Women-Owned Firms without Employees: A Growing Economic Force.

A new report estimates that women-owned firms without employees are increasing in number and revenues faster than all U.S. firms without employees. The Center for Women’s Business Research estimates that between 1997 and 2004, women-owned non-employer firms grew at 18%, twice the national rate (9%) for all non-employer firms. During the same time period, the revenues for women-owned firms without employees grew 66% compared to 42% for all firms without employees.

The report entitled, Women-Owned Firms Doing Business Without Employees: A Growing Economic Force, is underwritten by Wells Fargo & Company.

“Contrary to common perceptions, most U.S. businesses operate without employees and women- and men-owned firms are very similar in this respect. Fully 75% of all firms do not have employees. Similarly, 81% of women-owned firms also are without employees,” said Marjorie Alfus, chair of the Center for Women’s Business Research. “The 5.4 million majority women-owned firms without employees make a significant contribution to the economy. They generate $167 billion in sales and comprise nearly a third (32%) of all firms with no employees.”

The highest growth rate for women-owned non-employer firms is in non-traditional industries, defined as those industries that are historically dominated by men. Between 1997 and 2004, the number of majority women-owned firms without employees grew by an estimated 29% in agriculture services; 27% in construction; and 26% in transportation, communications, and public utilities. Slightly more than half (53%) of women-owned non-employer firms are in the service sector and the next highest percentage (14%) is in retail trade.

In the three fastest growing nontraditional industry sectors for women-owned businesses without employees, sales also increased dramatically. Between 1997 and 2004, sales for majority women-owned firms without employees almost doubled (up 95%) in construction and in the industry sector of transportation, communications, and public utilities. Sales in agribusiness grew by 86%.

“Women business owners are consistently raising the bar in the world of small business. They show an incredible amount of confidence, drive and success, with or without employees,” said Joy Ott, regional president for Wells Fargo Bank in Montana and national spokesperson for Wells Fargo’s Women’s Business Services program. “The commitment and energy they bring to their businesses help them push forward and make such a significant contribution to our economy.”

“You don’t need employees to grow a successful business,” said Ellyn McKay owner of McKay Associates an HR consulting firm located in Takoma Park, Maryland. “Over the past seven years my business has grown steadily in terms of revenues and the range of services I am able to offer. I look forward to continued business and professional growth in the years ahead.”

In many states, majority women-owned firms without employees have a strong presence. The top 10 states for majority women-owned firms without employees based on average ranks for the number of firms and for sales in 2004 were: 1) California; 2) Florida, New York, and Texas (tied), 5) Illinois; 6) Michigan; 7) Ohio; 8) New Jersey; 9) Pennsylvania; and 10) North Carolina.

Utah and Idaho have above average growth rates and were above average in the ratio of majority women-owned firms without employees to the state’s population of adult women.

For more information at http://womensbusinessresearch.org