Women as Business Owners

  Women owned over 5.4 million U.S. non-farm businesses, employed almost 7.1 million people and generated $818.7 billion in business revenues in 1997. 

The number of women-owned firms increased 16 percent between 1992 and 1997, almost triple the rate of 6 percent for all firms (excluding publicly held corporations); their receipts, meanwhile, increased 33 percent, compared with a 24 percent increase for all firms.

Women-owned firms accounted for 26 percent of all non-farm businesses in the United States in 1997.

The percent distribution of all U.S. firms by gender of ownership was 26 percent women-owned, 55 percent male-owned, and 17 percent equally-owned. The remaining two percent is publicly held, foreign-owned and non-profit.

There were 5.4 million female-owned firms, compared to 11.3 million male-owned firms and 3.6 million equally male-/female-owned firms.

Top 10:

The top 10 states with the most women-owned firms were California with 700,500 firms; New York with 394,000 firms; Texas with 381,500 firms; Florida with 337,800 firms; Illinois with 239,700 firms; Ohio with 205,000 firms; Pennsylvania with 203,000 firms; Michigan with 184,600 firms; New Jersey with 155,300 firms; and Georgia with 145,600 firms.

The top 10 states with the largest percentage of women-owned firms were District of Columbia with 14,000 firms (30.9 percent); New Mexico with 38,700 firms (29.4 percent); Maryland with 115,800 firms (28.9 percent); Colorado with 114,800 firms (28 percent); Oregon with 80,500 firms (27.6 percent); Virginia with 132,200 firms (27.5 percent); Washington with 123,00 firms (27.5 percent); Hawaii with 25,800 firms (27.5 percent); California with 700,500 firms (27.3 percent); and Michigan with 184,600 firms (27.2 percent).

The 10 metropolitan areas with the largest number of women-owned firms were New York, N.Y. with 201,000 firms; Los Angeles-Long Beach, Calif. with 200,800 firms; Chicago, Ill. with 161,300 firms; Washington, D.C. with 117,700 firms; Atlanta, Ga. with 87,100 firms; Philadelphia, Pa. with 84,100 firms; Boston, Mass. with 83,400 firms; Houston, Tex. with 79,000 firms; Detroit with 77,500 firms; and Dallas, Tex. with 76,400 firms. These firms accounted for 21.6 percent of the total number of women-owned firms in the United States and 24.6 percent of the gross receipts.

The 10 cities with the largest number of women-owned firms were New York, N.Y. with 167,900 firms; Los Angles, Calif. with 89,600 firms; Chicago, Ill. with 47,700 firms; Houston, Tex. with 41,100 firms; San Diego, Calif. with 26,900 firms; Dallas, Tex. with 26,100 firms; San Francisco, Calif. with 25,400 firms, Phoenix, Ariz. with 22,500 firms; San Antonio, Tex. with 18,500 firms; and Seattle, Wa. with 18,100 firms.

Industry Characteristics:

72 percent of women-owned firms operated as a service or in retail trade.

Within retail, women were particularly concentrated in miscellaneous retail stores (e.g. books, jewelry and sporting goods), where they owned 41.4 percent of all such U.S. firms, and in apparel and accessory stores with 42.5 percent of all U.S. firms.

64 percent of the receipts generated by women-owned firms were concentrated in retail and wholesale trade, and services. Automotive dealers, gasoline service stations, and miscellaneous retail stores accounted for 50.1 percent of the retail trade revenue.

The percent distribution of women-owned firms by industry division was 3 percent construction with 157,200 firms and $68 billion in sales and receipts; 2 percent manufacturing with 121,100 firms and $114 billion in sales and receipts; 2 percent transportation, communications and utilities with 129,000 firms and $33 billion in sales and receipts; 2 percent wholesale trade with 125,600 firms in $188.5 billion in sales and receipts; 17 percent retail trade with 920,000 firms and $152 billion in sales and receipts; 9 percent finance, insurance and real estate with 479,500 firms and $56 billion in sales and receipts; 2 percent agricultural services, forestry, fishing and mining with 94,500 firms and $13 billion in sales and receipts; 8 percent industries not classified with 412,000 firms with $9 billion in sales and receipts; and 55 percent services with 920,000 firms and $152 billion in sales and receipts.

The percent distribution of women-owned firms compared to all U.S. firms was 11 percent construction; 3 percent manufacturing; 4 percent transportation, communications and utilities; 4 percent wholesale trade; 14 percent retail trade; 11 percent finance, insurance and real estate; 3 percent agricultural services, forestry, fishing and mining; 7 percent industries not classified; and 43 percent services.

2,645 firms operated in two major industry groups*, 573 firms operated in three major industry groups, 139 firms operated in four major industry groups, and 107 firms operated in five or more industry groups.

Type of women-owned firms:

85 percent of women-owned firms operated as individual proprietorships, which are unincorporated business owned by an individual and business of self-employed people. These businesses accounted for 17.3 percent of gross receipts by women-owned firms.

5.8 percent of women-owned firms were C corporations, which are any legally incorporated business under state laws. These businesses accounted for 44.8 percent of gross receipts by women-owned firms.

6.2 percent of all women-owned firms were subchapter S corporations, which are legally incorporated businesses under state laws. Subchapter S corporation is a special IRS designation for legally incorporated business with 75 or fewer shareholders who because of tax advantages elected to be taxed as individual shareholders rather than as corporations. These businesses accounted for 33.4 percent of gross receipts by women-owned firms.

3.1 percent of all women-owned firms were partnerships, which are unincorporated businesses owned by two or more people.  These businesses accounted for 3.9 percent of gross receipts by women-owned firms.

Employment at women-owned businesses:

Women-owned firms with paid employees accounted for 15.6 percent of women-owned firms and 87.7 percent of gross receipts.

115,300 women-owned firms had no employees.

444,100 firms had one to four employees; 150,300 firms had five to nine employees; 79,300 firms had 10 to 19 employees; and 40,000 firms had 20 to 49 employees.

10,300 firms had 50 to 99 employees; 6,600 firms had 100 to 499 employees; and 873 firms had 500 employees or more.

Revenue by women-owned businesses:

The percent distribution of receipts for all U.S. firms by gender of ownership was 4 percent women-owned; 36 percent male-owned; 5 percent equally-owned; and 55 percent publicly held, foreign-owned and non-profit.

Female-owned firms generated $818 billion in sales and receipts, compared with $6.6 trillion generated by male-owned firms and $943 billion generated by equally male-/female-owned firms.

There were 98,870 women-owned firms with receipts of $1 million or more. These firms accounted for 1.8 percent of the total number of women-owned businesses and 68.3 percent of total receipts.

$151,100 was the average receipts per women-owned firm, compared to $582,500 per male-owned firm and $259,200 per equally-owned firm.

$847,600 was the average receipts per women-owned firm with paid employees, compared to $2 million per male-owned firm with paid employees and $804,700 per equally-owned firm with paid employees.

The top four industry receipt leaders for women-owned firms were wholesale trade with $188.5 billion; services with $186 billion; retail trade with $152 billion; and manufacturing with $113.7 billion.

Wholesale trade: $120.3 billion in durable goods and $68.2 billion in non-durable goods

Services: $60.3 billion in business services; $35.9 billion in health services; $24.7 billion in engineering and management services; and $18 billion in personal services.

Retail Trade: $38.9 billion in automotive dealers and service stations; $37.3 billion in miscellaneous retail; $23.7 billion in eating and drinking places; and $21.9 billion in  food stores.

Manufacturing: $15.5 billion in printing and publishing; $15 billion in food and kindred products; $11 billion in fabricated metal products; and $9.9 billion in industrial machinery and equipment.

355,800 firms made between $100,00 to $249,999; 169,300 firms made between $250,00 to $499,000; 100,200 firms made $500,000 to 999,999; and 98,900 firms made $1 million or more.

1.6 million firms made less than $5,000; 976,100 firms made $5,000 to $9,999; 1.1 million firms made $10,000 to $24,999; 571,400 firms made $25,000 to $49,999; and 399,300 firms made $50,00 to $99,999.

Operating locations of women-owned businesses:

843,400 firms with paid employees operated in one state.

2,200 firms with paid employees operated in two states; 527 firms with paid employees operated in three states; 227 firms with paid employees operated in four states; and 245 firms with paid employees operated in five states.

64 firms with paid employees operated in six states; 40 firms with paid employees operated in seven states; 36 firms with paid employees operated in eight states; 19 firms with paid employees operated in nine states; and 102 firms with paid employees operated in 10 or more states.

840,200 firms with paid employees operated in one metropolitan area.

4,400 firms with paid employees operated in two metropolitan areas; 953 firms with paid employees operated in three metropolitan areas; 366 firms with paid employees operated in four metropolitan areas; and 374 firms with paid employees operated in five metropolitan areas.

115 firms with paid employees operated in six metropolitan areas; 70 firms with paid employees operated in seven metropolitan areas; 41 firms with paid employees operated in eight metropolitan areas; 44 firms with paid employees operated in nine metropolitan areas; and 208 firms with paid employees operated in 10 or more metropolitan areas.

Equally-owned businesses:

Equally-owned firms included 99,000 firms in agricultural services, forestry, and fishing; 30,400 firms in mining; 345,200 in construction; 138,500 firms in manufacturing; 186,200 firms in transportation, communications and utilities; 161,100 firms in wholesale trade; 736,500 firms in retail trade; 379,600 firms in finance, insurance and real estates; 1.3 million firms in services; and 249,100 firms in industries not classified.

* Major industry groups are agricultural services, forestry, fishing and mining; construction; manufacturing; transportation, communications and utilities; wholesale trade; retail trade; finance, insurance and real estate; services; and industries not classified.

Please note most numbers were rounded off for easier reading.

Source: Survey of Women-Owned Business Enterprises, 1997 Economic Census, U.S. Census Bureau. 

About the survey: The 1997 Economic Census defines women-owned businesses as privately held firms in which women own 51 percent or more of the firm. Data in the report, 1997 Survey of Women-Owned Business Enterprises, were collected as part of the Economic Census from a sample of non-farm businesses filing tax forms as sole proprietorships, partnerships or any type of corporation that had receipts of $1,000 or more in 1997. 

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