While women’s struggle for equality isn’t even close to over in today’s political and social climate, there are some encouraging indications—women entrepreneurs statistics imply that more female workers than ever are deciding to take their economic reality into their hands and start businesses themselves.
As the number of women entrepreneurs grows, so does the overall economy of the country, as well as job creation.
If you are interested in finding out more about women entrepreneurship, take a look at the picture that numbers and statistics paint about this topic.
Most Remarkable Trends and Women Entrepreneurs Stats (Editor’s Choice)
- There are 114% more female entrepreneurs in the US today than 20 years ago.
- On average, women’s companies grow by 84% compared to men-owned companies, which grow by 78% since starting.
- The number of firms owned by women of color grew by 163% between 2007 and 2018.
- Businesses owned by women of color employed 2,230,600 people in 2018.
- 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.
- There are 12.3 million women-owned businesses in the US today.
- The total global income of women will grow from $13 trillion to $18 trillion in the next five years.
Top Female Entrepreneurship Statistics 2020
1. 88% of businesses owned by women generate less than $100,000 a year in revenue.
The percentage of businesses started by women that generate less than $100,000 a year is 88%, and this group is growing at a fast rate. More than half (62%) of women entrepreneurs count their business as their primary income source. Only 1.7% generate more than $1 million a year, an increase of 46% over the past 11 years.
2. Over 35% of female entrepreneurs have experienced gender bias directly.
(HSBC Private Bank)
Over a third (35%) of all female entrepreneurs directly experience gender bias based on HSBC’s survey. Gender bias does vary by country, with women in business statistics in the UK showing the highest rate at 54%. France scores lowest on gender bias at 22%.
3. There are 114% more women entrepreneurs in the US now than there were 20 years ago.
The percentage of female entrepreneurs in the US increased massively: there are 114% more women entrepreneurs than 20 years ago. On average, women start 849 new businesses every day. This significant move towards entrepreneurship lies in gender discrimination in the traditional workplace and the trouble women face balancing work and childrearing.
4. The government of Canada commits $15 million to support female entrepreneurs amidst the COVID-19 crisis.
The statistics on women in business in Canada revealed that the Canadian government commits to support female entrepreneurs with $15 million as additional capital for Women Entrepreneurship Strategy (WES) Ecosystem Fund organizations. The funding is to support female entrepreneurship amidst the ongoing economic crisis due to the COVID-19 pandemic.
5. There are now 12.3 million women-owned businesses in the US.
Female entrepreneurship in the US has been continually rising over the past decade. The women entrepreneurs USA statistics revealed that there are now 12.3 million women-owned businesses in the US.
6. The Women Entrepreneurs Finance Initiative (We-Fi) allocated funding worth $49.3 million to benefit over 15,000 female entrepreneurs worldwide.
Perhaps one of the most impressive small business statistics in 2020 is this entry to the global statistics on women in business: the Women Entrepreneurs Finance Initiative (We-Fi), a non-government organization in Washington, DC, allocated funding worth $49.3 million to benefit over 15,000 small business female entrepreneurs. They are hoping to help women-owned businesses that have been affected by the COVID-19 crisis.
7. Women hold micro-businesses more frequently than men (90.3% versus 82.3%).
(UN Women Moldova)
Based on an analysis by the Bureau of Statistics, the women entrepreneurs stats show that women hold micro-businesses more frequently than men at 90.3% versus 82.3%. Additionally, only 1.3% of female entrepreneurs own medium to large businesses, while male entrepreneurs are at 3.3% for the same statistic.
8. On average, women’s companies grow by 84% compared to men’s companies, which grow at 78%.
(UN Women Moldova)
Women entrepreneurs grow their businesses faster and create more jobs than men. According to women entrepreneurs statistics, women’s companies have increased by 84% since the beginning compared to men’s businesses of 78%.
9. Women receive less funding from entrepreneurship programs than men.
(UN Women Moldova)
One of the most mind-blowing statistics comes from the male vs. female entrepreneurs statistics in 2020. Women entrepreneurs receive less funding support from entrepreneurship programs. Only 23.8% of them receive funding compared to 33.9% of men entrepreneurs.
10. 70% of female entrepreneurs running startups fear the negative impact of the COVID-19 crisis.
(Middle East Businesses Magazine and News)
Although the COVID-19 crisis also hits startups run by men, women in business 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 financial situation.
Best Women of Color Entrepreneurs Statistics
11. Firms owned by women of color have grown by 163% between 2007 and 2018.
(MBDA U.S. Department of Commerce)
When it comes to women-owned businesses, statistics show that the number of black female business owners have rapidly increased over the last decade. Firms owned by women of color grew by 163% between 2007 and 2018. In comparison, in general, businesses owned by women rose by 58% from 2007 to 2018. It’s important to note that women of color hold a staggering 47% of all women-owned businesses.
12. The number of businesses owned by black women grew by 518% between 1997 to 2016.
The women entrepreneurs statistics revealed that black women’s businesses have grown by 518% and 452% for Hispanic women between 1997 to 2016. While these numbers are impressive, it’s also noteworthy that white women’s companies have increased by 40% during the same period.
13. There were 2.4 million African-American women-owned businesses in 2018.
According to the Federal Reserve, black women are the only ethnic race accountable for more businesses than their male counterparts. The statistics for African-American women entrepreneurs show that there were 2.4 million African-American women-owned businesses in 2018.
14. Women-of-color-owned businesses employed 2,230,600 people in 2018.
(MBDA U.S. Department of Commerce)
According to women employment statistics, around 5,824,300 businesses owned by women of color employed 2,230,600 people and generated revenues worth $386.6 billion in 2018. In that same year, there were 2.1 million Latina-owned businesses and 36,800 Hawaiian-owned companies.
15. 35% of black business owners are women.
The demographics of entrepreneurs state that black entrepreneurs have the highest ratio of women to men every year. Thirty-five percent of black business owners being women, which is 23% more than the average.
16. 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 US entrepreneurship statistics 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.
17. 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 44% of the total number of businesses owned by women in the US today.
18. The average revenue of businesses owned by women of color dropped by $17,600 between 2007 and 2018.
Like everything else in life, the state of women in America entrepreneurship is not always a bed of roses. The average revenue of businesses owned by women of color dropped from $84,000 in 2007 to $66,400 in 2018. Relatively, enterprises owned by the non-minority women increased from $181,000 to $212,300.
19. Minority women with side hustles increased to 65% between 2014 and 2019.
(Fast Company Compass)
The black female entrepreneurs 2020 statistics state that the percentage of minority women with side hustles increased from 32% to 65% over the last 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.
20. Women of color hold 89% of new businesses opened each day over the past year.
Women of color only hold 39% of the total female population in the US. Yet, the women in leadership roles business statistics revealed that women of color own 89% of new businesses opened over the past year. Women-of-color-owned companies grew at an impressive 43%, while women-owned enterprises increased by only 21%.
Predictions and Trends in Female Entrepreneurship to Watch Out For
21. Funding opportunities for female entrepreneurs are increasing.
For many years, funding support for female entrepreneurs has been scarce. But women in business statistics start to notice an increase in women entrepreneurs’ funding opportunities more than ever before.
For example, We-Fi has recently allocated $49.3 million to support female entrepreneurs on 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.
22. The confidence level of women entrepreneurs will continue to grow.
(Cision PR Newswire)
With more than 400 million women entrepreneurs worldwide, 153 million of them operate successful businesses, an impressive 38.25 percentage of female business owners in 2020. Other women’s successes inspire others to do the same, which will continue to grow women entrepreneurs’ confidence levels.
23. Women are becoming more optimistic about the future of female entrepreneurship.
Small business owners statistics show that 61% of female small business owners are optimistic about the future of female entrepreneurship. Alternatively, 40% of women feel a lot better about their current financial situation than they did last year.
24. Older women are becoming the new face of entrepreneurship.
Female entrepreneurship statistics show that more women aged 55 and above leave their corporate job to start their own business. These women are called “encore entrepreneurs,” which refers to how they left their previous careers to start their own business at an older age.
25. In the next five years, women’s global income will grow from $13 trillion to $18 trillion.
Based on EY’s report, women’s global income will grow from $13 trillion to $18 trillion in the next five years. According to women entrepreneurs in India statistics, the $5 trillion increase is almost twice the growth expected from India and China’s women-owned businesses combined.
26. Women part-time entrepreneurs (sidepreneurship) will remain a trend in many more years to come.
(The 2019 State of the Women Report)
Sidepreneurs is the term used for part-time entrepreneurs working around 20 hours a week on their businesses. The global statistics on women in business show that women’s sidepreneurship grew from 21% in 2014 to 39% in 2019. This trend will continue to grow for many more years to come.
27. FemTech companies will grow tremendously over the next few years.
Female Technology (FemTech) companies focus on improving women’s lives, such as beauty, fashion, and fertility businesses. FemTech is one of the trends in female entrepreneurship expected to make significant waves in the next few years and become a $50 billion market by 2025.
28. More millennial women will join the entrepreneurship bandwagon in the future.
(Fast Company & Guidant Financial on Millennials)
An emerging trend in businesses started by women is that more millennial women pursue new ventures within the startup communities. It is worth mentioning that women own 28% of millennial companies in 2020.
29. If possible, 49% of female entrepreneurs would increase online marketing and advertising budgets.
Female entrepreneurship statistics state that more female entrepreneurs will rely on online marketing and advertising. In fact, in the Visa survey in 2019, 49% of respondents said that they would direct their fundings on this strategy to boost their reputation, according to branding statistics. Digital marketing would be a priority of 58% of respondents, while 56% would instead focus on social media marketing.
30. The female entrepreneurship trend could rise post-pandemic.
During the 2007 to 2008 recession, necessity entrepreneurship was a lot higher for women than men. Necessity entrepreneurs are those whose only option is to put up their own business since they could not find employment or financial help. Based on the past recession’s pattern, the percentage of female entrepreneurs may trend upwards after the pandemic.
Many women are choosing to make their own paths in competitive and unforgiving business industry. Society has shifted towards 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 women entrepreneur statistics presented in this article highlighted all the progress that was made but also showcases 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 (FAQ)
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 in Latin America at 17.3%.
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%.
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%.
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%.