Women Entrepreneurship Statistics By Age, Industry and Facts

Introduction

Women Entrepreneurship Statistics: Women Entrepreneurship can be defined as a woman or a group of women who initiate, launch, manage, and run a business concern alone. Women Entrepreneurs have a vision for conducting a business enterprise, initiating it, managing and combining factors of production, operating the enterprise, taking necessary risks, and even handling the economic ups and downs that are faced while running a business. At all times, it is believed that females are multitaskers and good decision-makers.

Therefore, from this Women Entrepreneurship Statistics, we shall shed more light on women entrepreneurship statistics and its various features.

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• About 31% of women business owners have school-aged children at home, and many have had to scale back their business operations due to childcare responsibilities.
• According to Bank of America, the median number of women business owners is predicted to attain equal access to capital by 2031.
• The percentage of colored females has grown to 163% in the past 45 years.
• Mostly, women in the United States own a business worth 12.3 million.
• Women-led businesses play a crucial role in the U.S. economy. They employ approximately 9.4 million workers and generate a staggering $1.9 trillion in revenue annually.
• 42% of all businesses in the U.S. are owned by women, totaling about 12.9 million firms.
• In Alaska, female-owned manager firms make up almost 21.6% of all the firms in the state.
• Black women make up 28% of Black entrepreneurs, but only 15% report making a profit, highlighting significant challenges compared to their white counterparts.
• Nearly 53% of the businesses run by women are funded through their savings, whereas private business loans fund 15% of the female-owned companies.
• In the first half of 2022, startups with at least one female founder received 17.2% of venture capital funding.
• Between 2020 and 2022, almost 110,000 more females were employed, whereas the number of self-employed females fell by 119,000 over the same period.
• Hispanic American females and African women run the fastest-increasing organizations in the United States.
• Females are surer about their steps than men. Men are almost 72.4% sure of their ability to achieve success, whereas just 65.3% of females are confident.
• Women’s basic motives for starting a business are autonomy and freedom, whereas men’s are different.
• According to a study by the Global Entrepreneurship Research Association, female entrepreneurs are quite common in certain developing countries like Guatemala and Togo.
• Businesswomen often have mentors and role models in their work field.
• Zippia states that 41.5% of the total ownership population are females, whereas 58.5% are males.
• The Canadian administration provided almost $15 million in support to female entrepreneurs whose firms were affected by the pandemic.

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What is Women’s Entrepreneurship?

Women Entrepreneurship is a wide concept that is more intense than the merging of ‘Entrepreneurship’ and ‘women.’ It shows a move towards the way of accreditation, approaching the world of business from the development and a different outlook. It is about females taking charge in the corporate world, traversing opportunities, and driving their organizations toward success.

Women Entrepreneurship has witnessed a rise in recent years, with more women breaking their boundaries and venturing into the corporate world. This trend is not just a brief fad but a notable shift in the landscape of entrepreneurship. Women entrepreneurs are not confined to traditional roles; they are presently leading the way, challenging norms, and even shining in various industries.

Major Challenges Women Entrepreneurs Face

• Access to Capital—Traditional sources of capital, like banks, are generally unwilling to lend money to female-owned businesses. To overcome this, find an alternative source of finance, like venture capitalists or even investors.
• Work & Life Balance—Women entrepreneurs generally have trouble balancing their office and personal work. One way to solve this issue is to make flexible work adjustments, like working from home or telecommunicating.
• Lack of Mentors and Role Models—Businesswomen often have mentors and role models in their work field. This can be overcome by searching for networking opportunities and connecting with other successful businesswomen.
• Gender Bias – Businesswomen generally face gender inequality, both from the business partners’ perspective and potential customers.
• Self-Doubt—Various female entrepreneurs struggle with self-doubt and impersonator syndrome. One way to overcome this is to build a support connection with family, friends, and colleagues who think about your goal and can help you stay motivated.
• Time Management—Fulfilling various responsibilities can be difficult for any business person, but especially for females who are often also responsible for household chores and child care. One way to overcome this is to share the tasks and learn to refuse when essential.

General Women Entrepreneurship Statistics

• According to weforum.org, women started 49% of new businesses in the United States in 2021, up from 28% in 2019.
• Female Entrepreneurship is growing across the globe, but the barriers remain, and as the experts stated, men still overcount women 3-1 when it comes to company entrepreneurship.
• On average, females request financing that is $35,000 less than their male counterparts.
• The World Economic Forum’s Global Gender Gap Report for 2022 states that more women than men continue to face the impact of the pandemic.
• Currently, there are around 12.3 million women entrepreneurs, and in 2019, it was 402,000.
• According to women entrepreneurship statistics, 43% of the global business population is made up of women.
• Females between 40 and 59 years old make up the highest percentage of women business holders.
• The problem of gender susceptibility has affected almost 35% of women business people.
• As of 2021, almost 31% of the startups in the U.S. were owned and managed by females.
• Around 50% of women entrepreneurs depend on their firms to meet their needs.
• A quarter of women entrepreneurs request company financing at its inception.
• Female entrepreneurs need more support, 8% from investors, as they aim to invest more in businesses owned by men.
• Almost 88% of the female-owned businesses make an annual revenue of around $100,000.
• Nearly 13% of the companies in the construction, industrial, waste management, and administration support services sectors are owned and managed by women.
• Roughly 1 in every three businesses has a woman as a primary owner.

• Around 47% of the females launched a business in the last year, compared to 44% of the men.
• Nearly 62% of female business owners are between 40 and 59 years old.
• Mostly, women in the United States own a business worth 12.3 million.
• More than 9 million workers work in a company owned and managed by women.
• The Hispanic-owned business has grown by almost 172% in the past ten years.
• According to the women entrepreneur statistics, 10% of women have initiated a business in the healthcare industry.
• Around 62% of the women owners believe that their business is their main source of income.
• 88% of all female-owned businesses make less than $100,000 annually.
• Almost 12.6% of the businesses in the United Arab Emirates are run by females.

Women Entrepreneurs Statistics

• According to NWBC, almost 45% of women owners are prone to depending on financial advisor input.
• Around 45% of women owners are prone to manage their financial portfolios.
• GEM states that the women’s Total Entrepreneurial Activity (TEA) rate had grown from 13.6% in 2020 to 15.2% in 2021 in the United States.
• Almost 14.5% of the females in the United States show an inclination towards entrepreneurship in 2021.
• Guidant states that 27% of women-owned businesses are encouraged by a shared yearning for creativity, flexibility, and independence. Almost 27% show their glory of freedom and self-governance linked to being their leader.
• Zippia states that 41.5% of the total ownership population are females, whereas 58.5% are males.
• Around 41% of the female owners started a new business, with 29% buying an independent business and 18% starting a new independent venture.
• As per Guidant, female owners are almost 20% more willing than males to establish a business, which uplifts their passion.
• Zippa states that females earn around 88 cents for each dollar earned by males.

Women Made Up Almost Half of the Entrepreneurs

• According to Gusto’s 2020 survey, females have made up almost 47% of new business owners, an increase from 29% using comparable pre-pandemic predictions from the United States census.
• The growth rate of entrepreneurship among females has continued three years on, with females making up around 49% of new business owners in 2021 and 47% in 2022.

Reference: gusto.com)

Women Entrepreneurship in United Kingdom Statistics

• Almost 10% of the females are self-employed compared to the men at 16%, even though the share of all self-employed female employees has grown over the last decades.
• Females comprise 37% of all self-employed employees in 2022, as per the ONS survey in March 2023.
• After the pandemic, the count of women employees has grown, whereas self-employment has fallen.
• Between 2020 and 2022, almost 110,000 more females were employed, whereas the number of self-employed females fell by 119,000 over the same period.
• As per IPSE 2020, only 50% of the self-employed females are professional freelancers. However, females are well-represented in freelancing, accounting for 42% of the group.
• As per Rose Review Progress Report 2023, in 2022, females in the United Kingdom established almost 150,000 new organizations, more than two times the number established in previous years.
• About 20.5% of all the newly launched companies incorporated in 2022 were women-led, from 16%.
• Just 1 out of 3 United Kingdom business people are women. A gender gap is equal to 1.1 million missing businesses.

(Source:moneypenny.com)

• As per BEIS 2022, 19% of the small and medium-sized companies’ managers were shown by women. This was almost a 3%-point growth in 2020 of 16%.
• The number of SMEs with no workers that were owned or led by females was high, at 20% in 2021.
• According to BEIS 2022, when SMEs with employees were surveyed, female-led businesses were prone to be 44% in education, 37% in health, 31% in entertainment, 30% in other services, and 29% in food and accommodation. Others involve private services like hairdressing and beauty.
• Female businesses in the United Kingdom have a high churn rate. However, females are less prone to ascribe closure to the business’s failure and more prone to cite personal reasons, which peak at 25 to 34 years for women.
• According to Cranfield University, in 2022, 39.6% of the FTSE 100 directorships and 38.9% of the FTSE 250 direct-ships are held by women.
• The number of women directors in leading organizations has increased rapidly since the government supported a target of 25% female representatives.
• If women in the U.K. started and grew businesses like men, it could add up to $250 billion to the economy. Even matching the best countries in female entrepreneurship would add $200 billion.

Women in the U.S. are twice as likely to be entrepreneurs as women in the U.K., while the entrepreneurial rates for men are similar in both countries. Hence, increasing female entrepreneurship is key to growth.

• Companies with gender-balanced boards are more successful than those with male-only boards.
• Valuing female-dominated sectors like social services can help move towards sustainable economic growth.
• About 30% of self-employed women work from home, compared to 8% of men.
• More than half (53%) of self-employed women work part-time versus 17% of men.
• Self-Employment and Family: Women often choose self-employment to manage childcare and work. However, they receive less support than employed mothers and have little maternity cover.
• Women are more likely than men to start socially oriented businesses, with 5.8% of women involved in such startups compared to 4.9% of men.
• Black women make up 28% of Black entrepreneurs, but only 15% report making a profit, highlighting significant challenges compared to their white counterparts.
• Youth Entrepreneurship: Young women (16-25) founded nearly 17,500 businesses in 2022, a huge increase from 2018. However, female entrepreneurial activity is still half that of males in the 18-24 age group, as per Rose Review Progress Report, 2023.

Women Entrepreneurs Statistics By Demographics

• Women get a median loan size of $39,000, whereas men easily get a loan size of $44,000.
• Just 13% of the female leaders are observed in industries like high technical, manufacturing, and metals.
• As per women’s entrepreneurship statistics, 350 recently founded organizations admit that women-owned businesses are safer for investors.

(Reference: zippia.com)

• In the above chart, we can see the Startup founders by gender discrimination. Just 2.5% are only female founders, 16$ of them are at least one female founder, and 81.5% of the people are only male founders.
• The percentage of colored females has grown to 163% in the past 45 years.
• According to Jobera, 260 African-American females are responsible for opening a brand-new company each day.
• The number of Hispanic female business owners has grown by almost 172% in the past ten years.

(Reference:  jobera.com) 

• The majority of women in entrepreneurship, which means 68.9%, are related to the Gen X section.
• Among them, 19.4% of the owners are baby boomers, 10.68% of the women entrepreneurs are millennials, and 1% of the women entrepreneurs belong to the post-war decades.

Women of Color Entrepreneurs and Business Owners Over Statistics

• In all, almost 6,417,400 businesses are managed by females of color in the United States.
• Among the $1.9 trillion made by female-owned companies, the firms owned by females of color only account for $422.5 million.
• According to women’s entrepreneurship statistics, the businesses that females of color manage have grown at a rate of 163%.
• Black women/ African American-owned companies account for almost 21% of all female-owned companies and ownership.
• The rate of growth of Hispanic/ Latina female-owned companies has grown by 10% in the past years.
• As of 2020, Asian-owned female-owned companies comprise 9% of all women-run businesses in the United States.

(Reference: zippia.com)

• The Alaska or Native American residing women who run the businesses accounted for 1.4% of all women-owned companies in 2022.
• The residents of Hawaiian or Pacific Islander female-owned companies show that almost 0.3% of all businesses are run by women.
• There are around 40,400 companies run by Pacific Islander / Native Hawaiian females, each earning a median of $69,500 per year, as opposed to the median revenue of $142,900 in all women-owned companies.
• According to the Women Entrepreneurship Statistics, females of color comprise 39% of the entire female population in the United States. Still, they account for a whopping 89% of the new female-owned forms every day.

• Out of 1 out of 3 women, entrepreneurs have witnessed sexism as an owner of a business.

• Almost 91% of female business owners state that gender inequality and bias are prevalent in business.
• Around 22% of women business owners state that colleagues, investors, and consumers underestimate their motivation.
• Nearly 19% of the women business owners witness unequal access to chances.
• Mostly, 15% of women business owners do not feel that they have a loud voice or hear more than men.

Higher Wages For Women

• In 2022, the equality of wages marginally increased, as per the report on women’s entrepreneurship statistics.
• Women earned 2% more on a median than the previous year, whereas men earned 1.8% less.

(Reference: weforum.org)

• In the above chart, we can see the state of gender gaps by subindex in 2022.
• Almost 68.1% of The Global Gender Gap Index, 60.3% of the economic participation and Opportunity subindex, 94.4% of the educational attainment subindex, 95.8% of the Health and Survival subindex, and 22.0% of the Political empowerment subindex.

The Impact of COVID-19 on Women’s Entrepreneurship

(Source: bain.com)

• The COVID-19 pandemic has impacted many people’s financial situation, reduced customer demands, and disturbed women entrepreneurs’ supply chains and employee support systems.
• Almost 70% of the women entrepreneurs had issues about the survival of their company because of the COVID-19 pandemic.
• The Canadian administration provided almost $15 million in support to female entrepreneurs whose firms were affected by the pandemic.
• Among 100% of the businesses active in Saudi Arabia, 33% were launched by women in Arabia.
• Women are expected to bring almost $18 trillion in revenue from all sources of income in Saudi Arabia.
• The COVID-19 pandemic has destroyed the posture of business owners, mostly the companies erected by women, to almost 13%

Global Women Entrepreneurship Statistics

• Compared to other low-income countries, India has a moderate rate of around 11% female entrepreneurs, while China has even fewer at 5%, similar to Germany.
• Interestingly, a smaller gap between male and female entrepreneurs can also indicate less equality in the job market.
• For instance, in South Korea, where the corporate culture is very traditional, more women have turned to entrepreneurship due to limited career opportunities.
• Some European countries perform particularly poorly in terms of female entrepreneurship. Poland has the lowest rate (1.6%), followed by Morocco, Egypt, Greece (3.4%), and Japan (3.6%).
• In 2022, the rate of female entrepreneurs surpassed that of men in Togo (25.4% vs. 22.6%), Qatar (11% vs. 10.6%), Indonesia (9.2% vs. 7%), and Poland (1.6% vs. 1.5%).
• Developing nations often see higher rates due to necessity, while developed nations show varying rates influenced by cultural and economic factors.
• They are also prevalent in developed countries on the Arabian Peninsula, including Saudi Arabia, Oman, and Kuwait, as well as high- and middle-income countries in the Americas, like Panama, Chile, and the United States.
• However, the gender gap is smaller in India and China than in Germany, where the rate of male entrepreneurs is 50% higher than that of females.
• In most developed countries and some developing ones, the rate of male entrepreneurs is 50-100% higher than that of female entrepreneurs.

(Source: statista.com)

• According to a study by the Global Entrepreneurship Research Association, female entrepreneurs are quite common in certain developing countries like Guatemala and Togo.
• However, many developed countries in Europe and Asia have very low rates of female entrepreneurs.
• In poorer countries, entrepreneurship is often driven by necessity due to the need for more formal job opportunities.
• In contrast, in wealthy nations, innovation-driven entrepreneurship exists alongside well-developed job markets. Still, there are significant differences in the number of female entrepreneurs within both types of economies.
• For example, over 28% of adult women in Guatemala and about 25% in Togo are involved in entrepreneurial activities, slightly exceeding the rates for men.
• On the other hand, countries like Egypt (3.7%) and Morocco (3.1%) have much lower rates of female entrepreneurship, with men being more likely to start businesses (around 5-9%).
• In summary, the study highlights that while female entrepreneurship is thriving in some regions, there are significant disparities across different countries and economies.
• According to Census Bureau female-owned business statistics, the states with the most female-owned employer firms are Hawaii, Colorado, and Virginia.

• In Oregon, female-owned manager firms make up almost 20.6% of all the firms in the state.
• In Hawaii, female-owned manager firms make up almost 24.7% of all the firms in the state.
• In Alaska, female-owned manager firms make up almost 21.6% of all the firms in the state.
• The median yearly payroll for every employee of women-owned firms is $38.238 compared to the national average of $54,114.
• Almost 1,800 new female-owned companies are created every day in the United States.

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Women Entrepreneurship Uniqueness Statistics

• Women’s basic motives for starting a business are autonomy and freedom, whereas men’s are different.
• The identification of market opportunity encourages females more than males.

(Source: ai-bees.io)

• Almost 54.42% of men and 61.73% of women launch their businesses in search of freedom and autonomy.
• Around 32.74% of men and 20.11% of women launch their business to identify the Opportunity within the market.
• Nearly 27.88% of men and 24.02% of women launch their business as if they have developed a service or product.
• Roughly 14.82% of men and 8.66% of women launch their business on the proposal of partnership.
• Virtually 9.73% of men and 7.26% of women launch their business to have an additional income.
• Practically 3.98% of men and 7.26% of women launch their business in the need for personal development.
• Around 1.99% of men and 5.31% of women launch their business for some other reason.
• Both men and women face a lack of assistance. The following chart shows “Who are Entrepreneurs accompanied by?

(Source: ai-bees.io)

• As the chart shows, around 43.58% of men and 44.41% of women have no accompaniment for launching their business.
• Almost 38.72% of men and 34.92% of women are accompanied by accountants.
• Nearly 19.25% of men and 14.53% of women are accompanied by coaches, consultants, or mentors.
• Virtually 9.96% of men and 9.78% of women are accompanied by entrepreneurship support companies.
• Roughly 5.53% of men and 6.15% of women are accompanied by an Attorney or Notary or Bank.
• Practically 5.31% of men and 6.15% of women are accompanied by Incubators.
• Generally, 4.65% of men and 4.19% of women are accompanied by family, colleagues, friends, or acquaintances.
• Nearly 1.33% of men and 0.84% of women are accompanied by others.

(Source: ai-bees.io)

• Females are more sure about their steps than men. Men are almost 72.4% sure of their ability to achieve success, whereas just 65.3% of females are confident.
• If compared to around 48.2% of women and 64.7% of men, they feel very confident about their business.
• According to Women Entrepreneurship Statistics, females have less experience than males when starting a business. The graph below states that women who start their businesses have very little professional experience than men.

(Source: ai-bees.io)

• At the time of launching their business, around 14.13% of men and 20.00% of women had a professional experience of 1 year.
• Almost 11.56% of men and 17.46% of women had a professional experience of 1-3 years when they launched their business.
• Roughly 10.92% of men and 10.14% of women had a professional experience of 3-5 years when they launched their business.
• Virtually 16.27% of men and 18.31% of women had a professional experience of 5-10 years when they launched their business.
• Roughly 24.63% of men and 21.69% of women have a professional experience of 10-20 years at the time of launching their business.
• Almost 22.48% of men and 12.39% of women have a professional experience of more than 20 years at the time of launching their business.

Women Entrepreneurs Employment Statistics

• The women entrepreneurs have employed almost 9 million employees, as per the women entrepreneurs’ statistics.
• The women business owners made almost$386.6 billion in revenue from the business launched.
• Hispanic American females and African women run the fastest-increasing organizations in the United States.
• Almost 22% of the women business owners search for financing to expand and engage new workers.

Data on Women-Run Startups

• In 2021, almost half (49%) of startups were founded by women.
• However, only a small fraction (2.5%) of startups have only female founders.
• Since 2016, female-founded startups have received just 4.4% of venture capital funding.
• About 14% of startups have a female CEO.
• Women are more likely than men (37% vs. 18%) to invest in startups for portfolio diversification.
• In 2017, there were 270 new female entrepreneurs per 100,000 people.
• Women-led startups use about two-thirds less funding during the startup phase than male-led ones.
• Millennial women are 22% more likely to start a business than Baby Boomers.
• In 2020, 28% of startups had at least one female founder, up by six percentage points from 2017.
• In the first half of 2022, startups with at least one female founder received 17.2% of venture capital funding.
• Around 14% of unicorn startups in 2021 were founded or co-founded by women.

Women-Owned Business Funding Statistics

• According to PitchBook, in 2022, women founders in the United States received just 2.1% of venture capital funding.
• According to FED Small Business, around 39% of female-owned businesses applied for a line of credit, 36% for a loan, and 28% for an SBA loan.
• QuickBooks states that the high priority of women-owned small businesses is getting financial support and more cost.
• Nearly 53% of women-run businesses receive funds through their savings, whereas 15% of female-owned companies receive private business loans.
• According to FED Small Business, 63% of female-owned businesses are estimated to contribute to almost 6% of the predicted global economic growth in 2022.
• According to Mastercard, female-owned companies are estimated to contribute almost 6% of the projected worldwide economic growth.
• According to Bank of America, the median number of women business owners is predicted to attain equal access to capital by 2031.
• For the FED Small Business, 52% of female-owned businesses used a large bank as their money service provider, 38% used a small bank, and 27% used a financial institution other than a bank.
• As per Experian, the median business credit score for female-owned businesses is 34.
• AI Bees states that males are twice as likely to gain more than $100,000 in funding as females.
• The FED Small Business, 45% of women-owned business loan applications were approved in 2022.

Women-Owned Businesses in the U.S.

• Growth of Women-Owned Businesses:

The number of businesses owned by women in the U.S. has increased significantly in recent years. In fact, from 2014 to 2019, there was a 21% increase in women-owned businesses, compared to just 9% growth for all businesses. Currently, 42% of all businesses in the U.S. are owned by women, totaling about 12.9 million firms.

• Economic Impact:

Women-led businesses play a crucial role in the U.S. economy. They employ approximately 9.4 million workers and generate a staggering $1.9 trillion in revenue annually. However, there is a noticeable disparity in revenues between non-minority and minority women-owned businesses. Closing this gap could lead to substantial economic growth, with the potential addition of four million new jobs and nearly $1 trillion in revenue.

• Regional Insights:

States like Hawaii, Virginia, and Colorado have a higher proportion of women-owned employer firms compared to others. For example, in Hawaii, nearly a quarter of all firms are women-owned employer firms. Additionally, California has the highest number of women-owned firms in the country.

• Daily Creation of Women-Owned Businesses:

Every day, an average of 1,817 new women-owned businesses are established in the U.S. This growth is particularly significant among women of color, who account for 89% of these new businesses. African American/Black women and Latina/Hispanic women lead in this aspect.

• Challenges Faced:

Despite the growth, women entrepreneurs encounter various challenges. One in three female entrepreneurs has experienced sexism as a business owner, with many facing gender bias, inequality, and underestimated capabilities. Access to funding is a top priority for women-owned businesses, with many seeking government grants, tax breaks, and loans to support their growth.

• Funding Disparities:

Women-owned businesses receive smaller loans on average compared to male-owned businesses, with the average loan size being 50% lower. Additionally, only a small fraction (2.4%) of venture capital funding goes to female founders, highlighting disparities in investment opportunities.

• Impact of Parenthood:

The global pandemic has particularly impacted women business owners who are also caregivers. About 31% of women business owners have school-aged children at home, and many have had to scale back their business operations due to childcare responsibilities.

This summary provides an accessible overview of the key statistics regarding women-owned businesses in the U.S., highlighting their growth, economic impact, challenges, and the impact of external factors such as regional differences and the pandemic.

Conclusion

The hypothesis that states that men individually control the corporate world is gradually changing with the growth of the presence of women in the corporate world. A huge number of women have been successful in their businesses because of their sincerity and drive for success. The females in Black America, China, India, Hispanics, and other parts of the globe are developing above the challenges in the corporate world. They have helped various people to find jobs and are creating income sources for many families.

The future of women’s entrepreneurship is very bright and colorful.

Saisuman Revankar

Saisuman is a professional content writer specializing in health, law, and space-related articles. Her experience includes designing featured articles for websites and newsletters, as well as conducting detailed research for medical professionals and researchers. Passionate about languages since childhood, Saisuman can read, write, and speak in five different languages. Her love for languages and reading inspired her to pursue a career in writing. Saisuman holds a Master's in Business Administration with a focus on Human Resources and has worked in a Human Resources firm for a year. She was previously associated with a French international company. In addition to writing, Saisuman enjoys traveling and singing classical songs in her leisure time.

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