Research Summary
Women Business Owners' Economic Impact Re-Affirmed
Washington, DC -- Women-owned businesses employ one out of every four workers in the United States, according to the 1996 Facts on Women-Owned Businesses report released today by the National Foundation for Women Business Owners (NFWBO). The report shows that between 1987 and 1996 the growth of women-owned firms continued to outpace overall growth of businesses by nearly two to one and that the revenues generated by women-owned enterprises have more than tripled.
1996 Numbers Show Women-Owned Firms Employ 26% of the U.S. Labor Force
“Sales and employment generated by women-owned businesses have skyrocketed over the past nine years. Today, over 18.5 million people owe their jobs to a woman business owner,” said Susan Peterson, NFWBO Chair and president of Washington, DC-based Susan Peterson Productions Inc. “The sheer strength of the numbers re-affirms that women business owners are powerful catalysts for promoting the health of our economy.”
The new NFWBO report estimates that there are 7.95 million women-owned businesses in the United States as of 1996. The number of firms owned by women grew 78% between 1987 and 1996, nearly twice the rate of increase in the number of all U.S. firms (47%).
Sales from women-owned firms neared $2.3 trillion in 1996, an increase of 236% since 1987. Employment also has grown exponentially, increasing by 183% over the past nine years. Today, women-owned businesses employ 26% of the U.S. workforce, for a total of 18.5 million.
Industry Trends
Trends show that the most explosive growth in women-owned firms is coming from non-traditional industries. The top growth industries for women-owned businesses between 1987 and 1996 are: construction (up 171%); wholesale trade (up 157%); transportation/communications (up 140%); agriculture (up 130%) and manufacturing (up 112%). While the greatest growth is in “non-traditional” industries, the largest share of women-owned businesses continues to be in the service sector. Over half (52%) of women-owned firms are in services; 19% are in retail trade and 10% are in finance, insurance and real estate.
Geography
The number of women-owned businesses is increasing in every state. Nevada is the state with the highest growth rate over the past nine years (130%), followed by Georgia (112%), New Mexico (108%), Florida (106%) and Idaho (104%).
“The growth in the number of women-owned businesses continues to be dramatic across the nation,” said Julie R. Weeks, NFWBO Director of Research. “Even in the state with the lowest growth rate, North Dakota, the number of women-owned firms grew nearly 40%.”
This new analysis of women-owned businesses uses information from the 1992 Economic Census of Women-Owned Businesses, recently released by the U.S. Bureau of the Census, and extrapolates the information to 1996. The National Foundation for Women Business Owners has prepared fact sheets highlighting this latest information for the nation as a whole and, for the first time, for all 50 states and the District of Columbia.
The National Foundation for Women Business Owners (NFWBO) is a non-profit research and leadership development foundation affiliated with the National Association of Women Business Owners. NFWBO supports the growth of women business owners and their organizations through the gathering and sharing of knowledge.
The complete 1996 Facts on Women-Owned Businesses report, including fact sheets for the U.S. overall, all 50 states and the District of Columbia, is available for $130.00; the U.S. Fact Sheet by itself, which includes 7 pages of detailed tables and state rankings, costs $2.00; multiple state Fact Sheets cost $2.00 each.
Charts
Women-Owned Firms Now Number Nearly 8 Million In The US
Women-Owned Firms Are Found in Nearly All Industries
Citation
Center for Women’s Business Research. “Women Business Owners' Economic Impact Re-Affirmed.” Research Summary. March 27, 1996. Washington, DC.