American Express released its second annual State of Women-Owned Businesses report that provides insights into the state of women-owned businesses in the United States. The study shows that the growth of women-owned businesses has exceeded any other group over the past 15 years — 1.5 times greater than any other business counterpart.
The growth rates are impressive. As American Express reports. “As of 2012, it is estimated that there are more than 8.3 million women-owned businesses in the United States, generating nearly $1.3 trillion in revenue and employing nearly 7.7 million people. The growth in the number (up 54 percent), employment (up 9 percent) and revenues (up 58 percent) of women-owned firms over the past 15 years exceeds the growth rates of all but the largest, publicly-traded firms.”
As you’ll see from the infographic below, however, the news isn’t all good. Women-owned businesses struggle with growth pains at the 5 to 9 employees and $250,000 to $499,999 levels. Nate C. Hindman of The Huffington Post offers an explanation: “Part of the reason women entrepreneurs in particular struggle to expand their businesses may be a dearth of venture capital. Despite owning nearly 30 percent of U.S. businesses, women attract only 5 percent of the nation’s equity capital, a book recently released by the Kauffman Foundation found. And when it came to first-year funding, Kauffman’s data showed, women received 80 percent less capital than men. ”
What do you think? Check out the infographic below and share your opinion in the comments at the end of this article.