Women in Business - New Report on US and RI

Women in Business - New Report on US and RI

Today, women start businesses at 1.5 times the national rate, and are now estimated to own just over 8.1 million companies across the country. These companies generate nearly $1.3 trillion in revenues and employ 7.7 million Americans. The numbers from RI are much more mixed in the two key factors Rhode Island ranked 28th and 47th respectively.

All of these findings were released from 2010 U.S. Census Bureau data and outlined in The American Express OPEN State of Women-Owned Businesses Report.

The study released by American Express OPEN provides analyses by industry, revenue levels and employment size at the national and state levels. It provides a new view of the growth trends among women-owned enterprises over the past 14 years.

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Among the findings:

    * Enterprises that are at least 51% owned by women account for 29% of all companies in the United States. These firms employ 6% of the country’s workforce and contribute almost 4% of business revenues nationwide

    * The number of women-owned firms grew by 50%, well above the 34% increase in the total number of small businesses

    * Growth in revenues (53%) and employment (8%) both lag the national averages of 71% and 17%

    * Women-owned enterprises continue to diversify in all industries. The term “non-traditional industries” should now be retired given there are few industries in which women do not have a significant presence

    * The industries with the highest concentration of women-owned firms are health care and social assistance (52% of all firms in this sector are women-owned) and educational services (46%)

    * The fastest growth in the number of women-owned firms has been in education services (up 54%), administrative and waste services (up 47%) and construction (up 41%)

    * In 1997, 2.5% of women-owned firms had 10 or more employees and 1.8% had $1 million or more in revenues. As of 2011, 1.9% of women-owned firms have 10 or more employees and 1.8% have $1 million or more in revenues

    * Growth rates by revenue and employment size indicate, however, that women-owned firms are keeping pace with all firms along the business size spectrum – but only up to the 100 employee and $1 million revenue levels. In addition, women-owned firms are exceeding growth     rates in revenue and employment compared to male-owned firms, but again only up until the 100 employee and $1 million marks.

Rhode Island Factors

But, the bad news is that in Rhode Island, the numbers are under performing.

The states in which the revenues of women-owned firms most greatly lag the national average are:  

  1. Iowa (which saw a 3.1% decline in women-owned firm revenues)
  2. Maine (up only 12.9%)
  3. Michigan (15.3%)
  4. Illinois (24.3%)
  5. Rhode Island (28.3%)

“Women are driving the growth of our smaller businesses,” said Susan Sobbott, president of American Express OPEN. “They do a great job of bringing new ideas to life and they show strong results up to a certain level. In terms of both revenue and employment, the share of women-owned firms at the highest levels of business accomplishment has remained essentially unchanged over the past 14 years.”

Moreover on Rhode Island's rankings:

State                    Growth in Number of Firms, 1997-2011   Rank      Growth in Firms $, 1997-2011    Rank

Rhode Island                      38.3%                                               28                               28.3%                       47

 

The analysis also shows a changing dynamic over the past 14 years, with both women- and men-owned firms losing pace as larger firms grow more dominant. As of 2011, while privately held firms still account for nearly all (97%) businesses, they are now contributing less than half of U.S. jobs (47%) and 36% of business revenue. Large, publicly traded firms, though just 3% of U.S. businesses, now employ 53% of all workers and generate 64% of business revenues – up from 43% and 55% in 1997.

Trends in the States

Nationally, the number of women-owned businesses has increased 50% since 1997. The states with the fastest growth in the number of women-owned firms over the past 14 years are:
  1. Georgia (97.5%),
  2. Nevada (87.6%),
  3. Mississippi (76.7%),
  4. Florida (73.3%)
  5. North Carolina (68.8%)

The states with the lowest rates of increase in the number of women-owned firms between 1997 and 2011 are:
  1. Alaska (8.8%)
  2. West Virginia (17.8%)
  3. Iowa (20.1%)
  4. Indiana (23.7%)
  5. Vermont (26.2%)

In terms of growth in economic clout, the states in which the revenues of women-owned firms have increased well above the national average of 53% from 1997 to 2011 are:
  1. Wyoming (170%)
  2. The District of Columbia (146.7%)
  3. New Hampshire (117.8%)
  4. Utah (117.6%)
  5. Louisiana (110.3%)

This report was prepared for American Express OPEN by Womenable, a research, program and policy development consultancy whose mission is to improve the environment for women-owned businesses worldwide. Womenable pursues this mission by working with the stewards of women's entrepreneurship around the world – policy makers, multi-lateral organizations, corporate decision makers, entrepreneurial support organizations and the women's business community – to evaluate, implement and improve policies and programs to support women's enterprise development. Learn more at www.womenable.com.