The Economic Impact 

of Women-Owned Businesses 

In the United States 

 Underwritten by: 

 Walmart 

 National Women’s Business Council 

 Center for Women’s Business Research 

 October 2009 

1760 Old Meadow Road, Suite 500 703-556-7162 

McLean, VA 22102 www.womensbusinessresearch.org 
Acknowledgements 

The Center for Women’s Business Research would like to thank Walmart and the National 

Women’s Business Council (NWBC) for their generous support which made this research 

possible. We would also like to thank Women Impacting Public Policy (WIPP) for their support 

and highlighting the research at the 2009 Economic Summit in Washington, D.C. And last, but 

not least, we want to thank our co-authors of this study for their meticulous and diligent analyses 

of the data and the economic modeling used to produce the final results. 

Dr. Hassan Pordeli, Hugh F. Culverhouse Professor of Economics and Finance, Davis 

College of Business, Jacksonville University and 

Mr. Peter Wynkoop, Principal, The HPW Group and President of the Economic 

Roundtable of Jacksonville 

Center for Women’s Business Research 

The Center for Women’s Business Research provides data-driven knowledge that propels the 

growth of women business owners and their enterprises to economic and social significance. 

We do this by setting the national agenda; creating insight on the status and achievements of 

women business owners; altering perceptions about the economic viability and progress of 

women-owned enterprises; and driving awareness of the economic and social impact of this 

vital business sector. Visit us online at www.womensbusinessresearch.org.

Walmart 

Wal-Mart Stores, Inc. (NYSE: WMT), or “Walmart,” serves customers and members more than 

200 million times per week at more than 8,000 retail units under 53 different banners in 15 

countries. With fiscal year 2009 sales of $401 billion, Walmart employs more than 2.1 million 

associates worldwide. A leader in sustainability, corporate philanthropy and employment 

opportunity, Walmart ranked first among retailers in Fortune Magazine’s 2009 Most Admired 

Companies survey. Additional information about Walmart can be found by visiting 

www.walmartstores.com. Online merchandise sales are available at www.walmart.com and 

www.samsclub.com. 

National Women’s Business Council (NWBC) 

The National Women’s Business Council is a bi-partisan Federal government council created to 

serve as an independent source of advice and counsel to the President, Congress, and the U.S. 

Small Business Administration on economic issues of importance to women business owners. 

Members of the Council are prominent women business owners and leaders of women’s 

business organizations. For more information about the Council, its mission and activities, visit 

www.nwbc.gov. 

Women Impacting Public Policy (WIPP)

Women Impacting Public Policy is a national bi-partisan group comprising over half a million 

members. The non-profit organization is the public policy voice for 49 national Women in 

Business groups and is The Voice for Women in Business in Our Nation’s Capital. WIPP 

strengthens its members’ sphere of influence in the legislative process, creates economic 

opportunities for members and builds alliances with other small business organizations. Visit 

www.wipp.org. 
Table of Contents 

Executive Summary 1 

Introduction 2 

Scope of the Study 2 

How Women Business Owners Create Jobs and Income 3 

 

Sample and Model Results 4 

Output Effect 5 

Income Effect 5 

Employment Effect 5 

National Projections 9 

Conclusions 10 

Methodology 11 

IMPLAN Model 11 

References 13 

Economic Impact of Women-Owned Firms 
Economic Impact of Women-Owned Firms 

Table of Tables and Figures 

Figures

Figure 1 How Women Business Owners Create Jobs and Income 4 

Figure 2 Labor Income and Output 6

Figure 3 Employment 6

Figure 4 Women-Owned Businesses by Industry-2008 7

Figure 5 Sample Industries with Highest Revenues 8

Tables 

Table 1 Women Business Owners Survey 2009 IMPLAN Analysis 5 

Table 2 The Most Impacted Industries-Number of Firms 7 

Table 3 Industries with Highest Revenues 8

Table 4 Women Business Owners Projected 2008 National Impact 9 

Table 5 Projected Economic Impact of Majority-Women-Owned 

 Businesses 9
The Economic Impact of Women-Owned Businesses in 

The United States 

Executive Summary 

For the first time, the Center for Women’s Business Research, has utilized a methodology to 

measure the economic impact of the estimated 8 million U.S. businesses currently majority 

women-owned. Today, women-owned firms have an economic impact of $3 trillion annually 

that translates into the creation and/or maintenance of more than 23 million jobs - 16 percent of 

all U.S. jobs! These jobs not only sustain the individual worker, but contribute to the economic 

security of their families, the economic vitality of their communities and the nation. 

If U.S.-based women-owned businesses were their own country, they would have 

the 5th largest GDP in the world, trailing closely behind Germany, and ahead of 

countries including France, United Kingdom and Italy. 

The significance of the total amount of economic impact – $2.8 trillion – once again proves that 

women-owned firms are not a small, niche market but are a major contributor and player in the 

overall economy. It also reveals the magnitude of importance that small business plays in the 

overall economy. According to SBA’s Office of Advocacy, 99.7 percent of all employer firms are 

classified as “small businesses (less than 500 employees);” small businesses employ 51% of all 

people; have generated nearly two-thirds (64%) of net new jobs over the past decade and a 

half; and produce 13 times more patents per employee than large patenting firms. 

From 1997-2002, women-owned firms were growing at twice the rate of all other groups and 

while the current economic woes have dampened business growth for all segments, women 

continue to keep pace. However, in most public conversations and in most people’s minds, the 

important player in the economy is the large corporations – which only account for .03 percent 

of all firms and employ fewer people than small businesses do in total. This research 

illuminates the economic reality and calls for changing the conversation at a policy level and in 

the public sphere. 

The data indicate a continuing social and cultural shift for work and for women. Full or part time 

entrepreneurship is a well-established trend. From 1997 to 2002, the Census data report that 

nearly all growth in small businesses came in the non-employer segment and women had the 

largest growth compared to other groups. The overarching shift reflects the education, 

experience and characteristics of women at different stages of their lives. It also reflects the 

lack of opportunities and flexibility in major corporations and large businesses for women. 

Economic Impact of Women-Owned Firms 1 
INTRODUCTION 

The Center for Women’s Business Research, with support from Walmart and the National 

Women’s Business Council, undertook a study to establish the economic impact of womenowned businesses on the U.S. economy. Women-owned businesses are defined as privatelyheld firms in which women own 51 percent or more of the business. This study provides a clear 

picture of the value and impact of this segment to the economy and a roadmap for the future. 

Women-owned businesses are growing at twice the rate of all businesses and have done so for 

nearly three decades. It makes good business sense for government and each community to 

support these firms by providing knowledge, skills and tools for their growth. 

The research findings reveal that 28.2 percent of all businesses in the United States are owned 

by women. However, only 4.2 percent of all revenues are generated by women-owned 

businesses in the United States. One probable explanation is the fact that the majority of these 

businesses is relatively small and have been In business for a relatively short period of time. 

This study provides a comprehensive and detailed analysis of the tremendous economic impact 

of women business owners in the United States. The Center for Women’s Business Research 

collected survey data from women business owners across the United States. A model of 

economic activity and interdependencies representing this flow of economic activity in the U.S. 

provides the direct, indirect and induced impacts. The more detailed data results are shown in 

tables (1) through (5). 

Scope of the Study 

This research mainly focuses on the economic impact of women-owned businesses on the U.S. 

economy and is comprised of several components. Specifically the report analyzes three types 

of economic impacts: 

1. Output Effect: A measure of total sales or revenues generated by women business 

owners in the United States. 

2. Income Effect: A measure of total income generated within the U.S. economy by women 

business owners. 

 

3. Employment Effect: A measure of the number of jobs created in the U.S. economy by 

women-owned businesses. 

In addition, the direct, indirect and induced impacts of the above categories are generated by 

IMPLAN. These effects combine to reflect the total economic impact of the business activity of 

women-owned businesses. 

 Direct Impact: The direct output effect represents the purchase of goods and services by 

women business owners from other businesses in the U.S. 

 Indirect Impact: The indirect effect represents business-to-business transactions. These 

transactions occur when the suppliers of the women business owners purchase goods 

and services from other suppliers in the country. 

Economic Impact of Women-Owned Firms 2 
 Induced Impact: The employees of the women business owners and the employees of 

the indirectly affected businesses purchase goods and services in the United States. 

These purchases create the second wave of economic impacts commonly known as the 

induced effect. 

One additional category of economic data that IMPLAN provides is Value Added. Four 

components comprise Value Added: 

• Employee compensation

• Proprietors’ income

• Other property type income

• Indirect business taxes.

How Women Business Owners Create Jobs and Income 

The products and services of women business owners create significant economic benefits that 

reach all industries in the United States. 

Figure (1) below depicts the circuit of economic activity that begins when WBO products and 

services are purchased by households or other businesses (G). From those receipts, WBOs 

make purchases from suppliers (A) and pay wages to their employees (B). Suppliers, in turn, 

purchase goods and services from their own suppliers (C), and so forth on down the line. 

During the process, all suppliers pay wages and other income to their employees, owners, etc. 

(D and E). The households of workers then purchase a full complement of household goods 

and services (F), as well as becoming customers of women business owners’ products and 

associated services (G) thus, begin the circuit again. 

The economic impact model and tables provided within the report address all three levels of 

impact that generate the total economic impact: The direct economic impact results from 

spending; The indirect impact follows from the subsequent purchases by the businesses of 

goods and services from their suppliers and in turn the suppliers to these suppliers; The induced 

impact refers to the spending by all employees of these inter-related businesses on their 

household market baskets. 

The discussion that follows provides an overview of the full economic impact generated by 

spending for women business owners’ products and services. 

Economic Impact of Women-Owned Firms 3 
Figure (1) 

How Women Business Owners 

Create Jobs and Income 

Suppliers

(direct supplier to

the retail,

restaurant, É )

Agriculture

Construction

Manufacturing

Wholesale

Retail

Transportation

Communication

Utilities

Business Services

Personal Services

Payments for 

Supplies and

Services

Purchase of Goods

and Services.

Expenditures by

Women Business Owner 

Customers for Products

And Services.

Additional Indirect & Induced

Production

(supplier to the direct supplier

retail, restaurant, É )

Agriculture

Construction

Manufacturing

Wholesale

Retail

Transportation

Communication

Utilities

Business Services

Personal Services

Payments for Supplies 

And Services

Purchase of Goods

and Services.

Wages, Profits,

Interest, Rent, etc.

Wages, Profits,

Interest, Rent, etc.

Wages, Profits,

Interest, Rent, etc.

Households/

Businesses

A

B

C

D

E F

G

These firms

produce &

make

purchases from

each other.

Sample and Model Results 

The sample used to generate results consists of 417 women business owners who own at least 

51 percent of their business. The sample is representative of the larger population of womenowned firms, especially industry sector, revenues, and geography. Both employer and nonemployer firms are included in the sample as well. 

The direct employment and sales data generated by the 2009 survey of 417 women business 

owners in the United States provide useful information concerning the size and types of 

economic inflows created by activities of women business owners. 

However, there are additional and secondary economic impacts related to these activities. 

These secondary (multiplier) economic activities occur in the form of the indirect and induced 

effects that result when the women business owners and their employees use their revenues to 

buy goods and services from other businesses in the United States. The direct sales and 

revenues generated by women business owners produce a secondary effect (indirect and 

induced) throughout the U.S. economy, the sum of which represents the total economic output. 

Economic Impact of Women-Owned Firms 4 
The sales and employment data from the women-owned businesses are used in the IMPLAN 

model to estimate the total output, income and employment effects. These results are shown in 

table (1) and figures (2) and (3). 

Output Effect 

The 2009 survey of 417 women-owned businesses in the United States shows that the sampled 

firms were directly responsible for the purchase of $59 million worth of goods and services from 

other businesses and suppliers. The indirect output effect of $37.4 million represents purchases 

made by women business owners’ suppliers from other businesses. The induced output effect 

of $51.4 million represents the amount of goods and services that women-owned businesses’ 

employees purchased from other vendors in the United States. The total output or sales created 

in the U.S. economy is estimated to be $147.8 million. 

Income Effect 

The 417 women business owners in the United States directly paid $25.8 million in payroll and 

benefits to their employees in the form of labor income. This direct income generated $12.9 

million worth of indirect income. In addition, the induced income is estimated to be $16.1 

million. The total income effect that is the sum of direct, indirect and induced effects is 

estimated to be $54.8 million. 

Employment Effect 

Women-owned businesses surveyed were directly responsible for creating 612 jobs and 

indirectly created 249 jobs. The spending of their employees created an additional 363 jobs. In 

aggregate, 417 women business owners surveyed created 1,224 jobs in the United States. 

Table (1) 

Women Business Owners Survey 2009 

IMPLAN Analysis 

Direct Indirect Induced Total 

Labor Income 25,792,909 12,888,354 16,105,684 54,786,947 

Value Added 35,788,101 20,710,353 27,617,838 84,116,292 

Output 58,965,133 37,392,088 51,436,161 147,793,382 

Employment 612 249 363 1,224 

Economic Impact of Women-Owned Firms 5 
Figure (2)

Figure (3) 

0

200

400

600

800

1,000

1,200

1,400

Direct Indirect Induced Total

Number

Impacts

Employment

Employment

Economic Impact of Women-Owned Firms 6 
Table (2) and figure (4) below show the industry sectors with the greatest numbers of firms 

represented. 

Table (2) 

The Most Impacted Industries – Number of Firms 

Number of Firms % Industry 

45 10.8 Administrative, support, waste remediation 

46 11.0 Business services 

32 7.7 Communication, media 

26 6.2 Financial, real estate, insurance 

36 8.6 Healthcare, social assistance 

29 7.0 Personal services 

87 20.9 Professional, scientific, technical services 

56 13.4 Retail, wholesale 

60 14.4 Other 

Figure (4) 

Professional, 

scientific, technical 

services

20.9%

Business services

11%

Retail, wholesale

13.4%

Communication, 

Media

7.7%

Administrative, 

Support, waste 

remediation

11%

Financial, real 

estate, insurance

6.2%

Healthcare, 

social 

assistance

8.6%

Other

14.4%

Personal Services

7%

Women-Owned Businesses by Industry- 2008

Professional, scientific, technical services

Business services

Retail, wholesale

Communication, Media

Administrative, Support, waste 

remediation

Financial, real estate, insurance

Healthcare, social assistance

Other

Personal Services

Economic Impact of Women-Owned Firms 7 
Table (3) and figure (5) show the sample industries that had the highest revenues or output. 

Table (3) 

Industries with Highest Revenues 

Number of 

Firms % 

Industry Revenue 

87 20.9 Professional, scientific, technical services $13,278,765

56 13.4 Retail, wholesale $11,603,235

46 11.0 Business services $5,453,900

32 7.7 Communication, media $5,433,000

45 10.8 Administrative, support, waste remediation $4,549,152

Figure (5) 

Economic Impact of Women-Owned Firms 8 
National Projections 

The U.S. Economic Census, Survey of Business Owners provides data regarding the number, 

size and performance of women-owned businesses throughout the country. The last data 

available are for 2002, therefore 2008 data is projected from prior census data. Table (4) below 

provides these projections. 

Table (4) 

Women Business Owners Projected 2008 National Impact 

1997 2002 2008 Projection 

Number of Firms 5,417,304 6,489,259 8,059,635 

 wo/Employees 4,570,254 5,572,602 7,051,473 

 w/Employees 846,780 916,657 1,008,162 

Revenue [$1K] $818,669,084 $939,538,208 $1,108,362,219 

 wo/Employees [$1K] $100,905,119 $136,686,713 $196,744,237 

 w/Employees [$1K] $717,763,965 $802,851,495 $918,373,839 

Number of Employees 7,076,081 7,141,369 7,220,510 

NOTE: 1997 & 2002 data are derived from the U.S. Census; 2008 figures are estimated. 

 

The 2009 survey of 417 U.S. women-owned businesses attained substantial results in each 

category. We compared our sample size with the size of the entire population of U.S. womenowned businesses [8,059,635] and applied this to the results of the sample analysis. Total labor 

income for majority-women-owned firms exceeds $1 trillion a year; the value-added totals $1.6 

trillion giving us a grand total of nearly $3 trillion in annual economic impact! Furthermore, these 

firms directly and indirectly employ 23.7 million people! 

The data in Table (5) reflect the aggregate results. 

Table (5) 

Projected Economic Impact 

of Majority-Women-Owned Businesses 

Direct Indirect Induced Total 

Labor Income 

[$B] 498.5 249.1 311.3 1,058.9 

Value Added [$B] 691.7 400.3 533.8 1,625.8 

Output [$B] 1,139.7 722.7 944.2 2,806.6 

Employment 11,828,736 4,812,672 7,016,064 23,657,472 

Economic Impact of Women-Owned Firms 9 
Conclusions 

The Center for Women’s Business Research was founded on a belief that women business 

owners were not being recognized for their contribution to creating and maintaining a healthy 

and nimble national economy. The Center’s first major piece of research was to document the 

existence of – and thereby legitimize –larger businesses owned and run by women (previously 

Census did not collect “C Corp” data by gender. Most of the legislation, programming and 

women-business-owner advocacy organizations use the work of the Center for Women’s 

Business Research to provide the rationale for recommendations for programs and policies that 

support women-owned businesses. It is extremely gratifying that the Center for Women’s 

Business Research is again at the leading edge of producing data and knowledge that 

continues to make the world aware of the importance and value-add of women-owned firms. 

This study provides, for the first time, a comprehensive analysis of the economic impact of 

women-owned businesses in the United States by using primary data collected through direct 

surveys and government sources. We’ve never had information that reflected the overall 

economic impact of women-owned firms. By default, we used total annual revenues which were 

available from Census. 

The results of over $2.8 trillion dollars annually from majority-women-owned firms 

coupled with the more than 23 million people who are employed directly and indirectly by 

these firms again proves that women-owned firms are not a small, niche market but are a 

major contributor and player in the overall economy. 

The data also illustrate the need for new thinking and programming to support women who seek 

to grow their businesses. Most of the programming now offered through the public sector and 

much of the private sector is dated and focused on individuals who want to start a business. 

While these programs are important and meet a need, there are few solid programs that actually 

generate information and knowledge and engage entrepreneurs – especially women and 

minorities – to grow their businesses. The programs that do exist have little, if any, evaluative 

research behind their claims. 

Furthermore, this research highlights the lack of knowledge currently available on how to grow a 

business from point A to point B, becoming an employer firm, and moving from being the 

technical expert to the business leader. Over the past several years, funds for research from 

public and private sources have been limited and spread across a growing number of scholars 

and applied researchers. The Center for Women’s Business Research is taking the lead in 

2010 by creating an Academic Council of Scholars (ACS) who conduct research in the area of 

women entrepreneurship and business ownership. The goal of this collaborative effort between 

the Center and ACS is to build knowledge that can be used directly by women business owners 

and organizations who support them. This historic initiative demands a public/private infusion of 

funding. 

Economic Impact of Women-Owned Firms 10 
Methodology 

This study provides a comprehensive and detailed example of the full economic impact of 

women business owners in the United States. The Center for Women’s Business Research, 

Washington D.C., collected survey data from women business owners across the United States. 

To qualify for the study, respondents had to be majority women-owned companies. For the 

proposed study, WBO’s were asked to complete an online survey. The survey contained the 

following questions: 

• Business Name 

• NAICS Industry Code . 

• Year Began 

• Employees 

• Percent Ownership Women/Men 

• Location: City, County, State, Zip 

• Annual Revenues 

• Race/Ethnicity 

• Age 

• Education 

Completed surveys were validated through Web sites and other data to assure the business 

existed and NAICS coding was correct. 

The sample used for the IMPLAN modeling includes 417 businesses located in 42 different 

states. 

Once the data collection was completed, survey data then were organized and coded for 

analysis and reporting. The survey data on annual sales and employment were used in the 

IMPLAN model to generate the total economic impact for the sample. The 2008 survey of 

women-owned businesses in the United States revealed substantial results in output, labor and 

employment categories. 

IMPLAN Model 

IMPLAN is a PC-based impact analysis software system developed by the Minnesota IMPLAN 

Group, Inc. It is a complex and highly accurate forecasting model commonly used in economic 

impact studies to estimate the impacts associated with economic events, inter-industry linkages 

and economic policies. The IMPLAN software system allows the projection of secondary or 

multiplier effects from changes in direct sales for one industry within a study region. Multipliers 

can be estimated for a county, a state or for the entire nation. They project changes in sales, 

income and employment. 

The total impact of WBOs is defined by three components: direct, indirect and induced impacts. 

The direct impact results from the total spending by WBOs’ customers. The indirect impact is 

the sum of inter-industry purchases made in response to the direct sales. The induced impact 

adds the household spending by employees and owners of all the firms with direct and indirect 

sales. 

Economic Impact of Women-Owned Firms 11 
The economic impacts reported in this study are based on multiple sources including spending 

obtained from the survey conducted by the Center for Women’s Business Research and 

secondary government data sources. The IMPLAN impact model for this sample of the United 

States was developed by Jacksonville University’s Davis College of Business. This model is 

based upon the standard economic input-output technique. 

The direct economic impact reported in this study will vary from direct customer spending in a 

subtle but important way. In order to accurately assess the impact of customers, purchases at 

retail stores must be converted from purchaser to producer prices. This process, called 

margining, assigns the correct proportion of customers’ expenditures to the manufacturer, 

transporter, wholesaler and retailer. To understand why this process is needed, remember that 

retailers provide a service. They purchase final goods from wholesalers to sell to consumers. 

Wholesalers similarly provide a service of distributing a final product from the manufacturer to 

the retailer. Assigning the entire purchase to the retail industry would exaggerate the 

performance of the retail sector and underestimate the importance of the wholesale and 

manufacturing sectors. 

Economic Impact of Women-Owned Firms 12 
Economic Impact of Women-Owned Firms 13 

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IMPLAN Professional. (2004), Version 2.0 Social Accounting and Economic Analysis Software, 

User Guide, Stillwater, Minnesota, February 2004. Minnesota IMPLAN Group, Inc. 

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http://www.census.gov/csd/sbo/company2002.htm 

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