The number of women-owned businesses in the U.S. grows each year, with over 11 million more women-led businesses today than there were 50 years ago. But location matters when it comes to making sure those businesses succeed.
Despite global health and economic setbacks, 40% of U.S. businesses are women-owned, according to the Women’s Business Enterprise National Council. And while this number isn’t proportional to the number of women in the U.S., who make up half the population, women aren’t slowing down anytime soon, says Nishank Khanna, chief marketing officer of lending firm Clarify Capital.
“Though there is still a patriarchal backdrop in the business world, women are rising up and dominating,” says Khanna. “Due to the rise in the feminine entrepreneurial spirit, we sought to reveal which states are the best and worst for women-owned businesses.”
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Clarify Capital scored each state out of 100 points based on factors like the percentage of women-owned businesses, gender pay gap, female unemployment rate and the number of women-owned businesses with a revenue of over $1 million. Khanna notes that rural states with less diversified economies found themselves at the bottom of the ranking, namely West Virginia, Mississippi and Alabama. However, Texas ranked in the top 10, reflecting the state’s recent tech boom in Austin. Overall, no state scored higher than 80 points.
“It wasn’t a surprise to see California, Colorado and New York top the list for best states for women-owned businesses overall,” Khanna says. “Cities in those states have a deep culture for entrepreneurship and state governments have championed efforts to help their communities grow.”
Here 10 best and worst states for women-owned businesses, according to
