Women-owned businesses in the U.S. continue to thrive. According to the National Women’s Business Council (NWBC) Annual Report, there are 14.5 million women-owned businesses that account for nearly 40% of all businesses in the U.S. In 2024, they had an estimated $508.5 billion in annual payroll, as reported by Census Bureau (Nov. 2024).
This week, in its annual analysis of over 53,000 companies, the Biz2Credit Women-Owned Business Study found that the funding percentage (36%) for women-owned businesses that applied for financing in 2024 increased from 35% in 2023. In comparison, the funding rate for male-owned businesses in 2024 was just 29%.
Additionally, the average funding amounts women received jumped by 25% from 2023 to 2024. The average funding amount for women-owned businesses was $53,678 in 2023. A year later, in 2024, the average amount was $67,035.
Women-owned firms employ 12.2 million workers and generate $2.7 trillion in revenue, according to the 2024 Wells Fargo Impact of Women-Owned Business Report, which also found that the number of women-owned businesses between 2019 and 2023 increased at nearly double the rate of those owned by men. In fact, the number of female-owned firms increased 11.5% from 2019 to 2024.
Data suggests that women-owned businesses emerged stronger from the COVID pandemic than they did from the 2008 financial crisis. Female-run companies owned by African Americans and Latinas performed notably well between 2019 and 2023. Wells Fargo reported that African American women-owned businesses saw average revenues increase 32.7% and Latina-owned firms experienced a 17.1% rise.
Access to capital has indeed expanded in recent years. For instance, according to the Small Business Administration (SBA)’s FY24 Capital Impact Report released last October, the SBA administered 15,500 loans for $5.6 billion to majority women-owned businesses, doubling in women-owned business participation relative to FY20.
Further analysis showed that the average annual revenue of women-owned firms in 2024 increased 15% to nearly $520,000, although expenses rose as well.
The funding rate and average loan amount for women-owned businesses rose in 2024, which is good news. The percentage of funding applications from women was 36%, compared to 29% for men last year. Women-owned businesses have also shortened the gap in average funding size to just 20% less than men-owned businesses, a significant improvement compared to last year’s difference of 40%.”
All is not rosy, however. Women business owners, along with their male counterparts, saw expenses rise significantly largely because of inflation in 2024. SMBs are hoping that costs will come down, although it has not happened yet.
Key Findings
- The Funding Rate for women-owned businesses rose from 35% in 2023 to 36% in 2024. In contrast to their male counterparts, the funding rate for men-owned firms was 29% in 2024.
- The Average Funding Size for women-owned businesses was $67,035 in 2024, a 25% increase from $53,678 in 2023. In comparison, men-owned businesses saw an increase of 7% in average loan sizes, up from $75,045 in 2023 to $80,140 in 2024.
- The Average Age of Business (in months) for women-owned businesses increased 10 months YoY, from 62 in 2023 to 72 months (6 years) in 2024, but remains 14 months lower than men-owned businesses, up from 72 in 2023 to 86 (slightly more than 7 years) in 2024.
- The Average Credit Score for women business owners increased by 10 points, from 643 in 2023 to 653 in 2024. Credit scores for male business owners also increased 10 points, from 660 in 2023 to 670 in 2024.
- Financing Applications by State: California had the highest percentage (12.8%) of funding applications of women-owned businesses, followed by the 2023 leader, Florida (12.5%) and Texas (10%).
- Financing Applications by Industry: Services (except Public Administration) was the largest industry represented by women-owned companies (14.9%) in the Biz2Credit study, followed by Healthcare and Social Assistance (14.5%), Retail Trade (13.5%) Accommodation and Food Services (12.1%), and Professional, Scientific, and Technical Service (9.5%).
- Average Annual Revenue for women-owned businesses increased 15%, from $451,443 in 2023 to $519,886 in 2024, while male-owned businesses rose 8%, from $688,611 in 2023 to $743,643 in 2024. The revenue gap between women-owned and men-owned businesses was $223,757 in 2024.
- Average Operating Expenses of women-owned businesses increased 38%, from $363,909 in 2023 to $503,426 in 2024. Men-owned business also saw a 31% increase in average operating expenses.
The Biz2Credit Women-Owned Business Study examined financial indicators including annual revenue, operating expenses, earnings, age of business, credit scores, funding rates, and funding amounts of companies that applied for credit on Biz2Credit’s online lending platform in 2024. The data was then tabulated to examine women-owned and men-owned businesses based on annual revenue, operating expenses, age of business, personal credit score, funding rate, and average loan size. The study looked at 20 different industries, as well as geography.
In 2024, women-owned small and medium sized businesses saw excellent growth in capital accessibility compared to their male counterparts. However, they also felt the impact of rising expenses on their earnings. High costs are still a concern this year for small business owners.
It is unclear at this time how the new policies of the Trump administration will impact business owners. He seems committed to tariffs, which will drive up costs for some types of small businesses, but less so for others. For example, food service businesses that use avocados will see cost increases related to the tariffs on Mexico. Smaller import companies that sell foreign-made goods like wine, cheese, and electronics made in other countries will pay more for these items. Manufacturing companies that use foreign-made inputs will see a rise in costs that will be passed along to consumers in the form of rising prices.
However, small businesses could respond by touting their American made-products and inputs. Additionally, many small businesses, particularly women-owned businesses, are service businesses that will likely not be impacted greatly by tariffs.
Tariffs: 4 Things Small Businesses Can Do Now To Survive
Roger Williams (R-TX), chair of the House Committee on Small Business, has expressed optimism that Trump administration policies will help small business owners.
“This Committee looks forward to working alongside President Trump to not only cut burdensome regulations across the board, but to address the tax code and ensure that small businesses are able to compete, spur growth, and achieve the American Dream,” he said.
What will be of critical importance is the continuing flow of capital to small businesses, which are the driver of job-creation in the private sector and an important part of the economy overall.
Related: What The Interest Rate Drop Means For Small Businesses
Women-owned businesses received a larger percentage of loan approvals and increased loan amounts in 2024. These are good signs for female business owners. The funding gap for women-owned businesses is closing, and with his smaller government, pro-business outlook, President Trump is expected to keep pushing for lower interest rates from the Federal Reserve and to keep working to ensure the flow of capital to small business owners continues in order to drive growth of the domestic economy.
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