The number of women-owned businesses is rapidly increasing in the United States today. According to an article in the Silicon Valley Biz Ink, a study generated by the Mass Mutual Financial Group/Raymond Institute American Family Business Survey, found "women-owned family businesses have become substantial enterprises in the U.S., with average annual revenues of $26.9 million in 2002 and with some reporting annual sales over $1 billion." Much of the growth is supported by technology and inexpensive computers and office equipment making it easier to start a business.

Nationally there are approximately 6.2 million women-owned firms, representing 28% of all privately-owned businesses. Women owned firms in the U.S. employ approximately 9.2 million people and bring in $1.15 trillion in sales annually. The number of women-owned firms in the U.S. has increased 14% nationally, with an increase of 40% in sales and 30% in employment since 1997. This growth rate is twice the national average for new firms, and one and a half times the national rate in employment. Sales increases were approximately the same as the national average. This data does however exclude firms with 50% ownership. When the 50% ownership of companies by women is combined with the 51% majority interest the data is much higher. With the combined data, the total number of women owned firms is 10.1 million, employing over 18.2 million people with revenues exceeding $2.32 trillion. This data increases the number of firms by 11%, with an increase of 32% in sales and 18% in employment.

The construction industry is seeing the greatest growth of women owned businesses and the service industry has the greatest number of women-owned businesses. Fifty-five percent of these women-owned businesses are in the service industry, 16% in retail, 9% in finance, insurance, or real estate, and 12% in other industries.

It is estimated there are 470,344 privately owned businesses in the U.S. owned by Hispanic women alone. These businesses employ 198,000 people and generate annual sales of $29.4 billion. Since 1997, the number of businesses owned by Hispanic women has increased by 39%, with 8% increase in sales and 16% increase in employment. Thirty nine percent of women owned businesses in the U.S. are owned by Hispanic women. Georgia ranks 6^th in the growth rate of women owned businesses that are owned by Hispanic women which total 5,500.

The state of Georgia ranks 6th in the number of woman-owned businesses, 16^th in growth of employment by women-owned businesses, and 12^th in sales revenue generated by women-owned businesses. According to the US Government’s Non-Employer Statistics: 2001, Georgia led the nation in the growth of small businesses making up more than 70% of all businesses. Beauty and nail salons, child-care providers, landscaping services, barber shops, real estate agents, tax preparers, and electricians are some examples of the categories of business growth in the state of Georgia.

The main obstacle for women owned businesses is finding sources of funding. Women entrepreneurs generally use personal assets (28%) or borrow start-up money from family members or friends (32%). Women owned businesses generally use less startup capital than do male owned businesses. Only 10% of women owned businesses have capital from bank loans and only 8% have a line of credit for their business. Gaining access to the right people is a key for women business owners who are seeking capital from banks or other organizations. The necessity of using personal capital or credit card debt to start their businesses serves to deter many "would be" women entrepreneurs.

The key to overcoming this problem is to attract outside investors—known as equity investors. Women-owned businesses receive only 2.3% of capital provided by equity investors. It is critical that women have a strong management team, a sound business plan, demonstrate management knowledge, and be persistent in order to obtain capital from equity investors.

There are many programs available to help individuals start their own businesses. The U.S. Small Business Administration has several sources of funding and training available: Federal Procurement Programs, Business Counseling and Training Programs, 7(M) Micro loan Program, and Loan Guarantees. Private firms such as Wells Fargo and First Union also have programs to help women entrepreneurs. According to the Small Business Association (SBA), the Georgia District Office is ranked number one in granting loans to small businesses in the state of Georgia. In 2001, they granted over $428 million in loans.

Other challenges women entrepreneurs face include the lack of a mentor or role models, lack of previous management experience, and lack of previous professional experience. The Global Entrepreneurship Monitor (GEM), publishing a national entrepreneurship assessment of the U.S., found that the more education an individual has the greater he or she is likely to become an entrepreneur. Women have been the majority representative in college since 1979. In 2001, 57% of all bachelor’s degrees were awarded to women, increasing the chance that women will pursue a career as an entrepreneur. Recent research conducted by the National Women’s Business Council on women owned Businesses in the U.S. found 51% of women entrepreneurs earned a master’s degree or higher. For more information visit the website of the Center for Women’s Business Research at www.womensbusinessresearch.org.

Did you know DSC offers a variety of continuing education programs of interest to budding and growing entrepreneurs, many taught by our on-campus Small Business Development Center (SBDC)? Our business bachelor’s degree programs offers "entrepreneurship" as an elective course and students complete a formal business plan as their final course project.