January 25, 2018

Best States for Women Entrepreneurs – Definitive Ranking of All 50 States

Best States for Women Entrepreneurs – Definitive Ranking of All 50 States

By Henry Kanapi

Women have made enormous contributions to the country’s economy. In fact, according to Womenable, the U.S. is home to over 11.3 million female-owned businesses which employed around nine million people and generated over $1.9 trillion in 2016. Over the last nine years, the number of female-owned businesses has grown five times faster than the national average.

Regardless of these impressive achievements, women entrepreneurs still face unique challenges in today’s business environment. Setting up shop in locations which are most receptive to female entrepreneurs can help. To help you identify these states, we compiled data from sources such as the United States Census Bureau, Womenable, and the American Express. We then analyzed the data for each state to put together a definitive ranking of the best states for female entrepreneurs.

To rank each state, we chose six categories that significantly influence a state’s desirability for female business owners:

- Percentage of women-owned firms out of total businesses in a state
- Percentage of a state’s business revenues coming from women-owned firms
- Women economic clout in each state
- Trend in net number of women-owned firms per day
- Percentage of women-owned firms with paid employees
- Percentage of employees in the state that are working in women-owned firms

 

1. Georgia

The Peach State is the best state for women entrepreneurs after ranking in the top five in three categories. Georgia leads all states in the percentage of women-owned firms category as women businesses account for over 40 percent of the state’s total businesses. Moreover, 20.5 percent of businesses with employees in the state are owned by women to propel the state to number five in this category. In Georgia, there are 54 net new businesses per day that are owned by women, taking fifth place in this metric.

2. Florida

The Sunshine State lands at number two after posting top five finishes in four categories. In Florida, there are 119 net new businesses that are owned by women every day to come in second in this category. In addition, women own 38.5 percent of the businesses in the state, taking the fourth spot in this metric. Also, Florida grabbed the fourth spot for the percentage of women-owned firms with paid employees as women own 20.8 percent of businesses in the state with paid employees.

3. Maryland

Completing our podium finishers is the Old Line State as it garnered top 10 rankings in four metrics. It came at number two in the percentage of women-owned firms category as female entrepreneurs account for 39.3 percent of businesses in the state. Women-owned businesses in Maryland contributed 5.69 percent to the total revenues of businesses in the state to come in at number 4 in this metric. In addition, women entrepreneurs employ 8.71 percent of the state’s total number of employees, ranking sixth in this category.

4. California

The Golden State comes in at number four with good performances across the board. In California, there are 129 net new businesses owned by women daily to lead all states. Moreover, women-owned businesses represent 37.2 percent of all businesses in the state, placing seventh in this category. Lastly, firms owned by women generated 5.15 percent of total business revenue in the state to rank eighth in this metric.

5. Colorado

Concluding the first half of our list is the Centennial State, managing to rank within the top 15 in five categories. The state took second place honors for the percentage of women-owned firms with paid employees–21.52 percent of businesses with paid employees in Colorado are owned by women. Also, the state took the eleventh spot in the economic clout category. In addition, businesses owned by women account for 4.95 percent of revenues of all businesses in the state, finishing 11th in this category.

6. Virginia

Kicking off the second half of our list is the Old Dominion State with top 15 finishes in three categories. 20.89 percent of businesses with paid employees in the state are owned by women to grab the third spot in this category. In Virginia, 8.38 percent of employees are employed by female entrepreneurs, placing 10th in this metric. Also, there are 17 net new women-owned businesses in the state per day, coming in at 15th place.

7. New York

The Empire State grabs the seventh spot, buoyed by top 20 rankings in all categories. In New York, there are 57 net new women-owned firms per day to rank number four in this category. In addition, women-owned firms account for 4.81 percent of the total revenues generated by all businesses in the state, coming in at number 14. Lastly, the state ranks 17th in the percentage of women-owned firms category as 36.12 percent of businesses in New York are owned by women.

8. Texas

Texas is the eighth best state for female entrepreneurs after ranking within the top 15 in three categories just like Virginia. The Lone Star State dominates the economic clout metric, ranking number 1 in this category. In addition, there are 166 net new businesses owned by women per day in Texas to rank third. Also, 19.45 percent of businesses in Texas with paid employees are owned by women, placing 13th in this metric.

9. Hawaii

Hawaii takes the ninth spot in the ranking, bolstered by top 10 finishes in three categories. In the Aloha State, 6.94 percent of all business revenues are generated by female-owned firms to rank second in this category. Moreover, women-owned firms represent 37.53 percent of all businesses in the state, coming in at number six. In addition, businesses owned by females employ 8.56 percent of all employees in Hawaii, ranking eighth in this category.

10. New Mexico

Capping off our top ten rankings is New Mexico as the state posted good performances in four categories. In the Land of Enchantment, women-owned firms account for 39.01 percent of all businesses to take the third spot in the category. It also ranks third in another category as 9.35 percent of employees in New Mexico are employed by female entrepreneurs. Lastly, 5.33 percent of all business revenues in the state are produced by women-owned businesses to rank seventh in this metric.

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