Posted at 4:21 PM
Since 2007, women of color have started businesses at an unmatched rate. While the number of women-owned businesses grew 58% from 2007 to 2018, firms owned by women of color grew at nearly three times that rate (163%). As of 2018, women of color account for 47% of all women-owned businesses. An estimated 5,824,300 women-of-color-owned businesses employ 2,230,600 people and generate $386.6 billion in revenues.
More specifically, numbers for Latinas and African Americans grew faster than the average rate for businesses owned by women of color: 172% and 164% respectively, equaling 2.1 million Latina-owned and 2.4 million African American women-owned businesses in 2018.
Native Hawaiian/Pacific Islander, Asian American and Native American/Alaskan women-owned businesses grew slower than for women of color in general but faster than overall women-owned businesses. There are 36,800 Native Hawaiian/Pacific Islander owned firms, representing 146% growth since 2007. Asian American women-owned firms grew 105% corresponding to 1 million firms and Native American/Alaskan women-owned firms grew 76% to 169,500 businesses.
The report estimates that if revenues generated by minority women-owned firms matched those currently generated by all women-owned businesses, they would add four million new jobs and $1.2 trillion in revenues to the U.S. economy.
Explore the 2018 State of Women-Owned Businesses Report, commissioned by American Express