Women business owners are on a roll. Between 2019 and 2023, the number of women-owned businesses increased at nearly double the rate of those owned by men—with the rate of growth increasing to 4.5 times from 2022 to 2023. And Dallas-Fort Worth has a lot to do with this striking trend.
That’s according to the 2024 Wells Fargo Impact of Women-Owned Business Report, created in partnership with Ventureneer, CoreWoman, and Women Impacting Public Policy.
The new report says women-owned businesses “continue to fuel the economy, representing 39.1% of all businesses—over 14 million—employing 12.2 million workers, and generating $2.7 trillion in revenue.”
Of all the metropolitan statistical areas in the U.S., Dallas-Fort Worth-Arlington ranks No. 2 for the growth of women business owners, the report states. Only the Miami-Fort Lauderdale-West Palm Beach metro surpassed DFW, coming in at No. 1.
The other top metros for the growth of women business owners include Boston-Cambridge-Newton at No. 3; Los Angeles-Long Beach-Anaheim at No. 4; and Phoenix- Mesa-Scottsdale at No. 5.
‘It’s a testament to their resiliency’
“The impact that women-owned businesses make on the economy is undeniable. Even more impressive is that growth in women entrepreneurship—whether it was their workforce or revenue—grew during an extremely difficult time,” Val Jones, Wells Fargo Women’s Segment Lead for Small Business, said in a statement.
“From the trillions in revenue they contribute to the economy to the millions in jobs, women-owned businesses are coming out of the pandemic stronger than they went into the pandemic and many are thriving,” Jones added. “It’s a testament to their resiliency and the breadth and depth of support they’ve received from government entities, banks, corporations, and philanthropic organizations that must be sustained.”
Per the report, here are some notable progress points for women-owned businesses:
- During the onset of the pandemic in 2020, despite business closures, women launched more businesses than they closed, while the number of men-owned businesses declined. Women-owned businesses also grew their workforces and increased their revenue while men’s numbers shrank.
- From 2019 to 2023, women-owned businesses’ growth rate outpaced the rate of men’s 94.3% for number of firms, 252.8% for employment, and 82.0% for revenue.
- During the pandemic, women-owned businesses added 1.4 million jobs and $579.6 billion in revenue to the economy.
- Nearly half a million women-owned businesses with revenues between $250,000 and $999,999 grew their aggregate revenues by about 30%, illustrating their ambition, grit, and readiness to cross the $1 million revenue threshold.
Progress for Black/African American and Hispanic/Latino women-owned businesses
The report notes that during the pandemic and the transition to the post-pandemic period, Black/African American and Hispanic/Latino women-owned businesses “increased at a much higher rate than all women-owned businesses.”
Between 2019 and 2023, average revenues increased 32.7% for Black/African American women-owned businesses and 17.1% for Hispanic/Latino women-owned businesses, compared to a 12.1% rise for all women-owned businesses.
Data for women with 50 or more employees
Women-owned businesses with 50 or more employees account for nearly half of women-owned businesses’ employment and revenues, the report finds: “Currently, women-owned businesses with 50 or more employees average $31.8 million in revenue generating $1.3 trillion in aggregate revenue. If they achieved the average revenue of men-owned businesses with 50 or more employees, they would add $1.2 trillion in revenue to the U.S. economy.”
“The surge in growth rates of women-owned firms with more than 50 employees proves their strength and adaptability during and post the pandemic era,” said Wells Fargo Women’s Segment Lead for Commercial Banking, Judith Goldkrand. “To sustain the growth and close the gaps, it’s important that we continue to create opportunities that help these businesses flourish, including removing barriers to capital, providing technical assistance, and offering support with business certification.”
Greater impact still needed, report says
Despite their recent advancements—women business owners now represent 39.1% of U.S. firms—they only account for 9.2% of the workforce and 5.8% of revenue, according to the report, which notes that greater impact is still needed.
“Closing the gap in average revenues for those ethnically or racially diverse has the potential to generate $667 billion in additional revenue, while closing the gap in average revenues between women- and men-owned businesses has the potential of generating $7.9 trillion in additional revenue to the nation’s economy,” the report states.
You can read the full report by going here.
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