Charlotte is the leading metropolitan area in the country where women-owned businesses are increasing economic clout, according to data compiled in the eighth annual State of Women-Owned Businesses Report.
American Express research advisor Geri Stengel said “economic clout” was defined in the study as growth between 2007 and 2018 in the total number of firms, total employment and total revenues.
Charlotte ranked first in growth of number of women-owned firms among the top 50 U.S. metropolitan areas with a 160 percent increase over the past 11 years, third in growth of jobs created with an 83.9 percent increase and first in growth of firm revenues with a 161.4 percent increase.
The report, which was commissioned by American Express and used data from the U.S. Census Bureau’s Survey of Business Owners, also ranked North Carolina the 12th state overall in growth of the number of women-owned firms since 2007 with a 52.8 percent increase. North Carolina was also ranked as the 27th state in total job growth and 33rd in growth of firm revenues of women-owned businesses.
Nationally, the number of women-owned businesses increased 5.7 percent from 2017 to 2018. The number of women-owned businesses in North Carolina grew from 333,100 to 344,600, a 3.5 percent increase.
Stengel said the growth of women-owned businesses may be an effect of “necessity entrepreneurship,” when individuals start their own businesses because they are unable to find traditional jobs within their fields, due to recession or other economic conditions.
Stengel said North Carolina not leading the list of states where women-owned businesses are appearing “may not necessarily be a bad thing” because it could indicate women are finding satisfying jobs at existing firms in their area.
Stengel said minority women are playing a significant role in increasing these numbers.
“African-American women are more likely to start a business earlier [in their lives] than other women,” said Stengel. “They see the promise of entrepreneurship and building wealth..and also experience more significant wage gaps.”
African-American women are more likely to experience wage gaps and hiring discrimination compared to white men and women. According to research by the National Partnership for Women and Families, the median wage for African-American women in North Carolina is $31,555 compared to $49,896 for white, non-Hispanic men.
White women are paid more than black and Hispanic women at every education level, according to the American Association of University Women.
The number of women-owned businesses nationally generating revenues of more than $1 million increased 46 percent over the past 11 years. These firms make up less than 2 percent of all women-owned businesses but account for 68 percent of total employment and 69 percent of revenue among all women-owned businesses. The report also described how growth of women-owned businesses in the United States is accelerating quickly relative to other time periods in modern history.
From 2017 to 2018 the number of women-owned businesses grew at an average rate of about 1,821 new businesses per day. This number is higher than daily average period from 2002 to 2007, 2007 to 2012 and 2012 to 2017. These intervals represent the periods shortly before, during and after the last major American recession, respectively.
