According to the Small Business Administration, businesses owned by women have grown exponentially. In 1972, there were a little over 400,000 women-owned businesses in the United States. Until 1988, women needed a male relative to co-sign if they wanted to apply for a business loan. That same year, the Women’s Business Ownership Act increased SBA’s access to capital to provide financial assistance to organizations geared toward women-owned small businesses. Today the facts have changed:
42%
As of 2019, women-owned businesses accounted for 42% of all businesses in the U.S.
8%
90%
As of 2019, women-owned businesses accounted for only 8% of overall business revenues.
Studies show women reinvest up to 90% of their income in their families and communities, compared to 40% for men.
Women-owned businesses represent a significant portion of economic and business growth.
9.4 million
13 million
As of 2019, women-owned businesses employed nearly 9.4 million people.
As of 2019, there were an estimated 13 million Women-owned businesses in the U.S.
2014 to 2019, 3.9% From women-owned
1.9 trillion
$
companies grew 3.9% annually, 2.2% more than all businesses at the time.
In 2019, women-owned businesses generated $1.9 trillion in revenues.
In 2020, COVID-19 drove millions of women out of the workforce:
57%
140,000
Female workforce participation dropped to 57% – the lowest level since 1988, according to the National Women’s Law Center.
in December 2020, women accounted for ALL 140,000 jobs lost.
Women entrepreneurs face challenges getting fair access to capital. In 2021, women entrepreneurs are offered smaller loans with significantly higher interest rates than men.
men receive -$5,000 Overall, an average loan size
of $43,916 while women receive an average loan size of $38,942—almost $5,000 less.
Statistics courtesy of 2021 American Express and www.fundera.com
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www.PoolerMagazine.com | March/April 2022
