Consider this stat: Over the past year, women started an average of 1,817 new businesses per day in the U.S. That now represents 42% of nearly 13 million businesses overall, which employ 9.4 million workers and generate revenue of $1.9 trillion. And while these female founders come from diverse backgrounds, women of color make up the biggest portion of them, according to the annual State of Women-Owned Businesses Report.
Women of color account for 89% (1,625) of the new businesses opened every day over the past year. This number has grown faster than the overall rate of new women-owned businesses in the past five years—21% versus 43%. The number of firms owned by African-American women grew even faster, at 50%. This is despite the fact that revenue is decreasing. The average declined 3% from $67,800 in 2014 to $65,800 in 2019.
Minority women are more likely to have a side hustle, according to the report. Over the last five years, the number of women with side hustles has increased to 39%, compared to a 21% average rate of entrepreneurship. Among minority women, it’s even higher: 65% compared to 32%, respectively.
These entrepreneurial ventures are concentrated in three sectors: service businesses like hair and nail salons and pet care; healthcare and social assistance; and professional/technical services like lawyers and bookkeepers.