As time progresses, women are becoming more and more involved in business activities. Due to women empowerment endeavors, more women are engaged in entrepreneurial activities. However, the gender division still favors men more than women. Interestingly, there has been trend in some states. For example, states located in the west coast seem to favor women more as compared to others. Although women from all states have a tougher time sourcing for funding from investors of small business and loans from banks, they still manage to run successful ventures.
What the Statistics Say
According to a 2016 report, there were over 11.3 million women owned businesses in the US which represents 38 percent as compared to the year 2007 when the overall percentage was 29 percent. The statistics shows some increase in terms of more female owned enterprises. The main challenge facing the uptake of women solely owing business is the capital and financing to run the business with some states recommending women to have male associates to gain some form of funding.
Characteristics used to determine States with most Female Owned Businesses
The Bureau of Labor, U.S. Census Bureau, and Small Business Administration (SBA) unit takes into consideration the following factors when determining whether the women owned business prevalence rate is high or low in different states:
They examine traits such the percentage of women owned businesses for the past five years or the current overall total of women owned businesses. They also consider the average revenue from female owned businesses, especially, the five year revenue rate of such firms. Another variable that is examined is the number of SBA female business centers, the more they are in one state, the more that state supports women owned enterprises.
These institutions also assess the women unemployment rate and the female to male pay rate ratios. In areas where women unemployment rate is low, the state supports women owned enterprises. Furthermore, states where the female to male pay ratio are almost at par with each other are considered favorable for female entrepreneurs.
Top Five Ranked States with the Highest Female Owned Businesses
According to the above characteristics, North Dakota comes in first on the rankings followed closely by South Dakota. The third one is Hawaii followed by Minnesota with Virginia closing the top five ranked states with the highest prevalence of female owned enterprises. All these states allow businesses to thrive due to policies that favor women owned business.
Even though Texas is not among the top 5 states supporting women entrepreneurship. Dallas is doing great things and according to an article, it ranks first in average sales per women owned businesses and fifth in the total number of women owned businesses. The factors that make this possible include a culturally supportive environment, the low cost of living, availability of highly skilled workforce, strong consumer base and institutions that support female entrepreneurs.
Women in business have grown in leaps and bounds and have been proven to be the case with the establishment of women custom home builders in dfw (Dallas Fort Worth). Their growth has been fueled by their attention to detail and the high quality standards they provide for the homes they build. Because of the openness and willingness of the women to work in construction sites even though they might face criticism from some men that exhibit chauvinistic tendencies, they have pushed on to become stable contractors.
Women have continued to build themselves in stature and seeking opportunities. In the modern world, life is becoming tougher and requires both the male and female input geared towards the development and maintenance of households. Thus, establishment of new policies that empower women in business as some of the states have done and creating a conducive environment for women to engage in entrepreneurial activities is very important for the growth of the economy.
by: Walter Bodell