Study: Growing Under the Radar: An Exploration of Achievements of Million-Dollar Women-Owned Businesses (American Express OPEN 2013)
Finding: Women-owned businesses are growing faster than the average, especially at the larger value levels ($10 million+).
InPower Insight: Women are very capable of growing businesses as large and as quickly – or more – than other population groupings.
- Over the past decade,the growth in the number of women-owned firms with $10 million or more in revenues has increased by 56.6%, a rate 47% faster than the rate of growth of all $10m+ firms and nearly twice (+98%) the rate of growth of all women-owned firms.
- Between 2002 and 2012,the number of all women-owned firms has grown by 28.6%, slightly more than the 24.4% increase in all U.S. businesses. similarly, the number of $1m+ women-owned firms has grown by 30.7%, just over the 28.9% increase in all million-dollar firms. But, at the highest end of sales achievement, the number of $10m+ women-owned firms has grown by 56.6%—fully 47% higher than the 38.4% increase among all $10m+ firms.
- The share of firms reaching this rarified atmosphere remains small. Within the population of million-dollar firms, 75% have $1–$4.9 million, 12% have $5–$9.9 million, and 13% have $10 million or more in revenues. Among million-dollar women-owned firms, 82% have $1–4.9m, 10% have $5–9.9m, and 8% have $10m+ in revenues.
- The industries home to the greatest share ofmilliondollar firms that exceed the $10m threshold include:
- wholesale trade (20%), finance/insurance (12%),
- transportation/ warehousing (11%), and arts/
- entertainment/recreation (10%).
Career Coaching Tip: Don’t let anyone tell you that women can’t run profitable and growing businesses. The proof is in the numbers that we can. Many women are motivated by things other than pure profit, which can confuse some investors and supporters, but that’s no reason not to ask for their money if you need it to grow.
Keywords: Entrepreneurship, Gender gap, Girls, Self-employed