October is National Women’s Small Business Month, which means it’s time to celebrate and recognize the myriad achievements of our country’s female entrepreneurs, and the positive impact they are making on jobs and the economy.
Women in Business – Stats
- Women Owned Business in the United States
- More than 12.9 million firms are owned by women, employing nearly 9.4 million people, and generating $1.9 trillion in sales as of 2019.
- The number of women-owned businesses increased 21%, while all businesses increased only 9%.
- Total employment by women-owned businesses rose 8%, while for all businesses the increase was 1.8%
- Total revenue growth of women-owned businesses was about the same as for all businesses: 21% and 20% respectively.
- Between 2014 and 2019, the number of women-owned businesses grew 3.9% annually, while the number owned by minority women grew by 7%.
- Businesses Owned by Women of Color
- African American women-owned businesses represented the highest rate of growth of any group in the number of firms between 2014 and 2019 as well as between 2018 and 2019. They started 42% of net new women-owned businesses, which is three times their share of the female population (14%).
- Women of color represent 39% of the total female population in the United States but account for 89% of the net new women-owned businesses per day (1,625) over the past year.
- An estimated 6.4 million women of color-owned businesses employ nearly 2.4 million people and generate $422.5 billion in revenue.
- Trends for Women Owned Business
- The three industries in which women-owned businesses have the highest total revenue are wholesale trade (17%), retail trade (14%) and professional, scientific and technical services (10%)
- Over the last five years, growth in the number of women sidepreneurs has grown at a rate that is nearly twice as fast as the overall growth in female entrepreneurship: 39% compared to 21%
Statistics from the American Express OPEN “The State of Women-Owned Businesses 2019 for full report click here.
Financing for Women Owned Businesses
The SBA is set up to help all small business owners get financing to start or grow their businesses. Yet, while the SBA doesn’t discriminate, it does have a vested interest in helping more women business owners get SBA loans.
The Small Business Administration (SBA) is a government entity that has a wide array of resources for female entrepreneurs. SBA itself does not make these loans. Banks and other direct lenders actually make the loans, and the SBA subsidizes a portion of the loan if the borrower defaults.
These small business loans for women come with a government guarantee, so lenders find them less risky. SBA loans are a great financing option too—with low interest rates (currently below 5%) and long loan terms (up to 25 years).
The SBA microloan program lends small amounts of money—up to $50,000 in capital—for startups and micro businesses. The SBA 7(a) loan program is for general purpose working capital for businesses that are already a few years old. And the SBA 504 loan program provides money for the purchase of commercial real estate or equipment.
SBA loans are perhaps the best types of business loans out there, so it’s worthwhile to see if you qualify.
General Resources for Women in Business
- The Office of Women’s Business Ownership helps women entrepreneurs through programs coordinated by SBA district offices. Programs include business training, counseling, federal contracts, and access to credit and capital.
- The Women-Owned Small Businesses (WOSB) Federal Contracting program helps women-owned small businesses compete for federal contracts.
- The National Women’s Business Council is a non-partisan federal advisory council serving as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration. The Council is the government’s only independent voice for women entrepreneurs, tackling important and relevant economic issues.
- Becoming a Women’s Business Enterprise (WBE) is another tool to add to your marketing kit that helps promote your company to major corporations that are actively seeking to conduct business with a woman/women owned business(es).
More resources for women-owned small business:
- Association of Women’s Business Centers (AWBC)
- National Association of Women in Construction
- National Association of Women in Real Estate Businesses (NAWRB)
- National Association of Women’s Business Owners (NAWBO)
- U.S. Women’s Chamber of Commerce (USWCC)
- Women’s Business Enterprise National Council (WBENC)
- Women Impacting Public Policy (WIPP)
- Women’s Presidents’ Organization (WPO)
Why Growth Corp?
Because we help get deals done. Growth Corp is the largest CDC in Illinois, the top 504 Lender in Chicago and a market leader in quality, consistent service. In addition, Growth Corp has earned an Accredited Lender status with SBA, which grants us the ability to expedite the processing of loan approvals and closings. Contact any member of our Lending Team to discuss your goals and ideas.