NEWSRELEASE

For Release: August 17, 2006
Contact: John McDowell, (202) 205-6941
john.mcdowell@sba.gov
SBA Number: 06-16 ADVO
Press Kit

Women-owned Firms Increase Nearly 20 Percent

WASHINGTON, D.C. - Women-owned firms increased nearly 20 percent over the latest period studied, according to a report released today by the Office of Advocacy of the U.S. Small Business Administration. During the five years between 1997 and 2002, women-owned firms grew by 19.8 percent while all U.S. firms grew by about 10 percent.

A wealth of data on women in the work force and women-owned business is presented in Women in Business: A Demographic Review of Women’s Business Ownership, written by Office of Advocacy senior economist Dr. Ying Lowrey.

The report uses newly released U.S. Census and other data to describe women’s contributions to the economy. Statistics documented in the report include:

Ø In 2002, women owned 6.5 million or 28.2 percent of nonfarm U.S. firms. More than 14 percent of these women-owned firms were employers, with 7.1 million workers and $173.7 billion in annual payroll.

Ø Women-owned firms accounted for 6.5 percent of total employment in U.S. firms in 2002 and 4.2 percent of total receipts.

Ø Of all women business owners in 2002, 85.95 percent were White, 8.43 percent African American, 8.33 percent of Hispanic heritage, 5.25 percent Asian, 1.23 percent American Indian and Alaska Native, and 0.18 percent Native Hawaiian and other Pacific Islander (total does not add to 100 due to some double counting across ethnic groups).

Ø According to 2002 data, significant proportions of women-owned businesses were in professional, scientific, and technical services, and in health care and social assistance.

The Office of Advocacy, the “small business watchdog” of the government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats and it funds research into small business issues.

For more information and a complete copy of the report, visit the Office of Advocacy website at archive.sba.gov/advo.

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The Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The presidentially appointed Chief Counsel for Advocacy advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. For more information, visit archive.sba.gov/advo, or call (202) 205-6533.