- New York claims the top spot as the ultimate hub for women entrepreneurs.
- Alaska, on the other hand, faces the challenge of being ranked the lowest for women in business.
- Within the Miami-Fort Lauderdale-West Palm Beach metropolitan area, women-owned firms have achieved a top-three ranking for both the number of businesses and the share of revenue they contribute.
A recent Wells Fargo report, part of a series of demographic backgrounders from the inaugural 2023 Wells Fargo Impact of Women-Owned Businesses, is being shared prior to the full report’s release in late November. The report, produced by Ventureneer, CoreWoman, and the WIPP Educational Institute, reflects the increasing presence of women-owned businesses in the United States.
This report delves into the influence of women entrepreneurs, evaluating states and metropolitan areas based on their economic significance. The analysis not only acknowledges the remarkable growth of women-owned businesses but also underscores areas where support and initiatives are vital to foster further growth.
Top Five States for Women-Owned Businesses
New York: Leading the way, New York provides a thriving ecosystem for women entrepreneurs. With substantial employment growth, various support programs, and preferences for women-owned businesses in state contracts, New York sets a remarkable example of their impact on the local economy.
North Carolina: The commitment of North Carolina to providing services like access to financing, training, and marketing support has led to steady growth in women-owned firms, solidifying their influence on the state’s economy.
Georgia: Georgia boasts the fifth-highest number of women-owned firms and demonstrates impressive growth, ranking seventh in revenue share, showcasing the valuable contribution of women-owned businesses.
Florida: Florida empowers women entrepreneurs with access to capital, networking, mentorship, and government contracting opportunities. With a growth rate of 9.6% for women-owned businesses and ranking second in the share of women-owned firms by number, fourth in employment share, and fourth in revenue share, the state shows great potential.
California: California’s commitment to training, counseling, and networking opportunities has resulted in the state leading the nation in the share of women-owned businesses by number, employment, and revenue.
Please refer to the Wells Fargo report for the top ten.
States with Room for Improvement
While several states excel in supporting women-owned businesses, others have room for development. These states may need to address challenges such as limited access to financing, training, mentorship, and high tax burdens to foster the growth of women entrepreneurs.
West Virginia: Women-owned firms in West Virginia show modest growth at 1.3%, with employment increasing by 2.3%. Nevertheless, the state’s presence and influence on women-owned businesses require improvement.
Montana: In Montana, women-owned firms grow at a rate of 10.0%, but their overall contribution to the state’s economy remains limited.
Wyoming: Wyoming experiences mixed rankings, with a 13.8% growth in the number of women-owned firms but a 4.2% decrease in employment within these firms. Their overall contribution to Wyoming’s economy remains minimal.
Nebraska: Women-owned firms in Nebraska experience slow growth at a rate of 3.7%, with a sharp decline in employment by 23.6%. The modest presence of these businesses suggests room for future growth and impact.
Alaska: Alaska faces a decline in the growth of women-owned firms, with a 1.4% decrease, and a slight decline in employment. Women-owned businesses have minimal influence on Alaska’s economy.
Please refer to the Wells Fargo report for the bottom ten.
Metropolitan Areas Leading the Way
Some metropolitan areas take the lead in women-owned businesses, showcasing impressive growth metrics and specialized support structures.
Miami-Fort Lauderdale-West Palm Beach, FL: This metropolitan statistical area (MSA) ranks third in the share of the number of women-owned firms and is within the top five for revenue share of women-owned firms.
Dallas-Fort Worth-Arlington, TX: Dallas-Fort Worth in Texas demonstrates balanced growth in women-owned businesses, ranking 11th in the growth of women-owned firms and serving as a hub for such businesses.
Boston-Cambridge-Newton, MA-NH: Boston’s metropolitan area witnesses rapid employment growth among women-owned firms, with a rate of 62.1%.
Los Angeles-Long Beach-Anaheim, CA: The Los Angeles metro area holds the second position in the number, employment, and revenue shares for women-owned businesses.
Phoenix-Mesa-Scottsdale, AZ: Phoenix offers a promising environment for the growth of women-owned businesses, with a firm growth rate of 13.7%.
Please refer to the Wells Fargo report for the ten states leading the way.
States and Metropolitan Areas with Growth Potential
While some metropolitan areas lead the way, others have the potential for further development in championing women-owned enterprises. These areas possess unique attributes that, if effectively harnessed, can enhance their standings.
Please refer to the Wells Fargo report for more details.
The Wells Fargo report shines a light on the remarkable economic contributions of women-owned businesses in various states and metropolitan areas across the United States. While some regions have cultivated thriving ecosystems, others have significant room for improvement. The rankings illustrate the varying impact of women entrepreneurs, influenced by local conditions, policies, and opportunities. To empower women entrepreneurs further, it’s crucial for states and metropolitan areas to acknowledge and bolster the contributions of women in business. This includes increasing access to funding, introducing or improving support programs, easing tax burdens, promoting workforce diversity, and challenging stereotypes.
With over a decade dedicated to women-led startups, Raven is a seasoned entrepreneur, strategic luminary, and passionate advocate. She's nurtured 500+ women-led businesses, securing over $100M in funding through her blend of strategic counsel, marketing mastery, and resource facilitation.