It’s Women’s History Month, and we look forward to celebrating the impact of women entrepreneurs. In this post, we share some basic statistics about women-owned businesses and ways to support women entrepreneurs.
Women own more than 7 million businesses in the United States (about 30 percent of all small businesses). Women-owned businesses generate $3 trillion in receipts per year. In Oakland, nearly half of the small businesses are owned by women. Between 2007 and 2012, both Latino- and Black-owned businesses in Oakland grew 50%, and both African American women and Latinas represent the groups starting businesses at a faster rate than any other groups in the U.S.
Women entrepreneurs are also starting businesses with fewer resources on average than their male counterparts. Women typically start with small loans (less than $50,000) while companies started by men tend to have closer to $1 million in investment. This is one of the many reasons we are proud to support so many women-owned companies with the money they need to start and grow their businesses.
Women start businesses for many different reasons. The top reasons reported are passion and a desire for independence. For women with children, owning a business can offer flexibility that traditional employment may not, allowing women entrepreneurs to have more control over how they divide their time and how they choose to raise their children.
Small businesses are important to the economic growth of communities (and our country). Small businesses create local jobs and generate local tax revenue, which is reinvested into the community. We also know that women- and minority-owned businesses are more likely than their counterparts to hire from the neighborhood. Healthy business districts have positive community impacts, including more opportunities within that neighborhood.