Women-Owned Businesses Fuel Economic Growth, Outpacing Market Trends
Women-owned businesses continue to drive economic progress, now representing 39.1% of all U.S. businesses—over 14 million enterprises—employing 12.2 million workers and generating $2.7 trillion in revenue. According to the 2024 Wells Fargo Impact of Women-Owned Business Report, in partnership with Ventureneer, CoreWoman, and Women Impacting Public Policy (WIPP), the growth of women-owned businesses between 2019 and 2023 nearly doubled the rate of those owned by men. From 2022 to 2023, this growth rate surged to 4.5 times that of men-owned businesses.
Despite challenges like the COVID-19 lockdowns and supply chain disruptions, women business owners have been pivotal in driving economic growth:
- During the onset of the pandemic in 2020, women launched more businesses than they closed, while men-owned businesses declined. Women-owned businesses expanded their workforces and increased revenue, contrasting with the shrinking numbers for men.
- From 2019 to 2023, women-owned businesses outpaced men’s in growth rates: 94.3% in the number of firms, 252.8% in employment, and 82.0% in revenue.
- Throughout the pandemic, women-owned businesses added 1.4 million jobs and generated $579.6 billion in revenue.
- Nearly half a million women-owned businesses with revenues between $250,000 and $999,999 grew their aggregate revenues by about 30%, showcasing their ambition and readiness to cross the $1 million revenue threshold.
Val Jones, Wells Fargo Women’s Segment Lead for Small Business, remarked, “The impact of women-owned businesses on the economy is undeniable. Their growth during difficult times, whether in workforce or revenue, is truly impressive. Women-owned businesses are emerging from the pandemic stronger and thriving, thanks to their resilience and support from various sectors.”
The report also highlights significant growth among Black/African American and Hispanic/Latino women-owned businesses during the pandemic. Between 2019 and 2023, average revenues for Black/African American women-owned businesses increased by 32.7%, and Hispanic/Latino women-owned businesses saw a 17.1% rise, compared to a 12.1% rise for all women-owned businesses.
Women-owned businesses with 50 or more employees play a crucial role, accounting for nearly half of the employment and revenues generated by all women-owned businesses. These larger enterprises average $31.8 million in revenue, contributing $1.3 trillion in aggregate revenue. Achieving parity with men-owned businesses in this segment could add $1.2 trillion in revenue to the U.S. economy.
Judith Goldkrand, Wells Fargo Women’s Segment Lead for Commercial Banking, emphasized, “The growth of women-owned firms with over 50 employees showcases their strength and adaptability. To sustain this growth and close the gaps, we must continue creating opportunities, removing barriers to capital, and providing technical assistance and support.”
Industry Trends
Over the past decade, women-owned businesses have expanded across various industries. As of 2023, half of all women-owned businesses are concentrated in the following sectors:
- Other services (hair and nail salons, pet care, laundries, and dry cleaners): Women-owned 2,267,000 companies, making up 16.2% of all women-owned businesses.
- Professional, scientific, and technical services (legal, bookkeeping, and consulting businesses): Women-owned 2,017,000 businesses, accounting for 14.4% of all women-owned businesses.
- Administrative, support, and waste management services (office administration, staffing agencies, and security services): Women-owned 1,671,000 businesses, comprising 11.9% of all women-owned businesses.
- Healthcare and social assistance (child daycare, homecare providers, mental health practitioners, and physicians): Women-owned 1,588,000 companies, representing 11.3% of all women-owned businesses.
Between 2019 and 2023, the fastest-growing sectors for women-owned businesses were finance, insurance, real estate, transportation, and warehousing, with significant growth rates of 50%.
Regional Impact
The growth of women-owned businesses varies across the U.S., influenced by different economic conditions and support programs. The report identifies the top states and Metropolitan Statistical Areas (MSAs) for women-owned businesses between 2019 and 2023:
Top States:
- New York
- North Carolina
- Georgia
- Florida
- California
Top MSAs:
- Miami, Fort Lauderdale, West Palm Beach, FL
- Dallas, Fort Worth, Arlington, TX
- Boston, Cambridge, Newton, MA, NH
- Los Angeles, Long Beach, Anaheim, CA
- Phoenix, Mesa, Scottsdale, AZ
Future Potential
Although women business owners represent 39.1% of U.S. firms, they account for only 9.2% of the workforce and 5.8% of revenue. Closing the revenue gap between women- and men-owned businesses could generate an additional $7.9 trillion for the U.S. economy. Closing the gap for ethnically or racially diverse women-owned businesses could add $667 billion in revenue.
Angela Dingle, President and CEO of Women Impacting Public Policy, stated, “Women are crucial to the post-COVID economy, but their impact can be even greater with targeted support. While we’ve seen the emergence of mentorship and networking programs, specialized grants, and other services, we must continue to do more. By working together, we can create an environment where women-owned businesses can thrive and make an even greater impact.”
For more details, explore the 2024 Wells Fargo Impact of Women-Owned Business Report.
About the Wells Fargo Impact of Women-Owned Business Report
The inaugural Wells Fargo Impact of Women-Owned Business report chronicles the impact of COVID-19 on U.S. businesses and highlights the growth of women-owned businesses from 2019 to 2023, particularly those owned by women of color. The report, in collaboration with Ventureneer, CoreWoman, and Women Impacting Public Policy, explores the intersection of gender with race, business size, industry, and geography.
Methodology:
Projected numbers for employer and non-employer firms are based on U.S. Census Bureau data, incorporating multiple statistical models adjusted using GDP, consumption data from the U.S. Bureau of Economic Analysis (BEA), and data from the U.S. Bureau of Labor Statistics (BLS) and the Current Population Survey (CPS).
