Less than a third of women hold leadership positions in the United States and Canada, according to McKinsey. It’s no secret how much easier it is for men to get ahead in business, but which US states are guiding the way for future female CEOs by providing opportunities for progression and gender equity?
At a time when the undeniable impact of women in business across the United States has been well documented, but where women of color especially are receiving the least amount of funding for their start-ups, it’s important to look at the places where female entrepreneurs have greater opportunity to thrive and build more wealth.
Interested in this, the business building experts at Wix.com analyzed female-to-male ratios across management occupations, top executives, and financial managers as well as business survival rates and more, to assess which states offer the most opportunities for aspiring female entrepreneurs.
Key findings
- Vermont leads as the best state for female entrepreneurs, boasting the highest female-to-male ratio in management roles.
- Generally, financial manager roles had higher levels of gender equality across states, with Alaska topping the list at a female-to-male ratio of 2.82.
- California has the highest business survival rate, achieving a remarkable 86.22%.
Top 15 Best US States For Women In Business
Vermont takes the crown as the best state for female entrepreneurs, boasting an impressive final score of 8.91/10. Despite a relatively low business survival rate (50.75%), Vermont excels in workplace gender representation. The state has over two female financial managers for every male and the highest rate of women in management (0.94 per male) among all states studied – suggesting that Vermont is a prime destination for women pursuing progression in business. As of January 2024, a recent survey revealed that there were 3,432 women-led businesses across the state.
Massachusetts and Rhode Island tie for second place with a commendable overall score of 8.68/10. Despite both states boasting a significantly higher business survival rate than Vermont – 70.46% and 60.56%, respectively – they fell short in other key areas. Massachusetts has 1.11 female financial managers for every male, but gender equity in the C-suite is less favorable, with only 0.78 female managers and 0.54 women in top executive positions for every male counterpart.
Rhode Island also sees women excel in finance positions with female financial managers outpacing their male counterparts at a ratio of 1.23, while the women-to-men ratio in top executive roles stands at0.68.
Maryland claims fourth place with an impressive final score of 8.50/10. Aspiring entrepreneurs can feel confident starting a business here, thanks to high survival rates of 78.91%. New Mexico rounds off the top five states for female entrepreneurs with a final score of 8.45/10, showcasing strong ratios of women-to-men in management roles (0.92)and boasts the third highest female-to-male ratio among financial managers (2.50).
15 Worst US States For Women In Business
Wix.com can also reveal that Ohio takes the unfortunate title of the worst state for aspiring female entrepreneurs. The state’s low number of business startups – 1,339 per 100,000 people – combined with a disappointing women-to-men ratio of 0.37 in top executive roles, contributes to its dismal final score of 5.51/10.
South Dakota follows closely behind with a score of 5.71/10, with the female-to-male ratio for top executive roles a mere 0.33; and only slightly better for management roles at 0.46. In addition, South Dakota was among the six states that lags behind even in financial manager roles, with a female-to-male ratio of less than one – which is alongside New Jersey, Delaware, New York, Utah and Nebraska.
Indiana lands in third place with a final score of 5.73/10. While the state provided relatively better gender equality for financial managers (1.68) and top executives (0.44) compared to Louisiana – ranked fourth worst – Indiana’s overall score is dragged down by its business survival rate, which is nearly 10% lower at 69.08%.
The fact remains that the current U.S. economy would not survive or thrive if it weren’t for women entrepreneurs, who are starting small businesses at a faster rate than men. But in order to thrive and have longevity, entrepreneurs and business owners need to be an in environment where they have access to resources and support. Perhaps this data can be a wake-up call for local governments and state economies to rethink their strategy toward supporting the business community, prioritizing women entrepreneurs.
In the meantime, you can see more of the new data by heading over to Wix.com, and check out their business-building resources on offer.
