Women Entrepreneurs Statistics 2023: The Rise of Sheconomy

Remember when starting a business wearing a skirt seemed unlikely? Not anymore. From small shops to bold startups, women are trailblazing into entrepreneurship and making things happen on their own terms. But the playing field isn't quite equal yet. Behind the breakthroughs, female founders still see more doors closed than opened regarding funding and fair chances. The percentage of women who started a business in the last year was 47%, compared to 44% for men.

But sisters do it for themselves, nevertheless. Woman-run startups create ripple effects, change mindsets, and empower the next generation to dream big. The GEM report found that almost 80% of American women consider entrepreneurship a good career choice." It's evident there's room for that ripple effect to become a wave.

The number of women-owned businesses in the U.S. stands at 12.3 million. As the numbers will show, women are willing and able to excel given the opportunity. So, while the barriers are real, each woman who jumps over one joins the collective force toward making entrepreneurship more inclusive. Our groundbreakers today clear the way for future founders to build exactly what they imagine.

Major Women Entrepreneurs Statistics

• There are currently 12.3 million women-owned businesses today, compared to 402,000 in 1972.
• 43% of the total number of entrepreneurs worldwide is made of women.
• Women between 40 and 59 comprise the highest percentage of female business owners.
• Ten women-owned businesses became unicorns in the first six months of 2019.
• The issue of gender predisposition has affected over 35% of female entrepreneurs.
• In 2021, women in the United States owned and operated about 31% of startups.
• Over 50% of female entrepreneurs solely rely on their firms to cater to their needs.
• Just a quarter of female entrepreneurs request business financing at the inception of their business.
• 88% of businesses owned by women produce below $100,000 revenue yearly.
• Barely 13% of firms in the construction, administration support, industrial, and waste management sectors are owned and operated by women.

Top Statistics on Women Entrepreneurs

1. There are 12.3 Million Women-Owned Businesses Today, Compared to 402,000 in 1972.

There is a great difference between the number of businesses owned by women today and 50 years ago. As the years go by, the number of female startups increases globally. In 1972, only 402,000 women-owned companies existed, but this has grown to 12.3 million businesses in the United States today. However, the figure is still rising and isn't expected to dwindle soon.

2. 43% of the Total Number of Entrepreneurs Worldwide is Made of Women.

Women entrepreneurs make up 43% of total business owners globally in 2021. Though women are making great efforts in the business cycle, they are still far from taking dominance in the business world.

3. Women Between 40 to 59 Years of Age Make Up the Highest Percentage of Female Business Owners.

Women between 40 to 59 years of age make up 62% of the total population of female entrepreneurs. 80% of women within the age bracket have a college degree, while just 30% of businesses are owned by women less than 40 years of age. The high number of older women in business can be attributed to the fact that growing a successful business requires experience, diligence, determination, and commitment. Also, the entrepreneur needs to build a formidable business network and maintain working capital.

4. 10 Women-Owned Businesses Became Unicorns in the First Six Months of 2019.

Ten women-owned businesses in 2019 achieved a unicorn status during the first half of 2019. At the end of 2019, 11 more companies were added to the list of women-owned businesses that made over $1 billion.

5. The issue of gender predisposition has affected over 35% of female entrepreneurs.

Getting a conventional loan from the bank is still a cumbersome task for many women intending to start a business. Over a third of female loan applicants have faced rejections or biased behaviors from financial institutions. Successful female loan applicants receive 5% less of the funding offered to men for business.

6. As of 2021, About 31% of Startups in the United States were Owned and Operated by Women.

A survey by Small Business Trends showed that 27% of women owned small businesses in 2020, which increased to 30% in 2021.30% of women-owned striving companies have succeeded for over 10 years. Meanwhile, 17% of women-owned businesses were opened to be financially independent.

7. Over 50% of Female Entrepreneurs Rely on Their Firms to Cater to Their Needs.

A report by SCORE states that 62% of women entrepreneurs depend on their businesses to cater to all their needs. Women entrepreneurs receive support as low as 8% from investors because they tend to invest more in male-owned firms. Female entrepreneurs charge 7% extra on their business credit card than their male counterparts. This credit card can help the business keep afloat in times of insufficient capital.

8. A Quarter of Female Entrepreneurs Request Business Financing At its Inception.

A negligible fraction of women (25%) request startup capital. One out of four applications for startup business financing to venture capitalists and finance houses comes from women. On average, women request for financing $35,000 lower than their male counterparts. Also, women in the corporate work environment ask for smaller salary raises when compared to men.

9. 88% of Women-Owned Businesses Make Below $100,000 in Revenue Yearly.

The Women Business Enterprise National Council stated that 88% of women entrepreneurs do not earn up to $100,000 as revenue yearly. Just 1.7% of female entrepreneurs exceed a revenue base of $1 million yearly. There is also a high influx of women into leadership positions globally.

10. Barely 13% of Firms in the Construction, Administration Support Services, Industrial, and Waste Management Sectors Are Owned and Operated by Women.

Industries like the construction, waste management, admin support services, and manufacturing sectors have seen more participation of women in recent years. Women are diving into opening new firms in these industries, and many have been successful in business in the first year of operation.

11. 1 in Every 3 Businesses has a Woman as Principal Owner.

Women are achieving quite a good feat in the business world, with one-third of principal owners of businesses comprising females. 1 of every 4 firms in an underdeveloped nation is owned by a woman. Meanwhile, 37% of companies in developed countries are held by women.

Statistics of Male vs Female Entrepreneurs

12. Both Genders have a 32% Likelihood of Starting and Running a Business.

There is no difference in the level of entrepreneurial spirit in men and women. At 32% in both genders, it can be said that both genders have the same zeal for operating a business.

13. Crowdsourcing has a Success Rate of 69.5% in Women Compared to 61.4% in Male Counterparts.

Crowdsourcing has helped 69.5% of women in establishing a business. It is known as a viable way for women to get access to business financing.

14. An Average of $39,000 and $44,000 in Business Loans Was Obtained by Men and Women in 2020.

Statistics reveal that men are more at an advantage in loan procurement. On average, women needing venture capital received $39,000 compared to their male counterparts' $44,000. Male entrepreneurs tend to have more access to business funding even when women are known to strive to achieve more profits in business than men. Women entrepreneurs' revenue in 5 years of business activities is 10% more than the males in the same industry.

15. Women Entrepreneurs Appear More Stressed Out than Business Men.

About 26% of female entrepreneurs reported being more stressed out after starting their own business. This also includes a third of them having sleepless nights over the likelihood of their business failing. Statistics show that women, unlike men, are a bit pessimistic about their business sales growth, profit, and revenue earnings. This has reduced considerably over the years as more women start their businesses.

16. Investors Get 63% More Returns on Investment From Women Entrepreneurs Than From Male Startups.

Women entrepreneurs are known to give higher investment returns than their male counterparts. This has become one of the major reasons investors provide funding to women entrepreneurs.

Colored Women Entrepreneurs Statistics

17. Women Entrepreneurs Have the Fastest-Growing Businesses in the United States.

Businesses owned and operated by black females in the United States between 2014 and 2019 increased by 50%. About 2.7 million enterprises in the United States are owned and managed by black women.

18. The United States Census Bureau of Statistics Revealed That the Minority-Owned 18.3% of Businesses Nationwide.

Besides the ownership of 18.3% of businesses by the minority, 19.9% of firms across all industries in the United States are owned by women. Yearly, more black women open small businesses, and Hispanic women closely follow this.

19. African-American Women Own Over 2.5 Million Companies in the United States.

African-American women are far ahead of men of the same race regarding business ownership. They are the only racial group whose business ownership rate surpasses their male counterparts. Black women's business ownership has continued to increase steadily in recent years.

20. Minority Women's Participation in Side Hustle Jobs Rises by 65%.

There has been an increase in women engaging in side hustles from 32% to 65%, which is not expected to slow down soon. Women's side hustles include bookkeeping, customer service, animal care, consultation, beauty salons, and legal services.

The Impact of Covid 19 on Women Entrepreneurs

The COVID-19 pandemic affected financial well-being, reduced consumer demands, and disrupted women entrepreneurs' supply chain and employee support system.

21. 70% of Female Entrepreneurs Are Worried About the Survival of Their Businesses Due to the COVID-19 Pandemic.

The SME firms owned by the feminine gender of the society experienced financial crises. Thus, about 70% of these women entrepreneurs are unsure of what the future holds for their firms.

22. The Canadian Administration Provided $15 Million to Support Female Entrepreneurs Whose Firms Were Affected by the COVID-19 Pandemic.

The subsidy was to boost the goals of (WES), also known as the Women Entrepreneurship Strategy.' The government aims to assist female entrepreneurs in remaining in business during the epidemics.

23. Of 100% of Firms Running in Saudi Arabia, 33% Were Initiated by Arabian Women.

The Saudi Arabian women make up 33% of the businesses operating in the state. That is nearly one-third of the firms in operation.

24. Women Are Anticipated to Bring About $18 Trillion in Revenue Out of Everything Attributable to Income in Saudi.

From all indications, the women's fold is soaring to raise more than what was obtainable, that's $13 million. Their prediction is to grab a revenue of $18 million within the next years. This deal is anticipated to come from women entrepreneurs within China and India.

25. The COVID-19 Pandemic Crushed the Stance of Company Owners, Especially Organizations Erected by the Feminine Gender, to 13%.

According to the US Chamber of Commerce report, lady inventors foresee a 60% drop in management to 47% all because of COVID-19. The case differs from their male colleagues, who experience only a 5% drop in functionalities.

Women Entrepreneurs Employment Statistics

26. Female Entrepreneurs have Employed Over 9 Million Workers.

Female entrepreneurs have contributed significantly to the labor market. Over 9 million people have been employed by female entrepreneurs, making up about 8% of private sector employment. Combined with their male counterparts' contribution, it adds up to 14% of private sector employment. This shows that women are contributing significantly to employment.

27. Colored Skin Women Entrepreneurs Provide 2,230,600 Jobs.

Colored women entrepreneurs have been able to provide over 2 million jobs. Female entrepreneurs generated $386.6 billion in revenue from their business. Meanwhile, African and Hispanic American women run the fastest-growing companies in the United States.

28. 22% of Female Entrepreneurs Seek Financing to Expand and Engage New Workers.

Most women will rather seek funding when they need to start a new line of business or expand their existing business. This is, however, not the case with men, as they are more likely to seek funding to implement a business idea. Female entrepreneurs often use these finances to employ more workers, refinance loans, and purchase work equipment.

Conclusion

The adage that says men solely control the business world is gradually changing with the increased presence of women in business. Many women have been successful in business due to their tenacity and drive for success. Women in China, black America, Hispanics, India, and other parts of the world are rising above the challenges in the business world. They have helped many people find employment and are generating income for families. The future is bright as more women undertake the journey of entrepreneurship globally.

FAQs How many businesses do women entrepreneurs own?

Women own over 12 million businesses globally, providing jobs to over 10.1 million persons.

What country has the highest number of successful female entrepreneurs?

More female billionaires are in the US. The next countries after the US are China, Germany, and Italy, in fourth place.

What challenges do women entrepreneurs face?

The major challenge female entrepreneurs encounter is the difficulty in procuring a bank loan, so they must turn to crowdfunding and grants.

Sources

• Biz Journals
• Entrepreneurship MIT
• Guidant Financial
• The GEM
• Medium
• National Women's Business Council
• Statista
• US Chamber of Commerce
• Women Business Enterprise National Council

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