Article: 28 Facts About Women Entrepreneurs in the United States.

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28 Facts About Women Entrepreneurs in the United States.

March 2007 diversity newsletter

Clout in the Marketplace

Women entrepreneurs are the fastest growing economic trend in the United States.
Women-owned businesses are growing at twice the rate of all U.S. firms.
In 2006, over 10.6 million businesses were at least 50% owned by women, which means that women own 30% of all businesses.
Of women-owned companies, 23% have employees.
Women-owned firms employ over 19 million people nationwide.
Women-owned businesses generated over $2 trillion in sales in 2006.
Women-owned businesses spent more than $38 billion on health benefits in 2004.
The top four industries which women entrepreneurs are diversifying are construction, transportation, communications, and public utilities.
Estimated spending on salaries and benefits by women-owned businesses total an estimated $546 billion a year.

Demographics

Women business owners are 86.0% White, 8.43% African American, 8.33% Hispanic, 5.25% Asian, 1.23% American Indian, and l.8% Native Hawaiian or Pacific Islander. (This adds up to more than 100% due to women who declared mixed race.)
Of all women entrepreneurs, 75% are married, 12% are divorced or separated, 9% are single, and 4% are widowed.
Among women business owners, 1.3% have doctorates, 5.91% have masters degrees, 20% have bachelor's degrees, 5.37% have associate degrees and 31.69% have high school diplomas.
Of Fortune 1000 companies, 60% spend $1 billion or more a year with outside suppliers. Women-owned businesses capture only 4% of that revenue.
Female business owners are more philanthropically active than male business owners. Seventy percent volunteer at least once per month and rank "giving back to their communities" as one of their top priorities.

Financing Challenges

Regardless of race or ethnic background, the vast majority of women entrepreneurs have growth as a primary goal.
Women receive as little as 5% of venture capital.
At venture capital firms in the year 2000, women held 9% of decision-making positions, down from 10% five years earlier.
Women entrepreneurs are rarely in the same networks as venture capitalists. Venture capitalists seldom consider deals that come from unknown parties.
Women leave venture capital firms at twice the rate of men.
Women-owned companies are just as strong financially and as worthy of credit as the average U.S. firm. Compared to statistics for all firms, they have similar performance on bill payment, similar levels of credit risk, and equal failure rates.
Women-owned firms receive less than 10% of institutional investment deals and only 2% of investment dollars.
Women obtain 73% of growth capital from individual investors rather than venture capital funds.

Misconceptions

The top three misconceptions about women business owners are:
a. Women don't want to grow their businesses. They are content to work part time out of their homes.
b. Women don't have enough business experience and savvy to successfully run businesses.
c. Women won't take the personal and financial risks necessary to start and grow a business.

Financially Successful Women

Only 3% of women-owned firms have annual revenues at or above a million dollars.
Women-owned businesses with more than $1 million in revenue are less likely than their male counterparts to use commercial credit or equity.
Women business owners with over $1 million in revenue are more likely than males in the same category to embrace technology and have a website with transaction capability.
Successful women business owners are more likely than men to consult with experts, employees, and fellow business owners.
Women owners who generate over $1 million a year are more likely to:
a. Belong to formal business organizations, associations or networks
b. Have international clients
c. Have large companies and government as clients
d. Be in nontraditional fields
e. Have a strong business and financial education and/or background
f. Use experts and external consultants
g. Have a line of credit and commercial bank loans
h. Have a solid business plan with financials and a cash flow analysis
i. Choose financial practices and services based on relationships and history
j. Rely on external accountants or financial specialists

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