In the past, women-owned businesses were extremely rare. However, female entrepreneurship increased exponentially in the past two decades. Now, women are major economic engines that account for a large part of the national data. Since entrepreneurship is a keystone for prosperity and the competitive market found in the United States, as the number of female entrepreneurs increase, the economy flourishes. Furthermore, the increase in available businesses also provides more jobs to lower the unemployment rate.
Industries
In a recent study, scientists found that women-owned organizations are more common in service-based industries. These industries include educational services, social assistance, healthcare, retail, food services, arts, recreation, fitness, and entertainment. From 2005, the number of women-owned educational service industries increased by 35%. Furthermore, they observed the lowest growth in construction industries at 7%. In comparison, men-owned businesses are prevalent in product industries such as agriculture, hunting, fishing, forestry, mining, oil and gas, utilities, manufacturing, and quarrying.
Women-owned industries are also more prevalent in small enterprises as well. Small enterprises are businesses with less than 19 employees. In this category, women account for 19% of all companies and are responsible for 11% of the working population.
Furthermore, the increasing trend of women in service-based industries is almost identical to that of men’s after decades of industrialization and rising labor force participation. Therefore, experts project that women will make inroads into the product-based industry in the next coming years.
The United States’
All across the United States, women-owned businesses are on the rise. In comparison to 20 years ago, the number of female-owned organizations grew by 114%. Nowadays, there are an approximated 11.6 million female-owned companies, which accounts for 39% of all firms, as of January 2017. This high percent growth is more than 2.5 times the national average.
Furthermore, they employ over 9 million people and produce approximately $1.7 trillion a year. These companies account for 8% of employment in the private sector and 4.2% of the total revenue in the United States. However, the employment rate is disproportionately smaller than the growth rate because women commonly own small enterprises with fewer than 19 employees. However, experts project that as these businesses continue to develop, more employees will be necessary. By closing the employment gap, it will create more jobs, which can lower the national unemployment rate.
Utah
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Additionally, the number of female-owned companies in Utah climbed significantly. While women still represent a minority overall, their numbers are steadily rising. In the 2016 Annual Survey of Entrepreneurs, women-owned businesses increased by 40%, which more than doubles the rate of male-owned companies. While these statistics are impressive, they are all part of a trend observed in the past decade.
Additionally, while female-owned companies initially produce less revenue and employment, they are rapidly increasing. In another study, scientists found that jobs at women-owned business firms increased by 11% since 2012 in comparison to the 3% reported form male-owned enterprises.
Canada
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In addition to the United States, women-owned businesses are prospering in other countries. In a Statistics Canada study, experts found that there are now over 275,300 women-owned companies that employ 828,700 workers. These statistics account for 18% of all private enterprises as well as 15% of employment. While men-owned businesses account for 67% and employ 73% of the working population, women-owned enterprises are increasing at a much higher rate. In the same study, scientists found that women-owned companies increased +33% and men grew by+20% from 2005-2013.
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Resources: https://troymedia.com/2018/09/24/women-entrepreneurs-growing/, https://www.deseretnews.com/article/900033169/women-owned-businesses-increasing-in-utah-and-nationwide.html, https://about.americanexpress.com/sites/americanexpress.newshq.businesswire.com/files/doc_library/file/2017_SWOB_Report_-FINAL.pdf
Picture Resources: Featured Image: https://pixabay.com/en/businesswoman-team-leader-woman-453487/, https://pixabay.com/en/teacher-female-college-student-1280966/, https://pixabay.com/en/person-woman-asian-female-801823/, https://pixabay.com/en/analyzing-people-brainstorming-3441040/, https://pixabay.com/en/women-teamwork-team-business-1209678/
