Report: U.S. Women Created 1,200 Businesses Per Day Last Year

More women are taking up the reins of entrepreneurship, including women of color, according to the latest OPEN State of Women-Owned Business report.

The fourth annual report, sponsored by American Express and Womenable, finds that women launched about 1,200 new businesses a day in the last year (up from 740 a day the previous year) and that four out of every 10 new enterprises are now being started by women. Playing an increasingly significant role are women of color, who comprise one-third of women-owned firms in the United States.

The report’s other key findings include:

  • There are 9.1 million women-owned businesses in the United States, generating more than $1.4 trillion in revenue and employing more than 7.8 million people.
  • Women of color accounted for 17 percent of women-owned businesses in 1997, compared to 32 percent today. Businesses owned by women of color tend to be smaller than those owned by non-minority women, but their growth in number is leading the charge of women-owned firms.
  • Women-owned firms continue to diversify and lead growth in eight of the top 13 industries, including real estate, finance/insurance, and the wholesale trade.

The report further notes that although women-owned businesses are increasing, they employ just 6 percent of the national workforce and account for less than 4 percent of business revenues. The report states that “the real issue at hand is not getting more women to start business, but rather providing support to women who are already in business to enable them to grow their enterprises to the next level.”

Looking to the future, the report suggests that policy and programs focus on women-owned businesses with five to nine employees that are closing in on $1 million in annual revenue.