Recent data from the Census Bureau and the National Women’s Business Council (NWBC) reveals a significant growth in women-owned businesses in the U.S. during 2023. Women-owned businesses generated an estimated $2.1 trillion in receipts, employed 10.5 million individuals, and had an annual payroll of $499.4 billion.
The NWBC Annual Report highlights that there are 14 million women-owned businesses, representing 39.1% of all businesses in the country. This figure marks a 13.6% increase from 2019 to 2023, showcasing the resilience and strength of women-owned firms post-pandemic.
Furthermore, women-owned businesses played a crucial role in creating new enterprises, accounting for half of all new businesses for the third consecutive year. In 2023, 1.4 million enterprises with workers were owned and operated by women, with the share of women-owned employers rising to 10.2%.
Despite these successes, a notable earnings gap of 34% persists between women-owned and men-owned businesses. The Biz2Credit Women-Owned Business Study reported that while women-owned businesses maintained steady earnings, men-owned businesses experienced a 3% decrease. However, women-owned businesses saw a 15.5% increase in annual revenue, with a higher funding rate compared to their male counterparts.
On average, women-owned businesses still earn 66 cents for every dollar earned by men-owned businesses. Factors such as business longevity and credit scores also contribute to differences in funding amounts and overall financial performance.
Corinne Goble, CEO of the Association of Women’s Business Centers, emphasized the importance of analyzing data to identify barriers hindering women's access to capital. Addressing these challenges is crucial for fostering economic growth and equality for all.
While women-owned businesses made significant strides in 2023, there is ongoing work to bridge the earnings gap and create a more equitable business landscape for all entrepreneurs.
