September 7, 2021

Delaney Sexton
Contributing Editor

Hot Topic Tuesday – 90% of Equally Male/Female-Owned Businesses are Family-Owned

The SBA Office of Advocacy released a report this morning with data about equally male/female-owned employer small businesses.

Here are the facts:

  • There were almost 861,000 equally male/female-owned businesses (EOB)  in 2018. These businesses generated $1.3 trillion in annual sales receipts.
  • 92% of receipts by EOBs have less than 500 employees.
  • EOBs employed nearly 8 million workers and paid $280 billion in annual payroll.
  • 99.9% of EOBs have fewer than 500 employees. 99.2% have fewer than 100 employees.
  • Equally male/female-owned businesses make up 15.7% of all employer businesses. They employ 12.6% of all small business employees.
  • These EOBs are primarily family-owned (89.6%).
  • Most EOBs are in the retail trade, accommodation and food services, and construction industries.
  • The construction industry has the least number of employees out of the total EOB employees but has the highest payroll of all the industries.
  • The top employment industries are accommodation and food services, health care, and retail trade. These industries account for 46% of all EOB employees.
  • 47% of EOBs have been operating for 11 years or more. They also employ more than 60% of EOB workers, almost 70% of receipts, and two-thirds of payroll.
  • Around a third of EOBs have been open for five years or less. They make up roughly 20% of employees, payroll, and receipts for all EOBs.

Source:
SBA Office of Advocacy Report