The 2024 Impact of Women-Owned Businesses report, commissioned by Wells Fargo, sheds light on the immense contributions women-owned businesses make to the U.S. economy. Representing 39.1 percent of all businesses, these 14 million firms employ over 12.2 million people and generate $2.7 trillion annually. The report highlights how women entrepreneurs, particularly women of color, have driven growth in firms, employment, and revenue despite systemic challenges and the disruptions of the COVID-19 pandemic.

While their resilience and adaptability are evident, the report emphasizes the significant disparities women-owned businesses face in revenue, access to capital, and market opportunities. Bridging these gaps could unlock trillions in economic potential and further bolster U.S. competitiveness. The reports key findings and recommendations focus on the need for tailored support, mentorship, and programs to empower women entrepreneurs and accelerate their impact on the economy.

Highlights of the report are below but you can read the full report here.

Key Findings:

1. Economic Contributions:
   • Women own 39.1 percent of U.S. businesses (14 million), employing 12.2 million people and generating $2.7 trillion annually.
   • From 2019-2023, women-owned businesses outpaced men-owned businesses in growth for the number of firms (+13.6 percent), employment (+12.7 percent), and revenue (+27.3 percent).
2. Challenges and Opportunities:
   • Women-owned businesses, on average, generate lower revenues than men-owned businesses ($193,000 vs. $754,000).
   • Women face barriers such as limited access to capital, caregiving responsibilities, and concentration in lower-revenue industries.
   • Closing revenue gaps could add $7.9 trillion if women’s revenues matched men’s and $667 billion if women of color’s revenues matched white women’s.
3. Pandemic Resilience:
   • Women-owned businesses pivoted to digital sales, new services, and partnerships during COVID-19.
   • Employer firms grew faster for women than men during the pandemic, indicating increased economic resilience.
4. Diversity Trends:
   • Women of color (WOC) are driving entrepreneurship, with Hispanic/Latina and Black/African American women leading employment and revenue growth in their firms.
   • WOC-owned businesses face greater disparities in financing and market access.
5. Geographic Insights:
   • States like New York, North Carolina, and California lead in economic clout for women-owned businesses. States with weaker economies, such as Alaska and Montana, lag behind.
6. Industry Expansion:
   • Women-owned businesses are diversifying, with significant growth in finance, insurance, transportation, and warehousing.