The Resilient Growth of Women-Owned Businesses in the U.S.: Insights for 2024
Women-owned businesses in the United States have shown remarkable growth and resilience, reflecting their increasing significance in the economy. As highlighted in the National Women’s Business Council (NWBC) report for 2024, there are approximately 14.5 million women-owned businesses, representing nearly 40% of all U.S. enterprises. These businesses contribute substantially to the economy, with an estimated annual payroll of $58.5 billion, according to data from the Census Bureau released in November 2024.
Funding Landscape for Women-Owned Enterprises
A recent survey by BIZ2CREDIT, which analyzed over 53,000 companies, indicates an encouraging trend in funding for women-owned businesses. The funding rate for these enterprises rose to 36% in 2024, up from 35% in 2023, contrasting with only 29% for male-owned businesses during the same period.
The financial support for women entrepreneurs also shows improvements in the average funding amounts. In 2023, women-owned businesses secured an average of $53,678, with this figure climbing by 25% in 2024 to $80,140.
Impact of Economic Conditions
Despite the positive trends in funding, women business owners face heightened challenges. Inflationary pressures have led to increased costs in 2024. While annual revenue has risen significantly, reaching $519,886 (a 15% increase from the previous year), rising operating expenses remain a significant concern. Male-owned businesses experienced an 8% revenue increase, reflecting less vigorous growth compared to their female counterparts.
Women-owned businesses have proven more resilient during economic hardships, with minority-owned enterprises, particularly those belonging to African American and Latina women, achieving notable growth between 2019 and 2023. Wells Fargo’s report cites an average revenue increase of 32.7% for African American women-owned businesses and 17.1% for Latinx-owned enterprises.
Access to Capital and Business Age
Access to capital has improved, with the Small Business Administration (SBA) managing approximately 15,500 loans for women-owned businesses totaling $5.6 billion in Fiscal Year 2024. This marked a significant increase from prior years. The average age of women-owned businesses has also increased, now averaging 62 months, although this duration is still shorter than the average for male-owned companies, by about 14 months.
Key Findings from the Survey
- Funding rate for women-owned businesses increased to 36% in 2024, up from 35% in 2023.
- The average loan amount received rose from $75,045 in 2023 to $80,140 in 2024.
- The average annual revenue for women-owned businesses grew by 15%, compared to an 8% growth in male-owned businesses.
- Industries most represented by women-owned businesses include Services (14.9%), Healthcare and Social Aid (14.5%), and Retail (13.5%).
- California and Florida topped the list for funding applications with 12.8% and 12.5% respectively.
Challenges Ahead
Despite the growth metrics, challenges persist. Business owners, regardless of gender, have reported significant increases in costs driven by inflation, which could impact profit margins and operational sustainability. Additionally, uncertainty surrounding governmental policies and potential tariffs adds another layer of complexity for small businesses, particularly affecting those reliant on imported goods.
Conclusion
The future looks promising for women-owned businesses, with increasing access to capital and improving funding rates. However, vigilance regarding inflation and operating costs will be crucial for sustaining growth. As these businesses continue to evolve, they will play a vital role in the broader economic landscape of the U.S.
