78 PROFESSIONAL WOMAN'S MULTICULTURAL MAGAZINE WWW.PROFESSIONALWOMANMAG.COM
SUPPLIER DIVERSITY
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pnfo.pxofe!snt!nbef!vq!pomz!2:/:!qfsdfou! pg!bmm!snt!uibu!fnqmpzfe!qfpqmf!jo!uif!Vojufe! States in 2018, but their numbers are growing. Xpnfo.pxofe! fnqmpzfs! snt! sfqpsufe! ofbsmz! $1.8 trillion in sales, shipments, receipts or revenue and employed over 10.1 million workers with an annual payroll of $388.1 billion in 2018. The ABS provides data on race, ethnicity, sex and veteran status of owners of businesses with one or more paid employees. This information can be invaluable in helping economic development organi- zations promote growth of minority and women busi- ness ownership in their areas.
Women Business Growth by Sector
Xpnfo.pxofe! snt! jo! uif! Bsut-! Foufsubjonfou! boe!Sfdsfbujpo!tfdups!sptf!21/6!qfsdfou-!gspn!33-32:! in 2017 to 24,542 in 2018. The 10 sectors shown in the chart below also saw growth in women-owned businesses.
Characteristics of Women Busi- ness Owners
Demographic characteristics of the nation's wom- fo.pxofe!snt!bsf!tjnjmbs!up!uifjs!nbmf.pxofe!sn! counterparts. Most women-owned businesses are run by White xpnfo! )93/9! qfsdfou! pg! bmm! xpnfo.pxofe! snt*-! opo.njopsjuz!)85/7!qfsdfou*-!opo.Ijtqbojd!):3/5!qfs- cent) and non-veteran (98.9 percent).
Are There More Women-Owned Businesses in Some Sectors?
Xpnfo.pxofe!snt!ufoe!up!cf!npsf!dpodfousbufe! jo!dfsubjo!tfdupst!uibo!bmm!snt!pwfsbmm/!Bddpsejoh!up!
Women Business Ownership is
On the Rise in America
the ABS, 191,230 or approximately 16.8 percent of uif!obujpot!upubm!2/2!njmmjpo!xpnfo.pxofe!snt!jo! 3129-!xfsf!dmbttjfe!jo!uif!Qspgfttjpobm-!Tdjfoujd! and Technical Services sector, compared to 14.3 per- dfou!gps!bmm!snt!jo!uif!tfdups/ Fnqmpzfft! pg! xpnfo.pxofe! snt! xfsf! bmtp! concentrated in certain sectors. Nearly 2.0 mil- lion or approximately 19.4 percent of the 10.1 mil- mjpo! fnqmpzfft! pg! xpnfo.pxofe! snt! xpslfe! jo! uif!Ifbmui!Dbsf!boe!Tpdjbm!Bttjtubodf!tfdups!jo!3129-! dpnqbsfe!up!25/:!qfsdfou!pg!bmm!sn!fnqmpzfft/
Sex Parity
Average annual earnings of employees of wom- fo.pxofe!snt!mbh!cfijoe!uif!obujpobm!fbsojoht!bwfs- bhf!pg!xpslfst!pg!bmm!snt;!%49-349!jo!bwfsbhf!boovbm! payroll per employee compared with $54,114. Xpnfo.pxofe! snt! jo! ojof! pg! uif! 31! tfdupst! the ABS covered had average annual payroll per fnqmpzff!tubujtujdbmmz!mpxfs!uibo!uif!upubm!gps!bmm!snt! in those sectors. The lack of sex parity was also visible in average annual sales, shipments or revenue. Jo! 3129-! xpnfo.pxofe! snt! fbsofe! bo! bwfs- age of $1.6 million in sales, shipments or revenue; nbmf.pxofe!snt!fbsojoht!xfsf!epvcmf!uibu!bu!%4/3! million.
What States Have the Most Women-Owned Businesses?
Xjui!npsf!snt!uibo!boz!puifs!tubuf!)853-24:*-!jut! not surprising that the nation's most populous state, Dbmjgpsojb-!bmtp!ibe!uif!nptu!xpnfo.pxofe!snt!jo! 2018. Dbmjgpsojbt! 25:-:38! xpnfo.pxofe! snt! fn- ployed over 1.3 million workers with $57.4 billion in annual payroll in 2018. Jo!Ibxbjj-!xpnfo.pxofe!snt!nbef!vq!35/8&!pg! bmm!snt!jo!uif!tubuf/!Jo!Wjshjojb-!xpnfo.pxofe!snt! nbef!vq!34/8!qfsdfou!pg!bmm!snt-!boe!jo!Dpmpsbep! xpnfo.pxofe! snt! nbef! vq! 33/3! qfsdfou! pg! bmm! snt!jo!uif!tubuf/ Jo!ufsnt!pg!fnqmpznfou-!xpnfo.pxofe!snt!jo! Montana made up 11.0 percent of all employees in the state. Xpnfo.pxofe!snt!jo!uif!Ejtusjdu!pg!Dpmvncjb! reported average annual payroll per employee of $57,031, higher than the national average of $38,238 gps!bmm!xpnfo.pxofe!snt!jo!uif!Vojufe!Tubuft/
What About the Self-Employed?
In addition to ABS data on women-owned em- ployer businesses, the new Nonemployer Statistics - Demographics (NES-D) program publishes data on xpnfo.pxofe!opofnqmpzfs!snt-!uzqjdbmmz!sfgfssfe! to as self-employed. The 10.6 million self-employed xpnfo.pxofe! snt! jo! 3128! sfqpsufe! tbmft-! tijq- ments, or revenue of $286.1 billion. The NES-D program supplements ABS data and includes similar breakouts by the race, ethnicity and veteran status of the business owner. It also includes data the business itself, including the industry classi- dbujpo-!boe!csfblpvut!cz!sfdfjqut!tj{f!boe!mfhbm!gpsn! of organization. Combining the ABS and NES-D data hjwft!vt!uif!upubm!ovncfs!pg!xpnfo.pxofe!snt!jo! the United States. Some key statistics from the 2017 NES-D: ! Uif!ofbsmz!2/7!njmmjpo!Ijtqbojd!xpnfo.pxofe! snt!sfqpsufe!tbmft!pg!%45/8!cjmmjpo!jo!3128/ ! The nearly 3.7 million minority women-owned snt!sfqpsufe!tbmft!pg!%94/9!cjmmjpo!jo!3128/ ! Uif!253-111!wfufsbo!xpnfo.pxofe!snt! reported sales of $3.1 billion in 2017.
Where Do We Go from Here?
As governments and communities strive to encour- age business ownership by people who mirror the race and ethnicity of their residents, there is also a qvti!up!ibwf!cvtjoftt!pxofstijq!sffdu!uif!tfy!pg!uif! workforce. The Census Bureau's ABS and NES-D pro- vide key data that federal agencies, for example, can use to promote business ownership by women. The Small Business Administration, the Department of Commerce's Minority Business Development Agency, and the National Women's Business Council also provide key resources to encourage women-owned businesses, along with dozens of fed- eral, state, local and private sector organizations.
Source: U.S. Department of Commerce
There were 6,861 more women-owned firms in 2018 than in 2017, up 0.6 percent to 1.1 million, according to the Census Bureau's Annual Business Survey (ABS)
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