PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SMALL BUSINESS CURRENTS: Good News for Women-Owned Businesses

By at 14 March, 2024, 9:40 am

by Rieva Lesonsky –

March being Women’s History Month, so I thought it would be a good time to review some recent stats about women-owned businesses.

Biz2Credit released its Women-Owned Business Study showing that the average Annual Revenue for women-owned businesses increased 15.5%, from $391,582 in 2022 to $452,446 in 2023.

However, the gender revenue gap still exists. In 2023, there was a 34% average revenue gap between women-owned and men-owned businesses, equal to $237,503. Rohit Arora, CEO and co-founder of Biz2Credit notes that women-owned companies still make about 66 cents for every dollar a male-owned business earns.

The average earnings for women-owned businesses (annual revenue—operating expenses) were $87,634 in 2023, basically unchanged from 2022. For businesses owned by men, the average earnings in 2023 were $147,522, a 3% decrease from 2022.

Businesses for everyone cost more to operate last year than in 2022. For women, the average operating expenses increased 20%, from $303,629 in 2022 to $364,812 in 2023. Men-owned businesses experienced a 12% increase.

Credit scores varied as well. Men business owners had higher credit scores (657) than women entrepreneurs (640). This may explain why women-owned businesses didn’t receive as much funding as those owned by men, with women receiving $52,779 compared to men getting $74,544 in funding. The highest number of funding applications came from women in Florida, California, and Texas.

Overall, according to the U.S. Census Bureau, women-owned businesses generated about $21 trillion in receipts and had 10.5 million employees for an annual payroll of $499.4 billion. And the National Women’s Business Council (NWBC) Annual Report says there are 14 million women-owned businesses in the U.S., accounting for 39.1% of all businesses in the country. This is an increase of 13.6% from 2019 to 2023, demonstrating that women-owned firms emerged in relatively good shape from the COVID-19 pandemic.

Women stock image by pixelheadphoto digitalskillet/Shutterstock

Rieva Lesonsky is president and CEO of two companies that focus on small business and entrepreneurship – GrowBiz Media and SmallBusinessCurrents.com. She’s a nationally-known speaker, best-selling author, award-winning journalist, and authority on entrepreneurship who has covered the industry for more than 40 years. Before starting GrowBiz Media, she was the long-time editorial director of Entrepreneur magazine. Lesonsky has written several books about small business, including the best-selling Start Your Own Business, and Small Business Hacks: 100 Shortcuts to Success.

 

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