Overview of Women-Owned Businesses

Women-owned businesses in the United States are experiencing significant growth. The National Women’s Business Council (NWBC) Annual Report highlights that there are approximately 14.5 million such businesses, comprising nearly 40% of all U.S. businesses. In 2024 alone, these companies projected an impressive $508.5 billion in payroll, according to data from the Census Bureau.

Financial Insights from Recent Studies

A recent analysis conducted by Biz2Credit reveals encouraging trends in funding for women-owned businesses. In 2024, funding approval rates for these enterprises increased to 36%, up from 35% the previous year. In contrast, the approval rate for male-owned businesses was 29% in 2024.

Rising Funding Amounts

The average amount of funding secured by women-owned businesses rose significantly by 25%, reaching $67,035 in 2024 compared to $53,678 in 2023. Male-owned businesses saw a smaller increase of 7%, growing from $75,045 to $80,140 during the same period.

Economic Impact and Employment

According to the Wells Fargo Impact of Women-Owned Business Report, these businesses employ around 12.2 million workers and generate $2.7 trillion in revenue. Notably, between 2019 and 2023, the number of women-owned businesses grew at nearly double the rate of their male counterparts, with an 11.5% increase observed.

Resilience Post-Pandemic

Women-owned businesses demonstrated resilience during and after the COVID-19 pandemic, showing stronger recovery compared to the aftermath of the 2008 financial meltdown. African American women-owned businesses noted a 32.7% revenue increase from 2019 to 2023, while Latina-owned firms experienced a 17.1% rise in average revenue.

Access to Capital

Access to funding has improved for women entrepreneurs in recent years. The Small Business Administration (SBA) reported that it facilitated over 15,500 loans worth $5.6 billion to majority women-owned businesses in FY24, doubling participation since FY20.

Revenue and Expense Trends

The average annual revenue for women-owned businesses surged by 15% in 2024, reaching approximately $519,886, while male-owned firms increased by 8% to $743,643. Despite this growth, women business owners faced rising operational costs, with expenses jumping 38% from the previous year, leading to a pressing concern about profitability amid inflation.

Key Findings from the Biz2Credit Study

• Funding Rate: Women-owned businesses experienced a rise in funding applications to 36% in 2024, compared to 29% for men.
• Average Funding Size: The average loan amount for women-owned businesses increased to $67,035 in 2024.
• Business Age: The average age of women-owned enterprises grew to 72 months, but remained lower than the average of 86 months for male-owned businesses.
• Credit Scores: The average credit score for women business owners improved by 10 points to 653.
• Industry Representation: The services sector represented 14.9% of women-owned businesses, the highest in the study.