Women are starting small businesses more than ever in recent years. According to the Womenable’s 2013 State of Women-Owned Business Report, commissioned by American Express OPEN, the market for woman-owned businesses is huge. If you own a small business and you are targeting other small businesses (as your primary customers), you may want to consider targeting the woman owned business market. Here are 6 eye-opening statistics that prove woman-owned businesses should not be ignored (according to Womenable’s 2013 State of Women-Owned Business Report):
Fact 1: 8.6 million firms are owned by women and employ nearly 7.8 million people. These firms have generated $1.3 trillion in sales as of 2013 in the United States.
Fact 2: 50% or more of women-owned firms account for 30% of all privately held firms and contribute 14% of employment and 11% of revenues in the United States.
Fact 3: In the last six years, since the onset of the Great Recession, the only businesses that have provided a net increase in employment are large are publicly traded corporations and privately held majority women-owned firms. In all other privately held firms, employment has declined over the 2007–2013 period in the United States.
Fact 4: Women of color own 2.7 million firms in the United States. Firms owned by women of color employ 1.1 million people and generate $226 billion in revenues annually.
Fact 5: One in five firms with revenue of $1 million or more is woman-owned.
Fact 6: 4.2% of all women-owned firms have revenues of 1 million or more.
The amount of firms owned by women is significant in this day and age. Women play an important role in entrepreneurship and the creation of jobs. Women starting new businesses and hiring employees is important as economy continues to rebound from the effects of the Great Recession of 2007. It’s good to know that women are contributing to rebuilding of our economy even if we often make less than our male counterparts. Again, if you are own a small business and you are targeting other businesses, woman-owned business should be included in your target market strategy. Targeting woman-owned businesses could bring about the type of success and revenue results you want with your business. Furthermore, if you provide a service to a woman owned business (especially a business owned by a woman of color), you may qualify for grants (non-profits only) or loans that your male counterparts do not. All the more reason you should not ignore woman-owned small businesses, especially if you’re in need of capital!