This month, Womenable released the 2016 State of Women Owned Business Report and it doesn’t look good for Phoenix. As recently as the 2014 report, Phoenix was ranked as the 4th best metro area overall for women business owners, this year Phoenix fell to 38th. While other cities have identified female entrepreneurs as a huge economic development opportunity and have built significant infrastructure in their ecosystem, Phoenix has fallen behind. Another important detail was revealed by this year’s in depth analysis on specific metro areas that compared data gathered since the recession. It showed that something specific to the Phoenix ecosystem is resulting in women businesses growing at significantly lower rates than other similar metro areas. What about the Phoenix ecosystem is specifically causing this trend, we will only know through more research. The AMEX Open report once again shows the need for the market research initiative that Empowered PhXX is currently looking for funding to execute.
The Womenable blog has a great summary of the research and the in-depth tables. Here are a few overall facts from this report that they highlight:
- Between 2007 and 2016, while the total number of firms increased by 9%, the number of women-owned firms increased by 45% – meaning that over this period the number of women-owned firms grew at a rate fully five times the national average.
- Who are entering the ranks of women business owners at a fast clip? Women of color; their numbers have more than doubled since 2007 to nearly 5 million. They comprise fully 44% of all women-owned firms.
- There are now 11.3 million women-owned businesses in the U.S. employing nearly 9 million people and generating over $1.6 trillion in revenues.
- Women-owned businesses now comprise 38% of the business population, employ 8% of the country’s private sector workforce and contribute 4% of the nation’s business revenues.
- Since 2007, there have been 1,072 net new women-owned firms launched each and every day.