It’s been a good few years for women in business, according to a recent news release from American Express. Women-owned businesses are growing two times faster on average than all businesses nationwide, increasing by 21%. All businesses only increased by 9%.
Women-owned businesses now represent 42% of all businesses, nearly 13 million, and employ 9.4 million workers. These businesses generate revenue of $1.9 trillion and saw a growth of 21%. Total employment by women-owned businesses increased by 8%, while for all businesses the increase was far lower at 1.8%.
Women of color are the leaders of the pack. Women of color represent 39% of the total female population in the U.S. but account for 89% of the net new women-owned businesses per day over the past year. Black women started 42% of net new women-owned businesses, which is three times their share of the female population.
Over half of all women-owned businesses are concentrated in three industries. Services accounted for 22% of all women-owned businesses, with 2.8 million firms. Healthcare and social assistance accounted for 15% of all women-owned businesses, with 1.9 million firms. Professional/scientific/technical services – including public relations firms and consultants – accounted for 13% of all women-owned businesses, with 1.6 million firms.
“Side hustles” and “gigs” are becoming more prevalent in women’s entrepreneurship. In the past five years, sidepreneurs have grown at a rate double that of all female entrepreneurship: 39% compared to 21%. Minority women are responsible for a large portion of that growth from 2014-2019 where we see sidepreneurship among minority women-owned businesses two times higher than all businesses.