50+ Women in Business Stats: Trends, Improvements, and Opportunities for Change
“Women of color make up a significant portion of the population – 20.3% of the entire US population as of 2019. They also face challenges that are unique to them, so it’s important to highlight their role in business as separate from all women.
Who Are the Women of Color in Business?
In the US, women of color accounted for about 50% of all women-owned businesses in 2019. Of the 12.9 million businesses owned by women in 2019, Black women own 21%. Latina women own 18%, Asian women own 9%, Native American women own 1.4%, and Pacific Islander women own 0.3%. Black women-owned businesses are growing faster than any other group in the US. Between 2014 and 2019, they experienced an annual growth rate of 8%. However, from 2018 to 2019 alone, they grew by 12%.
Minority-Owned Businesses Are Growing in the US
As we discussed above, there is quite a sizable gap in earnings between minority and non-minority-owned businesses. However, one possible explanation for this issue could be the recent growth in minority-owned businesses. In recent years, we’ve seen surges of new or younger minority-owned businesses entering the market, impacting the revenue figures. Between 2014 and 2019, the number of minority women-owned firms grew by 7%. In comparison, during that same period, the number of all women-owned businesses grew by just 3.9%. That means that minority women-owned firms grew at almost double the rate of all women-owned businesses. Growth has been particularly exceptional in recent years. From 2018 to 2019, all women-owned businesses increased by 5%, while women-of-color-owned businesses grew by 10%. Again, women of color are doubling the growth rate of all women-owned businesses. Black women-owned businesses, in particular, are experiencing intense growth. In 2019, they had a growth rate of 12% compared to just 8% in the five years prior. They also have the biggest portion of female-owned businesses compared to other minorities at 21%. Black women experience the biggest disparity in revenue compared to all women-owned businesses than any other minority. Black women-owned businesses earn an average revenue of $24,000 compared to $142,900 for all women-owned businesses, according to an American Express report. This presents a great opportunity for growth. If the average revenue of minority-owned businesses matched the revenue of white women-owned firms, we would add $981 billion in revenue to the economy and four million jobs.”
Read the full article from Ginny Dorn - Pay.com here.