New Report Reveals Women-Owned Businesses Outpace Market Growth
Let’s Go Ladies! In a recent report, the resilience and dynamism of women-owned businesses have emerged as a beacon of hope amidst economic challenges. The 2024 Wells Fargo Impact of Women-Owned Business Report, conducted in partnership with Ventureneer, CoreWoman, and Women Impacting Public Policy (WIPP), sheds light on the remarkable growth trajectory of women entrepreneurs, particularly during the turbulent times of the COVID-19 pandemic.
KEY FINDINGS
Accelerated Growth: Women-owned businesses have demonstrated remarkable growth rates, outpacing their male counterparts by nearly double between 2019 and 2023. Even more striking, from 2022 to 2023, the growth rate surged to 4.5 times that of men-owned businesses.
Resilience Amidst Adversity: Despite the challenges posed by the pandemic, women entrepreneurs showcased resilience. In 2020, while men-owned businesses experienced closures, women continued to launch new ventures, expand their workforces, and increase revenue.
Economic Contributions: Women-owned businesses significantly contribute to the economy, representing 39.1% of all U.S. companies employing 12.2 million workers and generating an impressive $2.7 trillion in revenue.
Empowering Black and Latina Entrepreneurs: The report highlights the remarkable growth of Black/African American and Hispanic/Latina women-owned businesses during the pandemic and post-pandemic transition. These entrepreneurs experienced higher growth rates than all women-owned businesses, with average revenue increases of 32.7% and 17.1%, respectively.
Opportunities for Expansion: Women-owned businesses with 50 or more employees play a pivotal role in the economy, accounting for nearly half of all women-owned businesses’ employment and revenues. However, there’s untapped potential for further growth. If these businesses achieved the average income of men-owned companies with 50 or more employees, they could add a staggering $1.2 trillion to the U.S. economy.
The report underscores the importance of supporting women-owned businesses from various stakeholders, including government entities, banks, corporations, and philanthropic organizations. To foster continued growth and close existing gaps, removing barriers to capital access, providing technical assistance, and supporting business certification for women entrepreneurs is imperative.
The findings of the 2024 Wells Fargo Impact of Women-Owned Business Report paint a compelling picture of women entrepreneurs as drivers of economic growth and resilience. As we navigate the post-pandemic landscape, it’s crucial to nurture and empower these businesses, ensuring they have the resources and opportunities needed to thrive and contribute even further to the prosperity of our economy.
The link to the recent press release can be found here and the additional link to the report can be found here.
