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Women are a primary driving force behind the recent boom in new business applications in the U.S. In 2019, women launched nearly 29% of new businesses, a figure that surged to almost half (49%) by 2024. This represents a remarkable 69% increase in their share of new business creation over just five years and marks the highest share recorded by Gusto's New Business Formation report. This rapid acceleration suggests a fundamental change in who is leading business creation in the country. The strong motivation for "flexibility and autonomy" reported by women entrepreneurs  further reinforces that traditional employment structures may no longer adequately meet the needs of many women, thereby pushing them towards self-employment. This phenomenon could lead to a permanent structural shift in the labor market, with a larger proportion of women opting for entrepreneurial paths.


The growth of female entrepreneurship in the U.S. has been a consistent long-term trend, accelerating significantly in recent decades. Since 1972, the number of women-owned businesses has increased by over 3,000%. This remarkable expansion underscores a fundamental shift in economic participation. More recently, between 2019 and 2024, women-owned businesses experienced substantial growth across key metrics: their number of firms increased by 17.1%, employment grew by 19.5%, and revenue saw an impressive surge of 53.8%.


A pivotal moment in this journey was the passage of the Women's Business Ownership Act in 1988. This landmark legislation removed significant barriers that had previously prevented women from securing business loans in their own name, thereby dramatically increasing their access to capital and paving the way for broader entrepreneurial growth. This legislative change was instrumental in fostering the environment for the subsequent decades of expansion.


While women-owned businesses represent nearly 40% of all U.S. enterprises , their impact on employment (9.6%) and revenue (6.2%) still lags behind their overall representation. This discrepancy points to a persistent structural challenge within the entrepreneurial ecosystem. The data indicates that while women are highly active in starting businesses, a significant number of these ventures remain small or non-employer firms, and do not scale to the same extent as their male-owned counterparts. This is not merely an issue of gender equity; it represents a massive economic inefficiency for the nation.


 Comparative Growth: Female vs. Male-Owned Businesses


The growth of female-owned businesses has not only been rapid in absolute terms but has also outpaced that of their male-owned counterparts in several key areas. From 2019 to 2023, the number of new women-owned businesses grew at nearly double the rate of businesses owned by men. Over the past two decades, the number of women-owned businesses in the U.S. has grown by 114%, significantly outpacing the overall national growth rate of 44% for all businesses. 



Despite this impressive growth in firm numbers and revenue, the challenge of scaling these businesses persists. As previously noted, while women-owned businesses constitute nearly 40% of all U.S. firms, their share of total employment (9.6%) and revenue (6.2%) still lags significantly behind their firm count. This indicates that while more women are starting businesses, and these businesses are generating more revenue, a large proportion of them are not scaling into large job-creating enterprises. This disparity in growth metrics, where the quantity of new businesses and revenue growth rate outpace the proportional increase in employment and overall revenue share, implies that current support systems might be highly effective at fostering  



new business creation but less so at facilitating business scaling. To truly maximize the economic impact of female entrepreneurship, policy and investment efforts need to pivot from merely encouraging new ventures to actively supporting the growth of existing women-owned businesses into employer firms, helping them access the capital and resources needed to significantly expand their workforce and revenue. This also points back to the high proportion of non-employer firms as a structural factor that needs to be addressed for comprehensive growth.Leading Sectors by Employment and Revenue

Based on 2019 data for women-owned employer firms, several industries stand out for their significant employment contributions:

  • Health Care and Social Assistance: This sector employs 1.97 million individuals across 189,351 firms, with a payroll of $64.0 billion. It is also a notable area for Black or African American-owned businesses, accounting for 25.6% of their firms. 


  • Accommodation and Food Services: This industry accounts for 1.52 million employees across 108,135 firms, with a payroll of $27.8 billion. 


  • Administrative and Support, Waste Management, and Remediation Services: This sector employs 1.28 million individuals across 71,019 firms, with a payroll of $43.4 billion. 


These three sectors combined account for approximately 47% of total industry employment by women-owned businesses. Other significant sectors include Professional, Scientific, & Technical Services (989,099 employees) and Retail Trade (871,369 employees). Beyond these service-oriented fields, women-owned businesses are also making notable contributions in the industrial sector, particularly in Fabricated Metal Product Manufacturing, Industrial Machinery Manufacturing, Food and Kindred Products, Rubber and Miscellaneous Plastic Products, and Electronic and Other Electrical Equipment. 



The concentration of women-owned businesses in service industries like healthcare, accommodation, and administrative support 1 plays a role in the overall market size dynamics. These sectors, while essential to the economy, often have lower average sales and employment per firm compared to industries such as manufacturing or technology. 2 This sectoral concentration directly contributes to the observed lower average revenue and employment shares of women-owned businesses, even as their firm count continues to grow rapidly. For example, the disparity in funding between beauty tech companies (with a high proportion of female founders) and cybersecurity firms (with fewer female founders) further illustrates how sectors with higher female founder representation might inherently attract less capital or have lower valuation ceilings. 3 This concentration in traditionally lower-revenue or lower-scaling sectors is a significant factor in the overall "scaling disparity" identified earlier in the report. To truly close the revenue and employment gaps, there needs to be a concerted effort to either support women in scaling businesses within these traditionally smaller sectors, or to encourage and support more women to enter and scale businesses in higher-growth, higher-capital-intensive industries like manufacturing, advanced technology, or finance, where they are currently underrepresented.  

 Women-Owned Employer Businesses - SBA advocacy


advocacy.sba.gov/wp-content/uploads/2021/08/Small-Business-Facts-Women-Owned-Businesses.pdf

 Women Are Behind Nearly 1 in 2 New Businesses—Here's What's ...


gusto.com/company-news/womens-entrepreneurship-2025

 Small Business Facts: Spotlight on Women-Owned Employer Businesses - SBA advocacy


advocacy.sba.gov/wp-content/uploads/2019/03/Small-Business-Facts-Spotlight-on-Women-Owned-Employer-Businesses.pdf

 Small Business Facts: Spotlight on Women-Owned Employer Businesses - SBA advocacy


advocacy.sba.gov/wp-content/uploads/2019/03/Small-Business-Facts-Spotlight-on-Women-Owned-Employer-Businesses.pdf

 Women in VC & Startup Funding: Statistics & Trends (2025 Report) | Founders Forum Group


ff.co/women-funding-statistics-2025



Milk and Honey Road Women's B2B Blog

The Bridge Between Finances and Fulfilled Living

By site-R_ynWw • June 28, 2025
Women in business are a significant and growing force in the global economy, making substantial contributions despite facing the most unique obstacles and challenges. Here's a breakdown of data on women in business: I. General Statistics and Economic Impact (primarily US-focused) Prevalence: Women own over 14 million businesses in the U.S., representing 39.1% of all businesses. Growth: The number of women-owned businesses grew at nearly double the rate of men-owned businesses between 2019 and 2023. From 2022 to 2023, this growth rate accelerated. Employment & Revenue: Women-owned businesses employ 12.2 million workers and generate $2.7 trillion in revenue. Job Creation: During the pandemic (2019-2023), women-owned businesses added 1.4 million jobs and $579.6 billion in revenue. New Businesses: Over 1,800 new women-owned companies are created each day in the US. The representation of female new business owners increased from 28% in 2019 to 49% in 2021. Racial and Ethnic Diversity: Women of color operate about half of all women-owned businesses. They represent 39% of the total female population in America, yet account for 89% of the net new women-owned firms per day. Between 2019 and 2023, Black/African American women-owned businesses saw average revenues increase 32.7%, and Hispanic/Latino women-owned businesses 17.1%, compared to all women-owned businesses' 12.1% rise. Sectors: Primary sectors for women-owned businesses include retail (26%), health, beauty, and fitness services (17%), and food and restaurant (14%). Professional, scientific, and technical services also have a significant number of women-owned businesses (2,017,000 in 2023). Financial Assets: Women wield approximately $10 trillion in financial assets within the U.S., a number projected to reach $30 trillion by the end of the decade. II. Challenges Faced by Women Entrepreneurs: Despite their growing impact, women in business often directly encounter specific renounced obstacles, these entrepreneurs primarily bootstrap using savings, personal debt, and support from their network. They also leverage microloans, grants, and crowdfunding, while traditional Venture Capital remains largely inaccessible, despite its high ROI potential. Access to Capital: This is a significant challenge. The average loan size for women-owned firms is 50% lower than for male-owned firms. Only 2.4% of venture capital funding goes to female founders in the US. Gender Bias and Discrimination: Nearly 1 in 3 (32%) female entrepreneurs have experienced sexism as business owners. Women may not be taken as seriously in male-dominated industries or networking events. Societal biases and stereotypes can influence perceptions of women's leadership and risk-taking abilities, impacting funding and opportunities. Work-Life Balance and Caregiving Responsibilities: Many women entrepreneurs juggle business demands with significant family and caregiving responsibilities. This can lead to increased stress, burnout, and scaling back business operations. Networking and Mentorship: Women may have less access to relevant professional networks and fewer female role models and mentors, which can limit opportunities for support, resources, and information. Confidence and Owning Accomplishments: Some women struggle with self-doubt or downplaying their achievements, which can be influenced by societal expectations. Lower Revenue: Less than half of women-owned businesses (46%) reported earning $50,000 or more in 2023, compared to 70% of men-owned businesses. This contributes to a gender wealth gap. Exporting: Only about 11% of women-led firms exported in 2022, compared to 19% of male-led firms, even when accounting for business size and industry. III. Support and Resources for Women-Owned Businesses: Various organizations and programs are dedicated to supporting women entrepreneurs yet these agencies are nebulous and certain parts of the population don't have access to these resources or they lack the education and know-how. This is in conjunction with the limitations in place that prevent female and minority business owners from obtaining grants and loans for opening and maintaining their small business creates a significant gap in potential business formation, stifling economic growth and innovation within local communities. In the 2023 fiscal year, the SBA approved $27,515,666,000 in SBA 7(a) funding to businesses. Of that amount: White business owners received 42.3% Asian business owners received 19.0% Hispanic business owners received 8.5% Black business owners received 4.6% American Indian or Alaska Native 0.9% Male-owned businesses received 71.6% Women-owned businesses received 28.4% https://www.bankrate.com/loans/small-business/sba-loan-race-and-gender-statistics/ This data supports female and minority-owned businesses represent 39% of all businesses and only receiving 28% approval on SBA Loans to fund their ventures, this shows that they are producing twice as much as their male counterparts using less. I've created a formula to show this data. Based on this data and the assumption that output is proportional to the number of businesses, female and minority-owned businesses are approximately 64.49% more efficient in their output per unit of SBA loan funding compared to male-owned businesses. It's a way of saying: "How much more output are they getting per dollar (or unit of funding) compared to the other group?" This proves women business owners are highly capable of doing more with less, a skill that is imperative for LEAN operations in a supply and demand context. It's an economic disparity that is not being addressed and the affected demographic is largely female and minority small-business owners. Female leaders are the ultimate architects of growth, and they represent a vast, untapped reservoir of talent and especially American Indian women, who account for the smallest approval rate at a dismal .9%. It's also worth mentioning that the skills honed in motherhood provide the missing elements that fill in the gaps of our current economic disparities: resilience, emotional intelligence, and a holistic vision for sustainable success. Why then are seasoned mothers who also operate as business owners not seen as a valuable asset to our society? Raising a family is long-term stakeholder investment. It’s the ultimate lesson in sustainable growth—investing patient, daily effort to cultivate potential that will flourish years down the line, we need to cultivate this untapped potential.  In accordance with the racial and gender inequality within the distribution of resources there lies the evident and pressing need for more comprehensive and personalized financial education and coaching services. This is crucial to empowering community members to make informed and prudent financial decisions, allowing for stakeholders and investors to all flourish by nurturing the ROI eco-system. By equipping individuals with the knowledge and skills necessary to navigate the complex world of finance, we can foster a more financially literate and economically resilient population.