easier than others, but overall, women have a lot to overcome in the world of business.
Naturally, that doesn’t mean women cannot rise to the challenge. If anything, women are quite resourceful regarding overcoming challenges.
11. Only 26 Women Work in Ceo Positions at Fortune 500 Companies, According to Pew Research.
A mere 26 women have CEO roles in big corporations, like the Fortune 500.
That accounts for only 5.2% of women in the workplace. In Fortune 1000 companies, women in CEO roles account for only 5.4%.
There is very little improvement in these realms.
Could this be one reason women are more likely to start businesses than men?
12. 48% of Female Entrepreneurs Claim the Lack of Advisors and Mentors Limits Their Development.
Inadequate support is one of the biggest challenges facing women in the business world.
48% of these women think that lack of support, mentorship, and advice hinders their professional development.
Every person going into a business needs a solid support system to help them succeed.
13. Nearly One-Third of Young Women Reported Sex Discrimination in The Workplace.
The percentage of young women who reported sex discrimination at work accounted for 31% in 2016.
Another 19% said they were paid less than their male counterparts in the same role.
On top of that, 43% of young mothers said they faced maternity discrimination at work.
14. 25% of Women Entrepreneurs Have Confidence Issues.
One challenge that faces female entrepreneurs is that they have issues with confidence.
Due to things like gender bias, workplace inequality, sexism, and other things that “label” women in business or in the workplace, it’s no surprise women find it difficult to maintain their confidence.
It’s time to inspire and empower women in business.
15. In 2020, only 2.3% of Women-Owned Startups Received Venture Capital Funding.
Funding is crucial for startups. One of the biggest challenges for women in business is getting startup funding.
You see, startups aren’t just about having the passion to get started. These endeavors require money.
Women-owned businesses got 2.5 times less funding than their male counterparts. The average amount was $59,857.
16. Of the Barriers Facing Women in Business, 3.34 Million Are Unpaid Carers Who Find It Challenging to Start a Business.
16. Of the Barriers Facing Women in Business, 3.34 Million Are Unpaid Carers Who Find It Challenging to Start a Business.
17. 23% of Working Moms Have Trouble Balancing Work and Life.
This percentage is for working mothers who feel they find it challenging to spend time with their kids because they are working.
This can transfer over to starting a women-owned business, which would require more of their time than working a traditional job.
This doesn’t mean that there are no mon-owned businesses, because there are several. It means it’s challenging, which may deter some young mothers.
18. Until 1988, Women Were Not Allowed to Independently Get Business Loans without A Man.
This fact may be alarming and unbelievable, but women couldn’t take out loans without a man to cosign, or sign for her until after 1988.
Today, getting funding is still challenging for women, but at least they can get business loans without a man.
19. 40% of Women in Business Feel They Aren’t Being Taken Seriously.
40% of women feel they aren’t being taken seriously in the business world.
This includes in the workplace and women-owned businesses. The challenge of being taken seriously expands across industries.
20. Almost 50% of Women Say Fear of Failure Is One of The Barriers to Starting a Business.
Women cope with the fear of failure when starting a new business.
The key is to not allow that fear to interfere with your dreams of becoming a female entrepreneur.
Even when you face problems like lack of funding or support, you should never give up on your dream.
Revenue Produced by Female Business Owners 2023
Women-owned businesses have a lot to offer besides services and products.
Women entrepreneurs bring revenue to the table, which encourages solid economic growth, especially in their locality.
Are there risks?
Of course, there are risks involved, but anything worth doing comes with risks.
These next set of statistics will discuss revenues that women’s businesses can generate.
21. Female-Owned Private Technology Companies Produce a 35% Higher ROI.
Women are often overlooked when it comes to getting funding for starting businesses.
However, women-owned tech companies offer a 35% higher return on investment (ROI).
It’s surprising that with this important data that women aren’t getting the funding and support they need.
22. In 2019, Women-Led Businesses Generated an Annual Revenue of $1.8 Trillion.
Not only did female entrepreneurs employ 10.1 million workers. They also generated $1.8 trillion. That’s a big contribution to employment numbers.
Considering how challenging the past couple of years have been, these numbers from 2019 are great. We can hardly wait to see 2022’s numbers.
23. In 2019, Women of Color Accounted for 50% of All Female Entrepreneurs.
That number has grown to 64% since this data was released, but since we’re discussing revenue generated, we must go with the most recent data based on annual revenue.
About 6.4 million women of color owned businesses, employed almost 2.4 million people, and generated $422.5 billion in annual revenue.
24. One in Five Women-Owned Firms Generate $1 Million or More in Annual Revenue.
This data represents 4.2% of all female-owned businesses with annual revenues of $1 million or more.
Women who are determined to succeed in their own businesses know that they can write their own paychecks by putting in the effort and work.
How else could these women-owned businesses have generated so much annual revenue?
25. Over $1 Billion in Funding Was Used for The Empowerment of Women-Owned Businesses in 2017.
In Hamburg, Germany, Ivanka Trump announced this funding for female entrepreneurs at the G-20 Summit, in 2017.
It’s officially called the Women Entrepreneurs Finance Initiative (We-Fi).
The money came from the World Bank, and was intended to empower women in business and women wanting to start businesses.
Over $800 Million in Financing from The Commercial Sector Was Earmarked for Female Entrepreneurs in 2017.
Besides the We-Fi funding, the World Bank has funded $800 million in 2017 to female-owned small to medium enterprises.
This money enabled the $1 billion financing for women-owned SMEs.
This funding for female-owned businesses was to help more women start businesses as part of a global initiative.
26. Further Predictions for 2022, Show that Women in Business Will Control $28 Trillion in Spending Over the Next Few Years.
Women in business and in the workforce currently control over $20 trillion in yearly spending.
It’s estimated that it will rise to $28 trillion in the coming years. Women make up 41% of the total global workforce.
27. In 2021, 13% of The 309 Unicorns Were Founded by Women.
A unicorn is a startup that has generated more than $1 billion in revenue.
Another 11.4% of unicorns have a female co-founder or founder. The fact is that unicorns seldom stay private.
That’s where the 309 unicorns come in that have grown to the point that they have exited the unicorn leaderboard.
28. In 2019, women-Owned Businesses Rose a Little Bit Above All Businesses at 21%, with Others at 20%.
There’s no denying that women’s businesses contribute to the economy.
With the proper support and resources, women could win even more in the world of business.
Financing options are opening up for more women across the world. The rise in women’s entrepreneurship will likely grow in the next few years.
29. Potential Women Entrepreneurs Have a Success Rate of Crowdfunding for Their Businesses of 69.5%.
Men have a 61.4% success rate with crowdfunding for their businesses. Women are ahead of that game.
Let’s face it, women are becoming a huge driving force across the United States and the world, creating thriving economies.
30. 57.4% of The Sba Microloan Program’s Loans Were Given to Female Entrepreneurs or Other Women-Led Businesses.
Even though women have challenges trying to get funding for new businesses from conventional loans, the SBA Microloan program helped women get the funding needed to start new women-owned firms.
This is the kind of loan program needed to help women in need of capital to get started in business.
Women-Owned Business Impact 2023
The economy is driven by small to medium sized businesses, and women-owned businesses make a significant impact on the economy.
Women have the patience, adaptability, flexibility, and the qualities it takes to build customer relationships and connections.
31. Firms with Women in Leadership Roles Have a 90% Retention Rate.
The ability to hire and retain skilled talent in the workplace is important. Women-led businesses are known to achieve a 90% retention rate.
Female executives also have the talent and ability to expand their network within a company.
32. Companies with Women at The Helm Outperform Their Competition by 84%.
A Catalyst report discovered that companies that have a high concentration of female executives in long-term Board of Director roles outperform their competitors by 84%.
This includes return on sales (ROS).
33. Women in Executive Roles Increase Return on Invested Capital (ROIC) by 60%.
When companies have a high presence of long-term board members that are women, ROIC is boosted by 60%.
ROIC is what tells a company how well it’s using its capital to generate profits.
34. By Increasing Female Executives to 30%, the Results Come to A 15% Increase in A Company’s Net Revenue Margin.
Another study from the McKinsey Global Institute came to the conclusion that in mixed-gender board of directors roles, women outperform exclusively male boards in America.
Women on these company boards also help to increase net revenue margin by 15%.
35. Women in The Boardrooms Outperform Competitors by 46% in Return on Equity (ROE).
Just like female executives in the boardroom increase ROS and ROIC, they also improve ROE by 46%.
ROE gauges a company’s profitability and its efficiency in generating profits. As you might imagine, ROEs will differ based on the industry.
36. Williams-Sonoma Inc, Achieved a 13.3% Return on Assets with CEO Laura J. Alber.
Under the leadership of a woman, Laura J. Alber, Williams-Sonoma, Inc., experienced a 13.3% return on assets, and a 24.9% ROE in 2017, according to a study.
Most of the other companies that were surveyed had no women in executive positions.
37. According to 2020 Statistics, Women Were Adding $5 Trillion to Their Wealth Every Year.
This number is expected to go over $30 trillion, according to a McKinsey & Co report.
While this includes women who are inheriting money from parents and partners, many are also making money.
A growing number of women who are founders or co-founders of unicorn businesses are making it all happen.
According to Crunchbase, 83 of the 595 firms that achieved unicorn status in 2021 were businesses co-founded or founded by women.
In 2020, that number was 18.
38. Females Rated Higher than Their Male Counterparts in 12 out Of the 16 Leadership Competencies.
Women outscored men in taking initiative, practicing self-development, displaying high integrity and honesty, driving for results, developing others, motivating and inspiring others, relationship-building, teamwork and collaboration, establishing stretch goals, championing change, problem-solving and issue analyzing, and communicating prolifically and powerfully.
39. Among 25 Surveyed Firms with The Highest Percentage of Female Board Members and Executives, ROA and ROE Were 74% Higher Among All Surveyed Companies.
In 2015, 74% was used as a median on returns of assets and equity as being higher than the rest of the 25 companies.
This data includes pharma, technology, healthcare, and consumer products. It includes companies such as Apple, Oracle, Visa, Google, and Intel.
40. 20% of Female Leaders Partake in Social Media Marketing of A Company.
Compared to 15% of their male counterparts in leadership positions, women leaders participate more in social media marketing.
This is only an example of how women participate in certain areas of business that men do not, or will not.
Women in Business Contribution Statistics 2023
The contribution of women in business goes underestimated and underrepresented even today.
Women-owned businesses contribute to their local economies and ultimately to the global economy. The following stats will show these contributions.
41. In 2019, 10 Companies Owned by Women Became Unicorns.
Remember that unicorn companies are those that have achieved $1 billion in revenue or more. In 2018, there were 12 unicorns.
The lowest number is 4, which occurred in 2016. In 2014, 7 women-owned businesses became unicorn firms.
42. In 2017, Female Entrepreneurs Employed Almost 9 Million People.
By 2018, they employed more than 10.1 million people. The annual payroll in 2018 accounted for $388.1 billion.
These same female-owned firms reported about $1.8 trillion in receipts, revenue, shipments, and sales.
43. An Estimated 1.9 Million Companies in America Are Hispanic Women-Owned Businesses.
Hispanic women are making a big impact on the economy as minorities and as women who own their own businesses.
This data is from 2018, but is growing each year. The pandemic affected all businesses, so it’s highly likely that Hispanic female-owned businesses were impacted.
44. Over the Past Decade, Hispanic Women-Owned Businesses Have Grown by 172%.
Between 2007 and 2017, the Hispanic women-owned company realm grew by 172%.
400 Hispanic female-owned companies are started every day. They are contributing to the economy and to employment rates.
45. Hispanic Female-Owned Businesses Employ 550,400 People.
The latest employment numbers on Hispanic female entrepreneurs account for more than 570,000 workers in 2016 alone.
The female Hispanic community has made a huge impact in American history.
Technically, all Hispanic Americans have had a major impact on US history.
46. of The Female-Owned Firms Employing Almost 9 Million People, This Contribution to Employment Is only 8%.
While there’s no denying the huge impact women entrepreneurs are having on employment rates, 39% are privately held, and they contribute 8% of total employment rates.
Women-owned firms in the US account for 51% of companies. They also contribute 4.2% of revenues.
47. The Number of Companies Owned by Minority Women Grew by 163% Since 2007.
Women of color have started up businesses since 2007 at fast rates. Non-minority women-owned businesses grew 58% between 2017 and 2018.
However, minority women-owned firms grew by 163%, nearly three times that of non-minority women.
48. Women of Color Represent 89% of New Female-Owned Businesses as Of 2019.
In nearly every single category, women of color are leading the female entrepreneur realm.
They represent 39% of the total population of American women, and 89% of women-owned businesses.
Firms owned by women of color grew by an amazing 43%, but African American women-owned businesses grew faster at 50%. Compare that to 21% of non-minority women-owned businesses.
49. 20% of Workers in The Healthcare Industry Are Employed by Female-Owned Companies.
About 10% of women start a healthcare business in America. In comparison, only 5% of males have started a business in the healthcare realm over the past couple of years.
20% of women working in healthcare work for women-owned businesses.
How Many Women-Owned Businesses Are There Across the Globe?
The most recent data says that there are about 252 million women-owned businesses across the world.
There are 153 million women in successful and established businesses in the world.
In the past 20 years, the percentage of women entrepreneurs has risen by 114%.
Though women entrepreneurs are rapidly growing daily, they are still falling behind men-owned new businesses.
How Many Female Entrepreneurs Are in America?
There are almost 12.3 million women-owned businesses in America.
The late 1980s brought forth more and clearer networking opportunities for women entrepreneurs.
Who Is the Richest Female Business Owner?
The richest female entrepreneur is Zhong Huijuan, the chairperson of Hansoh Pharmaceutical Group.
This company in China is the largest maker of psychotropic drugs.
Huijuan made the top of the world’s richest female entrepreneurs in 2020.
She is worth $15.1 billion.
Hopefully, these statistics encourage you to go for your dreams without hesitation.
The key is to never give up. The most successful women in business persisted and didn’t let anything stop them.
Do you have a desire and passion to start your own women-owned business? If so, you are not alone.
Many women desire to be their own bosses and to have control over their time and money.
You can own your own business with the right support and resources.
As you have read in this article, women contribute more than people may think to employment and the economy.
They also tested higher than men in 12 of 16 of the important leadership skills.
Now you have plenty of women in business statistics in 2023 to ponder in this article.