Charlotte ranked first and Raleigh 16th in growth of number of women-owned firms among the top 50 metropolitan areas in the United States, according to a report commissioned by American Express OPEN.
[Plus: More details from the report, including “significant growth in firms owned by women of color.”. See below.]
Bryce Lapping of North Carolina Business News Wire reports that Charlotte achieved the ranking through a 241.6 percent increase of women-owned firms during the past 15 years, increasing from 30,932 firms in 2002 to its present total of 105,700.
The city elected an African-American woman mayor for the first time in its history Tuesday. The study also included Concord and Gastonia as part of the Charlotte metropolitan statistical area.
Raleigh — the state’s capital — ranked 16th in the study, increasing from 21,996 firms in 2002 to 45,500 firms in 2017, or 106.9 percent.
“We’re encouraged to see the amount of female-owned businesses in the U.S. has more than doubled in 20 years,” said Susan Sobbott, president of American Express Global Commercial Payments, in a statement.
“Championing women-owned businesses strengthens our economy, individual communities and helps inspire the next generation of female entrepreneurs.”
There are 11.6 million women-owned businesses, employing nearly 9 million people and generating more than $1.7 trillion in revenue in the United States.
The details: Number of women-owned businesses growing 2.5 times faster than national average
Here iare more details from American Express OPEN
The number of businesses owned by women in the U.S. has more than doubled in twenty years, as has their revenue, according to the annual State of Women-Owned Businesses report, commissioned by American Express OPEN. Women are starting an average of 849 new businesses per day, up 3% from last year.
There are 11.6 million women-owned businesses, employing nearly 9 million people and generating more than $1.7 trillion in revenue. The report is based on U.S. Census Bureau data adjusted by Gross Domestic Product data each year.
The huge gain in the number of women-owned businesses and their revenue growth has not been matched by employment growth, particularly after the Great Recession. Over the past twenty years, the number of women-owned firms increased 114% and revenues grew 103%, but employment grew only 27%. In the past year, job growth at women-owned companies is nearly flat with an increase of only 0.1%.
Significant growth in firms owned by women of color
For the last twenty years, women of color have turned to entrepreneurship at an astounding rate. While the number of women-owned businesses grew 114% from 1997 to 2017, firms owned by women of color grew at more than four times that rate (467%). In addition, the 5.4 million businesses owned by minority women make up almost half of all women-owned firms (46%). These businesses employ more than two million workers and generate $361 billion in annual revenue.
As of 2017, there are an estimated:
- 2.2 million African American, women-owned firms;
- Almost 2 million Latina-owned businesses;
- 1 million Asian American women-owned companies;
- 161,500 Native American/Alaska Native women-owned enterprises and;
- 34,200 Native Hawaiian/Pacific Islander women-owned firms.
The report estimates that if revenues generated by minority, women-owned firms matched those currently generated by other women-owned businesses, they would add $1.1 trillion in revenues and 3.8 million new jobs to the U.S. economy.
Location doesn’t determine success for U.S. women-owned businesses
While states with large populations like California, Florida, Texas, New York and Georgia have the most women-owned business, many rural states are proving that they are a force to be reckoned with when it comes to their growth rates of women-owned businesses. This report examined economic clout, which in addition to growth in the number of firms, includes growth in employment and revenues. The top five states (including the District of Columbia) where women-owned businesses most increased their economic clout between 1997 and 2017 are:
- Nevada
- District of Columbia
- South Dakota
- North Dakota
- Georgia
The top metropolitan areas where women-owned businesses increased their economic clout from 2002 to 20171 are:
- Charlotte-Concord-Gastonia metro area, NC/SC
- San Antonio, TX
- Austin, TX
- Indianapolis, IN
- Riverside, CA (tie)
- Salt Lake City, UT (tie)
Notably, the five states showing the highest employment vitality – a measure of employment growth rate from 1997 to 2017 and average number of employees at women-owned firms – tend to be rural. In ranked order, they are:
- North Dakota
- Minnesota
- Maine
- Alaska
- Virginia
Industry trends
In the past year, the growth rate in the number of women-owned firms increased the most for these three industries: construction (15%), arts, entertainment & recreation (12%) and other services (12%).
A majority of women-owned businesses can be found in three industries:
- Other services (e.g., hair and nail salons and pet care businesses): 23% of all women-owned firms (2.8 million firms)
- Health care and social assistance (including child day care and home health care services): 15% of all women-owned firms (1.8 million firms)
- Professional/scientific//technical services (including lawyers, accountants, architects, public relations firms and management consultants): 12% of all women-owned firms (1.5 million firms)
Here’s the source site:
http://about.americanexpress.com/news/pr/2017/state-of-women-owned-businesses-2017-report.aspx
Overall, North Carolina ranked seventh in growth of the number of women-owned firms among the 50 states during the past 20 years. The state saw an increase of 138.1 percent, from 139,900 in 1997 to 333,100 in 2017.
In 2009, Beverly Purdue became the first woman to hold the governor’s office. She decided not to run in 2012.
In 2016, the state enacted the controversial House Bill 2, or the “bathroom bill,” putting North Carolina in the national spotlight as many businesses and consumers distanced themselves from the state. The law allowed businesses to discriminate on the basis of gender.
In 2017, the gridlocked state government agreed to a partial repeal of the bill, returning some lost business.
The report, now in its seventh year, utilizes data from U.S. Census Bureau’s Survey of Business Owners in order to make its rankings.
This story is from the North Carolina Business News Wire, a service of the UNC-Chapel Hill School of Media and Journalism
