Although men are still leading in numbers, women-led companies are increasingly growing each passing year. The growth of women in entrepreneurship is positively influencing the overall economy of the country, as well as job creation.
If you are interested in finding out more about women’s entrepreneurship, take a look at the picture that numbers and statistics paint about this topic.
Top Women Entrepreneurs Statistics: Editor’s Choice
- There are 114% more female entrepreneurs in the US today than 20 years ago.
- There are 12.3 million women-owned businesses in the US.
- 90.3% of women hold micro-businesses more frequently than 82.3% of men.
- On average, women’s companies grow by 84% compared to men-owned companies, growing by 78% since starting.
- There are more than 2.5 million African-American women-owned companies in the US.
- Businesses owned by women of color employed 2,230,600 people.
- If women-of-color-owned businesses matched all women-owned businesses’ revenue, an extra $1.2 trillion would be added to the US economy.
- The government of Canada commits $15 million to support female entrepreneurs amid the COVID-19 crisis.
- The total global income of women will grow from $13 trillion to $18 trillion in the next five years.
Top Female Entrepreneurship Statistics in 2022
Many things are different in 2022 due to the global pandemic. A vast majority of businesses of all sizes have been affected by the crash of the economy. What has changed—and what hasn’t—when it comes to female business leaders?
1. 88% of businesses owned by women generate less than $100,000 a year in revenue.
The percentage of businesses that generate less than $100,000 a year is growing at a fast rate, at almost nine out of ten.
Women in business statistics show that 62% of them count their business as their primary income source. So, it’s understandable how running a business is not a side hustle for the vast majority of women.
2. Over 35% of female entrepreneurs have experienced gender bias directly.
Despite the increased number of women-led companies, funding is still a huge problem. With over a third of all female entrepreneurs directly experiencing gender bias, women receive 5% less funding than their male counterparts.
Gender bias does vary by country, with women in business statistics in the UK showing the highest rate, followed by the US at 46%. Although the gender gap is closing with each passing year, there’s still a long way to go.
3. There are 114% more women entrepreneurs in the US now than there were 20 years ago.
In the US, the number of women business owners increased massively—there are 114% more women entrepreneurs than 20 years ago.
This significant move towards entrepreneurship lies in gender discrimination in the traditional workplace, and the trouble women face balancing work and childrearing.
Overall, it’s safe to say that the percentage of female entrepreneurs in the US equals about four in ten—this means entrepreneurship is going the right way.
4. There are 12.3 million women-owned businesses in the US.
Female entrepreneurship in the US has been continually rising over the past decade. Compared to the previous years, women entrepreneurship has seen a growth of 68%. In 2019, the figure shifted from $228,578 to an astonishing $384,359. Despite the hardships inflicted by the COVID-19 pandemic, the number of women owning a business is expected to rise.
The latest female-owned business stats revealed that there are now 12.3 million women-owned businesses in the US.
5. The Women Entrepreneurs Finance Initiative (We-Fi) allocated funding worth $49.3 million to benefit over 15,000 female entrepreneurs worldwide.
Perhaps this is one of the most impressive small business statistics for 2020. In short, the Women Entrepreneurs Finance Initiative (We-Fi) is a non-government organization in Washington, DC, that allocated funding worth nearly $50 million to benefit over 15,000 small business female entrepreneurs.
Not to mention, the same US entrepreneurship statistics show that women-owned businesses mobilize an astounding $350 million in public and private sector resources.
This non-profit organization is hoping to help women-led companies that have been affected by the COVID-19 crisis.
Male vs Female Entrepreneurs Statistics for 2022
Although men still constitute the vast majority of business owners worldwide, female entrepreneurship has seen remarkable growth over the past decade. What’s the current situation? Will women in business positions keep growing in 2021? See what the numbers say.
6. Women hold micro-businesses more frequently than men, at 90.3% vs. 82.3%.
Based on an analysis by the Bureau of Statistics, micro-businesses are more frequent among women than men. Although the gap is not as massive, these women entrepreneurship statistics show that females hold over 90% of micro-businesses.
Additionally, only 1.3% of female entrepreneurs own medium to large businesses, while male entrepreneurs are at 3.3% for the same statistic.
7. On average, women’s companies grow by 84% compared to men’s companies, which grow at 78%.
It’s not a surprise that women entrepreneurs receive less funding and support programs than men. Only 23.8% of them receive funding compared to 33.9% of men entrepreneurs.
However, women grow their businesses faster and create more jobs than men. According to women-owned businesses statistics, female companies have increased by a good 84% since the beginning compared to men’s businesses of 78%.
8. For every seven women starting a business in the US, ten men do the same.
It’s undeniable that male vs. women disparity still exists in 2022. While women in the workforce have experienced notable advancements, there is still quite some work to do towards equality when it comes to entrepreneurship.
Crucial Women of Color Entrepreneurs Statistics
People of color have historically had to pass so many challenges just to be considered for a job. Today—while there has undeniably been some progress—so many of the issues remain. This is especially true for women in businesses. However, not everything is discouraging.
9. Around 18.3% of all US businesses are minority-owned.
Moreover, about 19.9% of all companies were led by women—this amounts to a good 1.1 million.
When it comes to female entrepreneurship, the latest statistics prove that the number of black female business owners has rapidly increased over the last decade. Firms owned by women of color have grown exponentially since 2007.
In the US, the most successful industries are scientific, health care, social assistance, and retail. Generally, these 2.8 million companies employed approximately 51.1 million people, creating an annual revenue of $2.6 trillion.
10. The number of businesses owned by black women grew by 518% between 1997 to 2016.
These demographics of small business owners revealed that black women’s businesses have grown by 518% and 452% for Hispanic women. While these numbers might sound impressive, it’s also noteworthy that white women’s companies have increased by 40% during the same period.
11. There are over 2.5 million African-American women-owned businesses.
According to the Census, black women are the only ethnic race accountable for more businesses than their male counterparts. In fact, this number has been steadily increasing over the past years.
Overall, the total number of black women-owned businesses in the US surpassed the 2-million milestone. It’s important to note that encouraging entrepreneurship is the right way to help communities and cities.
12. According to the latest data, women-of-color-owned businesses employed 2,230,600 people.
Around 5,824,300 businesses owned by women of color employed more than 2 million people and generated revenues worth $386.6 billion.
More precisely, Latin American and African American women business owners are, without any doubt, the fastest-growing companies. The most recent small business owners statistics show that there were 2.1 million Latina-owned businesses and 36,800 Hawaiian-owned companies.
13. 35% of black business owners are women.
This is 10% more than the overall share of women-owned businesses. So, it’s not a secret that black entrepreneurs have the highest ratio of women to men every year.
Due to the pandemic, many companies were forced to close down. So, it’s clear that the vast majority of Black-owned businesses relied on personal contacts and word of mouth.
14. If women-of-color-owned businesses matched all women-owned businesses’ revenue, an extra $1.2 trillion would be added to the US economy.
The demographics of entrepreneurs show that additional revenues worth $1.2 trillion would be added to the US economy if the gains of the businesses owned by women of color-matched the current revenues generated by all women-owned businesses.
Alongside this increase in revenue, they would also create four million new jobs.
15. African-American women control 44% of businesses owned by women in the United States.
The number of African-American entrepreneurs is growing much faster than the number of white women entrepreneurs.
The image of women entrepreneurship is becoming increasingly more diverse. African-American women control over 40% of the total percentage of female CEOs in the USA today.
16. Minority women with side hustles increased to 65% in only five years.
The percentage of minority women with side hustles increased from 32% to 65% over five years.
These entrepreneurial endeavors are mostly customer service businesses, such as pet care, hair and nail salons, healthcare, social assistance, and professional or technical services like lawyers and bookkeepers.
17. Women of color hold 89% of new businesses opened each day.
Women of color only hold 39% of the total female population in the US. Yet, when it comes to the women in business leadership roles, statistics revealed that women of color own 89% of new businesses that opened over the past couple of years.
Women-of-color-owned companies grew at an impressive 43%, while women-owned enterprises increased by only 21%.
18. In the US, women that are CEOs of Fortune 500 companies account for only 8%.
What’s even more alarming, only three of them are women of color. However, there are reasons to be optimistic—reports show that the percentage grew from 17% to 21% over a period of five years (2015–2020).
Predictions and Trends in Female Entrepreneurship
What does the future look like for female entrepreneurs? While, in 2022, the world and the economy aren’t in the right state to make reliable predictions, there are still some figures that can be indicative of what we can expect.
19. Goldman Sachs funded $500 million in women-led companies.
For many years, funding support for female entrepreneurs has been scarce. But women start to notice an increase in women entrepreneurs’ funding opportunities more than ever before.
For example, facts about women in business show that We-Fi has recently allocated $49.3 million to support female entrepreneurs in their small business ventures. Even the investment fund giant, Goldman Sachs launched an investment fund worth $500 million in private, late-stage, women-founded, -owned, or -led companies.
20. Only 25% of women ask for business financing.
It’s not a secret that the confidence level of women has been growing over the past years. Fundera’s report showed that only one in four applicants seeking business funding were women.
Compared to men, the percentage of female business owners asking for business financing in 2022 is relatively low. In fact, women ask for $35,000 less on average than men do. Similarly, women employees tend to ask for smaller raises than their male counterparts.
21. 61% of women feel more optimistic about the future of female entrepreneurship.
More precisely, it’s small business owners who feel more positive about the future of female entrepreneurship and the overall worldwide business landscape. Alternatively, 40% of women feel a lot better about their current financial situation than they did last year.
It’s safe to say the state of women in America and around the world is moving in the right direction. For instance, the STEM field is still male-dominated. However, 80% of women believe that they will have a much better representation in the science, mathematics, engineering, and technology sectors over the next two decades.
22. Women aged 55 and above are becoming the new face of entrepreneurship.
Surprisingly, older women are more likely to leave their corporate job to start their own businesses. It was odd to see women aged 55 and above achieve great entrepreneurial success until recent years.
Unfortunately, women entrepreneurs’ stats demonstrate that older women have to fight against sexism and ageism. While older men in business are seen as more mature and distinguished, this is not the same for women.
23. Women part-time entrepreneurs (sidepreneurship) have grown by 39% vs. 21% of full-time business owners.
Sidepreneurs is the term used for part-time entrepreneurs working around 20 hours a week on their businesses. Sidepreneurship has become so popular among millennials and Gen Xers, and for a great reason. It is a much simpler transition from regular full-time.
The global statistics on women in business show that full-time business owners only grew by 21% against 39% of female owners that engage in sidepreneurship. This trend will continue to grow for many more years to come.
24. FemTech companies will become a $50 billion market by 2025.
Female Technology (FemTech) companies focus on improving women’s lives, such as beauty, fashion, and fertility businesses.
Nowadays, the most profitable businesses are the ones that focus on real issues. Most female business owners that take into consideration the struggles and difficulties of their gender are the most successful.
Women entrepreneurs in the world are expected to make significant waves in the next few years, according to statistics. FemTech companies are estimated to be worth $50 billion by 2025.
25. 28% of millennial women joined the entrepreneurship bandwagon.
An emerging trend in businesses started by women is that more millennial women pursue new ventures within the business and startup communities. It is worth mentioning that the number of millennial women is 12% higher than the national average.
Furthermore, millennial women are 22% more likely to start a new business than baby boomers.
26. If possible, 49% of female entrepreneurs would increase online marketing and advertising budgets.
Women entrepreneurs statistics state that more female entrepreneurs will rely on online marketing and advertising. According to the most recent research, almost half of respondents said they would direct their funding on this strategy to boost their reputation and branding.
Digital marketing would be a priority of 58% of respondents, while 56% would instead focus on social media marketing.
World Female Entrepreneurship Statistics 2022: The Situation Amidst COVID-19
Having covered the state of female entrepreneurship in the US, here’s an overview of how the rest of the world tackles the issue.
27. The government of Canada commits $15 million to support female entrepreneurs amidst the COVID-19 crisis.
During these troubling times, the Canadian government devoted itself to supporting female entrepreneurship. More than $10 million were allocated as additional capital for Women Entrepreneurship Strategy (WES) Ecosystem Fund organizations.
28. In the next five years, women’s global income will grow from $13 trillion to $18 trillion.
Based on EY’s women entrepreneurs in India statistics, women’s global income will grow from $13 trillion to $18 trillion in the next five years.
The $5 trillion increase is almost twice the growth expected from India and China’s women-owned businesses combined. The woman in the business world makes up about a third of all companies, and roughly half of them are in developing industries.
29. Women own almost 33% of Saudi businesses.
In Saudi Arabia, women’s entrepreneurship is making some notable progress—a third of well-established businesses in the country are female-owned.
Statistics about Saudi women in business prove that the overall number of entrepreneurs in the Saudi Kingdom accounts for 29%, an astonishing 35% increase over the last decade.
30. 70% of female entrepreneurs running startups fear the negative impact of the COVID-19 crisis.
Although the COVID-19 crisis also hits startups run by men, the latest statistics revealed that the pandemic is hitting female-run startups the hardest.
The majority of female entrepreneurs (70%) fear a negative impact on their business and their overall financial situation.
Women Entrepreneurship Statistics: The Takeaway
Many women are choosing to make their own paths in the competitive and unforgiving business industry. Society has shifted towards a more accepting and diverse work environment. This is a long walk since Madam C.J. Walker became the first female self-made millionaire in the early 20th century—a feat only more impressive considering she was a black woman in America.
The statistics presented in this article highlighted all the progress that was made but also showcase that inequality exists in the demographic itself, with women of color having to face more hardships when starting and running the business.
Frequently Asked Questions
How many women-owned businesses are there?
Approximately 252 million women are entrepreneurs, and 153 million are operating established businesses, according to the 2018/2019 Women’s Entrepreneurship Report.
The report concludes a survey conducted by the Global Entrepreneurship Monitor (GEM) on 59 countries from different geographic locations.
The highest rates of Total Entrepreneurial Activity (TEA) discovered by the survey are sub-Saharan Africa at 21.8% and Latin America at 17.3%.
What percentage of entrepreneurs are female?
According to the Women’s Entrepreneurship Report, women own 6.2% of established businesses worldwide. Established businesses refer to companies that have been operating for 42 months or more.
On the other hand, there are still more male entrepreneurs than female entrepreneurs. While this is the case, it’s worth noting that more women intend to become entrepreneurs within the next three years, with a global average of 17.6%.
Which country has the most female entrepreneurs?
Based on a recent study, Angola has the most female entrepreneurs, at 40.7%. The study identified female entrepreneurship from 40 countries as necessity-driven entrepreneurship and innovation-driven entrepreneurialism.
Necessity-driven entrepreneurship mostly exists in countries that lack employment opportunities, like Angola.
On the other hand, innovation-driven entrepreneurialism usually exists in developed countries with more traditional job markets, where Chile is the one with the most female entrepreneurs at 32.4%. The US ranks thirdly at 16.6%.
How many female entrepreneurs are there in the UK?
From the 22,257 businesses surveyed in the UK, female entrepreneurs own around 7,205. The percentage of women-owned companies in the UK at 32.37%. A remarkable increase from 17% four years ago. According to women entrepreneurs statistics, one in three entrepreneurs in the UK is female. However, let’s not set aside that males still dominate entrepreneurship in the UK at 67.63%.
Sources
Arab News, Arab News, Babson, BetaKit, Business Insider, Business Insider, Business Leader, Census, Create Cultivate, EY, Fast Company, Fast Company, Fundera, Fundera, Hiscox, Inc, Instant Offices, Middle East Businesses Magazine and News, Ohio CPA, Overheard on Conference Calls, The Millennial Money Woman, UN Women Moldova, We-Fi, Women Venture