New York City Tops New Womenabling Cities Index

A new accounting of the most supportive cities for growth-oriented women entrepreneurs was recently released at the Global Entrepreneurship Summit, just ahead of the Dell Women’s Entrepreneur Network conference in Johannesburg, South Africa. The WE Cities Index lists the 25 cities globally that provide the most supportive capital, technology, talent, culture and markets for growth-oriented women, a population they refer to as “high potential women entrepreneurs.” Those cities are:DellWECitieschart

  1. New York City
  2. the San Francisco Bay Area
  3. London
  4. Stockholm
  5. Singapore
  6. Toronto
  7. Washington, DC
  8. Sydney
  9. Paris
  10. Seattle
  11. Munich
  12. Austin
  13. Beijing
  14. Hong Kong
  15. Taipei
  16. Shanghai
  17. Tokyo
  18. Mexico City
  19. São Paulo
  20. Seoul
  21. Milan
  22. Delhi
  23. Johannesburg
  24. Jakarta
  25. Istanbul

For an interactive look at how each of these cities ranks in the five major index areas, visit this web page.

The WE Cities Index follows on the heels of the Global Women Entrepreneurs Scorecard, which was released the prior year. That effort analyzed 21 variables in a five-element framework, and ranked 31 countries around the globe for their supportive policies and programs to help women scale their enterprises. The findings of the country-focused effort (which was supported in part from Womenable) were highlighted in this Womenable blogpost from 2015.

Tops on that list were the United States, Canada, Australia, Sweden, and the United Kingdom — home to nine of the 25 top-ranked global cities for women entrepreneurs who are shooting for the stars. Godspeed on your journey, ladies!

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Survey Says: Women are Global Job Creators

Female entrepreneurs are outperforming their male colleagues in job creation internationally. So says a new study just published by EY. The results, based on a survey conducted among 2,673 business owners in 12 economies, are shared in a summary of the EY Global Job Creation survey 2016, entitled “Does disruption drive job creation?
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While secondary to the main findings of the report, which are that more entrepreneurs today (59%), compared to one year ago (47%), are planning to increase hiring, and that companies that are more innovative and/or more disruptive are even more bullish on growth, the survey found that:

  • the women entrepreneurs surveyed expect to increase the size of their workforces by 10.9%, a rate that is 31% higher than that of the men surveyed,
  • women were 10% more likely (43% versus 39%) to say they added more jobs last year than they anticipated, and
  • the women surveyed were actually 24% more likely than the men surveyed (6.2% compared to 5%) to be running $1B+ enterprises.

Fully 40% of those surveyed were women, 30% of respondents have been in business less than five years, and 30% are under 35. For all that, 43% employ more than 250 workers. A fascinating pool of entrepreneurs, and very interesting findings that bode well for the global economy.

Read the EY news post HERE to learn more about the study, and to download the free 20-page report.

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Back to Basics for Many New Women Business Owners?

The recent publication of the 2016 State of Women-Owned Businesses report is chock-full of interesting trends and statistics, some of which we’ve covered here in recent blogposts. This time, the focus is industry diversity – and, while women-owned businesses are found in every industry and the longer-term trend is increasing diversification, over the most recent post-recessionary time period (2007-2016) the greatest growth we’re seeing is in some of the most traditional, foundational sectors for women.
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To wit, between 2007 and 2016, when the number of all women-owned businesses increased by 45%, the following four industries grew much more substantially:

  • Women-owned firms in the Other Services sector (hair and nail salons, pet sitting services) nearly doubled in number (up 98%);
  • Administrative, Support and Waste Management Services (including janitorial and landscaping services and travel agencies) are up 64%;
  • Accommodation and Food Services businesses increased by 62%; and
  • Women-owned Construction firms increased in number by 56%.

Two of these sectors are – and have been – among the most popular sectors for women in business:

  • There are currently 2.5 million women-owned firms in Other Services, accounting for 22% of all women-owned firms;
  • Health Care and Social Assistance (including child day care and home health care services) women-owned firms number 1.7 million and comprise 15% of the women-owned firm population;
  • Women-owned Professional/Scientific/Technical Services firms (including lawyers, accountants, architects, public relations firms and management consultants)number 1.4 million, comprise 13%; and
  • The Administrative, Support and Waste Management Services (including janitorial and landscaping services as well as office administrative support and travel agencies) sector is home to 1.3 million women-owned firms, comprising 11% of the women-owned firm population.

It is worth noting that a significant share of the growth in these sectors is accounted for by women of color. Overall, the report notes that 44% of women-owned firms are now minority-owned, and that nearly eight out of 10 (79%) of net new women-owned firms launched since 2007 was started by a woman of color. A significant number of these women are starting firms in traditionally female sectors. For example, while 22% of all women-owned firms are in Other Services (a large share of which are hair or nail salons), fully 36% of African American women-owned firms and 33% of Asian American women-owned firms are in this sector. In addition, while 11% of all women-owned firms are found in Administrative Services (janitorial and landscaping), 21% of Latina-owned firms are found in this sector.

So, despite more and more women launching a growing variety of businesses, certain types of traditional lines of business remain very popular – more so for many women of color.

Mixing Purpose With Passion: Women’s Enterprise in Scotland

Having recently returned from Scotland, I was struck by a new-found energy and optimism. Though the recent independence referendum was defeated, it brought out a renewed national spirit – which certainly carried over in the surge of support for the Scottish National Party in the recent U.K. elections.

wes-logo-colourThis energy surge is also manifest in support for women’s enterprise development in Scotland. Last year, Scotland launched a Framework and Action Plan for Women’s Enterprise, based on feedback from the women’s business community and other stakeholders and containing a series of policy and program recommendations.

What took me over to Scotland was a Think Tank gathering, #WESMovingOn, in which best practices from within and outside Scotland and the U.K. were considered and discussed. The day was kicked off with a thoughtful presentation by futurist Anne Lise Kjaer on a more inclusive view of ‘the good life’ and the drivers of change in the future, incorporating the four P’s of people, planet, purpose and profit.

Then we (“womenablers” from government, the private sector and the third sector, from the U.K., Europe and North America) all rolled up our sleeves and shared our views – from our countries and communities – of what’s working, what lessons we’ve learned, and what recommendations we’d make for Scotland moving forward. I was asked to reflect on some lessons learned from the U.S. perspective, based on the 27 years of progress (and pitfalls) since the “big bang” of women’s enterprise development in the U.S.: the passage of the Women’s Business Ownership Act of 1988. Here’s a brief summary of the ideas that I shared:

  1. Policy is only the starting point. For progress and sustainability attention must be paid on three key levels:
    • In the public sector level, to set such frameworks AND to establish programs based on policies;
    • On the customers/clients of women’s enterprise support: listen to them, then modify programs based on changing needs. This is something we do NOT do nearly enough of in the U.S.; and
    • On intermediary groups, such as implementing partners. This is the all too often forgotten link between policy and customer.
  2. Don’t “fence in” women business owners. By this I mean not isolate them, but don’t limit their growth by setting policy sights too low. U.S. federal support for women’s business centers is a prime example of this; they are hampered by restrictions on what clients they can serve with their federal grant money, which leaves many growth-oriented women business owners underserved;
  3. DATA, DATA, DATA: it’s critically important to measure. In the U.S. government, policy efforts are limited by restrictions on conducting research, so the Center for Women’s Business Research (now defunct) was critically important in 1990’s, as it monitored progress and showcased needs;
  4. Private sector partnerships: Enlightened corporations and financial institutions need women business owners as customers and as suppliers, so they are stakeholders, too.

We also heard from several of WES’ excellent women’s entrepreneurship ambassadors: women business owners who give back by speaking to women and girls about what it’s like to start and grow a business. One of them was Sylvia Douglas of MsMissMrs. You owe it to yourself to CLICK HERE to learn more about her enterprise … and her empowerment pants. (Here’s us posing with some during the Think Tank discussion.)empowermentpants

What’s next for women’s enterprise development in Scotland? I’d say that they will be a leader in the U.K., if not throughout Europe and beyond, for their inclusive, consultative approach, for thinking well outside the box and all along the size continuum, for being inclusive of diversity from the outset, and for bravely stepping out in front and leading the way. Keep an eye out for the report from this think tank event, and keep an eye on Women’s Enterprise Scotland … the Brave!

Women-Owned Businesses Continue to Flourish

Women-Owned Businesses Continue to Flourish

For the fifth year running, Womenable has combined forces with American Express OPEN to analyze trends in women’s enterprise growth and development. The 2015 State of Women-Owned Businesses report (which will soon be published) tells us that:2015 SWOB charts.003

  • The number of women-owned firms in the U.S. continues to climb, and is now estimated to have surpassed 9.4 million enterprises – 30% of all businesses in the country;
  • The revenue generated by these enterprises is now estimated to stand at nearly $1.5 trillion, and has increased by 79% since 1997; and
  • Women-owned firms now employ over 7.9 million workers (excluding owners), providing one in seven jobs among privately-owned businesses.

In fact, since 1997 there have been an average of 608 net new women-owned firms launched each and every day – and the rate just over the past year stands at 887 per day. The number of women-owned firms is increasing at a rate 1-1/2 times the national average.

Where are we seeing these women-owned firms? The short answer – everywhere. Women-owned firms are found in every state and in every industry. The fastest growing industry sector is educational services, which has seen a 67% increase in the number of women-owned firms since 2007 versus an overall 21% increase. And the states seeing the fastest growth in women’s entrepreneurship are Georgia, Texas, North Carolina, North Dakota and New York.women_diverse 900x550

And who’s starting these enterprises? Increasingly, women of every ethnic background. Back in 1997, there were just under 1 million firms owned by non-Caucasian women, representing one in six (17%) women-owned firms. Now, there are an estimated 3.1 million minority women-owned firms, representing one in three (33%) women-owned firms. Indeed, the growth in the number of African American, Asian American, Latina, Native American/Alaska Native and Native Hawaiian/Pacific Islander since 1997 surpasses the growth in the number of non-minority women-owned firms several-fold. The growing diversity of women-owned firms is one of the most remarkable trends of the past decade.

The 2015 State of Women-Owned Businesses Report, like its predecessors, contains a wealth of empowering facts, figures and insights. The full report is being formatted now, but until it’s publicly available, click on the link below to download the summary tables, containing all of the statistics at the national, state, metropolitan, industry and ethnic group level.

Cheers, fellow womenablers!

2015 State of Women-Owned Businesses: Summary Tables

 

More Women-Owned Businesses at the Starting Gate

With the recent release of the findings from the soon-to-be-published 2014 State of Women-Owned Businesses Report (here’s a link to the news release; the full report is coming soon), we now have the most up-to-date accounting of the number and growth trends among women-owned businesses in the country. As of 2014, we (Womenable authored the report, which will be published soon by American Express OPEN) estimate that there are 9,087,200 majority-owned and privately-held women-owned firms, employing 7,854,200 employees in addition to the owner, and generating over $1.4 trillion ($1,410,940,800,000) in revenues.

What are some of the other key trends uncovered in this year’s report? Among them:Census 2014 charts010

  • Between 1997 and 2014, when the number of businesses in the United States increased by 47%, the number of women-owned firms increased by 68% – a rate 1-1/2 times the national average. Indeed, the growth in the number (up 68%), employment (up 11%) and revenues (up 72%) of women-owned firms over the past 17 years exceeds the growth rates of all but the largest, publicly-traded firms – topping growth rates among all other privately-held businesses over this period.
  • Nationally, the number of women-owned firms has increased by 68% since 1997. The states with the fastest growth in the number of women-owned firms over the past 17 years are: Georgia (up 118%), Texas (98%), North Carolina (91%), Nevada (91%) and Mississippi (81%). In terms of growth in combined economic clout, however – meaning averaging together the rankings in growth in the number, revenues and employment of women-owned firms – the states in which all of these measures combined place women-owned firms in a much better than average position over the 1997 to 2014 period are: North Dakota, the District of Columbia, Nevada, Arizona and Georgia.
  • In 1997, there were just under 1 million (929,445) firms owned by women of color, accounting for one in six (17%) women-owned firms. That number has skyrocketed to an estimated 2,934,500 as of 2014, now comprising one in three (32%) women-owned firms. Firms owned by African American women number an estimated 1,237,900 as of 2014. These 1.2 million firms employ 287,100 workers in addition to the owner and generate an estimated $49.5 billion in revenue. Firms owned by Latinas number an estimated 1,033,100 as of 2014. These firms employ 433,600 workers in addition to the owner and generate an estimated $71.1 billion in revenue. Firms owned by Asian American women number an estimated 675,900 as of 2014. These firms employ 699,200 workers in addition to the owner and generate an estimated $115 billion in revenue.
  • While firms owned by women of color are smaller than non-minority women-owned businesses both in terms of average employment and revenues, their growth in number and economic clout is generally far outpacing that of all women-owned firms. Indeed, the growth in the number of African American (up 296% from 1997 to 2014), Asian American (+179%), Latina (+206%), Native American/ Alaska Native (124%), and Native Hawaiian/Pacific Islander (+247%) women-owned firms all top the growth in the number of non-minority women-owned firms (+37%) over the past 17 years.

New this year is a look at business start-up activity, which shows that there are an increasing number of women business owners at the starting gate. On average over the past 17 years, there has been a net increase* of 591 women-owned businesses each and every day. The number of net new women-owned firms has fallen in the wake of the recession – there was a net increase of 714 women-owned firms per day from 2002 to 2007, and a lesser 506 per day between 2007 and 2014 – but start-up activity is increasing. Just in the past year, there have been an estimated 1,288 net new women-owned firms launched each and every day.Census 2014 charts005

What’s the bottom line? Women business owners are not only here to stay, they are moving into entrepreneurship in equal numbers. The challenge that remains is moving women-owned firms up the growth continuum, and gaining a greater understanding of impediments to growth and how best to follow a woman’s path from a start-up with promise to a successful business that moves beyond the “majority-owned, privately-held” category to being woman-led and perhaps publicly-traded. But that’s a topic for another day!

The full report provides detailed data at the state level, industry level, and by size of firm, so stay tuned to womenable.com; the report will be posted there as soon as it’s published.

 

* “Net increase” takes into account all of the new women-owned firms minus the number of women-owned firms that either ceased operations or ceased to be majority women-owned.

Reflections on Building a Sustainable Women’s Enterprise Ecosystem

In November, I attended and spoke at the Institute for Small Business and Entrepreneurship‘s pre-conference women’s enterprise policy day. My 25-minute presentation was entitled, “Building a Women’s Enterprise Movement That Will Stand the Test of Time: Lessons From the U.S.‘” It aimed to reflect on the recent silver anniversary of the passage of the Women’s Business Ownership Act of 1988, to share lessons learned from the U.S. experience, and to offer observations of the common elements that bolster and strengthen a healthy and vibrant women’s enterprise ecosystem – which could be adapted for a variety of political systems and development contexts.

Here, then, is a Slideshare Slidecast of the presentation, which you can watch and listen to as you munch on your lunch. Or, fellow womenablers, feel free to download it and play it at your next women’s business organization member gathering or networking event to fuel further discussion about what ideas you might take forward in your own community. Go forth and multiply!