Nearly Half Of All Privately Held U.S. Businesses Are Women-Owned.

Just released figures expand the picture of the economic impact of women-owned firms and show that they continue to expand faster than all businesses. The figures were released by Center for Women’s Business Research as part of a project titled “Completing the Picture.” This phase of the project is underwritten by Pitney Bowes Inc., the Philadelphia chapter of the National Association of Women Business Owners (NAWBO) and Wells Fargo.

The analysis shows that there are 10.1 million privately held 50% or more women-owned businesses in the United States, generating 18.2 million jobs and contributing more than $2.3 trillion in sales to the economy.

“These firms represent a substantial portion (46%) of all privately held businesses,” said Myra M. Hart, Harvard Business School professor and chair of Center for Women’s Business Research. “By adding the privately held businesses that are 50% women-owned to the privately held majority women-owned firms, we get a more complete picture of the economic vitality of women’s entrepreneurship.”

Growth continues to be a major component of the picture of women-owned businesses. Between 1997 and 2002, the Center estimates that the number of privately held 50% or more women-owned businesses grew by 11%, more than 1.5 times the rate of all privately-held firms (6%) and employment increased by 18%, more than twice the average (8%). Sales were up 32% compared to an increase of 24% for all firms.

“These numbers continue a trend of more than a decade of women-owned businesses growing at 1.5 to 2 times the rate of all firms,” said Henry Hernandez, executive director, global diversity leadership, Pitney Bowes Inc.

“For us this means business,” continued Hernandez, “as we increasingly turn to women-owned firms as suppliers and customers.”

“One in 11 women in the U.S. is a business owner,” said Rene?e Jones, president of Heller & Jones and president of the NAWBO Philadelphia chapter. “As business owners, we are an increasingly dynamic part of the economy in every city in the U.S. But most of all, this information shows that for women, the dream of entrepreneurship can be a viable reality.”

Earlier estimates of the number of women-owned businesses in the U.S. were based on the 1997 U.S. Bureau of the Census definition of a woman-owned business as an enterprise that is privately held and majority woman-owned.

“This definition excludes many businesses in which women play a major ownership and management role, including many of the largest women-owned and led firms,” said Hart. “A top priority for the Center is to collect data on the missing segments, including the 50% women-owned businesses covered in this report. Future research will look at businesses in which women own controlling or substantial minority interest and publicly-traded companies.”

For the first time, the Center will provide information and trends for each of these segments of women’s entrepreneurship as well as overall figures as part of its ongoing commitment to provide the most up-to-date and complete data available on women-owned businesses.

Looking specifically at the segment of privately held 50% women-owned firms shows that as of 2002, there are 3.9 million privately held 50% women-owned businesses, employing 9 million workers, and generating $1.17 trillion in sales. Of these firms, 166,212 have revenues of at least $1 million and 6,902 have 100 or more employees. The largest concentration of these firms is in the service sector, followed by retail, construction, finance, real estate and insurance.

“This analysis of the 50% women-owned firms is based on data published by the Census Bureau, and we want to thank Census for recognizing the importance of providing data for this group,” said Hart. “Census understands the importance of capturing the full picture of women-owned businesses while keeping intact the data on the privately held, majority women-owned businesses which is consistent with government and private
sector supplier diversity programs.”

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For more information at http://www.womensbusinessresearch.org