Businesses owned by men had average revenue of $229,115, more than 60 percent higher than that of women-owned companies. In terms of profitability, male-owned businesses had earnings of $117,096 in 2015. In contrast, women-owned businesses had earnings of $72,529 during the same period — a jump from $67,950 in 2014. Meanwhile, average credit scores for men (615) were 15 points higher.
Loan approval rates for women-owned businesses were 33 percent lower than men-owned companies. Aside from lower revenue figures and credit scores, a reason for this disparity was the percentage of loans that went into default. In 2015, approximately 1.25 percent of women-owned businesses defaulted on their loans, a decrease from 2014 (2.03 percent) but still significantly higher than male-owned businesses in 2015 (0.66 percent) due in part to cash-flow issues.
However, there is much positive news. For instance, female entrepreneurs have made great progress in the last two decades, according to the recently published 2015 State of Women-Owned Businesses Report, conducted by American Express Open. There are now 9.4 million women-owned businesses in the U.S. Since 1997, the number of women-owned business grew by 74 percent, and the fastest-growing demographic of entrepreneurs in the U.S. over the last two decades are African-American women (32 percent).
Entrepreneurship is high among women in the states of California, Texas, Florida, New York and Georgia. They are running successful companies in professional services, as well as retail, food service and health care.