October 7, 2019
By Mary Miller
Contributing Editor, Main Street Monday
Main Street Monday – Growth of Women-Owned Businesses Up 21% in Last Five Years
According to a recent study conducted by American Express, women-owned businesses have experienced more growth over the last five years (21%) than all small businesses combined (9%). Women-owned businesses now account for 42% of all businesses, they successfully produce $1.9 trillion in revenues, and they employ 9.4 million workers.
The study credits the success of woman-owned businesses to timing and demand. According to the study, female entrepreneurs have a knack for starting businesses at the right time and offering products or services that hit the market when opportunity knocks. This gives female entrepreneurs’ businesses a better chance of success, survival, and growth.
According to the report, the top producing market segments for female entrepreneurs include miscellaneous services, healthcare, and professional services.
Services (Miscellaneous/Other) Industry
22% of women-owned businesses are considered miscellaneous services. This includes nail or hair care salons and pet care services. The number of women-owned businesses in this market segment alone rose 29% over the past five years.
Healthcare, Social Assistance
This segment includes businesses such as home health care and childcare. Although healthcare is a top producing segment of the market, it had the lowest growth rate of all women-owned businesses at 14% over the past five years.
Professional and Technical Services
This category includes lawyers, bookkeepers, accountants, and public relations professionals. This segment also saw a growth rate of 14%.
Although female entrepreneurs continue to work through more economic challenges compared to their male counterparts, the growth of women-owned businesses is impressive and continued growth is expected in the future.