Women-owned businesses continue to fuel the economy and now represent 42 percent 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, 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.
In Wisconsin, there are an estimated 147,323 women-owned businesses, employing 169,737, according to the report.
Wisconsin is ranked 32nd in growth of number of women-owned firms since 2014 with a 6.7 percent increase, 33rd in growth of jobs created with a 2.5 percent increase and 28th in growth of firm revenues with an 8.9 percent increase.
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. During the past five years:
•The number of women-owned businesses increased 21 percent while all businesses increased only 9 percent.
•Total employment by women-owned businesses rose 8 percent. For all businesses the increase was far lower at 1.8 percent.
•Total revenue for women-owned businesses also rose slightly above all businesses: 21 percent compared to 20 percent respectively.
In almost every category, women of color are leading the women-owned business charge. Women of color represent 39 percent of the total female population in the U.S. but account for 89 percent of the net new women-owned businesses per day (1,625) over the past year. While the number of women-owned businesses grew 21 percent from 2014 to 2019, firms owned by women of color grew 43 percent and African American women-owned firms grew even faster at 50 percent.
More than half of all women-owned businesses are concentrated in three industries:
•Other services (e.g., hair and nail salons and pet-care businesses) accounted for 22 percent of all women-owned businesses (2.8 million firms).
•Healthcare and social assistance (including child daycare and home healthcare services) accounted for 15 precent of all women-owned businesses (1.9 million firms).
•Professional/scientific/technical services (including lawyers, bookkeepers, architects, public relations firms and consultants) accounted for 13 percent of all women-owned businesses (1.6 million firms).
While these industries have the most womenowned businesses, they don’t produce the most revenue. The three industries in which womenowned businesses have the highest total revenue are wholesale trade (17 percent), retail trade (14 percent) and professional, scientific and technical services (10 percent).