Female entrepreneurs now represent the fastest growing portion of the United States economy.
In fact, over 36% of businesses are women-owned.
These statistics and others are painting a clear picture: women have a very bright future ahead of them.
If you're a woman looking to start a business, or an investor looking to support a women-owned business, you should be excited in this current economic climate.
Keep reading for 5 women in business statistics that you need to know.
Women in Business Statistics
Statistics analyzing the impact of women in business show a positive trend. Now, more than ever before, minority and women founders are entering the startup space.
Here are 5 statistics that can help you gain the motivation you need to pursue your entrepreneurial dreams.
- Women-owned businesses employ more than 13 million people
- Women-owned businesses generate $1.9 trillion in sales
- Just 25% of women seek funding for their companies, compared to 34% of men.
- Women are now more likely to start a business: 47% of women compared to 44% of men
- Women are the sole income source in 40% of American households and are outpacing men in educational achievements.
Challenges Facing Female Entrepreneurs
According to a 2017 Senate report titled "Tackling the Gender Gap: What Women Entrepreneurs Need to Thrive," there are three main challenges facing women entrepreneurs.
These challenges include:
1. A Lack of Role Models and Mentors to Offer Guidance and Support
Unfortunately, media displays entrepreneurship as a masculine activity. Men are still more associated with power, risk-taking, and assertiveness- traits that correlate with entrepreneurship.
Especially in STEM (Science, Technology, Engineering, and Mathematics) fields, a lack of mentor-ship limits women from pursuing these fields.
2. the Gender Pay Gap/ Glass Ceiling
We know the statistics all too well. Women are typically underpaid for performing the same work as men. The Senate report highlights this fact: At 25 years old, college-educated women make approximately 90% as much as men, but only 55% as much at age 45.
There are several factors that can contribute to this discrepancy. Bosses may undervalue female employees. Women may also struggle to negotiate salaries, raises, and generally fight for fair pay.
Regardless of the reason, the gender pay gap is still a problem today.
3. Unequal Access to Funding and Financial Capital
Overall, banks have reduced lending towards small businesses since the 2008 recession.
Unfortunately, this means many potential small business owners are being denied loans. And others are too afraid to even ask for a loan. Rejection, fear of rejection, and requesting small loan amounts plague female entrepreneurs in general.
Starting a business, especially as a woman, can be daunting.
Thankfully, recent women in business statistics overwhelmingly point to a very bright future. Women-owned businesses are quickly growing in size and number.
With the right resources, mentoring, and financial backing, you can achieve your business goals.
For help starting, growing, or tailoring your business, visit our team of experts. We specialize in helping minorities and women enter the startup space.