The Global Entrepreneurship Monitor’s 2022/2023 Women’s Entrepreneurship report shows a big gap in business ownership by gender. Almost one in three entrepreneurs are women¹. Women are more likely to start solo businesses, with 1.47 women for every 1 man¹.

One in six women worldwide plan to start a business soon. This is most common in low-income countries¹. Women make up one in four high-growth entrepreneurs globally. This is especially true in low-income countries and North America¹.

Prevalence of Women-Owned Businesses

The world of women-owned businesses is changing fast. In the United States, over 12 million women run their own businesses. This makes up about 40% of all businesses in the country²³.

These businesses bring in nearly $2 trillion each year. They also employ around 11 million people²³.

Breakdown by Region and Country

The number of women-owned businesses varies by region and country. In low-income countries, one in four businesses are owned by women. In middle- and high-income countries, it’s between 36% and 37%².

In places like Latin America and the Caribbean, and low-income nations, women-owned businesses are more common².

In the United States, women-owned small businesses make up almost 40% of all businesses. They bring in $2.7 trillion in revenue and employ nearly 12.2 million people⁴.

Black and African American women-owned businesses in the US make $98.3 billion in revenue. They employ 528,000 workers. If they made as much as men-owned businesses, they could add $1.5 trillion in revenue⁴.

Most women-owned businesses in the US have fewer than 50 employees. Yet, they provide a big part of family income⁴. Women are starting their own businesses more often. This is because of financial stability, flexibility, and chances for professional growth⁴.

Growth Trends in Women’s Entrepreneurship

The world of women’s entrepreneurship is changing fast⁵. Almost one in three entrepreneurs worldwide is a woman. The number of women starting businesses is growing, with a ratio of .80 women for every 1 man⁵. Also, there are more women working alone, with 1.47 women solopreneurs for every 1 man globally⁵.

Startup Activity and Entrepreneurial Intentions

Even with progress, there’s still a gap in who wants to start a business⁵. Around the world, one in six women plan to start a business soon⁵. In poorer countries, 28% of women want to start their own business⁵. But, only one in ten women entrepreneurs are just starting out⁵.

Women entrepreneurs are often younger and more educated, especially in poorer countries⁵. Yet, they tend to earn less than men⁵. Most entrepreneurs care about the planet and people, but women focus more on making a difference⁵. Half of women entrepreneurs aim to help society, and four-fifths want to protect the environment⁵.

The Global Entrepreneurship Monitor (GEM) did a big study. They talked to about 175,000 people in 49 countries⁵. This study gives us a deep look at how women’s entrepreneurship is changing worldwide⁵.

“Women entrepreneurs are more likely to prioritize sustainability over economic business goals.”

women in business statistics

The world of women in business is changing fast. Women-owned businesses are growing and making a big impact. There are over 12 million women-owned businesses in the U.S., making up about 40% of all businesses².

These businesses bring in nearly $2 trillion in revenue each year. This is about 4.3% of the private sector’s revenue².

Women are starting new businesses every day in the U.S. They start about 1,821 new businesses daily². More than 60% of these new businesses are started by women of color². The number of female entrepreneurs has grown by 114% in the last 20 years².

Even though women’s entrepreneurship is growing, there’s still a big gap. Women-owned businesses make less money and get less funding than others². These businesses employ about 10.1 million people. From 2012 to 2019, their workforce grew by 28%, more than male-owned businesses².

Worldwide, women’s entrepreneurial activity is 10.2%, which is higher than men’s⁶. But, women-owned businesses are still less common than men’s. Women entrepreneurs are helping the economy grow, and efforts are being made to help them more⁴.

We need more gender diversity and equality in business. The statistics on women’s entrepreneurship and economic impact show their huge potential and strength²⁴⁶.

Age and Industry Distribution of Women Entrepreneurs

The number of women-owned businesses worldwide has grown a lot. In the U.S., 42% of all businesses are run by women, which is 13 million. These businesses employ over 9.4 million people and have seen a 51.9% increase in sales from 2012 to 2019. This growth is faster than the 34.2% increase seen in men-owned businesses⁷.

Age Demographics

Most women entrepreneurs, 68.9%, are from the Gen X generation⁷. They are often younger than men starting businesses, especially in poor countries⁷. Also, women business owners tend to be more educated, with more graduate degrees⁷.

Industry Representation

In terms of industry, almost 50% of women entrepreneurs work in wholesale/retail⁷. Only 2.7% start in ICT (Information, Computer & Technology), a sector known for better profits⁸. Women lead in retail, health, beauty, and food services, but are underrepresented in tech and finance⁸.

Women entrepreneurs are making big strides in the business world, taking on more roles in various industries. Yet, they face challenges in getting equal footing, especially in fast-growing sectors.

Motivations and Aspirations of Women Entrepreneurs

The reasons women start their own businesses have changed over time. Now, they want financial stability, to earn a living, and have work-life balance. In the past, many started due to hardship or passion⁹.

Today, 48% start for passion, 43% for financial freedom, and 41% for work-life balance⁹. Also, 36% see more money, and 32% want better work hours⁹.

In less developed economies, women often start businesses out of necessity⁹. They do it for survival, health, or education. In richer countries, they seek better career growth⁹.

Women driven by passion focus on non-financial goals⁹. Those pushed by necessity aim for financial success⁹.

Women’s entrepreneurship is growing worldwide, with a strong presence in many sectors¹⁰. They are driven by achievement, admiration, and reputation¹⁰. Many want flexibility and autonomy in their work¹⁰.

But, women face psychological barriers like self-doubt and pressure¹⁰. Building resilience through mentorship and self-care is key¹⁰.

“Purpose and passion are powerful drivers of female entrepreneurship, leading to increased job satisfaction and fulfillment.”¹⁰

Supporting women entrepreneurs is crucial for their success and for inclusive business ecosystems¹⁰.

Access to Funding and Investment

Female entrepreneurs make a big impact on the global economy. Yet, they face big hurdles in getting funding and investment¹¹. Women control about $20 trillion in spending worldwide. But, only about 2% of venture capital goes to women-run businesses¹¹.

This shows a big gap in funding for women. Women get a very small part of venture capital.

Women of color face even bigger challenges¹¹. In the US, they get just 0.2% of venture capital. Yet, they are the fastest-growing group of female business owners¹¹.

This highlights the need for more diversity in investing. It’s key to help underrepresented entrepreneurs grow and succeed.

Venture Capital Funding

Getting venture capital is hard for female entrepreneurs¹¹. In 2018, only 2% of venture capital in the US went to female-founded startups. This is just $1.9 billion out of $85 billion¹¹.

Also, 93% of venture capital in Europe in 2018 went to all-male teams¹¹.

Other Funding Sources

Women are finding success in other funding options¹¹. They do well in crowdfunding, with a 69.5% success rate. They also use credit cards more than men to fund their businesses¹¹.

These options give women more ways to get the money they need to grow.

It’s important to fix the funding gap for women entrepreneurs¹². If women were equal in starting businesses, the global GDP could grow by 3 to 6%. This would add $2.5 to $5 trillion to the economy¹².

Using different funding sources and getting more women in investment decisions can unlock women’s business potential.

Performance and Profitability of Women-Led Businesses

Female entrepreneurs face funding hurdles, but their businesses thrive. McKinsey found that companies with more women leaders are 25% more profitable¹³. The European Investment Bank also notes that 90% of female-led businesses score well in ESG practices¹³.

Women-led businesses often invest in their employees. They offer 45% of workers extra training¹³. This focus on human capital boosts their success and profits.

“Women-owned firms in the US contribute almost $3 trillion to the economy.”¹³

Women-owned businesses in the US are growing fast, outpacing all other firms¹³. Their rapid growth shows their economic power and job-creating abilities.

Gender diversity in business leadership improves financial results. Supporting women entrepreneurs unlocks their potential. This benefits the economy¹³¹⁴.

Challenges and Gender Disparities

Statistics show a tough reality for women entrepreneurs and leaders worldwide¹⁵. In 2021, only 42% of managers were women, less than their share in non-management roles (48%)¹⁵. The slow progress in reaching managerial positions is evident, with less than 2% increase from 2018 to 2021.

Women also face big pay gaps¹⁵. Women working full-time earn about 76 cents for every dollar men make, with bigger gaps in some sectors and management¹⁵. Women of color face even bigger disparities, with Native Hawaiian or Other Pacific Islander women earning just 49 cents and Asian women 86 cents for every dollar earned by White men¹⁵.

Challenges aren’t just in the workplace¹⁶. Globally, men start three out of four new businesses, showing a big gap in entrepreneurship¹⁶. But, there are glimmers of hope, like in Thailand and Rwanda, where women make up more than half of sole proprietors and have achieved business ownership parity¹⁶.

It’s key to tackle these disparities to unlock women’s full business potential¹⁷. Closing the gender gap could boost global GDP by 35% on average¹⁷. Yet, women-owned businesses struggle to get funding and credit¹⁷. Empowering women and promoting equality is not just right; it’s also crucial for the economy.

“If the current pace continues, by 2030, nearly 2 billion women and girls will still face discrimination in opportunities for public leadership.”¹⁷

Conclusion

This article shows how far women have come in business, as entrepreneurs and leaders¹⁸. Today, women own about 42% of all businesses in the U.S. This number has almost doubled in 15 years¹⁸. Women are also starting new businesses fast, making up 49% of new businesses in 2021, up from 28% in 2019¹⁸.

But, women still face big challenges and gender gaps¹⁸. Despite growth, women-owned businesses saw big drops in revenue and increased costs during the pandemic¹⁸. Women are also underrepresented in top management, with only 8.8% of Fortune 500 companies led by women and just 4.8% of Fortune Global 500 companies having female CEOs¹⁸¹⁹.

To unlock women’s economic potential, we need to tackle these barriers¹⁸. We must create a more inclusive and supportive environment for female entrepreneurs and executives.

This article gives a clear picture of women in business today¹⁸. It shows the progress made and the challenges still ahead. By working together, we can achieve more gender diversity, equity, and empowerment in business. This will drive economic growth and prosperity for everyone¹⁸¹⁹.

Source Links

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7. 47+ Women in Business Statistics | Bizee
8. 2024 Women in Business Trends – Guidant
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11. Increasing Venture Capital to Women-led Businesses
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14. Purpose Over Profit: How Women-Owned Businesses And Entrepreneurs Are Driving The Force For Good
15. Women in the Workforce: Underrepresentation in Management Positions Persists, and the Gender Pay Gap Varies by Industry and Demographics
16. Achieving gender equality: Where do we stand on entrepreneurship?
17. Women and Girls – Closing the Gender Gap | United Nations
18. 50+ Women in Business Stats: Trends & Improvements in 2023
19. [Infographic] Women In Business Statistics Everyone Should Know