A Compendium of 

National Statistics on 

Women-Owned 

Businesses in the U.S. 

Executive Summary 

and Data Report 

Prepared for 

National Women’s Business Council 

September 2001 
ii 

Table of Contents
 

Introduction .........................................................................................................................................................................1
 

Executive Summary ..................................................................................................................................................... ES-1
 

Number and Economic Impact of Women-Owned Firms.............................................................................. ES-1
 

Demographic Characteristics................................................................................................................................. ES-2
 

Capital and Financing Patterns..............................................................................................................................ES-2
 

Federal Procurement............................................................................................................................................... ES-5
 

International Trade.................................................................................................................................................. ES-5
 

Significant Gaps in Knowledge .............................................................................................................................ES-6
 

Strategic Recommendations................................................................................................................................... ES-6
 

Chapter 1: The Number of Women-Owned Firms in the United States .............................................................. 1-1
 

Bureau of the Census ................................................................................................................................................. 1-1
 

Industry Patterns......................................................................................................................................................... 1-2
 

Regional Patterns ........................................................................................................................................................ 1-2
 

Legal Form of Organization ..................................................................................................................................... 1-2
 

U.S. Small Business Administration ........................................................................................................................ 1-2
 

Bureau of Labor Statistics ......................................................................................................................................... 1-3
 

Chapter 2: The Growing Economic Impact of Women-Owned Firms ................................................................ 2-1
 

Industry Patterns......................................................................................................................................................... 2-1
 

Regional Patterns ........................................................................................................................................................ 2-2
 

Legal Form of Organization ..................................................................................................................................... 2-2
 

Employment Patterns ................................................................................................................................................ 2-2
 

Sole Proprietorships ................................................................................................................................................... 2-3
 

Chapter 3: Demographic Characteristics of Women Business Owners................................................................. 3-1 
 

Characteristics of Business Owners Survey............................................................................................................ 3-1
 

Age ................................................................................................................................................................................ 3-1
 

Education..................................................................................................................................................................... 3-1
 

Marital Status............................................................................................................................................................... 3-1
 

Personal Income ......................................................................................................................................................... 3-2
 

Survey of Minority-Owned Businesses ................................................................................................................... 3-2
 

Ethnicity ....................................................................................................................................................................... 3-2
 

Firms Owned By Hispanic Women......................................................................................................................... 3-3
 

Firms Owned By African American Women......................................................................................................... 3-3
 

Firms Owned By Asian & Pacific Islander Women ............................................................................................. 3-4
 
iii 

Firms Owned By American Indian and Alaska Native Women.........................................................................3-4
 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firms.......................................................... 4-1
 

Start-Up Financing ..................................................................................................................................................... 4-1
 

Ongoing Financing..................................................................................................................................................... 4-3
 

Financing and Growth............................................................................................................................................... 4-5
 

Chapter 5: Equity Capital Investment in Women-Owned Firms............................................................................ 5-1
 

Personal and Business Characteristics..................................................................................................................... 5-4
 

Chapter 6: Women-Owned Firms in Federal Procurement..................................................................................... 6-1
 

Small Business’ Share of Federal Procurement...................................................................................................... 6-1
 

Women-Owned Business’ Share of Federal Procurement .................................................................................. 6-1
 

Agency Awards to Women-Owned Firms ............................................................................................................. 6-2
 

Report of Women-Owned Firms in Federal Procurement ................................................................................. 6-2
 

Characteristics of Women-Owned Firms in Federal Procurement....................................................................6-3
 

Challenges and Trends of Women-Owned Firms in Federal Procurement ..................................................... 6-5
 

Chapter 7: Women-Owned Firms in International Trade........................................................................................ 7-1
 

Chapter 8: Strategic Recommendations....................................................................................................................... 8-1
 

Chapter 9: Bibliography.................................................................................................................................................. 9-1
 
iv 

Table of Contents: Tables
 

Chapter 1: The Number of Women-Owned Firms in the United States .............................................................. 1-1
 

Table 1-1. The Number of Women-Owned Businesses By Industry: 1997 ..................................................... 1-5
 

Table 1-2. The Number of Women-Owned Businesses by State: 1997 ............................................................ 1-6
 

Table 1-3. States With The Highest/Lowest Share of Women-Owned Firms: 1997 ..................................... 1-8
 

Table 1-4. The Number of Women-Owned Businesses by Legal Form of Organization: 1997................... 1-9
 

Table 1-5. The Number of Women-Owned Non-Farm Sole Proprietorships: 1980 to 2000 .....................1-10
 

Table 1-6. The Number of Women-Owned Non-Farm Sole Proprietorships by
 

SBA Region (Thousands) ....................................................................................................................1-11
 

Table 1-7. The Number of Women-Owned Non-Farm Sole Proprietorships by Industry: 1998 ..............1-12
 

Table 1-8. Number of Self-Employed Individuals by Gender, 1983–2005 (Thousands).............................1-13
 

Chapter 2: The Growing Economic Impact of Women-Owned Firms ................................................................ 2-1
 

Table 2-7. The Number of Women-Owned Firms by Employment Size and Industry
 

Table 2-11. Receipts of Women-Owned Non-Farm Sole Proprietorships by SBA Region
 

Table 2-12. Receipts and Net Income of Women-Owned Non-Farm Sole Proprietorships
 

Table 2-1. Receipts of Women-Owned Businesses by Industry: 1997 .............................................................. 2-4
 

Table 2-2. Receipts of Women-Owned Businesses by State: 1997 .................................................................... 2-5
 

Table 2-3. States With The Highest/Lowest Share of Revenues Among Women-Owned Firms: 1997..... 2-7
 

Table 2-4. Receipts of Women-Owned Businesses by Legal Form of Organization: 1997........................... 2-8
 

Table 2-5. The Number of Women-Owned Firms by Receipts Size and Industry Division: 1997.............. 2-9
 

Table 2-6. Number of Employees Among Women-Owned Businesses By Industry: 1997 ........................2-10
 

Division: 1997........................................................................................................................................2-11
 

Table 2-8. Employment of Women-Owned Businesses by State: 1997 ..........................................................2-12
 

Table 2-9. States With The Highest/Lowest Women’s Share of Employment: 1997 ..................................2-14
 

Table 2-10. Receipts of Women-Owned Non-Farm Sole Proprietorships: 1980 to 2000 ...........................2-15
 

($000,000).............................................................................................................................................2-16
 

by Industry: 1998...............................................................................................................................2-17
 

Chapter 3: Demographic Characteristics of Women Business Owners................................................................. 3-1 
 

Table 3-1. Demographic Characteristics of Women Business Owners: 1992 .................................................. 3-5
 

Table 3-2. Number, Receipts and Employment of Minority Women-Owned Firms: 1997 .......................... 3-7
 

Table 3-3. Comparison of Minority-Owned Firms to All U.S. Firms: 1992 and 1997 ................................... 3-8
 

Table 3-4. Number, Receipts and Employment Among Minority Women-Owned Firms
 

by Major Industry: 1997....................................................................................................................... 3-9
 

Table 3-5. Employment Among Minority Women-Owned Firms By Major Industry: 1997 ......................3-10
 
v 

Table 3-6. Number, Receipts and Employment of Minority Women-Owned Firms by State: 1997 .........3-11
 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firms.......................................................... 4-1
 

Table 4-1. Starting Capital Requirements Among Women Business Owners: 1982 - 1992.......................... 4-6
 

Table 4-2. Starting Capital Requirements Among Women Business Owners by Industry: 1992.............. 4-7
 

Table 4-3. Sources of Borrowed Capital Among Women-Owned Businesses Who Used
 

Borrowed Capital to Start Their Business: 1992.............................................................................. 4-8
 

Table 4-4. Primary Sources of Financing Among Women Business Owners: 1996 and 1998...................... 4-9
 

Table 4-5. Financial Sources to Meet Current Capital Needs: Fast-Growth Women
 

Business Owners.................................................................................................................................4-10
 

Chapter 5: Equity Capital Investment in Women-Owned Firms............................................................................ 5-1
 

Table 5-1. Venture Capital-Backed Companies with Women in Top Management ....................................... 5-5
 

Table 5-2 Sources of Equity Investment in Women-Owned Firms .................................................................. 5-6
 

Table 5-3. Age of Women-Owned Firms that Have or Are Seeking Equity.................................................... 5-7
 

Chapter 6: Women-Owned Firms in Federal Procurement..................................................................................... 6-1
 

Table 6-1. Women-Owned Small Business Share of Federal Prime Contracts: Performance
 

by Major Federal Agencies, FY 1997 (Millions of Dollars) ........................................................... 6-7
 

Table 6-2. Annual Change in the Dollar Volume of Federal Contract Actions over $25,000
 

Awarded to Women-Owned Businesses Relative to the Total Amount of Such Awards: FY
 

1980 – FY 1997 (Thousands of Dollars) ............................................................................................ 6-8
 

Table 6-3. Federal Agencies’ Goals and Percentages of Contracts Annually Awarded to
 

Women-Owned Small Businesses: FY 1996 – FY 1999................................................................. 6-9
 

Table 6-4. Index of State Share of Women-Owned Contracts to State Share of Distribution
 

Table 6-5. States With The Highest/Lowest Index: Share of Women-Owned Prime Federal
 

of Women-Owned Businesses..........................................................................................................6-11
 

Contracts to Distribution of Women-Owned Businesses: 1997...................................................6-13
 

Chapter 7: Women-Owned Firms in International Trade........................................................................................ 7-1
 

Table 7-1. United States: Exporters of Goods and Services, 1992..................................................................... 7-4
 

Table 7-2. Percent of Women Entrepreneurs With More Than $500,000 in Revenues................................. 7-5
 
vi 

Table of Contents: Charts 

Executive Summary ..................................................................................................................................................... ES-1
 

Growth in Number, Employment, Revenues of Women-Owned Firms ...................................................... ES-1
 

The Number of Minority Women-Owned Businesses: 1997...........................................................................ES-2
 

Age Distribution of Women Business Owners and All Women: 1992 .......................................................... ES-3
 

Top Sources of Borrowed Start-Up Capital Among Women-Owned Businesses: 1992............................. ES-3
 

Equity Sources Among Women Entrepreneurs.................................................................................................ES-4
 

Share of Federal Contract Actions Reported Individually: 1980 - 1997.........................................................ES-5
 

Chapter 1 The Number of Women-Owned Firms in the United States ............................................................... 1-1
 

Chart 1-1. Growth in Number, Employment, Revenues of Women-Owned Firms ...................................... 1-1
 

Chart 1-2. Number of Firms by Legal Form of Organization ............................................................................ 1-3
 

Chart 1-3. Share of Nonfarm Sole Proprietorships by Gender: 1980 - 2000 ................................................... 1-3
 

Chart 1-4. Employment and Self-Employment Among Nonfarm Workers: June 2001 ................................ 1-4
 

Chapter 2 The Growing Economic Impact of Women-Owned Firms ................................................................. 2-1
 

Chart 2-1. Growth in the Economic Impact of Women-Owned & All Firms: 1992 - 1997 ......................... 2-1
 

Chart 2-2. Receipts by Legal Form of Organization............................................................................................. 2-2
 

Chapter 3 Demographic Characteristics of Women Business Owners.................................................................. 3-1 
 

Chart 3-1. Age Distribution of Women Business Owners and All Women: 1992 .......................................... 3-1
 

Chart 3-2. The Number of Minority Women-Owned Businesses: 1997........................................................... 3-2
 

Chapter 4 Capital and Financing Patterns Among Women-Owned Firms........................................................... 4-1
 

Chart 4-1. Starting Capital Requirements of Women-Owned Businesses: 1982 - 1992 ................................. 4-1
 

Chart 4-2. Share of Capital Borrowed for Business Start-Up: 1992................................................................... 4-2
 

Chart 4-3. Top Sources of Borrowed Start-Up Capital Among Women-Owned Businesses: 1992............. 4-2
 

Chart 4-4. Primary Sources of Financing Among Women Business Owners: 1996-1998 ............................. 4-3
 

Chart 4-5. Available Bank Credit Among Business Owners: 1998 .................................................................... 4-4
 

Chart 4-6. Top Financial Sources to Meet Current Capital Needs: Fast-Growth Women
 

Business Owners................................................................................................................................... 4-5
 

Chapter 5 Equity Capital Investment in Women-Owned Firms............................................................................. 5-1
 

Chart 5-1. Equity Sources Among Women Entrepreneurs................................................................................. 5-1
 

Chart 5-2. Share of Equity Investment Deals and Dollars to Women-Owned Firms.................................... 5-2
 

Chart 5-3. Amount of Equity Sought by Women Business Owners .................................................................5-3
 

Chart 5-4. Comparison of Business Age: Women Business Owners With and Without Equity Capital..... 5-3
 

Chapter 6 Women-Owned Firms in Federal Procurement...................................................................................... 6-1
 

Chart 6-1. Share of Federal Contract Actions Reported Individually: 1980 - 1997......................................... 6-1
 
vii 

Chart 6-2. Agencies Awarding the Most Contract Dollars to Women-Owned Businesses: FY 1999.......... 6-2
 

Chart 6-3. Agencies Awarding the Largest Share of Contract Dollars to Women-Owned
 

Businesses: FY 1999............................................................................................................................... 6-3
 

Chart 6-4. Annual Revenues of Women-Owned Federal Contractors & All Women-Owned Firms.......... 6-4
 

Chart 6-5. Distribution of All Women-Owned Firms and Women-Owned Prime Contractors .................. 6-5
 

Chart 6-6. Impact of Procurement Trends on Business ...................................................................................... 6-6
 

Chapter 7 Women-Owned Firms in International Trade......................................................................................... 7-1
 

Chart 7-1. Access to Capital in International Trade.............................................................................................. 7-2
 
1 

_______________________________________ 

Introduction 

Introduction 

Women-owned businesses have continued to show 

tremendous growth during the last decade, 

outpacing the growth of all businesses in number, 

sales and employment. Today, there are over 5.4 

million majority-owned, privately-held womenowned firms, including one in six owned by women 

of color.1 Between 1992 and 1997, the number of 

women-owned firms increased by 16%, 21⁄2 times 

faster than all U.S. businesses, employment 

expanded at three times the rate of all businesses, 

and revenues grew one and a half times the national 

average. 

This publication is a single-source document of 

statistical information about women’s business 

ownership in the United States. This document 

updates and expands the National Women’s 

Business Council’s (NWBC) 1994 Compendium of 

National Statistics on Women-Owned Businesses in 

the U.S., also prepared by Center for Women’s 

Business Research. It includes the most sought-after 

facts and figures on women’s entrepreneurship in 

the U.S., and includes a bibliography of both source 

references and recommended publications. 

Statistics found in this document include: 

•	 The number, size and economic strength of 

women-owned businesses; 

•	 Recent growth trends; and 

•	 Information on several key issues for women 

business owners: 

•	 access to financial resources, including a 

focus on equity capital; 

• opportunities in Federal procurement; and 

•	 women-owned firms in international trade. 

1 In 1997, the Census determined that women’s ownership of a 

business was determined based on the gender of the person(s) 

owning a 51%+ majority interest in the business. Prior to 1997, 

businesses with 50% or more women ownership have been 

included in the women business counts. Beginning with the 

1997 census, the Census Bureau has chosen to separate firms 

with 50% ownership from firms with 51%+ majority interest, 

allowing us to focus on the specific population of majorityowned women-owned businesses. In addition, publicly-traded 

firms were not included in the 1997 count of women-owned 

firms, for data quality reasons. They are included in the overall 

count of all U.S. firms. 

As a Federal advisory council, NWBC advises the 

President, U.S. Small Business Administration, 

Congress and the Interagency Committee on 

Women’s Business Enterprise on issues relating to 

women-owned businesses. A primary objective of 

NWBC is to promote the interests of womenowned businesses and, at the same time, identify the 

barriers that inhibit their success. 

While data on women-owned businesses has 

become more widely collected and available, 

significant gaps still remain. Changing and 

inconsistent definitions of this business sector limit 

the ability to fully analyze its contributions and 

impact on the economy. 

This compendium is intended to help decisionmakers navigate through the inconsistencies and 

patchwork of available information to gain a more 

complete picture of the trends in women’s 

entrepreneurship in the U.S. It also brings together 

in one place all of the relevant information about 

women-owned businesses and their owners. 

Center for Women's Business Research continues to 

see the need for additional research to provide more 

timely and complete economic statistics and to 

ensure that the contributions of all women-owned 

businesses are counted – including women who 

share the ownership of their businesses with others 

and women who lead publicly-traded companies. 

NWBC has contracted for this compendium to 

ensure access to key information on women-owned 

businesses and stimulate further research and 

discussion. It remains committed to improving the 

scope and quality of information on women’s 

entrepreneurship in both the private and public 

sectors, in order to promote changes in policy, 

legislation, and both public and private sector 

initiatives that will support women entrepreneurs as 

they grow their businesses. 

The accompanying data report is the result of that 

commitment. Reports and studies were collected 

from all Federal agencies that prepare information 

on America’s businesses, as well as selected private 

sources. (See Bibliography for a complete listing of 

accessed and recommended sources). 
ES-1 

_______________________________________ 

Growth in Number, Employment, Revenues of 

Women-Owned Firms 

Exceeds National Average 

Percent Increase, 1992-1997 

40 37 

30 28 

20 

16 

10 8 

6 6 

0 

Number of Firms Employment 

33 

31 

24 23 

Revenue 

All Firms All Employer Firms Women-Owned Firms Women-Owned Employer Firms 

Source: U.S. Bureau of the Census 

Executive Summary 

Executive Summary 

Number and Economic Impact of WomenOwned Firms 

•	 The number of majority-owned, privately-held 

women-owned businesses grew to 5.4 million – 

a 16% increase – from 1992 to 1997.2 This is 

more than 21⁄2 times the 6% growth rate of all 

U.S. businesses.3 Majority-owned, privately-held 

women-owned businesses account for 26% of 

all firms in the U.S. There are also 3.6 million 

jointly-owned firms within the U.S., accounting 

for 17% of all firms; two million of these 3.6 

million firms would have been classified as 

women-owned under the 1992 definition of a 

woman-owned business, bringing the total 

number of privately-held women-owned firms 

to 7.4 million, or approximately 36% of all 

firms.4 

•	 Women-owned businesses have also continued 

to grow in economic power. As of 1997, 

majority-owned, privately-held women-owned 

firms generated $818.7 billion in revenues and 

employed over 7.1 million workers. Between 

1992 and 1997, sales generated by these 

women-owned firms grew by 33%, compared 

with 24% growth among all firms. Over the 

same period, the number of people employed 

by these women-owned firms increased by 

28%, more than three times the 8% increase 

among all firms.5 

•	 The number of women-owned sole 

proprietorships, generally the smallest and 

youngest of businesses, grew an estimated 34% 

between 1990 and 2000, compared with growth 

of 23% among sole proprietorships overall. 

2 1997 Economic Census: Survey of Women-Owned Business 

Enterprises. (2001). U.S. Department of Commerce, 

Economics and Statistics Administration, Bureau of the Census. 

3 The Census Bureau calculated changes at the U.S. level from 

1992 to 1997 by calculating what the number of women-owned 

firms would have been in 1997 had the 1992 definition 

continued to be used. This calculation was not done by state, 

industry, or legal form of organization. 

4 News Release: Women-Owned Firms Continue Dramatic 

Growth. April 4, 2001. U.S. Small Business Administration,
 

Office of Advocacy.
 5 Survey of Women-Owned Business Enterprises: 1997
 

Economic Census, Ibid.
 
ES-2 

_______________________________________ 

_______________________________________ 

Executive Summary 

•	 Business receipts among women-owned sole 

proprietorships, the smallest women-owned 

firms, increased by an estimated 4% between 

1990 and 2000, while receipts among all sole 

proprietorships decreased by 8%. 

Demographic Characteristics 

•	 Women-owned businesses are ethnically 

diverse. As of 1997, one in six (17%) women 

business owners was a member of a minority 

group, accounting for 923,403 businesses.6 

There were 337,708 Hispanic women-owned 

76% of all women aged 15 or older. Fully 38% 

of women business owners have college 

degrees, compared with 22% of all women 

15+.8 

•	 Women business owners are also somewhat 

older than women in general; 49% of women 

business owners in the U.S. in 1992 were 

between the ages of 35 and 54, compared with 

34% of the female population aged 15+. Just 

18% of women business owners were 34 or 

younger, compared with 38% of the female 

population aged 15 or older. 9 (See chart, page 

ES-3) 

The Number of Minority 

Women-Owned Businesses: 1997 

923,403 

337,708 

312,884 

247,966 

53,593 

All Min. Wmn-Owned 

Hispanic 

Black 

Asian 

Am Ind/AK Native 

0 200,000 400,000 600,000 800,000 1,000,000 

Number of Firms 

Number of Firms 

Source: U.S. Bureau of the Census 

firms, 312,884 African American womenowned firms, 247,966 Asian/Pacific Islander 

women-owned firms and 53,593 American 

Indian/Alaska Native women-owned firms as 

of 1997.7 

•	 Women business owners are more highly 

educated than the general female population. 

Over 85% of women business owners have at 

least a high school education, compared with 

6 The reason the individual figures add up to more than 923,403 

is that persons of mixed ethnicity can fit into more than one 

group and are counted more than once. Total figures published 

by the Bureau of the Census are adjusted for this multiple 

counting. 

7 Survey of Minority-Owned Business Enterprises: 1997 

Economic Census. (2001). U.S. Department of Commerce, 

Bureau of the Census. 

Capital and Financing Patterns 

•	 According to the Bureau of the Census, as of 

1992, 62% of women-owned firms used capital 

to start or acquire their businesses and 32% of 

these owners borrowed some or all of that 

capital.10 A more recent study by the National 

8 Characteristics of Business Owners: 1992 Economic Census 

and Bureau of the Census, Current Population Reports, p20­

476. U.S. Department of Commerce, Economics and Statistics 

Administration, Bureau of the Census. 

9 Characteristics of Business Owners: 1992 Economic Census 

and Bureau of the Census, Current Population Reports, p25­

1127. U.S. Department of Commerce, Economics and Statistics 

Administration, Bureau of the Census. 

10 The Characteristics of Business Owners survey was not 

conducted following the 1997 Economic Census due to a lack 

of funding. 
ES-3 

Executive Summary 

38 

20 

14 

29 

18 

27 

22 

27 

Under 35 35-44 45-54 55+ 

Age 

0 

20 

40 

Percent 

Women Business Owners All Women, 15+ 

Source: Bureau of the Census, Characteristics of Business Owners: 1992 Economic Census 

and Bureau of the Census, Current Population Reports, p25-1127 

Women Business Owners Are Somewhat 

Older Than Women in General 

Foundation for Women Business Owners 

(NFWBO), now Center for Women’s Business 

Research, showed 44% of women business 

owners borrowing money at start-up.11 Among 

those women-owned businesses that reported 

borrowing at least some start-up capital, nearly 

three-quarters (72%) acquired it from a 

commercial lending/bank business loan, a 

percentage equal to what the Census Bureau 

reported in 1992 and a significant increase over 

the 34% reported by the Census Bureau in 

1987. 

72 

33 

32 

28 

18 

14 

13 

9 

7 

Business Bank Loan 

Other Personal Loan 

Family 

Personal Mortgage/Equity Loan 

Personal Credit Card 

Previous Owner 

Other Business Loan 

Spouse 

Supplier Credit 

0 20 40 60 80 

Percent Using as a Source 

Source: Bureau of the Census, Characteristics of Business Owners: 1992 Economic Census 

Note: Percentaged among those reporting use of start-up capital 

Multiple responses allowed 

Top Sources of Borrowed Start-Up Capital 

Among Women-Owned Businesses: 1992 

11 Capital, Credit and Financing: Comparing Women and Men 

Business Owners’ Sources and Uses of Capital. (1996). 

NFWBO, now Center for Women’s Business Research. 
ES-4 

_______________________________________ _______________________________________ 

 

Executive Summary 

•	 Women-owned businesses are using 

increasingly larger amounts of start-up funding. 

As of 1992, 19% of all women-owned 

businesses used $10,000 or more to start their 

businesses and 8% borrowed $50,000 or more. 

In 1982, 15% of all women-owned businesses 

used $10,000 or more to start their businesses, 

with 4% borrowing $50,000 or more. 

•	 Almost two-thirds (65%) of women business 

owners reinvested business earnings to foster 

business growth as of 1998, compared with just 

38% using business earnings in 1992.12 

•	 Differences remain between women and men 

business owners in levels of bank credit. As of 

1998, 46% of women-owned firms with bank 

credit had less than $50,000 in bank credit, 

compared with 34% of men-owned firms. Just 

16% of women-owned firms had $100,000 or 

more in bank credit, compared with 36% of 

•	 Women who own fast-growth firms are more 

likely to borrow to meet their needs for 

business capital and use more sources of capital 

than do other women entrepreneurs.13 Women 

who have achieved fast growth in their 

businesses average 4.2 different sources of 

capital, compared to 3.4 sources for other 

women business owners. Fifty-six percent 

(56%) of women owners of fast-growing firms 

used business credit cards, compared with 40% 

of other women entrepreneurs. Fifty-two 

percent (52%) of women owners of fastgrowing businesses had a current line of credit, 

compared with 37% of other women business 

owners. 

•	 Although the number and dollar value of 

venture capital and other equity investments 

grew rapidly in the late 1990s, women business 

owners continue to get a very small share of 

73 73 

25 

15 

Informal Investors 

Individual Investors 

Corporate Investors 

Venture Capital Firm 

0 

20 

40 

60 

80 

Percent Mention as Equity Source 

Source: Women Entrepreneurs in the Equity Capital Markets 

©2000, NFWBO, now Center for Women's Business Research 

Percentaged among those with equity capital; multiple responses allowed 

Equity Sources Among Women Entrepreneurs 

men-owned firms. Still, progress has been made 

in the amount of bank credit available to 

women business owners. In 1998, 34% of 

women business owners who had bank credit 

had $50,000 or more available for use in their 

business, compared with just 20% in 1996. 

12 Capital, Credit and Financing: An Update. Comparing 

Women and Men Business Owners’ Sources and Uses of 

Capital. (1998). NFWBO, now Center for Women’s Business 

Research. 

those dollars. In 2000, 5% of the $89.8 billion 

invested went to firms with women CEOs.14 

Most of the women recipients of equity capital 

obtained equity investments from sources 

primarily outside of the institutional equity 

investment markets, including informal 

13 Entrepreneurial Vision in Action: Exploring Growth Among
 

Women- and Men-Owned Firms. (2001). NFWBO, now Center
 

for Women’s Business Research.
 14 Proprietary research conducted by VentureOne.
 
ES-5 

_______________________________________ 

_______________________________________ 

Executive Summary 

investors, such as family members and friends, 

and individual investors, such as angel 

investors. 

•	 Women with equity capital appear to be 

younger and more highly educated than other 

women business owners and they bring more 

management experience to the table.15 

Federal Procurement 

•	 Despite the Federal Acquisition Streamlining 

Act of 1994 (FASA), requiring no less than a 

5% government-wide procurement goal for 

women-owned small businesses, women-owned 

firms continue to receive a very small share of 

Federal dollars – in fact, the 5% goal has never 

been reached government-wide. In fiscal year 

1997, women-owned firms’ share of Federal 

prime contracts was 2.1%, or $3.63 billion of 

the $171.4 billion total.16 Women-owned firms’ 

•	 Women-owned firms involved in Federal 

procurement in fiscal year 1997 were 

substantially larger than all women-owned firms 

in terms of both annual revenues and number 

of employees.17 The median annual revenue of 

women-owned Federal contractors was $5.3 

million, compared with just under $300,000 for 

all women-owned businesses. The average 

number of employees in women-owned Federal 

contractor firms was 52.2, compared with 2.3 

among all women-owned firms in the U.S. 

International Trade 

•	 In 1992, 1.1% of women-owned firms exported 

goods and services. For 30% of those who 

exported, exports represented 50% or more of 

total sales.18 A 1995 study published by 

NFWBO, now Center for Women’s Business 

Research, showed that in 1992, 13% of women0.8 0.8 0.4 0.4 0.5 0.6 0.7 0.7 0.8 0.8 0.9 0.9 1.1 1.1 1.3 1.6 1.7 1.7 

15.2 15.6 15.5 

14.2 15.2 14.2 

15.7 15.4 14.8 14.1 14.8 15.2 15.9 15.7 16.3 

17.6 17.9 18.6 

1980 

1981 

1982 

1983 

1984 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

1995 

1996 

1997 

Fiscal Year 

0.0 

5.0 

10.0 

15.0 

20.0 

Percent Share 

All Small Business Women-Owned Business 

Source: SBA, Office of Advocacy 

Note: Contract actions reported individually are those over $25,000 

Share of Federal Contract Actions Reported 

Individually: 1980 - 1997 

share of Federal subcontracts was 4.1%, or 

$2.92 billion of the nearly $71.5 billion total. 

Women-owned firms’ share of Federal contract 

actions over $25,000 was 1.7% in FY 1997, or 

$2.97 billion. 

15 Women Entrepreneurs in the Equity Capital Markets. (2000). 

NFWBO, now Center for Women’s Business Research. 

16 The State of Small Business: A Report of the President 1998, 

Table 11. 

owned firms were involved in international 

trade, either exporting or importing goods or 

services.19 A 1998 analysis conducted by the 

17 Women-Owned Firms in Federal Procurement: A Summary 

Report. (2000). NFWBO, now Center for Women’s Business 

Research. 

18 Exporting by Small Firms. (1998). U.S. SBA Office of 

Advocacy. 

19 Going Global: Women-Owned Businesses in the 

International Marketplace (1995). NFWBO, now Center for 
ES-6 

_______________________________________ 

Executive Summary 

Center also found that internationally-focused 

businesses are more growth-oriented than are 

their domestically-focused counterparts.20 

Between two-thirds and three-quarters of the 

women surveyed who own firms involved in 

international trade said that their primary 

business goal was expansion, compared with 

one-half to two-thirds of those not involved in 

international trade. 

Significant Gaps in Knowledge 

While this information provides a framework of 

knowledge about women-owned businesses, 

significant gaps remain: 

•	 Publicly-traded firms have been excluded from 

the U.S. Bureau of the Census count and 

therefore from the documentation of the 

economic impact of women-owned firms. 

Without these firms, which account for the 

highest revenues and largest employment 

among women-owned firms, the true impact of 

women-owned firms is not being captured. 

Further, because publicly-traded firms are 

included in statistics for all firms, the share of 

number, revenues and employment contributed 

by women-owned firms are being underreported. 

•	 Due to definitional changes by the U.S. Census 

Bureau in what constitutes a woman-owned 

firm, millions of firms owned equally by men 

and women are no longer included when 

discussing the economic impact of womenowned firms. As women business owners grow 

their firms and take on partners, the impact of 

these firms is now relegated to a separate, 

potentially overlooked category. 

•	 Information about access to capital issues 

continues to be sparse and is often anecdotal 

only. Due in part to the large amounts of 

financing coming from informal sources, full 

information is difficult to obtain and needs 

further study. 

•	 Statistical information on Federal procurement 

from women-owned businesses is available, but 

it is not directly comparable across the multiple 

Women’s Business Research. Respondents were members of 

the National Association of Women Business Owners. 

20 “International Trade Opens New Doors for Women 

Entrepreneurs”. Economic Reform Today (1999). Weeks, J. 

data sources due to different bases of 

information and may be incomplete.21 

•	 Information on both women and men business 

owners in international trade is limited, 

primarily because it has not been extensively 

explored, allowing for little discussion or 

analysis. 

Strategic Recommendations 

Despite the continued growth of women-owned 

businesses and the additional availability of 

statistics, the gaps in information and policy that 

existed when Center for Women's Business 

Research, founded as NFWBO, compiled our first 

compendium in 1994 remain much the same today. 

For that reason, our recommendations for action 

also remain much the same: 

1.	 Encourage states to collect data and 

information on women-owned businesses at the 

state level and to collaborate in developing 

regional data. While national data can be 

extremely powerful in bringing recognition to 

the economic force of women business owners, 

state level data is vital for developing programs 

and infrastructure which will have the most 

immediate and measurable impact on individual 

women business owners. 

2.	 Improve the quality of national economic 

statistics on women-owned businesses 

throughout the Federal government. 

•	 Require that all business statistics collected 

by the Federal government include gender 

of owner(s) so that comparisons between 

women- and men-owned businesses can be 

made. 

•	 Develop a consistent definition of womenowned business which is used by all parts 

of the Federal government. 

•	 Increase the comprehensiveness of data 

collected on women-owned businesses by 

21 Sources of Federal procurement data include Federal 

Procurement Data System, National Foundation for Women 

Business Owners (now Center for Women’s Business 

Research), National Women’s Business Council, U.S. General 

Accounting Office, U.S. Small Business Administration – 

Office of Advocacy, U.S. Small Business Administration – 

Office of Government Contracting and Minority Enterprise 

Development, and U.S. Small Business Administration – Office 

of Women’s Business Ownership. 
ES-7 

Executive Summary 

including plurality-owned women-led firms, 

as well as publicly-traded corporations, in 

the Economic Census. 

3.	 Encourage the study of understudied groups to 

ensure that we “count the uncounted.” These 

groups include: 

•	 Publicly-held women-owned companies; 

•	 Larger women-owned businesses – those 

with the highest revenues and/or largest 

number of employees; 

•	 Minority and other understudied womenowned populations, including rural, innercity, and youth; and 

•	 Plurality- and equally-owned women-led 

firms. 

4.	 Encourage public/private partnerships to 

address data collection and research on women 

business owners. Areas to be studied should 

include: 

•	 Economic contributions made by women 

businesses in job creation and revenues; 

•	 Characteristics of and barriers to growth, 

including: 

•	 access to technical expertise, for startups as well as growing and “secondstage” companies; 

•	 access to capital, including both debt 

and equity; and 

•	 access to markets, including Federal 

and state procurement and privatesector procurement. 

•	 Social impact of women-owned businesses 

and leadership on employees and the 

community; and 

•	 Innovation, quality and productivity in 

women-owned businesses. 

5.	 Integrate available research to allow easier 

access to information and easier identification 

of research gaps. 

6.	 Disseminate information to the constituencies 

that can make a difference: 

•	 Government policy-makers 

•	 Financial institutions 

•	 Educators 

•	 Corporations 

•	 Women business owners 

7.	 Continue a strong voice for women-owned 

businesses in government to ensure: 

•	 Policy-makers take into consideration the 

needs and contributions of women-owned 

businesses in establishing policy and 

legislation; 

•	 Collaboration and consistency among 

research and data collection activities on 

women business owners; and 

•	 Continuing recognition by government 

policy-makers, corporate leaders and 

financial decision-makers of the 

significance of women-owned businesses. 

8.	 Enhance participation of women business 

owners in Federal procurement by 

implementing policy changes such as: 

•	 designating women business owners as 

a presumed group; 

•	 increasing set-asides; 

•	 enforcing procurement goals; and 

•	 reducing bundling. 
1-1 

1-1. Growth in Number, Employment, 

Revenues of Women-Owned Firms 

Exceeds National Average 

40 37 

Percent Increase, 1992-1997 

28 

31 

16 

33 

6 

8 

23 

6 

24 

Number of Firms Employment Revenue 

0 

10 

20 

30 

All Firms All Employer Firms Women-Owned Firms Women-Owned Employer Firms 

Source: U.S. Bureau of the Census 

Chapter 1: The Number of Women-Owned Firms in the United States 

Chapter 1: The Number of Women-Owned Firms in the United States
 

The number of women-owned businesses in the 

United States has continued its dramatic growth 

from the end of the 20th century into the new 

century. Determining precise absolute numbers and 

growth, however, continues to be a challenge. In 

addition to a lack of a single definitive set of 

statistics that includes all women-owned businesses, 

definitions of what constitutes a woman-owned 

business continue to vary among sources and may 

change over time even within a single source. 

Center for Women's Business Research has 

surveyed the major sources of statistical information 

on women-owned businesses to arrive at the most 

complete set of information on the number and 

distribution of women-owned businesses in the U.S. 

In 1997, women’s ownership of businesses was 

determined based on the gender of the person(s) 

owning a 51%+ majority interest in the business. 

Previously, ownership was determined based on the 

majority of the number of owners, without regard 

to percentage of their ownership of the business. 

Businesses with 50 percent or more women owners 

have in the past been included in the women 

business counts. In the 1997 Survey of WomenOwned Business Enterprises, businesses equally 

female-/male-owned were excluded from the 

women-owned business counts and tabulated in a 

separate section of the women-owned business 

report, allowing us to focus on the specific 

population of majority-owned women-owned 

businesses. In addition, publicly-traded womenowned firms were not included in the 1997 count, 

Bureau of the Census 

Every five years, in years ending in 2 and 7, the 

Bureau of the Census conducts an economic census 

of businesses throughout the United States. During 

every economic census since 1972, a separate and 

distinct analysis of women-owned businesses has 

been conducted as a part of the overall census. 

for data quality reasons. They are however included 

in the overall count of all U.S. firms. Thus, due to 

the change in reporting structure, comparisons to 

prior economic censuses are not valid below the 

national level and are therefore not included in this 

report. 

According to the 1997 census, there were 5,417,034 

majority-owned, privately-held women-owned 

businesses in the United States – a 16% increase 
1-2 

_______________________________________ 

_______________________________________ 

Chapter 1: The Number of Women-Owned Firms in the United States 

from the number of women-owned firms in 1992, 

and more than two and a half times the 6% increase 

among all U.S. firms included in the Census.22 These 

5.4 million majority-owned, privately-held womenowned firms account for 26% of all firms in the 

United States. There are also 3.6 million jointlyowned firms within the U.S., accounting for 17% of 

all firms; two million of these 3.6 million firms 

would have been classified as women-owned under 

the 1992 definition of a woman-owned business, 

bringing the total number of privately-held womenowned firms to 7.4 million, or approximately 36% 

of all firms.23 

Industry Patterns 

The services and retail trade sectors accounted for 

72% of all majority-owned, privately-held womenowned firms, according to 1997 Census data, 

compared with 57% of all firms in these two 

sectors. Women-owned firms comprised 34% of all 

services firms and 32% of all retail trade firms, 

compared with a women-owned share of 26% of all 

firms overall. 

Women-owned firms accounted for 7% of all firms 

in construction, 14% of firms in TCPU,24 15% of 

firms in agriculture, and 16% of firms in both 

wholesale trade and mining. (See Table 1-1). 

Regional Patterns 

California (700,513 women-owned businesses), 

New York (394,014), Texas (381,453), Florida 

(337,811), and Illinois (239,725) are the states with 

the largest number of women-owned businesses. 

Together, these states accounted for 38% of all 

majority-owned, privately-held women-owned 

firms, according to 1997 Census data; this is similar 

to all U.S. firms, where California, New York, 

Texas, Florida and Illinois accounted for 37% of all 

firms. (See Table 1-2). Women-owned firms’ share 

of all firms ranged from a low of 22% in South 

22 The Census Bureau calculated changes at the U.S. level from 

1992 to 1997 by calculating what the number of women-owned 

firms would have been in 1997 had the 1992 definition 

continued to be used. This calculation was not done by state, 

industry, or legal form of organization. 

23 News Release: Women-Owned Firms Continue Dramatic 

Growth. April 4, 2001. U.S. Small Business Administration, 

Office of Advocacy. 

24 TCPU = Transportation, Communications and Public 

Utilities 

Dakota to a high of 31% in the District of 

Columbia. (See Table 1-3). In general, states with 

the highest share of women-owned firms (as a 

percent of all firms within the state) are located in 

the West and in the Mid-Atlantic. States in the 

South, the Plains, and the Mid-West are more likely 

to have a lower-than-average share of womenowned firms. 

Legal Form of Organization 

Eighty-five percent (85%) of majority-owned, 

privately-held women-owned firms are sole 

proprietorships, as are 73% of all firms. Just 6% of 

women-owned firms are C corporations and 6% are 

Subchapter S corporations, compared with 12% and 

10%, respectively, among all firms.25 (See Table 1-4). 

U.S. Small Business Administration 

As part of its annual report to Congress, The State 

of Small Business, the U.S. Small Business 

Administration’s Office of Advocacy includes 

statistical information on women-owned businesses 

whenever it becomes available. In addition to 

providing excellent synopses of the economic 

censuses after they are released, the Office of 

Advocacy also publishes data from the Internal 

Revenue Service on non-farm sole proprietorships 

by gender of owner. This information is updated 

annually, and goes back to 1977, providing valuable 

trend information on the most prevalent legal 

grouping of small businesses. 

Of the more than 23.6 million businesses in the 

United States in 1997,26 an estimated 19.4 million of 

them (81%) were non-farm sole proprietorships.27 

Women-owned non-farm sole proprietorships 

numbered 7,126,365 in 1998 – 37% of all non-farm 

sole proprietorships. (See Table 1-7). 

The number of women-owned sole proprietorships 

has grown 34% between 1990 and 2000, compared 

with an increase of 23% in sole proprietorships 

overall.28 Thus, even among this subset of women25 The 1997 Census definition of women-owned firms does not 

include publicly-traded women-owned firms. Publicly-traded 

firms are included in the total for all firms, however. 

26 As defined by the IRS via tax returns, reported in The State 

of Small Business: A Report of the President, 1998. U.S. Small 

Business Administration, Office of Advocacy. 

27 IRS, Statistics of Income Division 

28 U.S. Small Business Administration, ibid. 
1-3 

1-2. Number of Firms by Legal Form 

of Organization 

Women-Owned All Firms

0% 1% 6% 3% 6% 12% 6% 

10% 

73% 85% 

C Corps 

Subchapter S 

Indiv Props Partnerships Other 

Source: U.S. Bureau of the Census 

Chapter 1: The Number of Women-Owned Firms in the United States 

owned businesses, growth rates exceed that of the 

national average – in this case by nearly 11⁄2 times. 

Bureau of Labor Statistics 

Although most of the information collected by the 

Department of Labor’s Bureau of Labor Statistics is 

collected at the household rather than the business 

level, there is some information that is relevant to 

the world of entrepreneurship – data on selfemployment. In its latest Employment Situation 

report, the Bureau of Labor Statistics estimates that 

there are 3,525,000 self-employed women in the 

non-agricultural labor force, accounting for 6% of 

1980 

1981 

1982 

1983 

1984 

1985 

1986 

1987 

1988 

1989 

1991 

1992 

1993 

1994 

1995 

1996 

1997 

1998 

1999 

2000 

20 

30 

40 

50 

60 

70 

80 

Percent Share 

Women-Owned Sole Props Men-Owned Sole Props 

Source: U.S. Small Business Administration 

1-3. Growth of Nonfarm Sole Proprietorships 

by Gender: 1980 - 2000 
1-4 

_______________________________________ 

_______________________________________ 

Chapter 1: The Number of Women-Owned Firms in the United States 

the 62.2 million non-farm working women in the 

country.29 These 3.5 million non-farm self-employed 

women comprise 40% of the total number of nonfarm self-employed individuals in the labor force, 

8,864,000. Compared with men, BLS finds that 

women are slightly underrepresented among the 

self-employed; 6% of non-farm working women are 

self-employed, compared with 8% among men. 

From 1983 to 1997, the number of self-employed 

women in nonagricultural sectors increased by 46%, 

compared with a 7% increase among men.30 (See 

Table 1-8). 

62,152 

3,525 

70,436 

5,339 

132,588 

8,864 

Total Employment Self-Employed 

0 

50 

100 

150 

Thousands 

All Workers 16+ Men 16+ Women 16+ 

Source: Bureau of Labor Statistics 

1-4. Employment and Self-Employment Among 

Non-farm Workers: June 2001 

29 It is important to note the reasons behind the differences in 

estimates among the BLS’ 3.5 million self-employed women, 

the IRS’ 7.1 million women-owned sole proprietorships, and 

the Census Bureau’s 4.6 million women-owned individual 

proprietorships. The BLS uses the individual as the frame of 

reference and includes only those women whose primary 

occupation is self-employment. The IRS uses the business as 

the frame of reference and includes part-time businesses that 

do not provide the primary source of income. The IRS 

determines the owner’s gender from the name(s) listed on Form 

1040, Schedule C. Schedule C's for which the taxpayer had 

incorrectly listed two names (presumably on joint returns) were 

listed as jointly operated. The Census Bureau uses self-reported 

data to identify gender, which can include a classification of 

“jointly-owned.” The Census Bureau includes only those 

businesses with revenues of $1,000 or more. 

30 The State of Small Business: A Report of the President, 1998. 

U.S. Small Business Administration, Office of Advocacy. 
1-5 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-1. The Number of Women-Owned Businesses By Industry: 1997 

# of Firms Percent of Total % Share, 

Women-Owned 

v. All Firms 

Women-Owned 

Firms All Firms 

Women-Owned 

Firms All Firms 

Total, All Industries 5,417,034 20,821,934 100% 100% 26.0 

Agriculture 74,444 496,164 1.4 2.4 15.0 

Mining 20,030 126,809 0.4 0.6 15.8 

Construction 157,173 2,333,424 2.9 11.2 6.7 

Manufacturing 121,108 688,782 2.2 3.3 17.6 

TCPUa 128,999 919,570 2.4 4.4 14.0 

Wholesale Trade 125,645 797,856 2.3 3.8 15.7 

Retail Trade 919,990 2,889,041 17.0 13.9 31.8 

FIREb 479,469 2,237,675 8.9 10.7 21.4 

Services 2,981,266 8,891,023 55.0 42.7 33.5 

Industries not classified 411,596 1,480,003 7.6 7.1 27.8 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 1. (2001). U.S. Department of Commerce,
 

Bureau of the Census.
 aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate.
 
1-6 

Chapter 1: The Number of Women-Owned Firms in the United States

 Table 1-2. The Number of Women-Owned Businesses by State: 1997 

Number of Women-Owned 

Firms 

% of All Firms 

in State 

% of All Women-Owned 

Firms in U.S. 

United States 5,417,034 26.0 100.0 

Alabama 69,515 24.4 1.3 

Alaska 16,633 25.9 0.3 

Arizona 88,780 27.0 1.6 

Arkansas 42,581 22.0 0.8 

California 700,513 27.3 12.9 

Colorado 114,807 28.0 2.1 

Connecticut 72,393 25.5 1.3 

Delaware 13,662 24.1 0.3 

District of Columbia 13,979 30.9 0.3 

Florida 337,811 25.9 6.2 

Georgia 145,576 25.6 2.7 

Hawaii 25,807 27.5 0.5 

Idaho 25,763 23.5 0.5 

Illinois 239,725 27.2 4.4 

Indiana 107,082 25.9 2.0 

Iowa 57,527 25.3 1.1 

Kansas 54,638 25.6 1.0 

Kentucky 65,965 23.4 1.2 

Louisiana 70,550 23.9 1.3 

Maine 30,598 24.0 0.6 

Maryland 115,801 28.9 2.1 

Massachusetts 142,661 26.6 2.6 

Michigan 184,590 27.2 3.4 

Minnesota 108,417 26.4 2.0 

Mississippi 38,321 22.8 0.7 

Missouri 103,626 25.2 1.9 

Montana 22,404 23.9 0.4 
1-7 

Chapter 1: The Number of Women-Owned Firms in the United States

 Table 1-2. The Number of Women-Owned Businesses by State: 1997 

Number of Women-Owned 

Firms 

% of All Firms 

in State 

% of All Women-Owned 

Firms in U.S. 

Nebraska 33,469 24.1 0.6 

Nevada 33,311 25.7 0.6 

New Hampshire 27,265 23.6 0.5 

New Jersey 155,345 23.7 2.9 

New Mexico 38,706 29.4 0.7 

New York 394,014 26.1 7.3 

North Carolina 139,900 24.5 2.6 

North Dakota 12,417 22.5 0.2 

Ohio 205,044 26.2 3.8 

Oklahoma 67,481 24.0 1.2 

Oregon 80,543 27.6 1.5 

Pennsylvania 202,990 24.2 3.7 

Rhode Island 19,886 24.6 0.4 

South Carolina 64,232 24.7 1.2 

South Dakota 14,121 21.5 0.3 

Tennessee 99,772 24.0 1.8 

Texas 381,453 25.0 7.0 

Utah 41,991 24.8 0.8 

Vermont 17,030 25.2 0.3 

Virginia 132,219 27.5 2.4 

Washington 123,042 27.5 2.3 

West Virginia 30,231 27.1 0.6 

Wisconsin 89,284 24.4 1.6 

Wyoming 11,148 22.6 0.2 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 2. (2001). U.S. Department of Commerce, 

Bureau of the Census. 
1-8 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-3. States With The Highest/Lowest Share of Women-Owned Firms: 1997 

State % Share Women-Owned 

The Top Five 

District of Columbia 

New Mexico 

Maryland 

Colorado 

Oregon 

30.9% 

29.4 

28.9 

28.0 

27.6 

The Bottom Five 

Mississippi 

Wyoming 

North Dakota 

Arkansas 

South Dakota 

22.8% 

22.6 

22.5 

22.0 

21.5 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 2. (2001). U.S. Department of Commerce, 

Bureau of the Census. 
1-9 

_______________________________________ 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-4. The Number of Women-Owned Businesses by Legal Form of Organization: 1997 

Legal form of organization 

Number of Firms Percent 

Share 

WomenOwned 

% Share of All Firms 

Total 

WomenOwned Total Women-Owned 

All industries 20,821,934 5,417,034 26.0 100% 100% 

C corporations31 2,390,478 314,659 13.2 11.5 5.8 

Subchapter S corporations 1,979,425 335,601 17.0 9.5 6.2 

Individual proprietorships 15,122,882 4,595,571 30.4 72.6 84.8 

Partnerships 1,226,455 166,027 13.5 5.9 3.1 

Other 102,694 5,176 5.0 0.5 0.1 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 7. (2001). U.S. Department of Commerce, 

Bureau of the Census. 

31 The 1997 Census definition of women-owned firms does not include publicly-traded women-owned firms. Publicly-traded firms are 

included in the total for all firms, however. 
1-10 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-5. The Number of Women-Owned Non-Farm Sole Proprietorships: 1980 to 2000 

Number of Non-Farm Sole Proprietorships 

Women-Owned Total % Share Women-Owned 

2000a 7,137,214 20,480,797 34.9 

1999a 6,952,306 20,081,080 34.6 

1998a 6,767,398 19,681,362 34.4 

1997a 6,582,489 19,281,645 34.1 

1996a 6,397,581 18,881,927 33.9 

1995 6,135,898 18,391,237 33.4 

1994 6,046,617 18,108,776 33.4 

1993 5,851,514 17,714,120 33.0 

1992 5,698,415 17,292,286 33.0 

1991 5,548,514 16,957,636 32.7 

1989 4,977,143 15,920,963 31.3 

1980 2,535,240 9,730,019 26.1 

Source: As reported in The State of Small Business: A Report of the President 1998, Table 4.7. U.S. Small Business Administration,
 

Office of Advocacy. (1999). With data from the U.S. Department of the Treasury, Internal Revenue Service.
 a1996–2000 are projections by the U.S. Small Business Administration, Office of Advocacy.
 
1-11 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-6. The Number of Women-Owned Non-Farm Sole Proprietorships by SBA Region (Thousands) 

Region 1985 1990 1997 1998 

Total U.S. 3,738.1 5,347.5 6,977.6 7,126.4 

Region I 168.0 280.7 364.4 380.8 

Region II 319.2 477.8 604.8 598.9 

Region III 382.9 516.5 678.6 653.5 

Region IV 579.9 770.2 1,222.4 1,271.8 

Region V 630.4 908.2 1,156.1 1,235.7 

Region VI 452.8 609.9 780.5 786.7 

Region VII 262.7 366.9 410.1 370.4 

Region VIII 166.1 217.8 308.9 290.3 

Region IX 593.9 945.7 1,093.2 1,192.4 

Region X 174.4 253.9 358.8 345.8 

Note: The SBA Regions are defined as follows: 

Region I: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont 

Region II: New Jersey, New York 

Region III: Delaware, District of Columbia, Maryland, Pennsylvania, Virginia, West Virginia 

Region IV: Alabama, Florida, Georgia, Kentucky, Mississippi, N. Carolina, S. Carolina, Tennessee 

Region V: Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin 

Region VI: Arkansas, Louisiana, New Mexico, Oklahoma, Texas 

Region VII: Iowa, Kansas, Missouri, Nebraska 

Region VIII: Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming 

Region IX: Arizona, California, Hawaii, Nevada 

Region X: Alaska, Idaho, Oregon, Washington 

Special Tabulations prepared by the U.S. Department of the Treasury, Internal Revenue Service, Under Contract to the U.S. Small 

Business Administration, Office of Advocacy and U.S. Department of the Treasury, Internal Revenue Services. (Tax Year 1997 and 

1998). Table K-3, “Sole Proprietorship Businesses: Business Receipts and Net Income, By Size of Business Receipts and by Gender 

(Farms not included)”. 
1-12 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-7. The Number of Women-Owned Non-Farm Sole Proprietorships by Industry: 1998 

Industry 

# of Businesses % Share 

WomenOwned 

% Share of All Firms 

WomenOwned Total WomenOwned Total 

Total 7,126,365 19,376,799 36.8 100% 100% 

Agriculture, Forestry & Fishing 102,089 597,877 17.1 1.4 3.1 

Mining, Construction & Manufacturing 290,075 2,811,147 10.3 4.1 14.5 

TCPUa 170,872 955,727 17.9 2.4 4.9 

Wholesale and Retail Trade 1,568,146 3,463,354 45.3 22.0 17.9 

FIREb 585,352 1,600,605 36.6 8.2 8.3 

Services 4,409,830 9,948,089 44.3 61.9 51.3 

Note: U.S. Department of the Treasury, Internal Revenue Services. (Tax Year 1998). Table K-3, “Sole Proprietorship Businesses: 

Business Receipts and Net Income, By Size of Business Receipts and by Gender (Farms not included)”. 

aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate 
1-13 

Chapter 1: The Number of Women-Owned Firms in the United States 

Table 1-8. Number of Self-Employed Individuals by Gender, 1983–2005 (Thousands) 

Year 

All Industries Non-Agriculture 

Male Female Total Male Female Total 

2005a 6,884 4,690 11,574 5,915 4,190 10,104 

2004a 6,870 4,597 11,467 5,886 4,111 9,997 

2003a 6,855 4,503 11,359 5,857 4,033 9,890 

2002a 6,841 4,410 11,251 5,827 3,955 9,782 

2001a 6,827 4,316 11,143 5,798 3,877 9,675 

2000a 6,813 4,223 11,036 5,769 3,798 9,568 

1999a 6,798 4,129 10,928 5,740 3,720 9,460 

1998a 6,784 4,036 10,820 5,711 3,642 9,353 

1997 6,590 3,923 10,513 5,506 3,550 9,056 

1996 6,590 3,900 10,490 5,465 3,506 8,971 

1995 6,599 3,883 10,482 5,461 3,440 8,901 

1994 6,756 3,891 10,647 5,560 3,443 9,003 

1993 7,011 3,269 10,280 5,894 3,065 8,959 

1992 6,777 3,184 9,961 5,613 2,963 8,576 

1991 6,886 3,388 10,274 5,700 3,150 8,850 

1990 6,749 3,349 10,098 5,597 3,122 8,719 

1989 6,729 3,279 10,008 5,562 3,043 8,605 

1988 6,738 3,179 9,917 5,564 2,955 8,519 

1987 6,617 3,007 9,624 5,423 2,778 8,201 

1986 6,498 2,829 9,327 5,271 2,610 7,881 

1985 6,452 2,817 9,269 5,207 2,603 7,810 

1984 6,568 2,770 9,338 5,219 2,566 7,785 

1983 6,494 2,649 9,143 5,136 2,439 7,575 

Note: Includes only those with self-employment as their primary employment.
 

Source: From data provided by the Bureau of Labor Statistics, as reported in The State of Small Business: A Report of the President
 

1998, Table 4.8. (1999).U.S. Small Business Administration, Office of Advocacy.
 a 1998-2005 projections by the U.S. Small Business Administration, Office of Advocacy.
 
2-1 

_______________________________________ 

2-1. Growth in the Economic Impact of 

Women-Owned & All Firms: 1992 - 1997 

Percent Increase, 1992-1997 

40 

30 

20 

10 

0 

24 

8 

6 

33 

28 

Sales & Receipts Employment # Firms w/Empl. 

Women-Owned Firms All Firms 

37 

Source: U.S. Bureau of the Census 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

According to the 1997 Census, the 5.4 million sales and receipts for all firms grew by 24%, the 

majority-owned, privately-held women-owned number of firms with employees grew by 6%, and 

businesses in the United States generated $818.7 the number of people employed by all firms grew 

billion in revenues, accounting for 4% of all U.S. by 8%. 

business revenues.32 These firms employed over 

7.1 million workers, or 7% of all paid employees. 

Women-owned firms have continued to grow not 

only in number, but also in economic power. 

Between 1992 and 1997, Census data indicate that 

while the number of firms owned by women grew 

by 6%, the sales and receipts generated by those 

businesses grew by 33%, the number of womenowned firms with employees grew by 37%, and 

the number of people employed by womenowned firms increased by 28%.33 In comparison, 

32 The 1997 Census definition of women-owned firms does 

not include publicly-traded women-owned firms. Publiclytraded firms are included in the total for all firms, however; 

therefore, caution should be used when looking at womenowned firms compared with all businesses, as the populations 

are not defined in the same way. Additionally, in 1997, only 

firms with 51%+ majority ownership by women were 

included in the definition of women-owned firms. 

33 The Census Bureau calculated changes at the U.S. level 

from 1992 to 1997 by calculating what the receipts, number 

of firms with employees, and number of employees of 

women-owned firms would have been in 1997 had the 1992 

Industry Patterns 

Although the largest share of majority-owned, 

privately-held women-owned firms is found in the 

services sector (55%), the greatest share of sales is 

generated by women-owned firms in the 

wholesale trade sector. Of the $818.7 billion in 

sales generated by majority-owned, privately-held 

women-owned businesses, nearly one-quarter 

(23%) of the sales come from wholesale trade 

($189 billion), followed by services ($186 billion, 

23% share), retail trade ($152 billion, 19% share), 

and manufacturing ($114 billion, 14% share). 

Revenues from women-owned firms accounted 

for 9% of all revenues in the agriculture sector, 

7% of all revenues in construction and 7% of all 

revenues in services, compared with 4% of all 

revenues overall. Women-owned firms accounted 

for only 2% of total revenues in FIRE,34 and 3% 

definition been used. This calculation was not done by state,
 

industry, or legal form of organization.
 34 FIRE = Finance, Insurance, Real Estate
 
2-2 

_______________________________________ _______________________________________ 

2-2. Receipts by Legal Form of Organization 

Women-Owned All Firms

45% 

33% 

17% 

4% 1% 

75% 

16% 

5% 

3% 

1% 

C Corps 

Subchapter S 

Indiv Props Partnerships Other 

Source: U.S. Bureau of the Census 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

of revenues in both TCPU35 and manufacturing. 

(See Table 2-1). 

Regional Patterns 

California ($121 billion), Texas ($65 billion), New 

York ($59 billion), Florida ($48 billion) and Illinois 

($44 billion) accounted for 41% of revenues 

among all majority-owned, privately-held womenowned firms according to 1997 Census data. In 

comparison, these five states account for 37% of 

U.S. revenues among all firms. (See Table 2-2). 

Women-owned firms’ share of all firms’ revenues 

ranged from a low of 2% in Delaware to a high of 

6% in Hawaii (See Table 2-3). 

Employment Patterns 

Services (2.9 million), retail trade (1.6 million) and 

manufacturing (.9 million) industries employ 76% 

of the 7.1 million workers in majority-owned, 

privately-held women-owned firms. (See Table 2­

6). While just 16% of majority-owned, privatelyheld women-owned firms have paid employees, 

this varies widely by industry. Fully 42% of 

women-owned construction firms have paid 

employees, as do 40% in wholesale trade, 34% in 

manufacturing and 28% in TCPU.36 (See Table 2­

7). Among all firms, 25% have paid employees. 

The industries with the highest proportion of paid 

employees include wholesale trade (52% of all 

Legal Form of Organization 

C corporations generate 45% of the total revenues 

of majority-owned, privately-held women-owned 

firms, compared with 75% of the revenues of all 

firms (which includes publicly-traded firms). 

Subchapter S corporations account for 33% of 

revenues of women-owned firms and individual 

proprietorships account for 17%. Among all 

firms, Subchapter S corporations and individual 

proprietorships account for 16% and 5%, 

respectively. (See Table 2-4). 

35 TCPU = Transportation, Communications and Public 

Utilities 

wholesale trade firms have paid employees), 

manufacturing (49%) and retail trade (38%). 

California (932,462 employees), Texas (548,756), 

New York (461,127), Illinois (392,569) and Florida 

(371,412) employed 38% of all workers in 

majority-owned, privately-held women-owned 

firms and 35% of all workers in all firms according 

to 1997 Census data. (See Table 2-8). Womenowned firms’ share of all firms’ employment 

ranged from a low of 5% in the District of 

36 TCPU = Transportation, Communications and Public 

Utilities 
2-3 

_______________________________________ 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Columbia to a high of 10% in New Mexico. (See 

Table 2-9). 

Sole Proprietorships 

In 1998, business receipts from non-farm sole 

proprietorships totaled $918 billion.37 Womenowned non-farm sole proprietorships accounted 

for $165 billion, or 18% of this total. (See Table 2­

11). On a net income basis, women-owned nonfarm sole proprietorships accounted for 22% of 

the $202 billion total. Between 1990 and 2000, 

revenues grew an estimated 4% among womenowned firms and decreased by 8% among all 

firms. 

37 IRS, Statistics of Income Division 
2-4 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-1. Receipts of Women-Owned Businesses by Industry: 1997 

Receipts ($000,000) Revenue Share Women’s Share 

of All Revenues 

Women-Owned All Firms Women-Owned All Firms in Industry 

Total, All Industries $818,669 $18,553,243 100.0 100.0 4.4 

Agriculture 5,853 64,033 0.7 0.3 9.1 

Mining 7,186 176,609 0.9 1.0 4.1 

Construction 67,632 944,155 8.3 5.1 7.2 

Manufacturing 113,722 4,021,515 13.9 21.7 2.8 

TCPUa 32,944 1,183,669 4.0 6.4 2.8 

Wholesale Trade 188,489 4,270,041 23.0 23.0 4.4 

Retail Trade 152,041 2,649,085 18.6 14.3 5.7 

FIREb 56,021 2,567,560 6.8 13.8 2.2 

Services 186,161 2,614,965 22.7 14.1 7.1 

Industries not classified 8,619 61,611 1.1 0.3 14.0 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 1. (2001). 

U.S. Department of Commerce, Bureau of the Census.
 aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate.
 
2-5 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-2. Receipts of Women-Owned Businesses by State: 1997 

Receipts ($000,000) 

% of All Firms 

in State 

% of All Women-Owned Firms in 

U.S. 

United States $818,669 4.4% 100.0% 

Alabama 10,230 4.3 1.2 

Alaska 1,942 5.3 0.2 

Arizona 11,305 4.6 1.4 

Arkansas 6,490 4.5 0.8 

California 121,191 5.6 14.8 

Colorado 13,763 5.0 1.7 

Connecticut 9,276 2.9 1.1 

Delaware 1,831 2.1 0.2 

District of Columbia 1,813 3.4 0.2 

Florida 48,261 5.8 5.9 

Georgia 25,267 4.4 3.1 

Hawaii 3,253 5.9 0.4 

Idaho 2,405 3.7 0.3 

Illinois 44,273 4.5 5.4 

Indiana 13,578 3.3 1.7 

Iowa 8,093 3.9 1.0 

Kansas 6,928 3.8 0.8 

Kentucky 9,877 4.0 1.2 

Louisiana 11,463 4.0 1.4 

Maine 3,212 5.0 0.4 

Maryland 14,657 5.1 1.8 

Massachusetts 16,753 3.2 2.0 

Michigan 26,499 3.7 3.2 

Minnesota 13,458 3.5 1.6 

Mississippi 5,995 4.9 0.7 

Missouri 15,003 3.9 1.8 

Montana 2,048 5.4 0.3 
2-6 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-2. Receipts of Women-Owned Businesses by State: 1997 

Receipts ($000,000) 

% of All Firms 

in State 

% of All Women-Owned Firms in 

U.S. 

Nebraska 4,537 3.3 0.6 

Nevada 5,972 5.8 0.7 

New Hampshire 3,113 3.9 0.4 

New Jersey 30,001 4.3 3.7 

New Mexico 4,450 5.6 0.5 

New York 59,497 4.0 7.3 

North Carolina 24,166 4.7 3.0 

North Dakota 1,167 3.3 0.1 

Ohio 30,597 3.8 3.7 

Oklahoma 8,912 5.2 1.1 

Oregon 10,335 4.7 1.3 

Pennsylvania 34,043 4.2 4.2 

Rhode Island 2,684 5.1 0.3 

South Carolina 10,634 5.0 1.3 

South Dakota 1,202 2.4 0.1 

Tennessee 14,538 4.0 1.8 

Texas 65,065 4.6 7.9 

Utah 5,096 4.3 0.6 

Vermont 1,313 3.9 0.2 

Virginia 17,486 4.2 2.1 

Washington 15,099 4.2 1.8 

West Virginia 3,299 4.3 0.4 

Wisconsin 15,654 4.3 1.9 

Wyoming 945 3.5 0.1 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 2. (2001). U.S. Department of Commerce, 

Bureau of the Census. 
2-7 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-3. States With The Highest/Lowest Share of Revenues Among Women-Owned Firms: 1997 

State % Share Women-Owned 

The Top Five 

Hawaii 

Florida 

Nevada 

New Mexico 

California 

5.9% 

5.8 

5.8 

5.6 

5.6 

The Bottom Five 

Nebraska 

Massachusetts 

Connecticut 

South Dakota 

Delaware 

3.3% 

3.2 

2.9 

2.4 

2.1 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 2. (2001). U.S. Department of Commerce, 

Bureau of the Census. 
2-8 

_______________________________________ 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-4. Receipts of Women-Owned Businesses by Legal Form of Organization: 1997 

Legal form of organization 

Receipts ($000,000) % Share WomenOwned % Share of All Receipts 

Total Women-Owned Total Women-Owned 

All industries $18,553,243 $818,669 4.4% 100% 100% 

C corporations38 13,892,225 366,781 2.6 74.9 44.8 

Subchapter S corporations 2,977,247 273,267 9.2 16.0 33.4 

Individual proprietorships 871,766 141,637 16.2 4.7 17.3 

Partnerships 621,735 31,658 5.1 3.4 3.9 

Other 190,270 5,326 2.8 1.0 0.7 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 7. (2001). U.S. Department of Commerce, 

Bureau of the Census. 

38 The 1997 Census definition of women-owned firms does not include publicly-traded women-owned firms. Publicly-traded firms are 

included in the total for all firms, however. 
2-9
 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-5. The Number of Women-Owned Firms by Receipts Size and Industry Division: 1997 

Receipts Size 

All 

Women­ $100,000 $250,000 $500,000 

Owned Less than $5,000 to $10,000 to $25,000 to $50,000 to to to to $1,000,000 

Firms $5,000 $9,999 $24,999 $49,999 $99,999 $249,999 $499,999 $999,999 or more 

All Industries 5,417,034 1,630,833 976,085 1,115,180 571,368 399,326 355,804 169,337 100,230 98,870 

Agricultural Services, 

Forestry, Fishing & 

Mining 94,474 27,423 16,700 17,842 10,555 8,081 6,755 3,837 2,102 1,179 

Construction 157,173 28,737 16,442 20,940 16,087 15,464 21,149 13,986 10,632 13,735 

Manufacturing 121,108 29,497 16,202 19,465 10,413 9,642 9,657 7,569 6,781 11,882 

TCPUa 128,999 28,017 18,575 23,832 15,403 14,377 13,771 6,549 4,000 4,477 

Wholesale Trade 125,645 20,627 12,037 15,185 12,880 11,861 14,393 9,863 9,095 19,704 

Retail Trade 919,990 304,299 145,005 139,340 77,092 73,304 89,647 46,392 24,512 20,398 

FIREb 479,469 94,767 63,031 103,167 78,688 58,913 46,620 18,397 9,534 6,353 

Services 2,981,266 932,442 597,629 693,194 309,942 187,085 144,308 60,620 33,113 22,934 

Industries Not Classified 411,596 165,029 90,463 82,214 40,309 20,600 9,526 2,196 670 S 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 9. (2001). U.S. Department of Commerce, Bureau of the Census. 

S= Withheld because estimates did not meet publication standards 

aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate 
2-10 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-6. Number of Employees Among Women-Owned Businesses By Industry: 1997 

All Firms Women-Owned % Share, WomenOwned v. 

# of Employees % Share # of Employees % Share All Firms

Total, All Industries 103,359,815 100.0% 7,076,081 100.0% 6.8% 

Agriculture 725,410 0.7 77,370 1.1 10.7 

Mining 616,232 0.6 25,982 0.4 4.2 

Construction 5,678,306 5.5 518,142 7.3 9.1 

Manufacturing 18,968,167 18.4 901,434 12.7 4.8 

TCPUa 5,883,270 5.7 321,759 4.5 5.5 

Wholesale Trade 6,877,507 6.7 468,276 6.6 6.8 

Retail Trade 22,268,978 21.5 1,574,747 22.3 7.1 

FIREb 7,430,891 7.2 276,045 3.9 3.7 

Services 34,884,760 33.8 2,908,080 41.1 8.3 

Industries not classified 26,294 0.0 4,246 0.1 16.1 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 1. (2001). U.S. Department of Commerce,
 

Bureau of the Census.
 aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate.
 
2-11 

_______________________________________ 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-7. The Number of Women-Owned Firms by Employment Size and Industry Division: 1997 

Industry Type Total 

No Paid 

Employees 

% of Firms 

with Paid 

Employees 

With Paid Employees 

Total 039 1 to 4 5 to 9 

10 to 

19 

20 to 

49 

50 to 

99 

100 to 

499 500+ 

All Industries 5,417,034 4,570,254 15.6 846,780 115,281 444,121 150,300 79,327 39,987 10,325 6,566 873 

Agricultural 

Services, Forestry, 

Fishing & Mining 94,474 75,642 19.9 18,832 3,705 9,080 3,239 2,020 597 116 54 21 

Construction 157,173 91,466 41.8 65,707 7,486 30,790 13,588 8,299 4,297 868 351 27 

Manufacturing 121,108 79,967 34.0 41,141 417 17,952 8,338 6,193 4,982 1,797 1,240 222 

TCPUa 128,999 93,376 27.6 35,623 5,483 18,015 5,796 3,341 1,863 687 372 66 

Wholesale Trade 125,645 75,186 40.2 50,459 4,473 26,214 9,039 5,979 3,078 922 641 112 

Retail Trade 919,990 708,407 23.0 211,583 27,328 101,988 45,980 22,284 10,918 1,863 1,098 125 

FIREb 479,469 413,094 13.8 66,375 9,180 45,135 7,358 2,657 1,296 335 328 86 

Services 2,981,266 2,625,498 11.9 355,768 54,581 193,905 56,918 28,760 13,552 4,183 3,315 555 

Industries Not 

Classified 411,596 407,614 1.0 3,979 2,628 1,064 138 149 0 0 0 0 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 9. (2001). U.S. Department of Commerce, Bureau of the Census. aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate. 

39 Firms reported annual payroll, but did not report any employees on their payroll during the specified period in 1997. 
2-12 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-8. Employment of Women-Owned Businesses by State: 1997 

Employment 

% of All Firms in 

State 

% of All Women-Owned Firms in 

U.S. 

United States 7,076,081 6.8% 100.0% 

Alabama 97,966 6.4 1.4 

Alaska 16,520 9.1 0.2 

Arizona 101,601 6.1 1.4 

Arkansas 64,379 7.0 0.9 

California 932,462 8.1 13.2 

Colorado 132,506 8.0 1.9 

Connecticut 78,598 5.3 1.1 

Delaware 19,192 5.5 0.3 

District of Columbia 17,320 5.0 0.2 

Florida 371,412 6.8 5.2 

Georgia 190,577 6.3 2.7 

Hawaii 30,138 7.3 0.4 

Idaho 25,873 6.5 0.4 

Illinois 392,569 7.9 5.5 

Indiana 131,778 5.5 1.9 

Iowa 71,724 6.3 1.0 

Kansas 58,497 5.7 0.8 

Kentucky 95,453 6.9 1.3 

Louisiana 116,063 7.9 1.6 

Maine 28,263 6.3 0.4 

Maryland 139,616 7.3 2.0 

Massachusetts 155,191 5.4 2.2 

Michigan 228,132 6.0 3.2 

Minnesota 124,616 5.8 1.8 

Mississippi 54,183 6.3 0.8 

Missouri 134,301 6.1 1.9 

Montana 22,240 8.3 0.3 
2-13 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-8. Employment of Women-Owned Businesses by State: 1997 

Employment 

% of All Firms in 

State 

% of All Women-Owned Firms in 

U.S. 

Nebraska 42,044 6.1 0.6 

Nevada 49,477 6.5 0.7 

New Hampshire 33,911 6.7 0.5 

New Jersey 247,040 7.5 3.5 

New Mexico 48,236 9.5 0.7 

New York 461,127 6.8 6.5 

North Carolina 221,973 7.2 3.1 

North Dakota 13,482 5.7 0.2 

Ohio 291,361 6.3 4.1 

Oklahoma 82,531 7.7 1.2 

Oregon 91,379 7.2 1.3 

Pennsylvania 257,841 5.4 3.6 

Rhode Island 28,678 7.4 0.4 

South Carolina 100,284 7.0 1.4 

South Dakota 14,323 5.2 0.2 

Tennessee 142,080 6.5 2.0 

Texas 548,756 7.8 7.8 

Utah 54,135 6.8 0.8 

Vermont 13,524 5.8 0.2 

Virginia 172,227 6.7 2.4 

Washington 139,032 6.9 2.0 

West Virginia 33,724 6.4 0.5 

Wisconsin 146,450 6.5 2.1 

Wyoming 11,296 7.3 0.2 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 2. (2001). U.S. Department of Commerce, 

Bureau of the Census. 
2-14 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-9. States With The Highest/Lowest Women’s Share of Employment: 1997 

State Women’s Share 

The Top Five 

New Mexico 

Alaska 

Montana 

California 

Colorado 

9.5%

 9.1

 8.3

 8.1

 8.0 

The Bottom Five 

Massachusetts 

Pennsylvania 

Connecticut 

South Dakota 

District of Columbia 

5.4%

 5.4

 5.3

 5.2

 5.0 

Source: 1997 Economic Census: Survey of Women-Owned Business Enterprises, Table 2. (2001). U.S. Department of Commerce, 

Bureau of the Census. 
2-15 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-10. Receipts of Women-Owned Non-Farm Sole Proprietorships: 1980 to 2000 

Receipts of Non-Farm Sole Proprietorships 

($000 of 1992 dollars) % Share WomenOwned 

Average Receipts per Firm 

Women-Owned Men-Owned Total Women-Owned Total 

2000a $116,937,096 $601,146,931 $718,084,027 16.3% $16,384 $35,061 

1999a 115,707,487 606,717,652 722,425,139 16.0 16,643 35,975 

1998a 114,477,877 612,288,374 726,766,251 15.8 16,916 36,927 

1997a 113,248,267 617,859,096 731,107,363 15.5 17,204 37,917 

1996a 112,018,658 623,429,817 735,448,475 15.2 17,510 38,950 

1995 113,472,337 636,865,617 750,337,954 15.1 18,493 40,799 

1994 110,840,710 642,140,261 752,980,971 14.7 18,331 41,581 

1993 108,756,108 629,270,648 738,026,756 14.7 18,586 41,663 

1992 106,060,210 631,021,822 737,082,032 14.4 18,612 42,625 

1991 108,459,185 629,877,103 738,336,288 14.7 19,547 43,540 

1989 99,257,386 673,107,093 772,364,479 12.9 19,943 48,512 

1980 60,226,109 620,578,052 680,804,161 8.9 23,756 69,969 

Source: As reported in The State of Small Business: A Report of the President 1998, Table 4.7. U.S. Small Business Administration, Office of Advocacy. (1999). With data from the U.S.
 

Department of the Treasury, Internal Revenue Service.
 a1996–2000 are projections by the U.S. Small Business Administration, Office of Advocacy.
 
2-16 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-11. Receipts of Women-Owned Non-Farm Sole Proprietorships by SBA Region ($000,000) 

Region 1985 1990 1997 1998 

Total U.S. $65,045 $105,690 $153,865 $165,098 

Region I 3,445 5,064 9,227 9,385 

Region II 4,764 9,296 13,737 13,387 

Region III 7,096 11,201 14,494 14,496 

Region IV 9,204 16,208 23,002 26,946 

Region V 9,392 12,464 22,639 22,992 

Region VI 9,038 11,442 16,031 17,979 

Region VII 2,419 6,192 6,696 7,382 

Region VIII 1,838 2,884 4,868 5,708 

Region IX 14,359 26,206 36,873 40,144 

Region X 3,453 4,732 6,297 6,679 

Note: The SBA Regions are defined as follows: 

Region I: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont 

Region II: New Jersey, New York 

Region III: Delaware, District of Columbia, Maryland, Pennsylvania, Virginia, West Virginia 

Region IV: Alabama, Florida, Georgia, Kentucky, Mississippi, N. Carolina, S. Carolina, Tennessee 

Region V: Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin 

Region VI: Arkansas, Louisiana, New Mexico, Oklahoma, Texas 

Region VII: Iowa, Kansas, Missouri, Nebraska 

Region VIII: Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming 

Region IX: Arizona, California, Hawaii, Nevada 

Region X: Alaska, Idaho, Oregon, Washington 

Special tabulations prepared by the U.S. Department of the Treasury, Internal Revenue Service, under contract to the U.S. Small 

Business Administration, Office of Advocacy and U.S. Department of the Treasury, Internal Revenue Services. (Tax Year 1997 and 

1998). Table K-3, “Sole Proprietorship Businesses: Business Receipts and Net Income, By Size of Business Receipts and by Gender 

(Farms not included)”. 
2-17 

Chapter 2: The Growing Economic Impact of Women-Owned Firms 

Table 2-12. Receipts and Net Income of Women-Owned Non-Farm Sole Proprietorships by Industry: 1998 

Industry 

Receipts Net Income 

Dollars 

($000,000) 

% Share 

Women-Owned 

% of Total 

Receipts 

Dollars 

($000,000) 

% Share 

WomenOwned % of Total 

Net Income 

Total $165,098 18.0% 100% $43,577 21.5% 100% 

Agriculture, Forestry & 

Fishing 2,118 7.8 0.1 175 4.5 0.4 

Mining, Construction & 

Manufacturing 11,463 6.9 6.9 1,778 6.2 4.1 

TCPUa 5,131 10.4 3.1 925 12.6 2.1 

Wholesale and Retail Trade 44,891 18.5 27.2 2,775 14.5 6.4 

FIREb 23,206 22.9 14.1 8,934 30.5 20.5 

Services 78,288 23.6 47.4 28,989 25.5 66.5 

Note: U.S. Department of the Treasury, Internal Revenue Services. (Tax Year 1998). Table K-3, “Sole Proprietorship Businesses: 

Business Receipts and Net Income, By Size of Business Receipts and by Gender (Farms not included)”. 

aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate 
3-1 

_______________________________________ 

3-1. Women Business Owners Are Somewhat 

Older Than Women in General 

Percent 

40 

20 

0 

38 

20 

14 

29 

18 

27 

22 

27 

Under 35 35-44 45-54 55+ 

Age 

Women Business Owners All Women, 15+ 

Source: Bureau of the Census, Characteristics of Business Owners: 1992 Economic Census 

and Bureau of the Census, Current Population Reports, p25-1127 

Chapter 3: Demographic Characteristics of Women Business Owners 

Chapter 3: Demographic Characteristics of Women Business Owners

Characteristics of Business Owners 

Survey 

Following the release of its 1992 Economic Census, 

the Bureau of the Census conducted a survey 

among a sampling of the businesses included in the 

census.40 Referred to as the Characteristics of 

Business Owners survey, the survey gathered 

information on selected demographic characteristics 

of the owners of businesses, their sources of 

financing, their employees, and their prior 

employment histories. The information obtained 

from this Characteristics of Business Owners survey 

provides valuable insight into the population of 

small business owners across the country. Despite 

its age, it is the most comprehensive survey of 

business owners available. 

Age 

As of 1992, just under half (49%) of women 

business owners in the United States were between 

the ages of 35 and 54, compared with 34% of the 

female population in the country aged 15 or older. 

Twenty-seven percent (27%) of women business 

owners were aged 35 to 44, and 22% were aged 45 

to 54. Just 18% of women business owners were 34 

or younger, compared with 38% of the female 

population aged 15 or older, and 27% were 55 and 

older, compared with 29% of all women 15 or 

older. Women business owners were therefore 

somewhat older than the female adult population at 

large. 

Education 

As of 1992, 85% of women business owners had at 

least a high school education, compared with 76% 

of all women 15 or older. Fully 38% had college 

degrees, compared with just 22% of all women 15+. 

Women business owners were thus more highly 

educated than the general female population. 

40 The Characteristics of Business Owners survey was not 

conducted following the 1997 Economic Census due to a lack 

of funding. 

Marital Status 

Perhaps because of the relative difference in the 

ages of the two populations, women who own their 

own businesses were more likely to be married than 

are other women. As of 1992, 64% of women 

business owners were married, compared with 56% 

of all women 15 or older. Only 9% of women 
3-2 

_______________________________________ 

Chapter 3: Demographic Characteristics of Women Business Owners 

business owners had never been married, compared 

with 23% of all women. 

Personal Income 

As of 1992, the personal income of women business 

owners was, not unexpectedly, higher than average. 

Fifty-seven percent (57%) of women business 

owners had personal incomes of less than $25,000, 

20% had incomes between $25,000 and $50,000, 

and 12% had personal incomes of $50,000 or more. 

African American, 4.6% are Asian, and 1.0% are 

Native American.42 (See Table 3-2). This compares 

to 14.6% of all firms being minority-owned, 

possibly indicating that women members of 

minority groups are more likely to be business 

owners than are men members of minority groups. 

Firms owned by women of color are typically 

smaller than other women-owned firms or other 

minority-owned firms. The average receipts per firm 

among women-owned minority firms total $91,689, 

3-2. The Number of Minority 

Women-Owned Businesses: 1997 

923,403 

337,708 

312,884 

247,966 

53,593 

All Min. Wmn-Owned 

Hispanic 

Black 

Asian 

Am Ind/AK Native 

0 200,000 400,000 600,000 800,000 1,000,000 

Number of Firms 

Source: U.S. Bureau of the Census 

In comparison, among all women 15 or older 

(which does include a larger student population), 

78% had personal incomes of less than $25,000, 

18% had incomes between $25,000 and $50,000, 

and 4% had incomes of $50,000 or more. (See 

Table 3-1). 

Survey of Minority-Owned Businesses 

Ethnicity 

According to the 1997 Economic Census, over one 

in six women business owners (17%) are members 

of a minority group41 – 6.2% are Hispanic, 5.8% are 

41 A sample mail canvass was used to determine if a firm was 

owned by persons of Hispanic or other minority ancestry. The 

survey form identified Hispanic ancestral groups of Cuban, 

compared with $194,555 for all minority-owned 

firms and $151,129 for all women-owned firms. 

Despite this lower than average level of sales, 

however, firms owned by minority women are 

almost as likely to have employees. As mentioned 

earlier in this report, 16% of all women-owned 

firms have employees; among women-owned 

minority firms, 14% have employees. 

Mexican, Puerto Rican, Latin American (Central or South 

American), European Spanish, and other Hispanic origins or 

cultures; Asian and Pacific Islander ancestral groups of Asian 

Indian, Chinese, Japanese, Korean, Vietnamese, Filipino, 

Hawaiian, and other Asian or Pacific Islander; and Native 

American ancestral groups of Aleut, Eskimo and American 

Indian. 

42 The reason the individual figures add up to more than 17% is 

that persons of mixed ethnicity can fit into more than one 

group and are counted more than once. Total figures published 

by the Bureau of the Census are adjusted for this multiple 

counting. 
3-3 

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_______________________________________ 

Chapter 3: Demographic Characteristics of Women Business Owners 

Due to several definitional changes, direct 

comparisons to prior years are not possible in most 

cases. Significant changes over the years have 

included the treatment of C corporations and 

tabulating businesses with 50% minority ownership. 

In 1992 and in previous studies, C Corporations 

were excluded from the Census Bureau’s Survey of 

Minority-Owned Business Enterprises. In 1997, the 

survey was expanded to include all corporations. 

Additionally, in the 1997 survey, minority 

ownership of a business was determined based on 

51%+ majority interest in the business. Businesses 

in which ownership was shared among minority and 

nonminority groups were excluded from the 

minority business data and were tabulated and 

published separately. In the past, businesses with 

50% or more minority owners have been included 

in the minority business data.43 

While detailed comparisons are not available, trends 

at the aggregate level are believed to be reliable. 

Overall, the number of minority firms are growing 

at a significantly faster rate than are all firms. While 

the number of firms overall grew by 7% between 

1992 and 1997, minority-owned firms grew by 30%. 

Similarly, sales and receipts among all firms grew by 

40%, compared with 60% growth among minorityowned firms. (See Table 3-3). Thus, minority-owned 

firms grew in number at more than 4 times of the 

rate of all firms and, in revenues, at 11⁄2 times the 

rate of all firms. 

Firms Owned By Hispanic Women 

Hispanic women currently outnumber other 

minority women in business ownership – as of the 

1997 census, there were 337,708 firms owned by 

Hispanic women. These firms account for more 

than one-third of all women-owned minority firms 

and generate sales of $27.3 billion, an average of 

$80,895 per firm. Twelve percent (12%) of womenowned Hispanic firms have paid employees; in total, 

these firms employ 234,591 people, with an average 

employment size of 6.0 per firm. Women-owned 

Hispanic firms make up 28% of all Hispanic firms 

and account for 15% of their receipts, compared 

with all women-owned businesses, which make up 

26% of all firms and account for 4% of all revenues. 

(See Table 3-2). 

43 1997 Economic Census: Survey of Minority-Owned Business 

Enterprises. U.S. Department of Commerce. 

By industry, the largest share of Hispanic womenowned businesses are found in the service sector 

(56%), followed by retail trade (15%). Together, 

these two industries account for 53% of the sales 

generated by Hispanic women-owned businesses. 

An additional 16% of sales by Hispanic womenowned firms came from the wholesale sector, 

generated by the 2% of Hispanic women-owned 

businesses in this industry. Hispanic women are also 

more likely to own firms in construction, TCPU44 

and services than are women overall. (See Table 3­

5). 

The five states with the largest population of 

Hispanic women-owned businesses are: California 

(101,332), Texas (55,776), Florida (48,261), New 

York (33,704) and New Jersey (9,276). Together, 

these five states account for 74% of all Hispanic 

women-owned firms in the country. (See Table 3-6). 

Firms Owned By African American 

Women45

As of 1997, there were 312,884 firms owned by 

African American women. These firms generated 

sales of $13.6 billion, an average of $43,310 per 

firm. Seven percent (7%) of women-owned African 

American firms have paid employees; these firms 

employ 169,038 people, with average employment 

of 8.1 people per firm. African American womenowned firms account for 38% of all African 

American firms and 19% of their receipts. 

By industry, the largest share of African American 

women-owned businesses are found in the service 

sector – 68% compared with 55% among all 

women-owned firms. Another 11% are in the retail 

trade sector. These two industries account for more 

than two-thirds (73%) of the revenues generated by 

African American women-owned businesses. 

African American women business owners are more 

likely to be in TCPU and services than are women 

business owners overall. 

The five states with the largest population of 

businesses owned by African American women are: 

44 TCPU = Transportation, Communications and Public 

Utilities 

45 Note that by using the term “African American” we are 

following the naming convention followed by the Census 

Bureau. 
3-4 

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Chapter 3: Demographic Characteristics of Women Business Owners 

New York (35,160), California (29,827), Florida 

(24,144), Texas (20,759) and Georgia (20,542), 

accounting for 42% of all African American 

women-owned firms. Maryland (19,187), Virginia 

(11,457) and Washington, DC (4,136) also have 

significant numbers of African American womenowned firms. We speculate that this is possibly due 

to the federal contracting opportunities available in 

the Washington, DC area. 

Firms Owned By Asian & Pacific Islander 

Women 

There were 247,966 firms owned by Asian and 

Pacific Islander women as of the 1997 census, 

generating sales of $38.1 billion, an average of 

$153,653 per firm. Fully 23% of women-owned 

Asian and Pacific Islander firms have paid 

employees; these firms employ 313,603 people, with 

average employment of 5.4 employees per firm. 

Women-owned Asian and Pacific Islander firms 

account for 27% of all Asian and Pacific Islander 

firms and 12% of their revenues. 

As with other minority firms, the largest share of 

Asian and Pacific Islander women-owned 

businesses are found in the service sector (54%) and 

the retail sector (19%). These two industries 

account for 54% of the revenues generated by Asian 

and Pacific Islander women-owned businesses. 

Another 29% of sales came from the wholesale 

sector, despite only 3% of Asian and Pacific 

Islander women-owned firms being in this industry. 

Asian and Pacific Islander women business owners 

are more likely to be in manufacturing, wholesale 

trade and retail trade than are women business 

owners in general. 

The five states with the largest population of 

businesses owned by women of Asian or Pacific 

Island descent are: California (87,179), New York 

(29,902), Texas (17,715), Hawaii (14,071) and New 

Jersey (10,393). Together, the top five states are 

home to 64% of businesses owned by Asian 

women. 

Firms Owned By American Indian and 

Alaska Native Women 

As of the 1997 census, there were 53,593 firms 

owned by American Indian and Alaska Native 

women. These firms generated sales of $6.8 billion, 

an average of $126,047 per firm. Sixteen percent 

(16%) of women-owned American Indian and 

Alaska Native firms have paid employees; these 

firms employ 74,114 people, with average 

employment of 8.5 employees per firm. Womenowned American Indian and Alaska Native firms 

account for 27% of all American Indian and Alaska 

Native firms and 20% of their revenues. 

By industry, the largest share of American Indian 

and Alaska Native women-owned businesses are 

found in the service sector (25%) and the retail 

sector (9%). These two industries account for 

almost one-quarter (24%) of the revenues generated 

by American Indian and Alaska Native womenowned businesses. Almost half (49%) of American 

Indian and Alaska Native women business owners 

are in sectors not classified by the Census Bureau, 

accounting for 41% of revenues. American Indian 

and Alaska Native women business owners are 

more often found in agricultural 

services/forestry/fishing, construction, 

manufacturing, and wholesale trade than are women 

business owners overall. 

Businesses owned by Native American or Alaska 

Native women are more likely than the average 

women-owned firms to be in the fields of 

agriculture, construction and manufacturing. They 

are much less likely to be found in the FIRE46 

sector. 

The five states home to the largest populations of 

businesses owned by Native American or Alaska 

Native women are: California (7,338), Oklahoma 

(4,401), Texas (4,024), Florida (3,410) and New 

Mexico (2,648). These states accounted for 41% of 

all businesses owned by Native American and 

Alaska Native women. 

46 FIRE = Finance, Insurance and Real Estate 
3-5 

Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-1. Demographic Characteristics of Women Business Owners: 1992 

Women Business Owners All Women, 15+ 

Age 

Under 25 2.7 17.1 

25-34 14.8 20.5 

35-44 26.9 19.5 

45-54 21.9 13.6 

55-64 17.7 10.7 

65+ 9.5 18.6 

Marital Status 

Married 64.2 56.4 

Never Married 8.5 23.0 

Divorced 11.5 9.7 

Widowed 4.6 11.0 

Education 

Elementary School 3.2 8.4 

Some High School 4.9 15.6 

High School Graduate 22.4 35.6 

Some College 25.3 17.8 

College Graduate 25.3 17.5 

Graduate School 12.2 4.7 

Personal Income 

Under $15,000 43.1 59.6 

$15,000 - $24,999 14.3 18.8 

$25,000 - $49,999 20.2 18.1 

$50,000 - $74,999 5.8 2.6 

$75,000 + 6.5 1.0 

Source: Characteristics of Business Owners: 1992 Economic Census and Bureau of the Census, Current Population Reports, p20-476, 

p25-1127, p60-193, MS-1. U.S. Department of Commerce, Economics and Statistics Administration, Bureau of the Census. 

3-7 

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Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-2. Number, Receipts and Employment of Minority Women-Owned Firms: 1997 

All WomenOwned 

Firms 

All MinorityOwned 

Firms 

Minority Women-Owned Firms 

Total 

African 

American47 Hispanic 

American 

Indian & 

Alaska 

Native 

Asian & 

Pacific 

Islander 

Number of Firms 5,417,034 3,039,033 923,403 312,884 337,708 53,593 247,966 

% Share 100.0 14.6 17.0 5.8 6.2 1.0 4.6 

Sales & Receipts 

($000,000) 818,669 591,259 84,666 13,551 27,319 6,755 38,101 

Average Receipts 

per Firm ($) 151,129 194,555 91,689 43,310 80,896 126,047 153,653 

Employment 7,076,081 4,514,699 777,999 169,038 234,591 74,114 313,603 

% of Firms with 

Paid Employees 15.6 20.2 13.5 6.6 11.6 16.3 23.3 

Average # of 

Employees per 

Firm48 8.4 7.3 6.2 8.1 6.0 8.5 5.4 

Source: Survey of Minority-Owned Business Enterprises: 1997 Economic Census (Summary). (2001). U.S. Department of Commerce, 

Bureau of the Census. Detail may not add to total because of duplication of some firms. Firms that were owned equally by 2 or more 

minorities are included in the data for each minority group but counted only once at total levels. 

47 Referred to as “Black” by the Bureau of the Census 

48 Among firms with paid employees 
3-8 

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Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-3. Comparison of Minority-Owned Firms to All U.S. Firms: 1992 and 1997 

Firms (Number) Sales and Receipts ($000,000) 

1992 1997 

% 

Chg 1992 1997 

% 

Chg 

All U.S. Firms 17,253,143 18,431,456 6.8 $3,324,200 $4,661,018 40.2 

All Minority-Owned Firms 2,149,184 2,786,098 29.6 209,740 335,316 60.0 

African American-Owned Firms49 620,912 780,770 25.7 32,197 42,671 32.5 

Hispanic-Owned Firms 862,605 1,121,433 30.0 76,842 114,431 48.9 

American Indian- and Alaska NativeOwned Firms 102,271 187,921 83.7 8,057 22,441 178.5 

Asian- and Pacific Islander-Owned 

Firms 603,426 785,480 30.2 95,714 161,142 68.4 

Source: Survey of Minority-Owned Business Enterprises:1997 Economic Census (Summary). (2001). U.S. Department of Commerce, 

Bureau of the Census. Detail in this table does not add to total because of duplication of some firms. Hispanics may be of any race 

and, therefore, may be included in more than one minority group. 

49 Referred to as “Black” by the Bureau of the Census 
3-9 

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Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-4. Number, Receipts and Employment Among Minority Women-Owned Firms By Major Industry: 1997 

Total African American50 Hispanic 

American Indian & Alaska 

Native Asian & Pacific Islander 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

All Industries 923,403 84,666,144 777,999 312,884 13,550,983 169,038 337,708 27,319,361 234,591 53,593 6,755,233 74,114 247,966 38,100,770 313,603 

Agricultural 

Services, Forestry 

& Fishing 7,404 459,500 5,943 1,139 56,103 D 3,504 225,761 3,468 1,363 48,411 D 1,678 133,715 D 

Mining 622 131,056 1,395 44 6,068 D 292 23,448 103 178 102,834 D 140 6,317 1,007 

Construction 18,227 4,243,591 36,521 3,294 509,604 4,971 10,041 2,069,539 20,463 2,271 1,031,765 6,883 2,972 711,228 4,622 

Manufacturing 16,099 5,269,373 66,131 2,567 289,881 2,975 6,023 2,282,556 22,900 1,727 393,116 3,497 6,240 2,443,344 37,730 

TCPUa 23,855 2,488,391 29,299 7,810 493,113 10,011 10,575 1,027,842 9,762 1,030 256,155 2,525 5,628 757,811 7,578 

Wholesale Trade 16,642 16,628,051 37,723 1,840 1,002,928 1,974 5,546 4,263,226 10,130 1,383 418,481 1,549 8,185 11,019,906 24,275 

Retail Trade 133,924 16,172,247 176,246 35,366 1,961,236 17,607 48,860 4,485,430 45,123 5,012 641,238 7,865 48,089 9,318,712 107,776 

FIREb 48,432 3,640,761 18,952 12,671 632,227 3,873 17,204 1,534,622 8,855 1,170 151,836 742 18,757 1,362,952 5,600 

Services 531,532 29,456,109 354,925 211,353 7,869,760 124,258 189,800 9,971,881 104,717 13,190 974,030 16,671 133,721 11,106,181 119,079 

Industries Not 

Classified 126,821 6,177,064 50,864 36,813 730,060 2,462 45,899 1,435,056 9,072 26,302 2,737,368 32,724 22,632 1,240,604 5,698 

Source: Survey of Minority-Owned Business Enterprises: 1997 Economic Census, Table 1. (2001). U.S. Department of Commerce, Bureau of the Census.
 

D = data is withheld to avoid disclosing data for individual companies; data are included in higher level totals.
 aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate
 

50 Referred to as “Black” by the Bureau of the Census 
3-10 

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Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-5. Employment Among Minority Women-Owned Firms By Major Industry: 1997 

Major Industry 

All Women-Owned 

Businesses 

Minority Women-Owned Businesses 

Total African American51 Hispanic 

American Indian & 

Alaska Native 

Asian & Pacific 

Islander 

# of 

Employees % # of Empl. % # of Empl. % # of Empl. % 

# of 

Empl. % 

# of 

Empl. % 

Total 7,076,081 100% 777,999 100% 169,038 100% 234,591 100% 74,114 100% 313,603 100% 

Agriculture 77,370 1.1 5,943 0.8 D - 3,468 1.5 D - D -

Mining 25,982 0.4 1,395 0.2 D - 103 0.0 D - 1,007 0.3 

Construction 518,142 7.3 36,521 4.7 4,971 2.9 20,463 8.7 6,883 9.3 4,622 1.5 

Manufacturing 901,434 12.7 66,131 8.5 2,975 1.8 22,900 9.8 3,497 4.7 37,730 12.0 

TCPUa 321,759 4.5 29,299 3.8 10,011 5.9 9,762 4.2 2,525 3.4 7,578 2.4 

Wholesale Trade 468,276 6.6 37,723 4.8 1,974 1.2 10,130 4.3 1,549 2.1 24,275 7.7 

Retail Trade 1,574,747 22.2 176,246 22.7 17,607 10.4 45,123 19.2 7,865 10.6 107,776 34.4 

FIREb 276,045 3.9 18,952 2.4 3,873 2.3 8,855 3.8 742 1.0 5,600 1.8 

Services 2,908,080 41.1 354,925 45.6 124,258 73.5 104,717 44.6 16,671 22.5 119,079 38.0 

Industries Not 

Classified 4,246 0.1 50,864 6.5 2,462 1.5 9,072 3.9 32,724 44.2 5,698 1.8 

Source: Survey of Minority-Owned Business Enterprises: 1997 Economic Census, Table 1. (2001). U.S. Department of Commerce, Bureau of the Census.
 

D = data is withheld to avoid disclosing data for individual companies; data are included in higher level totals.
 aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate
 

51 Referred to as “Black” by the Bureau of the Census 
3-11 

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Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-6. Number, Receipts and Employment of Minority Women-Owned Firms by State: 1997 

Geographic Area 

Total African American52 Hispanic 

American Indian & Alaska 

Native Asian & Pacific Islander 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

United States 923,403 84,666,144 777,999 312,884 13,550,983 169,038 337,708 27,319,361 234,591 53,593 6,755,233 74,114 247,966 38,100,770 313,603 

Alabama 9,313 496,481 6,158 7,137 217,854 3,137 884 81,290 1,079 698 100,891 884 826 106,643 1,340 

Alaska 2,991 428,360 3,542 341 27,469 393 440 64,039 409 1,644 306,650 2,351 618 48,653 580 

Arizona 13,965 1,158,244 13,999 1,226 43,358 317 9,246 656,950 8,750 2,079 129,691 1,992 2,073 353,571 3,177 

Arkansas 3,665 160,502 2,230 2,185 61,887 558 660 15,634 137 473 42,005 1,042 381 41,205 497 

California 219,355 24,382,091 203,080 29,827 1,730,441 14,225 101,332 6,049,009 55,760 7,338 2,116,631 24,592 87,179 14,771,759 114,900 

Colorado 12,093 922,889 10,074 1,549 49,935 466 6,946 473,328 4,298 1,063 149,401 1,653 2,927 260,445 3,690 

Connecticut 5,755 541,755 3,649 2,233 56,117 492 2,031 139,333 1,322 267 20,492 233 1,424 329,555 1,614 

Delaware 1,964 141,241 1,765 1,236 32,568 395 299 12,114 D S S S 300 67,831 409 

District of 

Columbia 5,590 430,380 5,478 4,136 198,117 2,989 716 92,414 839 9 1,731 D 782 157,684 D 

Florida 81,268 5,539,136 40,987 24,144 720,048 5,935 48,261 3,488,263 22,717 3,410 228,077 2,055 8,199 1,188,320 10,406 

Georgia 29,902 1,841,014 14,303 20,542 717,278 5,976 3,528 241,002 1,647 1,088 99,580 1,382 5,334 795,263 5,331 

52 Referred to as “Black” by the Bureau of the Census 
3-12 

Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-6. Number, Receipts and Employment of Minority Women-Owned Firms by State: 1997 

Geographic Area 

Total African American52 Hispanic 

American Indian & Alaska 

Native Asian & Pacific Islander 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

Hawaii 15,367 1,962,190 17,625 165 D D 1,435 45,106 293 185 21,558 D 14,071 1,908,448 17,353 

Idaho 1,634 139,621 1,106 39 D D 995 52,846 530 380 76,813 416 257 8,260 109 

Illinois 37,694 4,046,407 58,328 19,951 1,229,224 14,396 8,965 1,089,259 28,796 1,134 62,941 571 8,659 1,689,087 14,702 

Indiana 8,317 426,346 5,802 5,112 134,873 2,250 1,112 82,147 560 606 32,291 281 1,598 183,108 2,739 

Iowa 1,700 109,009 1,585 552 26,581 456 443 43,547 422 306 7,620 262 431 32,290 466 

Kansas 3,825 292,871 4,465 1,300 65,665 1,430 1,115 53,537 1,084 742 100,062 876 704 75,416 1,155 

Kentucky 4,215 242,372 2,866 2,245 69,887 758 416 75,122 818 894 39,126 456 720 64,624 1,052 

Louisiana 12,471 722,651 9,129 8,606 327,561 5,176 1,826 108,888 1,207 599 88,539 984 1,557 199,518 1,783 

Maine 867 42,373 557 89 1,840 D 203 D D 427 16,274 132 172 20,286 345 

Maryland 29,813 2,196,325 26,888 19,187 773,403 10,657 3,576 356,028 3,720 517 77,773 919 6,813 1,006,501 12,136 

Massachusetts 12,126 1,019,954 7,954 3,924 123,303 978 4,795 314,046 1,888 696 38,228 278 3,431 623,662 5,199 

Michigan 18,564 2,059,589 18,787 11,184 393,930 6,413 3,002 865,115 2,924 1,603 125,410 2,356 2,917 687,662 7,131 

Minnesota 4,348 486,541 3,081 1,209 84,303 841 1,048 116,142 295 678 105,073 313 1,501 181,992 1,632 
3-13 

Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-6. Number, Receipts and Employment of Minority Women-Owned Firms by State: 1997 

Geographic Area 

Total African American52 Hispanic 

American Indian & Alaska 

Native Asian & Pacific Islander 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

Mississippi 6,600 283,127 3,293 5,855 138,522 1,843 217 40,929 412 138 19,224 222 431 85,114 817 

Missouri 8,673 573,593 7,005 5,319 270,431 3,917 1,419 125,498 1,801 716 67,957 412 1,340 147,729 1,791 

Montana 1,119 105,153 891 13 D D 285 12,680 165 748 86,115 595 85 6,071 D 

Nebraska 1,600 136,709 2,229 740 32,504 432 392 28,410 1,086 246 17,708 128 251 59,226 592 

Nevada 4,891 494,535 4,862 837 36,576 273 2,030 156,596 2,079 321 38,146 248 1,814 270,357 2,269 

New Hampshire 893 129,870 1,974 96 3,443 D 231 14,926 99 286 17,659 338 284 93,846 1,499 

New Jersey 28,319 3,667,934 21,780 9,218 423,055 3,359 9,276 515,398 2,725 483 48,163 694 10,393 2,728,797 15,126 

New Mexico 11,736 902,586 8,764 376 15,408 D 8,281 663,957 6,528 2,648 147,805 1,068 762 86,191 1,116 

New York 91,706 5,939,173 36,608 35,160 1,057,136 7,250 33,704 1,618,625 8,444 1,393 98,778 614 29,902 3,287,276 20,692 

North Carolina 19,870 878,320 11,689 14,141 384,255 6,767 2,338 96,428 590 1,652 93,722 1,252 2,050 310,158 3,101 

North Dakota 397 38,345 479 38 D D 95 D D 179 22,072 311 S S S 

Ohio 16,462 1,431,790 15,218 10,592 673,571 6,886 1,805 170,329 1,768 1,207 50,528 848 3,016 541,984 5,794 

Oklahoma 9,042 942,101 8,467 2,150 65,117 889 1,300 69,509 1,178 4,401 703,349 5,190 1,256 105,113 1,214 
3-14 

Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-6. Number, Receipts and Employment of Minority Women-Owned Firms by State: 1997 

Geographic Area 

Total African American52 Hispanic 

American Indian & Alaska 

Native Asian & Pacific Islander 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

Oregon 5,731 397,311 5,390 789 38,106 664 1,758 76,899 767 1,068 65,937 760 2,250 218,305 3,210 

Pennsylvania 15,732 1,216,072 15,461 7,439 286,312 5,296 2,744 307,759 4,675 1,112 61,820 923 4,649 593,784 4,988 

Rhode Island 1,476 68,796 1,075 405 9,442 91 732 28,380 208 S S S 293 29,130 D 

South Carolina 9,465 445,744 4,846 7,571 305,838 3,419 467 14,030 156 619 31,246 225 848 95,137 1,056 

South Dakota 538 40,411 573 19 D D 70 D D 377 29,111 D 73 D D 

Tennessee 10,202 733,963 7,448 7,153 308,887 4,184 777 89,045 472 855 160,904 1,089 1,463 199,138 1,825 

Texas 95,995 12,521,695 111,220 20,759 1,718,639 35,796 55,776 7,895,492 52,888 4,024 488,346 6,023 17,715 2,498,625 18,181 

Utah 2,479 168,335 2,371 148 5,740 D 1,546 78,526 1,143 320 18,049 232 600 67,252 800 

Vermont 580 158,653 1,591 37 1,412 D 212 D D 210 9,161 55 121 D D 

Virginia 23,778 1,551,970 17,113 11,457 480,671 5,366 4,479 324,293 3,303 843 97,667 1,353 7,247 659,037 7,164 

Washington 13,540 1,581,711 16,402 1,855 84,499 1,325 3,000 240,378 2,017 1,659 250,625 3,606 7,220 1,027,362 9,750 

West Virginia 1,196 69,075 932 456 6,289 D 268 14,023 D 209 11,999 236 272 36,799 447 

Wisconsin 4,589 358,477 6,195 2,216 111,958 2,253 965 55,036 571 588 83,104 2,130 953 113,141 1,245 
3-15 

Chapter 3: Demographic Characteristics of Women Business Owners 

Table 3-6. Number, Receipts and Employment of Minority Women-Owned Firms by State: 1997 

Geographic Area 

Total African American52 Hispanic 

American Indian & Alaska 

Native Asian & Pacific Islander 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

# of 

Firms 

Sales 

($000) 

# of 

Empl. 

Wyoming 627 42,356 684 43 D D 366 21,016 314 184 14,870 196 69 6,305 D 

Source: Survey of Minority-Owned Business Enterprises: 1997 Economic Census (Summary). (2001). U.S. Department of Commerce, Bureau of the Census.
 

Detail may not add to total because of rounding and because a firm may be included in more than one minority group.
 

D = data is withheld to avoid disclosing data for individual companies; data are included in higher level totals.
 

S = data is withheld because estimates did not meet publication standards.
 
4-1 

_______________________________________ 

4-1. Starting Capital Requirements of 

Women-Owned Businesses: 1982 - 1992 

0 

10 

20 

30 

40 

Percent 

Amount of Start-Up Capital 

1982 1987 1992 

Source: Bureau of the Census, Characteristics of Business Owners: 1992 Economic Census 

31 

36 

7 

12 

8 

32 

35 

8 

14 

5 

36 36 

7 

11 

4 

None $1-4,999 $5,000-9,999 $10,000-49,999 $50,000+ 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Chapter 4: Capital and Financing Patterns Among Women-Owned
 

Firms 

Start-Up Financing 

While most businesses start with very little capital, 

the number of women-owned firms that used startup or acquisition capital increased from 58% to 

62% between 1982 and 1992.53 According to the 

1992 Characteristics of Business Owners Survey 

(CBO), 31% of women-owned firms started with 

no capital at all, 36% started with $1 to $4,999, 7% 

with $5,000 to $9,999, and 19% started with $10,000 

or more. The trend among women-owned 

businesses using larger amounts of start-up capital 

has continued, with 4% using $50,000 or more in 

1982, growing to 5% in 1987 and 8% in 1992. (See 

Table 4-1). 

Despite an increase in the use and amount of startup capital among women business owners, there is 

still a gap compared with men business owners, 

77% of whom used start-up capital in 1992. Among 

non-minority male-owned businesses, a comparative 

group used in the CBO, 23% started with no 

capital, 34% started with less than $5,000, 10% with 

$5,000 to $9,999, and 27% with $10,000 or more. 

As of 1992, women-owned businesses in the service 

sectors continued to use the least amount of startup capital. Seventy-three percent (73%) used less 

than $5,000 – with 37% using no capital at all – 

while only 13% used more than $10,000. Womenowned firms in the retail trade sector used the most 

capital – only 18% used none at all, 42% used 

between $1 and $4,999, 7% used between $5,000 

and $9,999, and 27% used more than $10,000. Over 

one-quarter of the women-owned firms in all other 

industries except for construction and services used 

$10,000 or more in start-up capital. Additionally, at 

least 10% of the women-owned firms in industries 

other than construction and services used $50,000 

or more in start-up capital. In 1987 agricultural 

services/forestry/ fishing/mining was the only 

industry with at least 10% of women-owned 

53 Seven percent (7%) of those surveyed in each year did not 

report the amount of capital, if any, used. Among those who 

did report the amount, 62% used capital in 1982 and 67% used 

capital in 1992. 
4-2 

4-2. Share of Capital Borrowed for Business
 

Start-Up Among Women-Owned
 

Businesses: 1992
 8% 

68% 

11% 

13% 

No borrowed capital Less than half 50-99% borrowed 100% borrowed 

Source: Bureau of the Census 

Note: Among those reporting requirement of start-up capital 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

businesses using $50,000 or more in start-up capital. 

(See Table 4-2).

 Of those women who used start-up capital, 68% of 

them did not borrow capital to start or acquire their 

businesses. Eleven percent (11%) borrowed 

between 1% and 49% of the capital used to start 

their businesses, 13% borrowed between 50% and 

99%, and 8% borrowed all of the capital used to 

start the business.

 Capital, Credit and Financing, a 1996 study 

conducted by the National Foundation for Women 

72 

33 

32 

28 

18 

14 

13 

9 

7 

Business Bank Loan 

Other Personal Loan 

Family 

Personal Mortgage/Equity Loan 

Personal Credit Card 

Previous Owner 

Other Business Loan 

Spouse 

Supplier Credit 

0 20 40 60 80 

Percent Using as a Source 

Source: Bureau of the Census, Characteristics of Business Owners: 1992 Economic Census 

Note: Percentaged among those reporting use of start-up capital 

Multiple responses allowed 

4-3. Top Sources of Borrowed Start-Up Capital 

Among Women-Owned Businesses: 1992 
4-3 

_______________________________________ 

_______________________________________ 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

65 

41 

36 

32 

27 

72 

23 20 21 

Business Earnings 

Personal Credit Cards 

Business Credit Cards 

Bank Loans 

Private Sources 

0 

20 

40 

60 

80 

Percent Using As a Source 

1996 1998 

Note: 1996 survey asked "credit cards" only; multiple responses allowed 

Source: Business Financing & Confidence Survey

 ©1998, NFWBO, now Center for Women's Business Research 

4-4. Primary Sources of Financing Among 

Women Business Owners: 1996 - 1998 

Business Owners (NFWBO), now Center for 

Women’s Business Research,54 showed similar 

patterns of borrowing, with 52% of women 

business owners borrowing no money at start up, 

14% borrowing less than half, 18% borrowing 50% 

to 99% and 12% borrowing all of the capital used to 

start the business. The data from this survey is more 

recent than the latest CBO, which is based on the 

1992 economic census. CBO includes both full- and 

part-time women business owners, whereas the 

respondents to the Center’s survey are more likely 

to be full-time business owners. 

Among those women-owned businesses who 

reported requiring start-up capital and borrowing at 

least some of it (15% of women-owned businesses), 

72% acquired it from a commercial lending/bank 

business loan, 32% from a family member, 28% 

from a personal equity loan, 18% from a personal 

credit card, 14% from a previous owner, and 9% 

from a spouse.55 Thirty-three percent (33%) 

reported getting a personal loan from another 

source and 13% reported getting a business loan 

from another source. (See Table 4-3).

 Ongoing Financing 

Most business owners rely on the earnings of their 

business and their own private resources for the 

capital they currently need to operate and grow their 

business. Almost two-thirds (65%) of women 

business owners were reinvesting business earnings 

to foster business growth as of 1998, 56 compared 

with just 38% using business earnings in 1992.57 In 

1998, 41% reported using personal credit cards for 

their current business needs and 36% said they used 

business credit cards. 

As of 1998, women business owners were more 

likely to have bank loans than they were just two 

years earlier. Thirty-two percent (32%) of women 

business owners in 1998 used bank loans to finance 

their businesses, compared with 20% of women 

business owners in 1996. More women in 1998 also 

56 Business Financing & Confidence Survey, 1996 and 1998, as 

reported in Capital, Credit and Financing: An Update. 

Comparing Women and Men Business Owners’ Sources and 

Uses of Capital. (1998). NFWBO, now Center for Women’s 

Business Research. 

57 Capital, Credit and Financing: Comparing Women and Men 

Business Owners’ Sources and Uses of Capital. (1996). 

NFWBO, now Center for Women’s Business Research. 

54 Capital, Credit and Financing: Comparing Women and Men 

Business Owners’ Sources and Uses of Capital. (1996). 

NFWBO, now Center for Women’s Business Research. 

55 Characteristics of Business Owners: 1992 Economic Census. 

(1997). U.S. Department of Commerce, Economics and 

Statistics Administration, Bureau of the Census. 
4-4 

_______________________________________ 

4-5. Available Bank Credit Among Business 

Owners: 1998 

40 

33

Percent With Amount of Bank Credit

25 

22 

20 20 18 

16 

13 

9 9 

7 

0 

Under $10,000 $50,000 - $99,999 $500,000+ 

$10,000 - $49,999 $100,000 - $499,999 

Women-Owned Men-Owned 

Source: Business Financing & Confidence Survey 

©1998, NFWBO, now Center for Women's Business Research 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

used private sources as a means of financing than in 

1996. In 1998, more than one-quarter (27%) of 

women business owners, compared with 21% in 

1996, used private sources to finance their 

business.58 (See Table 4-4).

 The percentage of women business owners seeking 

ongoing business financing is also on the rise. As of 

1998, 33% of women business owners sought 

financing for their business in the prior year, 

compared with 27% of women business owners in 

1996. Virtually the same percentage of men business 

owners sought financing in 1998 as in 1996. Thirtyseven percent (37%) of men business owners said in 

1998 that they sought some form of financing for 

their business within the prior year, compared with 

34% of men surveyed in 1996. 

In 1998, over half (52%) of women-owned 

businesses had some form of bank credit for their 

business – such as a loan or a line of credit – as did 

59% of men business owners. Women-owned firms 

had lower levels of credit than did men-owned 

firms: as of 1998, 46% of women-owned firms had 

less than $50,000 in bank credit, compared with 

34% of men-owned firms, and only 16% of 

women-owned firms have $100,000 or more in 

bank credit, compared with 36% of men-owned 

firms. Still, strides have been made in the amount of 

credit available to women business owners, even in 

the past few years. In 1998, one-third (34%) of 

women business owners who had bank credit had 

$50,000 or more available for use in their business, 

compared with just 20% in 1996. 

Women and men business owners were using their 

bank credit for similar purposes in 1998, which is 

different from survey findings in 1996. In 1998, 

both women and men business owners reported 

using their bank credit primarily for business 

expansion (39% and 42%, respectively). In 1996, 

women reported using their credit primarily for 

expansion capital (41%), while men were using their 

credit equally for both expansion capital (28%) and 

operating expenses (30%). Nineteen percent (19%) 

of women and 12% of men used credit for 

refinancing or reduction of debt in 1998, compared 

with just 4% of women and 7% of men in 1996. 

58 Capital, Credit and Financing: An Update. Comparing 

Women and Men Business Owners’ Sources and Uses of 

Capital. (1998). NFWBO, now Center for Women’s Business 

Research. 
4-5 

_______________________________________ 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Financing and Growth 

A recent survey by NFWBO, now Center for 

Women’s Business Research,59 shows that 

women who own fast-growth business are more 

likely to borrow to meet their needs for business 

capital and use more sources of capital 

than do other women entrepreneurs. Women who 

have achieved fast growth in their businesses 

average 4.2 different sources of capital, compared to 

3.4 sources for other women owners. 

Fifty-six percent (56%) of women owners of fastgrowing firms use business credit cards, compared 

with 40% of other women entrepreneurs. Similarly, 

52% of women owners of fast-growing firms have a 

current line of credit, compared with 37% of other 

women business owners. 

In addition, 32% of women owners who have 

achieved fast growth in their businesses utilize 

personal credit cards and 39% have a current 

commercial bank loan. (See Table 4-5). Forty-three 

percent (43%) of fast-growth women owners are 

planning to seek a commercial bank loan in the 

coming year. 

78 

40 37 

26 

33 30 

85 

56 52 

41 39 

32 

Business Earnings 

Business Credit Cards 

Line of Credit 

Vendor Credit 

Bank Loan 

Personal Credit Cards 

0 

20 

40 

60 

80 

100 

Percent Using As a Source 

Fast-Growth Women Business Owners Other Women Business Owners 

Source: Entrepreneurial Vision in Action: Exploring Growth Among Women- and Men-Owned Firms 

©2001, NFWBO, now Center for Women's Business Research 

4-6. Top Financial Sources to Meet Current 

Capital Needs: Fast-Growth Women 

Business Owners 

59 Entrepreneurial Vision in Action: Exploring Growth Among 

Women- and Men-Owned Firms. (2001). NFWBO, now Center 

for Women’s Business Research. 
4-6 

_______________________________________ 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Table 4-1. Starting Capital Requirements Among Women Business Owners: 1982 - 1992 

Amount of Start-up/Acquisition Capital Used 198260 198761 199262 

None 35.5 32.0 30.8 

$1 to $4,999 36.2 35.0 36.0 

$5,000 to $9,999 7.4 7.6 7.4 

$10,000 to $24,999 7.4 9.1 8.0 

$25,000 to $49,999 3.5 4.4 3.6 

$50,000 to $99,999 2.1 3.0 3.8 

$100,000 to $249,999 1.0 1.4 2.3 

$250,000 to $999,999 

0.4 

0.5 1.0 

$1,000,000 or More 0.2 0.4 

Not Reported 6.7 6.8 6.8 

Note: Dollar amounts reported are nominal dollars, unadjusted for inflation since the time of business start-up or acquisition. 

In 1982, the highest category was $250,000 or more. 

60 1982 Characteristics of Business Owners. (1986). U.S. Department of Commerce, Bureau of the Census.
 61 Characteristics of Business Owners: 1987 Economic Censuses. (1992). U.S. Department of Commerce, Bureau of the Census.
 62 Characteristics of Business Owners: 1992 Economic Census. (1997). U.S. Department of Commerce, Bureau of the Census.
 
4-7 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Table 4-2. Starting Capital Requirements Among Women Business Owners by Industry: 1992 

Industry TOTAL 

Amount of Start-Up Capital 

None 

$1­

$4,999 

$5,000­

$9,999 

$10,000­

$24,999 

$25,000­

$49,999 

$50,000­

$99,999 

$100,000­

$249,999 

$250,000­

$999,999 

$1,000,000 or 

more Not reported 

Total 100% 30.8 36.0 7.4 8.0 3.6 3.8 2.3 1.0 0.4 6.8 

Agriculture, forestry, 

fishing, and mining 100% 24.7 25.8 11.8 10.1 5.1 5.9 3.3 2.0 0.5 10.9 

Construction 100% 24.6 38.3 8.6 9.7 4.4 2.6 2.6 0.8 0.8 7.6 

Manufacturing 100% 19.2 34.7 10.7 14.8 4.4 5.4 3.4 1.3 0.5 5.6 

TCPUa 100% 33.5 20.1 6.1 16.1 9.1 6.1 2.5 1.0 0.2 5.2 

Wholesale trade 100% 23.0 31.3 10.2 11.2 7.3 5.7 3.4 2.5 0.4 5.3 

Retail trade 100% 17.5 41.9 7.4 11.1 4.8 6.2 3.2 1.4 0.1 6.4 

FIREb 100% 26.9 34.1 6.1 7.4 3.1 4.7 5.0 3.0 1.9 8.0 

Services 100% 37.3 36.0 7.3 6.1 2.8 2.6 1.4 0.3 0.1 6.1 

Industries not classified 100% 34.9 31.7 5.1 7.9 2.5 1.7 2.1 0.2 – 13.8 

Source: Characteristics of Business Owners: 1992 Economic Census, Table 21a. (1997). U.S. Department of Commerce, Bureau of the Census. aTCPU = Transportation, Communications and Public Utilities. bFIRE = Finance, Insurance and Real Estate 
4-8 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Table 4-3. Sources of Borrowed Capital Among Women-Owned Businesses Who Used Borrowed Capital to Start 

Their Business: 1992 

Source of Borrowed Capital 

Percent Using as 

a Source 

Business loan from banking or commercial lending institution 71.7 

Other personal loan 33.1 

Personal loan from family 32.4 

Personal loan using home mortgage/equity line of credit 27.7 

Personal credit card 17.6 

Business loan from previous owner 14.2 

Other business loan 12.5 

Personal loan from spouse 8.8 

Business trade credit from supplier 6.7 

Business loan from investment company/profit or nonprofit private source 4.2 

Government-guaranteed business loan from banking or commercial lending 

institution 3.3 

Business loan from Federal, State or local government 1.7 

Source: Characteristics of Business Owners: 1992 Economic Census, Tables 16a and 23a. (1997). U.S. Department of Commerce, 

Bureau of the Census. Percentaged among those who used borrowed capital. 
4-9 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Table 4-4. Primary Sources of Financing Among Women Business Owners: 1996 and 1998 

Source of Financing 1996 1998 

Business Earnings 72% 65% 

Personal Credit Cards 

23 

41 

Business Credit Cards 36 

Bank Loans 20 32 

Private Sources 21 27 

Source: Business Financing & Confidence Survey, 1996 and 1998, as reported in Capital, Credit and Financing: An Update. Comparing 

Women and Men Business Owners’ Sources and Uses of Capital. (1998). NFWBO, now Center for Women’s Business Research. 1996 

survey asked “credit cards” only. Multiple responses allowed. 
4-10 

Chapter 4: Capital and Financing Patterns Among Women-Owned Firm 

Table 4-5. Financial Sources to Meet Current Capital Needs: Fast-Growth Women Business Owners 

Source Women Business Owners 

Fast-Growth Others 

Business earnings 85% 78% 

Business credit cards 56 40 

Line of credit 52 37 

Vendor credit 41 26 

Business/commercial bank loan 39 33 

Personal credit cards 32 30 

Private sources (personal savings, friends, family) 31 29 

Leasing equipment 24 16 

Personal bank loan 18 15 

Selling/pledging accounts receivable 14 18 

Loan guarantee from the SBA or other source 10 5 

Equity investment from angels, individuals 6 2 

Venture capital 5 2 

Equity investment from an SBIC 2 1 

Public issuance of stock 1 3 

Other forms of financing 5 7 

Source: Entrepreneurial Vision in Action: Exploring Growth Among Women- and Men-Owned Firms. (2001). NFWBO, now Center 

for Women’s Business Research. Multiple responses allowed. 
5-1 

_______________________________________ 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

Chapter 5: Equity Capital Investment in Women-Owned Firms
 

As women-owned firms have grown in number 

and maturity, their capital needs have also matured 

and expanded. From 1992 to 1997, while the 

number of women-owned firms grew by 16%, 

employment grew by 28% and revenues grew by 

33%.63 Equity capital may afford many of these 

firms a chance to grow at an even faster rate. 

Despite recent slowing, the equity capital markets 

have been booming in recent years, creating what 

many have called a “torrent” of investment 

dollars. According to the PricewaterhouseCoopers 

Money Tree Survey, $89.8 billion in venture 

capital (VC) was invested in 5,481 deals in 2000, 

90% more than was invested the previous year. 64 

Although the number and dollar value of venture 

capital and other equity investments grew rapidly 

in the late 1990s, only a small share has been 

invested in firms owned or led by women – 5% 

out of the $89.8 billion invested and 6% of 

companies receiving VC funds in 2000. (See Table 

5-1).

 The National Foundation for Women Business 

Owners (NFWBO), now Center for Women’s 

Business Research, conducted a study from 1999 

through 2000 which looked at both sides of the 

equity capital equation – at the women who have 

or who are seeking equity capital and at 

institutional equity investment firms, one of the 

main providers of equity capital. 65 

Nearly three-quarters (73%) of the recipients of 

equity capital say that they received an investment 

from informal investors, such as family members 

and friends. Seventy-three percent (73%) also say 

they received equity capital from individual 

investors, such as angel investors. One-quarter 

(25%) report that corporate investors or corporate 

partners made investments in their businesses and 

15% say they received funding from venture 

5-1. Equity Sources Among Women 

Entrepreneurs 

Informal Investors Corporate Investors 

Individual Investors Venture Capital Firm 

Source: Women Entrepreneurs in the Equity Capital Markets 

©2000, NFWBO, now Center for Women's Business Research 

Percentaged among those with equity capital; multiple responses allowed 

73 73 

25 

15 

0 

20 

40 

60 

80 

Percent Mention as Equity Source 

63 1997 Economic Census: Survey of Women-Owned 64 PricewaterhouseCoopers Money Tree Survey in partnership Business Enterprises. (2001). U.S. Department of Commerce, with VentureOne, 2001. Economics and Statistics Administration, Bureau of the 65 Women Entrepreneurs in the Equity Capital Markets: The Census. New Frontier. (2000). NFWBO, now Center for Women’s 

Business Research. 
5-2. Share of Equity Investment Deals and 

Dollars to Women-Owned Firms 

Share of Deals Share of Dollars 

Source: Women Entrepreneurs in the Equity Capital Markets 

©2000, NFWBO, now Center for Women's Business Research 

9.0% 2.3% 

91.0% 97.7% 

Women-Owned Others 

5-2 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

capital firms. Thus, most of the women (62%) 

have obtained an equity investment from more 

than one source and it has come primarily from 

outside of the institutional equity (venture capital) 

investment markets. (See Table 5-2).

 When asked about the largest source of equity 

investment, 40% of the recipients said that their 

single largest investment was made by an 

individual angel investor. Venture capitalists were 

the largest provider 10% of the time, informal 

investors were the largest provider 8% of the time, 

and corporate investors or partners were the 

largest providers 5% of the time. 

While individual investors are more likely to have 

provided equity capital to women-owned firms, 

those who have raised equity from institutional 

sources have raised more money. Women 

entrepreneurs have raised an average of $11.2 

million dollars from venture capital firms, $7.3 

million from corporate investors or partners, $1.2 

million from individual investors, and $1.0 million 

from informal investors. 

The equity capital markets appear to be a new 

frontier for women entrepreneurs. Sixty-five 

percent (65%) of women entrepreneurs with 

equity capital first acquired it in the period 1996 

through 1999. Twenty percent (20%) received 

their first equity capital investment from 1991 

through 1995, and 15% received theirs from 1981 

through 1990. 

Although women are moving into the equity 

capital markets, their share of this market is still 

quite low. Just 9% of the deals and 2.3% of the 

dollars invested by the firms interviewed in 

NFWBO’s study went to women-owned firms. 

Also, only 6% of the women interviewed – 

women who were selected by virtue of region, 

industry and growth rates to be prime candidates 

for equity – had obtained equity capital, and 

another 5% were seeking it. This leaves quite a 

large number of women business owners who 

perhaps should be considering equity capital but 

are not currently seeking it. As mentioned, most 

of the equity investments obtained by the women 

business owners interviewed came from individual 

angel investors, rather than from institutional 

equity capital sources. 

Most institutional investors interviewed said they 

had considered investing in women-owned firms 

in the prior three years (72%), and a sizeable 

number (45%) said they had, in fact, made an 

investment. In the year just prior to the survey, 

64% said they had considered investing in a 

woman-owned firm, and 38% had made an 

investment. 
5-3 

5-4. Comparison of Business Age: Women 

Business Owners With and Without 

Equity Capital 

Percent With Amount of Bank Credit

80 

58 60 

49 

40 37 

27 24 21 20 20 20 15 15 12 

3 

0 

Less than 5 years old 5-9 years 10-19 years 20+ years 

Age of Business 

Have Equity Seeking Equity Not Seeking Equity 

Source: Business Financing & Confidence Survey 

©1998, NFWBO, now Center for Women's Business Research 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

5-3. Amount of Equity Sought by 

Women Business Owners 

46 

6 

12 

15 

18 

3 

0 

20 

40 

60 

Percent 

Under $250,000 $500,000-$999,999 Over $3 million 

$250,000-$499,999 $1 to 3 million Refused/NA 

Source: Women Entrepreneurs in the Equity Capital Markets 

©2000, NFWBO, now Center for Women's Business Research 

 Nonetheless, women investors seem more likely years, compared with 70% of the men investors. 

to make deals with women-owned firms. Eighty- Sixty-seven percent (67%) of the women investors 

six percent (86%) of the women investors said that they had, in fact, made an investment in a 

interviewed said that they had considered woman-owned company in the past three years, 

investing in women-owned firms in the past three compared with only 40% of the men investors. 
5-4 

_______________________________________ 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

Although the sample size is small,66 this may point 

out that increased diversity on the investor side 

could lead to increased diversity in the 

investments made.

 Personal and Business Characteristics 

Women with equity capital reflect a new class of 

entrepreneur. They own businesses that are newer 

than those of their counterparts. They are younger 

and more highly educated than other women 

business owners, and they bring more 

management experience to the table. 

Nearly six in ten (58%) women entrepreneurs with 

equity capital own businesses that are less than 

five years old. In comparison, half (49%) of 

women business owners who have sought equity 

financing unsuccessfully and only one in five 

(21%) who have never sought equity capital own 

businesses under five years old. (See Table 5-3). 

66 There were 7 completed interviews with female 

institutional investors and 43 completed interviews with male 

institutional investors for the Women Entrepreneurs in the 

Equity Capital Markets study. 

Fifty-five percent (55%) of the recipients of equity 

capital are under 45 years old, while only 42% of 

those seeking equity capital and just over onethird (36%) of those who have never sought it are 

under 45. 

Half (51%) of the recipients have earned a 

master’s degree or higher, compared with 42% of 

the seekers, and 19% of the non-seekers. 

Women business owners with equity capital are 

also more likely to have had senior 

management positions prior to owning their 

businesses. Over half (53%) of them held senior 

management or executive positions just before 

becoming owners, compared with one-third (33%) 

of the seekers and 21% of the non-seekers. 
5-5 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

Table 5-1. Venture Capital-Backed Companies with Women in Top Management 

Companies with Women 

CEOs 

Companies with Women in 

Managementa 

Companies with Women 

Founders 

Year of Funding 

% of 

VC-Backed 

Companies 

% of Total 

Amount 

Raised by VCBacked 

Companies 

% of 

VC-Backed 

Companies 

% of Total 

Amount 

Raised by VCBacked 

Companies 

% of VCBacked 

Companies 

% of Total 

Amount 

Raised by VCBacked 

Companies 

1st Half 2001 5.1 3.3 38.9 41.9 8.5 7.8 

2000 5.5 4.9 43.0 52.1 7.4 6.9 

1999 5.1 5.3 47.0 54.8 6.4 5.6 

1998 4.7 3.8 42.1 49.2 5.7 4.5 

1997 4.1 4.0 37.1 39.2 3.6 2.8 

Source: Proprietary research conducted by VentureOne.
 a % of VC-Backed Companies with women in management indicates the percentage of companies with at least one woman in top
 

management. It is not an indication of the total number of women in management in venture-backed companies.
 
5-6 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

Table 5-2. Sources of Equity Investment in Women-Owned Firms 

Equity Source Total 

Age of Business 

Under 5 5+ Years 

Informal Investors 73% 78% 65% 

Individual Investors 73 74 71 

Corporate Investor/Partner 25 26 24 

Venture Capital Firms 15 17 12 

Source: Women Entrepreneurs in the Equity Capital Markets. (2000). NFWBO, now Center for Women’s Business Research. 
5-7 

Chapter 5: Equity Capital Investment in Women-Owned Firm 

Table 5-3. Age of Women-Owned Firms that Have or Are Seeking Equity 

Years in Business Have Equity Seeking/Sought Equity Never Sought Equity 

Less than 5 years 58% 49% 21% 

5 to 9 years 20 24 27 

10 to 19 years 20 12 37 

20 years + 3 15 15 

Source: Women Entrepreneurs in the Equity Capital Markets. (2000). NFWBO, now Center for Women’s Business Research. 
6-1 

_______________________________________ 

Chapter 6: Women-Owned Firms in Federal Procurement 

Chapter 6: Women-Owned Firms in Federal Procurement
 

The Federal government awarded $171 billion in 

prime contracts and slightly less than $72 billion in 

subcontracts in fiscal year (FY) 1997.67 While that 

amount has continued declining in recent years, 

Federal procurement continues to offer many small 

businesses, including women-owned businesses, 

access to a vast market. 

Small Business’ Share of Federal 

Procurement 

In fiscal year 1997, the small business share of 

Federal procurement prime contract dollars was 

25%, or $43 billion dollars and the share of 

subcontracts was 41%, an additional $29 billion. 

Small business’ share of Federal contract actions 

over $25,000 (which are counted separately and for 

which more detailed reporting is used) was 19%, or 

$33 billion of the $178 billion total. This share grew 

steadily during the last decade. 

 Women-Owned Business’ Share of Federal 

Procurement 

The Federal Acquisition Streamlining Act of 1994 

(FASA) has benefited women-owned businesses by 

requiring no less than a 5% government-wide 

procurement goal for women-owned small 

businesses.68 Women-owned small businesses have 

been specifically incorporated into the procurement 

preference goaling process and have been added as 

a class for subcontract goals. 

Since fiscal year 1996, when the 5% goal became 

effective, Federal contracting with women-owned 

small businesses has increased more than 4 times as 

fast as Federal contracting with all private 

businesses. However, the share of prime contracts 

did not show an upward trend from FY 1996 

through FY 1999 and the share of subcontracts 

showed only a modest upward trend.69 Furthermore, 

the 5% goal has never been reached on a 

government-wide basis. 

0.8 0.8 0.4 0.4 0.5 0.6 0.7 0.7 0.8 0.8 0.9 0.9 1.1 1.1 1.3 1.6 1.7 1.7 

15.2 15.6 15.5 

14.2 15.2 14.2 

15.7 15.4 14.8 14.1 14.8 15.2 15.9 15.7 16.3 

17.6 17.9 18.6 

1980 

1981 

1982 

1983 

1984 

1985 

1986 

1987 

1988 

1989 

1990 

1991 

1992 

1993 

1994 

1995 

1996 

1997 

Fiscal Year 

0.0 

5.0 

10.0 

15.0 

20.0 

Percent Share 

All Small Business Women-Owned Business 

Source: SBA, Office of Advocacy 

Note: Contract actions reported individually are those over $25,000 

6-1. Share of Federal Contract Actions 

Reported Individually: 1980 - 1997 

68 The Annual Report on Federal Procurement Preference 

Goals. U.S. Small Business Administration, Office of _______________________________________ Government Contracting and Minority Enterprise 

Development. 67 Unpublished data, U.S. Small Business Administration, 

Office of Government Contracting, as reported in The State of 

Small Business: A Report of the President 1998. (1999). 
6-2 

Chapter 6: Women-Owned Firms in Federal Procurement 

4,591 

2,304 

399 

352 

215 

181 

Total Dollars Awarded 

Defense 

Energy 

GSA 

Department of Veterans Affairs 

NASA 

0 1,000 2,000 3,000 4,000 5,000 

Amount of Awards ($Millions) 

Source: U.S. General Accounting Office 

6-2. Agencies Awarding the Most Contract 

Dollars to Women-Owned Businesses: FY 1999 

Women-owned firms’ share of Federal prime 

contracts was 2.1%, or $3.63 billion, in fiscal year 

1997, well short of the 5% goal. (See Table 6-1). 

Their share of Federal subcontracts was 4.1%, or 

$2.92 billion in FY 1997. 

Women-owned firms’ share of Federal contract 

actions over $25,000 was 1.7% in FY 1997, or $2.97 

billion. (See Table 6-2). As with small businesses 

overall, this share, while still small, has grown 

steadily over the past decade. 

 Agency Awards to Women-Owned Firms 

The Department of Defense is the single greatest 

source of contract dollars awarded to womenowned firms. It reported awarding $2.3 billion to 

women-owned firms in FY 1999, or 2% of the 

agency’s total dollars awarded. This was 50% of the 

total value of prime contract awards to womenowned firms. The Department of Energy ($399 

million), the General Services Administration (GSA) 

($352 million), the Department of Veterans Affairs 

($215 million) and the National Aeronautics and 

Space Administration (NASA) ($181 million) are the 

other top agencies in terms of dollars awarded to 

women-owned firms. 

69 Report to Congressional Committees: Federal Procurement: 

Trends and Challenges in Contracting with Women-Owned 

Small Businesses. (2001). U.S. General Accounting Office. 

The agencies with the highest share of contract 

dollars awarded to women-owned firms in 1999 are 

Housing and Urban Development (HUD) (15%), 

State (8%), Veterans Affairs (6%), and Commerce 

(5%). These are the only agencies to have awarded 

5% or more of prime contracts to women-owned 

firms. (See Table 6-3). 

In FY 1999, seven agencies met or exceeded their 

procurement goals to women: HUD (goal, 5%; 

actual, 15%), State (5%, 8%), Veterans Affairs (5%, 

6%), Commerce (5%, 5%), Justice (3%, 3%), 

Energy (3%, 3%) and NASA (1%, 2%). The 

remaining thirteen agencies fell short of their 

procurement goals for women-owned firms. Only 

the Department of Veterans Affairs has exceeded 

their procurement goals for women-owned firms in 

fiscal years 1996 through 1999. The Department of 

State and NASA met or exceeded their womenowned procurement goals in three of the four 

specified years. 

Report of Women-Owned Firms in Federal 

Procurement 

In its 1998 annual report to Congress, the National 

Women’s Business Council (NWBC) reported on a 

statistical study it had undertaken concerning 

woman-owned firms in Federal contracting. The 

NWBC obtained detailed information on many of 
6-3 

_______________________________________ 

_______________________________________ 

Chapter 6: Women-Owned Firms in Federal Procurement 

2.5 

15.0 

8.3 

5.6 

5.3 

4.8 

Government-Wide Share Awarded 

HUD 

State 

Veterans Affairs 

Commerce 

GSA 

0.0 5.0 10.0 15.0 

Percent Share 

Source: U.S. General Accounting Office 

6-3. Agencies Awarding the Largest Share of 

Contract Dollars to Women-Owned Businesses: 

FY 1999 

the individual contract actions performed by 

women-owned firms in FY1997, including the 

amount of awards, the industry category of the 

awards, and the location of the business. This 

information was summarized in a database provided 

to the NWBC by Eagle Eye Publishers. The 

National Foundation for Women Business Owners 

(NFWBO), now Center for Women’s Business 

Research, conducted a study for NWBC on the 

information contained in this database, including: a 

review of the characteristics of women-owned firms 

involved in Federal procurement and a comparison 

of these firms to all women-owned firms in the 

United States; a qualitative study among a select 

number of women business owners contained in the 

database; and a quantitative nationwide survey 

among the women business owners in the 

database.70 

Characteristics of Women-Owned Firms in 

Federal Procurement 

Women-owned firms that were involved in Federal 

procurement in FY1997 had a similar age profile as 

all women-owned firms in the U.S., but were 

70 Women-Owned Firms in Federal Procurement: A Summary 

Report. (2000). NFWBO, now Center for Women’s Business 

Research. 

substantially larger in terms of their number of 

employees and annual revenues. 

One in five (20%) women-owned Federal 

contractors in FY1997 had been in business for 20 

years or more, as had 19% of all women-owned 

firms.71 In terms of size, women-owned Federal 

contractors tended to own much more substantial 

enterprises than the typical women-owned firm in 

the U.S. The average number of employees in 

women-owned Federal contractor firms was 52.2, 

compared with 2.3 among all women-owned firms 

in the U.S. The median annual revenue of womenowned Federal contractors was $5.3 million, 

compared with just under $300,000 for all womenowned businesses. 

In FY1997, the largest Federal contract awards went 

to women-owned firms in the retail trade and nondurable manufacturing industries. Two-thirds of all 

Federal awards in FY1997 were made in the areas of 

durable manufactured goods, 

engineering/management services, and 

construction. As might be expected women Federal 

71 Data on business characteristics among all women-owned 

businesses in the U.S. is derived from a nationally 

representative survey which was conducted by NFWBO, now 

Center for Women’s Business Research, in the summer of 1998 

among 800 women business owners. 
6-4 

_______________________________________ 

6-4. Annual Revenues of Woman-Owned Federal 

Contractors, All Women-Owned Firms 

50 

Percent 

40 

30 

20 

10 

0 

© 1999, NFWBO, now Center for Women's Business Research 

<$25K $50-99.9K $250-499.9K $1,000,000+ 

$25-49.9K $100-249.9K $500-999.9K 

Annual Revenues 

Source: Women-Owned Firms in Federal Procurement: A Comparative Analysis 

21 

14 

17 15 

8 6 6 

0 

3 

6 

12 11 13 

45 

Chapter 6: Women-Owned Firms in Federal Procurement 

contract holders in FY1997 were more likely to be 

in these industries than women-owned firms in the 

general population. 

The women business owners interviewed for the 

national survey became involved in the Federal 

procurement process proactively and early on in 

their business development. Almost three-quarters 

(72%) of the women who started their businesses 

themselves had their first Federal contract within 

three years. For the businesses that were not 

founded by the women business owners 

interviewed, almost half (45%) were already 

involved in Federal procurement when they became 

the owner, and an additional 38% received their 

first Federal contract within three years of acquiring 

the business. 

The women business owners interviewed received 

an average of just under half of their 1999 revenues 

from the Federal government. This percentage was 

up from an average of approximately 40% ten years 

ago, but remained the same for the most recent five 

years. Firms that were prime contractors had 

contracts with an average of 1.8 Federal agencies; 

firms that had subcontracts had them with an 

average of 1.2 Federal agencies. 

When comparing the distribution of women-owned 

Federal contractors with the distribution of all 

women-owned businesses in the U.S., the following 

states were more likely to be home to womenowned Federal contractors:72 District of Columbia, 

Maryland, Virginia, Alaska, and Wyoming. 

Conversely, these states were under-represented in 

terms of the share of women-owned Federal 

contractors compared with the distribution of all 

women-owned firms: Indiana, Maine, Michigan, 

Nebraska, and Vermont. (See Tables 6-4 and 6-5). 

Contract dollars were flowing in a geographically 

disproportionate manner as well. Women-owned 

Federal contractors in the following states were 

awarded, on average, over $1 million per firm in 

fiscal year 1997, well above the $700,000 average 

contract award: Pennsylvania, Maryland, Alabama, 

Oklahoma, District of Columbia, Texas, and 

Virginia. The states with the lowest awards, 

receiving less than $250,000, were: Vermont, Iowa, 

Rhode Island, Arkansas, Maine, West Virginia, and 

Washington. 

There was a difference between women business 

owners who resided inside and outside of the 

Washington, DC area in both the use and evaluation 

of procurement-related Federal government 

72 It is important to note that the geographic distribution of 

Federal contractors refers to their headquarters’ locations, not 

the states in which they won awards or performed services. 
6-5 

Chapter 6: Women-Owned Firms in Federal Procurement 

6-5. Comparing the Distribution of All 

Women-Owned Firms and Women-Owned 

Prime Contractors 

Source: Women-Owned Firms in Federal Procurement: A Comparative Analysis 

© 1999, NFWBO, now Center for Women's Business Research 

District of Columbia ���� ������� ��

��� ��� ��� �����

�������

���� ���� ����

����

�

More contractors 

than average 

Fewer contractors 

than average 

Proportionally 

representative 

programs. Women with businesses geographically 

close to Washington, DC were more likely to use a 

greater number of the programs than women 

outside the area, suggesting that there would be a 

benefit in educating potential contractors and 

promoting these programs outside of the 

Washington, DC area. 

Challenges and Trends of Women-Owned 

Firms in Federal Procurement 

Competition was cited as the most important 

challenge facing women Federal contractors, and a 

majority of the contracts the women business 

owners received came through full and open 

competition. This may be the reason why a large 

majority of the women favored having women 

designated as a “presumed group” in the 

procurement process: presumed group status would 

effectively give them more of a competitive edge. 

Other challenges cited included managing 

relationships with procurement officials, keeping up 

with regulatory law changes, getting contracts, and 

getting paid on time. 

The most significant obstacles these women 

encountered when first becoming involved in 

Federal contracting were dealing with the 

paperwork, understanding the process, and 

complying with requirements. 

Women contractors view some recent trends in 

Federal procurement favorably, such as the 

electronic posting of bids and more prompt Federal 

payments (50% view each of these trends 

positively). There were also trends that were viewed 

negatively, such as the reduction in the number of 

contracting officers (COs) (45% view negatively) 

and the bundling of procurements (30% view 

negatively). 

Perhaps in response to the trend toward bundling, 

some women business owners (36%) had 

participated in joint ventures, that is, they teamed 

up with other businesses to jointly bid on a Federal 

procurement opportunity. 

The women business owners interviewed were most 

likely to use the DOD’s Central Contractor 

Registration System (58% used), perhaps because 

the majority of their contracts come from the 

Department of Defense. They also used or 

participated in online bid posting or matching 

systems (40%), procurement fairs or seminars 

(38%), and Electronic Commerce Resource Centers 

(35%). 
6-6 

 

6-6. Impact of Electronic Bids Is Positive, 

Bundling Is Negative 

What is the impact of these procurement trends on your business today? 

Electronic posting of bids 

Prompt Federal payments 

Prompt payments as subcontractor 

Decentralization of purchases 

Certification requirements 

Reduced number of COs 

Bundling of procurements 

17 

29 

17 

21 

25 

45 

30 

50 

50 

25 

21 

21 

18 

12 

0 10 20 30 40 50 60 

Percent 

Positive Negative 

Women-Owned Firms in Federal Procurement 

©2000, NFWBO, now Center for Women's Business Research 

Chapter 6: Women-Owned Firms in Federal Procurement 

 The two programs that were judged by their users 

to be the most helpful were also the two leastutilized programs. They were the GSA SmartPay or 

other credit card for receiving agency payment (used 

by 18% of the women, rated as helpful by 90% of 

its users), and the mentor-protégée program (used 

by 5%, rated as helpful by 88% of its users). 

By and large, the women business owners 

interviewed were satisfied with the Federal 

procurement process. Fully 90% of all the women 

interviewed planned to continue doing business 

with the Federal government, and of these, more 

than half expected to expand their businesses(54%). 
6-7 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-1. Women-Owned Small Business Share of Federal Prime Contracts: Performance by Major Federal 

Agencies, FY 1997 (Millions of Dollars) 

Agency Projections Actual Awards 

Total Dollars 

WOSB Prime 

Contracts 

Total Dollars 

WOSB Prime 

Contracts 

$ % $ % 

Total $170,916.0 $7,869.5 4.6% $171,418.1 $3,634.7 2.1% 

Agriculture 2,599.0 130.0 5.0 3,268.6 80.9 2.5 

Commerce 772.4 61.8 8.0 812.6 46.3 5.7 

Defense 112,695.0 5,634.8 5.0 106,905.0 1,845.0 1.7 

Education 465.0 23.3 5.0 591.6 7.2 1.2 

Energy 15,000.0 450.0 3.0 15,160.3 320.9 2.1 

Health and Human Services 3,016.6 149.0 5.0 3,258.8 151.1 5.0 

Housing and Urban Development 769.6 46.2 6.0 374.7 6.2 1.7 

Interior 877.6 42.1 4.8 1,112.4 53.8 4.8 

Justice 2,050.0 102.5 5.0 2,456.6 47.8 2.0 

Labor 883.8 52.0 5.9 1,017.1 14.9 1.5 

State 630.0 31.5 5.0 559.0 43.8 8.0 

Transportation 1,690.3 84.5 5.0 1,517.6 60.4 4.0 

Treasury 1,103.6 55.2 5.0 1,248.3 83.0 6.7 

Veterans Affairs 2,500.0 87.5 3.5 4,122.9 253.5 6.1 

Environmental Protection Agency 1,200.0 36.0 3.5 914.1 20.0 2.2 

General Services Administration 

(Federal Supply Schedules) 4,890.5 307.3 7.0 6,771.7 150.8 2.2 

General Services Administration 

(Non-Federal Supply Schedules) 6,414.2 321.6 5.0 7,061.2 175.9 2.5 

National Aeronautics and Space 

Administration 9,400.0 132.0 1.4 9,605.0 157.7 1.6 

Social Security Administration 383.5 19.2 5.0 188.2 9.8 5.2 

Tennessee Valley Authority 2,180.6 41.2 1.9 2,717.0 39.9 1.5 

U.S. Agency for International 

Development 455.6 22.7 5.0 743.3 22.2 3.0 

All Other Agencies 938.7 39.1 4.3 1,012.1 43.6 4.3 

Source: Unpublished data, as reported in The State of Small Business: A Report of the President 1998, Table 11. U.S. Small Business 

Administration, Office of Government Contracting. Dollar or percentage figures may vary slightly because of rounding or necessary 

corrections of figures submitted. Where no figures are shown, the agency either did not set a goal in this category or did not submit an 

achievement report, or both. 
6-8 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-2. Annual Change in the Dollar Volume of Federal Contract Actions over $25,000 Awarded to WomenOwned Businesses Relative to the Total Amount of Such Awards: FY 1980 – FY 1997 (Thousands of Dollars) 

Year 

Value of All Contract 

Awards Over $25,000 

($000) 

Value of Awards to 

Women-Owned 

Businesses ($000) 

Percent of Contract $ 

Awarded to WomenOwned Businesses 

Percent Change in 

Awards to WomenOwned Businesses from 

Prior Year 

1997 178,068,039 2,968,462 1.67 8.4 

1996 178,607,943 2,737,889 1.53 -2.9 

1995 180,851,975 2,820,248 1.56 22.0 

1994 174,687,951 2,311,548 1.32 12.8 

1993 178,336,979 2,048,720 1.15 2.8 

1992 177,786,381 1,992,565 1.12 12.9 

1991 189,602,220 1,765,166 0.93 19.4 

1990 171,300,890 1,477,894 0.86 5.3 

1989 168,694,981 1,402,939 0.83 5.7 

1988 174,097,585 1,327,724 0.76 6.0 

1987 181,538,592 1,252,885 0.69 4.7 

1986 183,650,227 1,196,851 0.65 9.4 

1985 187,985,466 1,094,208 0.58 27.8 

1984 167,933,486 856,131 0.51 40.0 

1983 155,588,106 611,376 0.39 11.0 

1982 152,397,884 550,601 0.36 -49.3 

1981 128,864,744 1,085,373 0.84 37.8 

1980 100,893,385 787,529 0.78 -

Source: “Special Report S89522C”. (1989). Federal Procurement Data System, prepared for the U.S. Small Business Administration, 

Office of Advocacy and idem, Federal Procurement Report. (July 10, 1990, March 13, 1991, February 3, 1994, and January 13, 1997), 

as reported in The State of Small Business: A Report of the President 1998. 
6-9 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-3. Federal Agencies’ Goals and Percentages of Contracts Annually Awarded to Women-Owned Small Businesses: FY 1996 – FY 1999 

Federal Agency 

FY 1999 FY 1998 FY 1997 FY 1996 

Goal Actual Goal Actual Goal Actual Goal Actual 

Department of Agriculture 5.0 3.8 5.0 3.1 5.0 2.5 3.5 2.8 

Department of Commerce 5.0 5.3 8.0 5.0 8.0 5.7 7.0 7.6 

Department of Defense 5.0 1.9 5.0 1.8 5.0 1.7 5.0 1.8 

Department of Education 5.0 0.9 4.0 1.2 5.0 1.2 5.0 1.8 

Department of Energy 2.6 2.6 3.0 2.9 3.0 2.1 3.1 2.7 

Department of Health and Human 

Services 4.6 3.3 5.3 3.4 5.0 5.0 5.0 5.6 

Department of Housing and Urban 

Development 5.0 15.0 5.0 2.5 6.0 1.7 8.8 10.3 

Department of the Interior 4.7 4.5 5.1 4.1 4.8 4.8 4.5 5.1 

Department of Justice 3.0 3.3 3.0 2.9 5.0 2.0 5.0 2.6 

Department of Labor 5.5 3.1 5.6 1.4 5.9 1.5 5.5 2.0 

Department of State 5.0 8.3 5.0 6.0 5.0 8.0 5.1 5.0 

Department of Transportation 5.0 4.1 5.0 3.7 5.0 4.0 5.0 2.4 

Department of the Treasury 5.0 4.7 5.0 3.7 5.0 6.7 5.0 5.2 

Department of Veterans Affairs 5.0 5.6 4.0 5.4 3.5 6.1 4.0 5.8 

Environmental Protection Agency 5.0 3.0 3.5 2.6 3.5 2.2 2.5 2.1 

General Services Administration 5.0 4.8 5.0 3.3 5.0 2.5 5.0 3.3 

National Aeronautics and Space 

Administration 1.4 1.6 1.3 1.4 1.4 1.6 2.0 1.6 
6-10 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-3. Federal Agencies’ Goals and Percentages of Contracts Annually Awarded to Women-Owned Small Businesses: FY 1996 – FY 1999 

Federal Agency 

FY 1999 FY 1998 FY 1997 FY 1996 

Goal Actual Goal Actual Goal Actual Goal Actual 

Social Security Administration 5.0 3.8 5.0 4.4 5.0 5.2 5.0 2.4 

Tennessee Valley Authority 3.5 1.6 1.9 1.0 1.9 1.5 1.8 1.6 

U.S. Agency for International 

Development 5.0 4.4 5.0 4.5 5.0 3.0 5.0 3.7 

Source: Federal Procurement: Trends and Challenges in Contracting with Women-Owned Small Businesses. (2001). Small Business Administration, as reported in Report to 

Congressional Committees. U.S. General Accounting Office. 
6-11 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-4. Index of State Share of Women-Owned Contracts to State Share of Distribution of Women-Owned 

Businesses 

State 

State Share of Women-Owned 

Firms Receiving Prime Federal 

Contracts 

State Share of WomenOwned Businesses 

Index: Share of WomenOwned Firms Receiving 

Contracts to Presence of 

Women-Owned Firms 

Alabama 2.27% 1.23% 184 

Alaska 1.06% 0.32% 327 

Arizona 1.50% 1.63% 92 

Arkansas 0.85% 0.85% 100 

California 13.39% 13.61% 98 

Colorado 2.31% 2.02% 115 

Connecticut 0.90% 1.30% 69 

Delaware 0.15% 0.26% 56 

District of Columbia 1.94% 0.24% 809 

Florida 6.06% 6.25% 97 

Georgia 2.81% 2.56% 110 

Hawaii 1.04% 0.50% 210 

Idaho 1.04% 0.53% 196 

Illinois 2.81% 4.23% 66 

Indiana 0.81% 2.10% 39 

Iowa 0.65% 1.16% 55 

Kansas 1.02% 1.05% 97 

Kentucky 0.94% 1.24% 75 

Louisiana 1.12% 1.28% 88 

Maine 0.23% 0.61% 38 

Maryland 7.45% 2.10% 354 

Massachusetts 2.08% 2.42% 86 

Michigan 1.21% 3.31% 37 

Minnesota 1.12% 2.09% 54 

Mississippi 0.90% 0.69% 130 

Missouri 1.37% 1.94% 71 
6-12 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-4. Index of State Share of Women-Owned Contracts to State Share of Distribution of Women-Owned 

Businesses 

State 

State Share of Women-Owned 

Firms Receiving Prime Federal 

Contracts 

State Share of WomenOwned Businesses 

Index: Share of WomenOwned Firms Receiving 

Contracts to Presence of 

Women-Owned Firms 

Montana 0.77% 0.43% 180 

Nebraska 0.15% 0.72% 20 

Nevada 0.58% 0.59% 98 

New Hampshire 0.46% 0.53% 87 

New Jersey 2.54% 2.77% 92 

New Mexico 1.33% 0.72% 184 

New York 3.52% 6.63% 53 

North Carolina 2.19% 2.49% 88 

North Dakota 0.21% 0.24% 87 

Ohio 2.58% 3.85% 67 

Oklahoma 1.35% 1.34% 101 

Oregon 2.10% 1.52% 138 

Pennsylvania 2.58% 3.77% 68 

Rhode Island 0.42% 0.37% 113 

South Carolina 0.96% 1.13% 85 

South Dakota 0.40% 0.30% 131 

Tennessee 1.64% 1.75% 94 

Texas 6.10% 6.94% 88 

Utah 0.83% 0.80% 104 

Vermont 0.06% 0.37% 17 

Virginia 7.93% 2.38% 334 

Washington 2.50% 2.37% 105 

West Virginia 0.44% 0.51% 86 

Wisconsin 0.79% 1.69% 47 

Wyoming 0.54% 0.24% 224 

Source: Women-Owned Firms in Federal Procurement: A Comparative Analysis. (1999). NFWBO, now Center for Women’s 

Business Research, and the National Women’s Business Council. 
6-13 

Chapter 6: Women-Owned Firms in Federal Procurement 

Table 6-5. States With The Highest/Lowest Index: Share of Women-Owned Prime Federal Contracts to 

Distribution of Women-Owned Businesses: 1997 

State Index 

The Top Five 

District of Columbia 

Maryland 

Virginia 

Alaska 

Wyoming 

809 

354 

334 

327 

224 

The Bottom Five 

Indiana 

Maine 

Michigan 

Nebraska 

Vermont 

39 

38 

37 

20 

17 

Source: Women-Owned Firms in Federal Procurement: A Comparative Analysis. (1999). NFWBO, now Center for Women’s Business 

Research, and the National Women’s Business Council. 
7-1 

_______________________________________ 

_______________________________________ 

Chapter 7: Women-Owned Firms in International Trade 

Chapter 7: Women-Owned Firms in International Trade
 

Firms with fewer than 500 employees represented 

96% of exporters of goods and services contributed 

to almost 30% of the value of exported goods in 

1992. Overall, however, only 1.8% of all firms 

(excluding C corporations) exported goods or 

services.73 

Among U.S. women-owned firms in 1992, 1.2% 

exported goods or services, and for 30% of those 

that exported, exports represented 50% or more of 

total sales. In comparison, 2.2% of firms owned by 

men were exporters; for 22% of men-owned firms 

that exported, exports represented 50% or more of 

total sales. Among the firms that exported, exports 

accounted for 10% or more of total sales in 50% of 

women-owned firms and 39% of men-owned firms. 

Thus, women-owned firms were less likely than 

men-owned firms to export, but women-owned 

firms’ exporting activities were more intensive. (See 

Table 7-1). 

A more recent study published in 1995 by the 

National Foundation for Women Business Owners 

(NFWBO), now Center for Women’s Business 

Research, also examined the number and 

characteristics of women-owned businesses 

involved in international trade.74 This study showed 

that women-owned firms are just as likely to be 

involved in international trade as other firms. In 

1987, when 7% of U.S. firms were involved in the 

export of manufactured products, so were 7% of 

the women-owned firms in the U.S. By 1992, 10% 

of women-owned firms were involved in exporting, 

and 13% of women-owned firms were involved in 

international trade, either exporting or importing 

goods and services. 

Women-owned businesses involved in international 

trade have a higher growth path than womenowned firms not in the global marketplace. A larger 

share of women business owners involved in 

international trade developed a new product or 

73 Exporting by Small Firms. (1998). U.S. SBA Office of 

Advocacy. 

74 Going Global: Women-Owned Businesses in the 

International Marketplace. (1995). NFWBO, now Center for 

Women’s Business Research. Respondents were members of 

the National Association of Women Business Owners. 

service line during 1992 and expanded into new 

U.S. markets during the year. 

While access to capital is an important issue for all 

women-owned businesses, it is a greater challenge 

for those involved in international trade. Nearly 4 in 

10 women business owners in general (39%) say 

that access to capital is a barrier to their business 

growth, while nearly half (46%) of women business 

owners in the global marketplace cite access to 

capital as a serious barrier to business growth. 

A 1998 analysis of a number of research studies 

conducted by NFWBO, now Center for Women’s 

Business Research, in five countries compares the 

demographic characteristics, attitudes and behavior 

of business owners who are involved in 

international trade and those who are not.75 The 

analysis found that while women entrepreneurs who 

are involved in international trade are more likely 

than average to be in a goods-producing or 

wholesale/retail trade, there are a good number of 

service-based women business owners who are 

involved in the global marketplace. 

These internationally-focused businesses are more 

growth-oriented than their domestically-focused 

counterparts. Between two-thirds and three-quarters 

of the women who own firms involved in 

international trade say that their primary business 

goal is expansion, compared with one-half to twothirds of those not involved in international trade. 

Revenues are also significantly higher among those 

women entrepreneurs involved in international 

trade. The share of firms that had revenues in 

excess of $500,000 (US dollars) in 1997 is from onethird to 11 times higher among those women 

involved in international trade than those owned by 

women who are not involved. (See Table 7-2). 

Firms that do business internationally are not more 

established in terms of business age. Thus, the myth 

that a firm must first establish itself domestically 

before taking the plunge into international markets 

no longer holds true. The average number of years 

in business for a firm that is involved in 

75 “International Trade Opens New Doors for Women 

Entrepreneurs”. Economic Reform Today (1999). Weeks, J. 
7-2

_______________________________________ 

Chapter 7: Women-Owned Firms in International Trade 

39 

46 

38 

Total Involved in IT Not Involved in IT 

0 

20 

40 

60 

% Citing As Barrier to Growth 

Source: Going Global: Women-Owned Businesses in the International Marketplace 

©1995, NFWBO, now Center for Women's Business Research 

IT= International Trade 

7-1. Access to Capital As Barrier to Growth in 

International Trade 

international trade is not significantly different from 

the average age of domestic firms.

 A recent study on American women business 

owners and international trade funded by the U.S. 

Small Business Administration supports the finding 

that exporting is profitable for women-owned firms 

and is associated with successful women-owned 

firms.76 More than 50% of the women exporters 

surveyed have annual sales over $1 million and 

almost 15% have annual sales over $5 million. 

Nearly half of the women who provided 

information about the profitability of exporting 

reported that exporting was profitable for their firm 

on the first transaction and more than 93% reported 

profitability on the first or second transaction. 

Over 42% of the women reported that they chose 

to export in order to increase sales and 26% 

indicated that they exported because their 

established customers and buyers requested that 

they do so. Exporting is also viewed by these 

women as a means of countering competition 

(11%), as a response to losing domestic market 

share (7%) and as a means of connecting with 

countries with which they have heritage ties (5%). 

76 A Snapshot of Selected U.S. Women-Owned Exporting 

Firms (1999). U.S. Small Business Administration. 

In addition, the SBA survey found that one-third 

(33%) of firms reported that they first exported in 

the first or second year of operations, supporting 

NFWBO’s finding that firms need not be 

established domestically to participate 

internationally. 

Almost half (47%) of the women reported that 

Canada was one of the first countries to which they 

exported. 

More than half (54%) of the respondents said that 

they rely on their direct business partners for export 

advice. Twenty-eight percent (28%) obtain export 

advice from their customers and clients, 13% from 

suppliers and 13% from their agents or distributors. 

Two-thirds (68%) of the exporting women surveyed 

tended to rely on internal, rather than external, 

sources of capital. Nearly half (45%) of the 

respondents used retained earnings, 19% used 

personal sources of capital and 4% relied on the use 

of credit cards to fund export transactions. 

In terms of obstacles to exporting, a lack of 

connections was cited most often by respondent 

firms. Lack of exporting know-how, foreign 

regulatory compliance, lack of export financing, 

tariff and non-tariff barriers, U.S. regulatory 
7-3 

Chapter 7: Women-Owned Firms in International Trade 

compliance and physical safety were also named as 

obstacles. 

As would be expected, then, contact was most often 

cited by respondents as the factor most important 

for successful exporting. Innovative products, 

access to market information, professional export 

advice and financing were among other factors 

named. 
7-4 

Chapter 7: Women-Owned Firms in International Trade 

Table 7-1. United States: Exporters of Goods and Services, 1992 

Number of 

Firms 

Exporting Firms 

Share of Exporting Firms by Percent of Sales That 

Were Exports 

Number Percent < 1% 1 to 9% 10 to 49% 50+% 

Total 17,253,143 318,117 1.8 35.3 23.5 17.6 23.5 

Female 5,888,883 64,784 1.1 30.0 20.0 20.0 30.0 

Male 11,364,260 253,332 2.2 36.6 24.4 17.0 21.9 

Source: Characteristics of Business Owners. (1992). U.S. Small Business Administration, Office of Advocacy, from data provided by 

the Bureau of the Census, as reported in Exporting by Small Firms. (1998). U.S. Small Business Administration, Office of Advocacy. 

Excludes C Corporations. 
7-5 

Chapter 7: Women-Owned Firms in International Trade 

Table 7-2. Percent of Women Entrepreneurs With More Than $500,000 in Revenues 

Country Involved in International Trade Not Involved in International Trade 

Brazila 30% 5% 

Canada 31% 19% 

Irelandb 15% 7% 

Méxicoc 11% 1% 

United States 51% 39% 

Source: International Trade Opens New Doors for Women Entrepreneurs. Weeks, J.
 aBrazil refers to just metropolitan São Paulo. b• •500. cMéxico refers to just metropolitan Mexico City.
 
8-1 

Chapter 8: Strategic Recommendations 

Chapter 8: Strategic Recommendations
 

Despite the continued growth of women-owned 

businesses and the additional availability of 

statistics, the gaps in information and policy that 

existed when Center for Women's Business 

Research, founded as NFWBO, compiled our first 

compendium in 1994 remain much the same today. 

For that reason, our recommendations for action 

also remain much the same: 

1.	 Encourage states to collect data and 

information on women-owned businesses at the 

state level and to collaborate in developing 

regional data. While national data can be 

extremely powerful in bringing recognition to 

the economic force of women business owners, 

state level data is vital for developing programs 

and infrastructure which will have the most 

immediate and measurable impact on individual 

women business owners. 

2.	 Improve the quality of national economic 

statistics on women-owned businesses 

throughout the Federal government. 

•	 Require that all business statistics collected 

by the Federal government include gender 

of owner(s) so that comparisons between 

women- and men-owned businesses can be 

made. 

•	 Develop a consistent definition of womenowned business which is used by all parts 

of the Federal government. 

•	 Increase the comprehensiveness of data 

collected on women-owned businesses by 

including plurality-owned women-led firms, 

as well as publicly-traded corporations, in 

the Economic Census. 

3.	 Encourage the study of understudied groups to 

ensure that we “count the uncounted.” These 

groups include: 

•	 Publicly-held women-owned companies; 

•	 Larger women-owned businesses; 

•	 Minority and other understudied 

populations, including rural, inner-city, 

youth; and 

•	 Plurality- and equally-owned women-led 

firms. 

4.	 Encourage public/private partnerships to 

address data collection and research on women 

business owners. Areas to be studied should 

include: 

•	 Economic contributions made by women 

businesses in job creation and revenues; 

•	 Characteristics of and barriers to growth, 

including: 

•	 access to technical expertise, for startups as well as growing and “secondstage” companies; 

•	 access to capital, including both debt 

and equity; and 

•	 access to markets, including Federal 

and state procurement and privatesector procurement. 

•	 Social impact of women-owned businesses 

and leadership on employees and the 

community; and 

•	 Innovation, quality and productivity in 

women-owned businesses. 

5.	 Integrate available research to allow easier 

access to information and easier identification 

of research gaps. 

6.	 Disseminate information to the constituencies 

that can make a difference: 

•	 Government policy-makers 

•	 Financial institutions 

•	 Educators 

•	 Corporations 

•	 Women business owners 

7.	 Continue a strong voice for women-owned 

businesses in government to ensure: 

•	 Economic policy-makers take into 

consideration the needs and contributions 

of women-owned businesses in establishing 

policy and legislation; 

•	 Collaboration and consistency among 

research and data collection activities on 

women business owners; and 

•	 Continuing recognition by government 

policy-makers, corporate leaders and 

financial decision-makers of the 

significance of women-owned businesses. 
8-2 

Chapter 8: Strategic Recommendations 

8.	 Enhance participation of women business • increasing set-asides; 

owners in Federal procurement by •	 enforcing procurement goals; and implementing policy changes such as: •	 reducing bundling. •	 designating women business owners as
 

a presumed group;
 
9-1 

Chapter 9: Bibliography 

Chapter 9: Bibliography 

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