A Boom in Women-Owned Firms
More and more women are starting
their own businesses.
Statistics compiled by the U.S. Small
Business Administration show that
women-owned small firms are increas­
ing three times as fast as the number of
male-owned companies. Other govern­
ment statistics show that one in every
four sole proprietorships in the country
today is headed by a woman and that
receipts of women-owned businesses
have increased 112 percent in recent
years.
SBA officials cite three factors as con­
tributing to the sharp increase in
women-owned firms:
—Because more and more women are
entering the nation’s work force,
women are acquiring skills and ex­
perience that can be translated into
entrepreneurship
-Because of business and academic
education, women are positioning
themselves for business opportunities in
expanding fields, such as aerospace,
telecommunications, electronics and
biomedical engineering.
- Because of the nation's overall
growth, more opportunities are
available for new business startups,
especially in service industries. Almost
half of women-owned small firms are
in the service sector.
President Reagan’s Annual Report on
the State of Small Business, prepared
by SBA’s Office of Advocacy, shows
that women-owned businesses have
been increasing at an annual rate of 10
percent or more in seven major types
of businesses. The chart below tells this
story:
Female-Operated Businesses with Annual
Growth Rates of 10 Percent or More,
1977-1982
Type of
Business
Annual Rate of
Growth (Percent)
Business Services
Management and Public Relations 22.3
Services to Buildings
18 3
Medical and Health Services
Miscellaneous Medical and
Health Services
Nursing and Personal Care
Facilities
Professional Services
Legal Services
Accounting, Auditing,
and Bookkeeping
12.0
17.9
27.1
15.5
Finance, Insurance and Real Estate
Security Brokers and Dealers
78.3
Commodity Contract Brokers and
21.9
Exchange Services
Insurance Agents, Brokers and
21.0
Services
M anufacturing
Apparel and Other Textile
Production
23.9
Construction
General Building Contractors
39.3
Agriculture Services
Animal Services Except l ivestock 13 6