Women Entrepreneurs
Catalystk Information Center
Quick Takes

Why Women Become Entrepreneurs

• Catalyst study found that the top reasons women cited for leaving companies to start their own businesses were: need for more flexibility, being unhappy with work environment, experiencing a glass ceiling, and feeling unchallenged by one’s job.

Counting Women-Owned Business

• In 2004, an estimated 47.7% (10.6 million) of all privately-held businesses in the U.S. were 50% or more owned by women. This includes businesses in which women hold the majority ownership (51% or more) and businesses in which women and men equally own 50-50
  • 6,659,268 are businesses 51% or more women owned
  • 3,970,777 are 50-50 businesses
• In 2004, privately-held, 50% or more women-owned firms generated $2.46 trillion in sales and employ 19.1 million people across the country
• In 2004 estimates, women-owned businesses spent $492 billion on salaries and $54 billion in benefits
• Since 1997, women-owned businesses have grown 17.0%, nearly twice the 9.0% growth of all firms
• From 1997-2004, the number of privately-held 50% or more women owned employer firms grew by 28.1%, which is three times the growth rate of all privately-held employer firms in the U.S

Women of color

• As of 2004, women of color owned an estimated 1.4 million privately-held firms in the U.S., employing over 1.3 million people and generating $147 billion in sales
• African-American women:
  • In 2004, there were an estimated 414,472 majority-owned, privately-held firms owned by African-American women in the U.S., and they generate almost $19.5 billion in sales
  • 29.0% of minority-women-owned firms are owned by African American women
  • Firms owned by African-American women now represent 6.2% of all privately-held, majority owned womenowned firms in the U.S
  • 39.1% of all African-American-owned firms are owned by women Latinas
• Latinas:
  • As of 2004, there are an estimated 553,618 majority-owned, privately-held firms owned by Latinas in the U.S., and they generate $44.4 billion in sales
  • 38.8% of minority-women -owned firms are owned by Latinas
  • Firms owned by Latinas now represent 8.3% of all privately-held, majority-owned women owned firms in the U.S.
  • 34.9% of all Hispanic-owned firms are owned by women
• Asian and Pacific Islander women
  • As of 2004, there are an estimated 419,793 majority-owned, privately-held firms owned by Asian and Pacific Islander women in the U.S., and they generate $69.7 billion in sales
  • 29.4% of minority-women-owned firms are owned by Asian and Pacific Islander women
  • Firms owned by Asian and Pacific Islander women represent 6.3% of all privately held, majority-owned womenowned firms in the U.S.
  • 33.2% of all Asian and Pacific Islander-owned firms are owned by women Native American and Alaska Native women
• Native American and Alaska NAtive women
  • As of 2004, there are an estimated 90,730 majority-owned, privately-held firms owned by Native American and Alaska Native women in the U.S., and they generate $12.4 billion in sales
  • 6.4% of minority-women-owned firms are owned by Native American and Alaska Native women
  • Firms owned by Native American and Alaska Native women represent 1.4% of all privately-held, majorityowned women-owned firms in the U.S.
  • 33.2% of all Native American and Alaska Native-owned firms are owned by women

Venture Capitla

• According to research group VentureOne, 6.56% of VC-backed companies had women founders in the first half of 2006.
• Only 2.67% of the total amount raised by VC-backed companies had women CEOs in the first half of 2006.