According to a report published Monday by American Express, the number of women-owned businesses in America has taken off in recent years.
American Express’ annual State of Women-Owned Businesses Report — which merges data from the Bureau of Economic Analysis and the Census Bureau — estimates America’s total number of businesses led by women climbed 21% between 2014 and 2019 to nearly 13 million operations. Overall business growth in the United States was about 9% during the same period.
Meanwhile, revenues generated by women-run businesses ballooned 21% to nearly $2 trillion, while the jobs they created rose by 8% to 9.4 million. Both growth totals exceed the national averages for companies headed by executives of any gender.
“This economic impact of women-owned businesses is undeniable, from the trillions they contribute via revenue to the millions of jobs they provide,” said Courtney Kelso, senior vice president of American Express, in a statement coinciding with the report.
Oregon, Idaho, South Dakota, Georgia and Nevada rank among the top five states in terms of business, employment and revenue growth among women-owned companies between 2014 and 2019, according to the report. Joining Michigan, Florida and South Carolina, Nevada and Georgia also rank among the top five states for women-owned business growth in 2019 alone.
On the other hand, Oklahoma, Alaska, North Dakota, Nebraska and Louisiana were found to have experienced the lowest levels of growth over the same five-year period.
The Bureau of Labor Statistics estimates women made up almost 47% of U.S. employees in 2018, but only 40% of all management positions and less than 27% of all chief executive positions. Among women in management, nearly 84% were white, 10.3% were Latina and only 3.5% were Black or African American.
However, the American Express report suggests that minority-owned businesses have also seen significant gains in recent years, with the total number owned by women of color increasing by 43% between 2014 and 2019. Black or African American business owners alone accounted for 42% of the recent women-owned business growth.
American Express defines a woman-owned business as an establishment that is “at least 51% owned, operated and controlled by one or more females. About 42% of all American businesses are owned by women.
Sources: US News & World Report 9/24/2019; American Express 2019