Insights from Biz2Credit’s 2024 Women-Owned Business Study: Webinar

Women-owned businesses continue to make significant strides in the small to mid-sized business landscape. During a recent webinar, Corinne Goble, CEO of the Association of Women’s Business Centers, and Debbie Kemp, Chief People Officer at Biz2Credit, shared their insights on the latest trends and challenges facing women entrepreneurs. Below, we summarize the key takeaways from their discussion and dive into the most impactful findings from the study.

For the full details, you can access the complete Biz2Credit 2024 Women-Owned Business Study here.

Executive Summary of the 2024 Biz2Credit Women-Owned Business Study

The 2024 Biz2Credit Women-Owned Business Study highlights a year of growth for women entrepreneurs in the United States. Although earnings remained steady, both revenues and operating expenses saw significant changes. Released annually on International Women’s Day, the report draws from tens of thousands of applications submitted by small to midsized businesses across the country in 2023. These findings offer valuable insight into the financial performance of women-owned private companies.

Key Findings: Revenues and Expenses

In 2023, average earnings for women-owned businesses remained steady, with a minor decrease from $87,953 in 2022 to $87,634 in 2023. While this stability is positive, it contrasts with the 3% decline in average earnings for men-owned businesses. Despite the steady earnings, average annual revenue for women-owned companies saw a substantial rise of 15.5%, growing from $391,582 in 2022 to $452,446 in 2023.

However, there remains a significant revenue gap between men and women-owned businesses. On average, men-owned companies reported revenues of $689,949 in 2023, a gap of $237,503, or 34%. Addressing this disparity remains a challenge for the industry.

Industry and Regional Trends

Women-owned businesses are flourishing in the services sector (excluding public administration), continuing a trend from previous years. Florida emerged as the leading state for financing applications from women-owned businesses, followed by California and Texas.

The challenges of navigating the food industry, as shared by Nikki (a small business owner) in the webinar, exemplify the difficulties many women face in managing operating costs, especially during and after the pandemic. She highlighted how labor costs and sourcing affordable food materials remain significant pain points, despite her success in increasing revenue.

Impact of Minimum Wage Increases and Operating Costs

One key discussion point in the webinar was the effect of rising operating expenses. According to the Biz2Credit study, operating expenses for women-owned businesses increased by 20%, driven in part by rising labor costs and inflation. For business owners like Nikki, managing these rising costs while maintaining profitability has become increasingly complex. She pointed out that navigating minimum wage hikes, for example, often means raising wages across the board for employees, which adds additional pressure to her business.

Funding and Financing Challenges

One highlight from the study was the surge in financing applications from women-owned businesses, particularly in Florida, California, and Texas. While some businesses found success securing grants during the pandemic, many have yet to explore options for traditional funding.

During the webinar, Nikki reflected on her experience with financing, sharing how grants helped her business survive during COVID-19 but admitted she hadn’t previously sought out funding for expansion. This resonates with many women-owned businesses still navigating the complex world of financing.

Looking Forward

As the 2024 Biz2Credit Women-Owned Business Study demonstrates, women entrepreneurs are increasingly becoming key players in the U.S. economy. Yet, challenges remain, from closing the revenue gap to managing rising operating costs. The findings of this study, combined with the experiences shared during the webinar, provide a roadmap for understanding and supporting women-owned businesses in the future.

Watch the Webinar: Mentorship and Financial Insights for Women Entrepreneurs

If you missed the live discussion, you can watch the full webinar titled “Special Event The State of Women Owned Businesses – Examining Key Findings of the 2024 Annual Report,” where Corinne Goble and Debbie Kemp share their insights on the study and provide actionable advice for women business owners.

Click below to watch the webinar and learn more about the key financial trends, challenges, and opportunities for women-owned businesses in 2024.

Final Thoughts

The conversation with small business owners like Nikki, combined with insights from the study, underscores the resilience and creativity of women entrepreneurs. As Corinne Goble noted in the webinar, organizations like the Association of Women’s Business Centers are critical in providing the resources and support these business owners need to thrive.