In 2016, approximately 163 million women started or ran new companies in 74 economies around the globe. Added to 111 million women who are already running businesses, we can see the impact of women in business. These women sometimes employ their community members, take financial care of their families, and are truly respected members of the business world.
We no longer have to ask about the role that women have in contributing to world economic development. Women entrepreneurs statistics show that women now account for 40% of the workforce in more than 80 states and control more than $20 trillion in annual spending. Predictions are that this number will go up to $28 trillion in the next few years.
Ready for some more interesting stats and facts about women in business?
Women Entrepreneurs Statistics (Editor’s Choice)
- Women now own 36% of small businesses.
- Women are in charge of more than 46% of private businesses in Ghana.
- Uganda and Vietnam have over 30% of women-owned companies.
- Women owned businesses statistics show that female ownership rate is under 10% in the countries of the Middle East, but these women are more likely to do international business.
- In the last 20 years, the number of businesses owned by women in the US has increased by 114%.
- The yearly growth of women in business has been 4.2% in the last 12 years.
- Women own four out of ten businesses in the US.
- Faster than women-owned businesses is the growing number of companies owned by women of color. An average rate of growth has been 163% in the last 45 years, women in business statistics estimate.
- In the past two years, women have started more than 1,500 new companies.
- Almost 90% of businesses owned by women generate no more than $100,000 yearly.
Businesswomen Across the Globe
1. 1972 is when women started to run their businesses.
This year was crucial for women because it was the first time that it was mentioned in the US Census Bureau as the year related to female entrepreneurship. Almost 50 years old fight made a remarkable impact on the economy across the globe. Employment in those firms grew 40 times, and revenue was 217 times bigger. In the last 11 years, this impact has increased more than ever, especially among the companies that earn more than $1 million in revenue.
2. 62% of female business owners are between 40 and 59 years old.
It takes years to gain enough professional experience to start your own business. Female entrepreneurship statistics show that only 30% of female business owners are younger than 40, which means that it takes years of hard work and dedication to build connections and financial capital to run a successful business.
More than 80% of these women have a college degree. Taking into consideration that one-third of all entrepreneurs have a high school diploma, we can conclude that women in entrepreneurship are more likely to be college-educated than men.
3. 36% of small business owners are women.
What exactly do these women own? In the first place, they dominate in beauty, health, and fitness industry. They run food places and restaurants, retail stores, education-related businesses, and provide business services. Women are more likely to start a new franchise instead of buying a pre-established business. Almost 60% of the largest female-owned businesses started from scratch.
4. Women own 46% of private businesses in Ghana.
Statistically speaking, that means that Ghana is the number one country for businesses owned by women. Furthermore, Ghana has outranked Russia and the United States by almost half of the women-owned businesses.
It is interesting to know that out of all entrepreneurs across the country, only 25% of them are women entrepreneurs in the US.
Women in Ghana start their businesses out of necessity. Their family members are usually connected to said businesses.
5. There is less than 10% of businesses owned by women in the countries of the Middle East.
At the same time, this is the biggest gap between genders in the business world. In spite of that, women who run businesses in the countries of the Middle East are more likely to upgrade their businesses to the international level. 75% of women business owners in the Emirates run companies that are active globally.
According to the Mastercard Index, 50% of women who run their businesses will hire 10 people in the next 10 years.
6. 12.3 million women own businesses in the US.
Speaking of statistics, how big this number really is? More than 12 million women currently own some kind of business in the United States, women entrepreneurs statistics show. These businesses are not the same in every part of the country. Men have the upper hand in every state when it comes to founding startups, and the gender gap is still big.
7. In the last 20 years, the number of companies owned by women has increased by 100%.
This rate is twice as high than the global average when we speak about men who start their own businesses. With that in mind and with the percentage of female business owners in 2017, we can see that the current growth is higher than in the past 20 years—3.7% in comparison to less than 3% in 2017.
8. Women of color started 70% of new companies in the US.
In the last 20 years, this number has increased by nearly 500%. That means that 259 African-American women open new businesses daily. The number of companies owned by Latinas grow by 227 every day. The odds are in their favor when it comes to entrepreneurship for women.
9. In the last 45 years, the number of US companies founded by black or Hispanic women has grown three to four times faster than the average rate.
This fact is closely related to the slower recovery period. Very similar to the case of businesswomen in Ghana, women of color in the United States had to open their businesses to have stable earnings. According to the female entrepreneurship statistics in 2018, almost half of businesses led by women are owned by women of color. These women employ more than two million people and have yearly revenues of $386 billion.
10. Almost 90% of all women-owned businesses generate less than $100,000 yearly.
Out of all women-led companies, only 2% generate more than $1 million. Speaking of women who make more than $1 million annually, we can single out the top 10 female entrepreneurs who make billions of dollars every year.
Did you know that one of the richest women on the planet owns Bet365, the most famous betting site or that Huda Beauty, a renowned makeup brand, has a yearly revenue of $500 million? Martha Stewart built a cooking empire and now earns $300 million every year.
Possibilities for women are numerous. From betting to fashion and makeup, all those businesses are on a list of women-owned businesses.
11. In the first six months of 2019, 10 companies owned by women became unicorns.
A startup that made more than $1 billion is called a unicorn. In 2018, only 12 companies with a female founder on board made their way to the top. At the moment, there are 357 of such companies globally. The youngest of them are selling makeup on Instagram or renting designer dresses, according to the 2019 female entrepreneurship statistics.
12. Businesses founded by women earn twice as much money than those founded by men.
Boston consulting group conducted a study that included 350 startups in order to reveal that women-owned businesses are safer for investors. That is because a lot of female entrepreneurs own companies that are their only source of income. Businesswomen usually face greater difficulties when it comes to obtaining funds for their businesses. They are subjected to more scrutiny than their male counterparts. However, according to the male vs female entrepreneurs statistics in 2018, women are 9% less likely to seek funding in the first place.
13. The male-dominated industries are construction and high technology.
On average, a very small number of women-led startups achieve high revenues when it comes to heavy industries, like machine and metal industries. Only 13% of women own companies in these fields of business, making them less popular for businesswomen in general. The percentage of female entrepreneurs is also small in the high-tech industry. Only 13% of women own startups in the information technology sector. In total, according to entrepreneur statistics, 73% of small startups’ owners are men which is something we, as a society, need to work on.
14. Women tend to feel less optimistic than men when it comes to their business performance.
Starting a business is always a risky endeavor and many feel uncertain about what the future holds. The numbers show that 21% of women are not very confident when it comes to their business performance, as stated by the US Small Business Administration. Performance is commonly based on the level of financial development. The women entrepreneurs statistics show that women are less optimistic when it comes to sales growth, the number of employees, and earnings per share than their male counterparts.
15. Only half of the startups have at least one female owner.
According to the most recent data, 7.8 billion people live on our planet. Women account for 49.6% of the entire world’s population. Just a small percentage of those women currently hold the top management positions at startups. Still, female founders statistics show that at least one woman sits on the board of directors in half of the world startups—that is a 10% increase since last year.
16. By the end of 2019, 53% of corporations will have women in decision-making positions.
These companies are based in the United States, China, Canada, and the United Kingdom. Last year, only 43% of the companies in these countries had female chief executive officers, according to the 2018 state of women-owned businesses report. In all of those countries, IT corporations, medium-sized, and small businesses are led mostly by men, but the numbers show that by the end of 2019, more women will join the startup boards.
Why is the situation changing rapidly? Continue reading to find out.
17. Six out of ten startups tend to increase the number of women in leadership positions.
In praxis, that means that 60% of startups have incorporated some program that has a goal to increase the number of women in executive positions. Is it because of the female entrepreneurship statistics that prove the better return on investment or better annual earnings? However, there is one industry that does not follow this trend.
18. One out of four health-care startups are led by women.
It may sound strange, but it is a fact—three-quarters of all board members in the health-care industry are male. Startups with one or more women in leading positions are more likely to have female COO or CEO. Still, women in business statistics reveal that in the cases where there is a woman on the board of directors, she is head of the HR department.
19. Women are the majority of the newly self-employed.
Throughout history, women have accounted for one-fourth of the self-employed. Since 2008, 58% of self-employed are women. In the last year, the number of self-employed men has slightly decreased, but the situation for women is quite the opposite. One of the best examples of self-employed women is in the UK. There are 1.5 million self-employed women—even in an era of the economic downturn. Another interesting information is related to the percentage of female business owners in 2018 in the UK, which is 17%. Moreover, female owners and managers aged 25 to 34 have higher churn rates due to “personal reasons.”
20. Flexibility related to family care is the main reason why women start their businesses.
Women choose to be self-employed five times more often than men because of their families. One out of five self-employed women wants to work from home because of family commitments, according to women-owned business stats in 2018. Interestingly, 8% of men work from home in comparison to 30% of self-employed women. Self-employed women are more likely to work part-time than men.
21. 55% of women second-guess their decision to start a business.
Women do not believe they possess adequate entrepreneurial skills as much as men do. Only 39% of women think they are capable of running their businesses, compared to 55% of men. There is no real difference between skill sets, women owned businesses statistics show, but it is only a matter of perception and confidence.
22. Women start businesses with less capital than men.
The “capital” here stands for money, but also for management training and human resources. That can also be one of the reasons why women do not have enough confidence to start their own business. Studies reveal that women doubt their decisions more often and are more prone to self-criticism, but the real problem between women and entrepreneurship can be how well-prepared for the business they think they are.
Women have made an enormous effort to be present on the map of success when it comes to entrepreneurship in the last century. The impact is significant, but they can do much more. Women have shown they have a higher company success rate, but they take fewer risks.
Companies owned and led by women are a safer option for investors, but lack of VCs shows they still do not manage to get the capital they need, according to women entrepreneurs statistics.
Famous men and women tend to think that the way we perceive entrepreneurs need to change. They say we should never think of the CEOs as men or women—both are just people, great or not so great at what they do. When the world becomes familiar with this thought, the world of entrepreneurship might be better for both men and women.
- Startup Nation
- Gender Matters In International Business
- Small Biz Trends
- Small Biz Genius
- Small Biz Genius
- European Chamber of Digital Commerce
- Wave Apps
- Guidant Financial
- CEO World
- Cofco Group
- Revenue Rocket
- American Express
- Creative Live
- Career Addict
- Women Owned Logo
- Research Gate