Women Of Color Now Own HALF Of All Female-Owned Businesses In The U.S.

Owning a business is becoming less of a boy’s club. With each year, the number of women-owned businesses throughout the world grows. And with an increasing number of opportunities arising for women who aspire to be business owners and leaders, more and more women are finding their niche in business and joining the ranks. 

Statistics show that women-owned businesses have been on the rise in recent years. In 2019, women-owned businesses made up 42% of businesses. Compared to 1972, during which women-owned businesses made up only 4.6% of the businesses, the growth is impressive and inspiring (American Express). 

And on top of women’s representation, there are also more business opportunities arising for women of color who want to become entrepreneurs. Women of color own half of all women-owned businesses, and generate 23% of revenue generated by women-owned businesses (American Express). Hispanic and Latina women own 18% of all women-owned businesses (NFIB), and Asian-American women owned 9% of women-owned businesses (American Express). 

Where do most women choose to work? Health, beauty and fitness is the most popular industry for women-led small businesses (Guidant). This includes things like makeup, skin care, personal care and workout clothes and equipment. 

The top five industries for women-owned businesses are Health, beauty, and fitness services; Food and restaurant; Retail; Business services; Medical or therapy (Guidant). This diverse run of businesses show that women are interested in branching out and impacting all types of commerce, from hospitality to retail. 

More and more creative business ideas are springing up everyday. And even as COVID-19 has decreased confidence in business — the number of women who ranked their business’s overall health as “good or very good” fell 13 points during the pandemic (U.S. Chamber of Commerce) — people are finding ways to pivot and adapt. 

According to the U.S. Census Bureau, business applications are up 72% in March 2021 compared to March 2020, with nearly half a million applications being filed. 

Though the future may be uncertain, there is a place for women in the future of business. For more information on entrepreneurship statistics and guidance, check out this infographic from Thimble