Roughly half of all startups launched in 2021 were launched by women. From tech startups to health and fitness, female entrepreneurship is on the rise.
Here are 5 upcoming trends to pay attention to as female entrepreneurship continues to grow.
Founding Businesses to Be Their Own Boss – and Avoid Corporate America
According to the 2022 National Women’s Business Council (NWBC) Annual Report, most women were driven to start their own business for two reasons:
- They were ready to be their own boss (27% of respondents)
- They were dissatisfied with corporate America (23% of respondents)
The next leading reasons to start their own business included wanting to pursue their passion, not yet ready to retire, an opportunity presented itself, or they were laid off.
Women Driving Better Statistical Business Growth Than Men
That same NWBC Annual Report also found women were outperforming their male counterparts in key statistical areas of business management:
- Between 2012 and 2019, women-owned businesses grow 16.7% compared to just 5.2% in companies owned by men
- Women-owned businesses hired 28% more workers over the same time period, compared to just 10.8% in companies owned by men
- Between 2012 and 2019, gross receipts in women-owned businesses rose 51.9%
Women Launching Businesses to Pursue their Passions
Many businesses succeed because their owners are passionate about what they do.
A recent study found women were 20% more likely than men to launch a business based on their passion.
In fact, launching a business because they wanted to pursue their passion was the third most common cause for women launching a business, behind wanting to be their own boss and dissatisfaction with corporate America.
Increased Growth in Retail, Health, Beauty, and Fitness Services
Women continue to dominate businesses in certain niches.
One study found women were twice as likely than men to own businesses within the retail sector and the health, beauty, and fitness services sector.
In fact, out of all businesses led by women, 26% were in retail and 17% were in health, beauty, and fitness services.
Other popular niches for women include food and restaurant (14%), lodging (7%), and education and training.
Women Launching More Startups
According to a recent report, nearly half of all new businesses in the United States are started by women – up from less than a third of all businesses just two years ago.
A report from human resources software company Gusto found 49% of all new businesses started in the United States in 2021 were started by women. That’s a dramatic increase from 2019, when 28% of women started new businesses.
There’s still room to grow: male business owners outnumber female business owners in the United States by a 3 to 1 margin. However, if 2021 is a sign of things to come, then female entrepreneurship is on the right track.
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