The landscape of small business ownership is evolving rapidly, and women are at the forefront of this transformation. Between 1997 and 2014, the number of women-owned businesses in the U.S. surged by 68%, nearly double the growth rate of male-owned businesses, according to an American Express analysis of Census Bureau data. Women are now launching an estimated 1,288 companies every day, a significant increase from 602 daily startups in 2011-2012.
This growth reflects a shift in mindset. As women become increasingly aware of the opportunities available to them, entrepreneurship is emerging as a viable career path. Susan Duffy, executive director of the Center for Women’s Entrepreneurial Leadership at Babson College, notes that entrepreneurship is now seen as a more accessible career move for women than ever before.
The rise in female entrepreneurship is part of a broader trend in which both men and women are starting businesses in response to the post-recession job market. However, the number of women-owned businesses is expected to continue rising, driven by a growing interest in entrepreneurship and a new generation of women looking up to successful role models in the business world.
Notable women such as Oprah Winfrey, Tory Burch, Diane Von Furstenberg, and Weili Dai, co-founder of Marvell Technology, have all become symbols of success for aspiring entrepreneurs. In addition, women like Maria Contreras-Sweet, the current head of the Small Business Administration, and her predecessor Karen Mills, who were also business owners, offer further inspiration.
For women like Summer Scarbrough, co-owner of VinniBag, a company specializing in travel bags for wine and bottles, family role models are just as important. Summer’s mother, Elizabeth, a former executive at a medical devices company, served as a strong influence in her decision to enter the business world.
As more women start their own businesses, it has become less of a novelty. Scarbrough explains, “I know a lot of women who are starting things as well.” The increase in resources available to women business owners, including support from the SBA’s Women’s Business Centers and various women’s business organizations, has also helped to foster this growth.
Women entrepreneurs also demonstrate an optimistic outlook when compared to their male counterparts. A recent Bank of America survey revealed that 70% of women business owners expect their revenue to rise over the next year, versus 66% of men. Furthermore, 56% of women plan to hire in the coming year, compared to 50% of men. Additionally, 68% of women entrepreneurs have expansion plans, while 63% of men report similar intentions.
However, challenges remain for women in business. Many female entrepreneurs report that they face more obstacles than their male counterparts. According to the survey, 29% of women feel they have less access to funding than men, and 32% believe they have fewer business opportunities.
When it comes to the types of businesses women are starting, sectors like education, administrative services, waste management, arts, entertainment, and recreation are the most popular. The American Express survey also found that nearly one in three women-owned businesses are owned by minorities. The number of minority women-owned businesses has grown dramatically, from just under 930,000 in 1997 to 2.9 million this year—a remarkable 215% increase.
The rise of women entrepreneurs is not just a trend, but a driving force behind innovation, job creation, and economic recovery. As more women continue to enter the small business space, they are reshaping the economy and setting the stage for the next generation of business leaders.
