Woman-Owned Businesses Are Growing 2X Faster On Average Than All Businesses Nationwide

Women-owned businesses continue to fuel the economy and now represent 42% of all businesses — nearly 13 million — employing 9.4 million workers and generating revenue of $1.9 trillion. According to the annual State of Women-Owned Businesses Report, commissioned by American Express (NYSE: AXP), in 2019, these U.S. women with diverse ethnic and geographic backgrounds started an average of 1,817 new businesses per day in the U.S. between 2018 and 2019, down only slightly from the record-setting 2018 number of 1,821.

The annual report, based on U.S. Census Bureau data adjusted by Gross Domestic Product data, found that women-owned businesses continue to trend above all businesses. Over the past five years:

• The number of women-owned businesses increased 21%, while all businesses increased only 9%.

• Total employment by women-owned businesses rose 8%, while for all businesses the increase was far lower at 1.8%.

• Total revenue for women-owned businesses also rose slightly above all businesses: 21% compared to 20% respectively.

“The face of entrepreneurship is evolving to include all women, regardless of demographics. Even more impressive is that women are starting businesses on their own terms – whether it be their full-time focus or a part time activity,” said Courtney Kelso, Senior Vice President of American Express. “The economic impact of women-owned businesses is undeniable, from the trillions they contribute via revenue to the millions of jobs they provide. We are committed to backing these women entrepreneurs because when they win, we all win.”

SIDE-HUSTLE: WOMEN ENTREPRENEURS – THE ULTIMATE MULTITASKERS?

As work trends shift towards side hustles and the gig economy, so does female entrepreneurship. This year’s report examines how part-time entrepreneurship, often referred to as “sidepreneurship,” is providing additional options to traditional employment and entrepreneurship for women.

Over the last five years, growth in the number of women sidepreneurs has grown at a rate that is nearly twice as fast as the overall growth in female entrepreneurship: 39% compared to 21%, respectively. Minority women are responsible for a large portion of that growth from 2014-2019 where we see sidepreneurship among minority women-owned businesses two times higher than all businesses: 65% compared to 32%, respectively.