Businesses owned by minority women increase at five times the national average

According to the Center for Women’s Business Research, businesses owned by women of color are growing at five times the rate of all privately held firms. In the last two decades alone, the number of women owned firms increased at nearly twice the rate of all U.S. companies.

From 1997 through 2006, the number of businesses owned by Hispanic women grew 121 percent. The number of firms owned by African-American women grew 147 percent: 20 percent in number of employees and 70 percent in sales for the same period.

One of the main reasons why female minority owned business are making such lengthy strides and far outpacing the national average in business growth is because more minority women are making effective use of networking, business credentials, and marketing as a means of starting and increasing their businesses.

Though there are many different means for women to obtain startup capital to create and build a business, for years many women could not access the social networks that were essentially required to develop the contacts that would help them obtain the much needed capital to start their businesses.

Now that many of these important social networks are available to current and prospective women business owners, women can develop the good relationships they need to find the best lenders to finance the beginning and growth phases of their businesses. The importance of good business contacts and relationships has long been established, and currently, more than two-thirds of owners choose financial products and services based on their experiences and relationships with lenders.

Female minority business owners are also using organizations that offer networking and business resources to improve workplace and negotiation skills so that they can get better deals on anything from loan rates to business equipment.


Proper business credentials have also served to fuel the growth of female minority owned businesses. An increasing number of women minority owned businesses are making sure that they have the proper business credentials to operate in the industries in which they operate, and if they do not have them, they are taking the steps to obtain them.

Obtaining proper business credentials has helped many women owned businesses get their foot in the door and pave the way for years of contractual agreements and business growth, provided that the business delivers a high rate of customer satisfaction. Proper credentials in one state or municipal area can also make it easier for a business to obtain credentials in another state or municipal area and to begin to expand into new areas.

Marketing is also a key reason why minority women owned businesses are growing. Women business owners are placing a great deal more importance on advertising and promoting their businesses as a means of increasing exposure and sales.

And the results are clearly visible in terms of sales and revenue growth, as well as in business expansions.

The future for minority women owned businesses looks even brighter, as this exceptional growth is expected to continue well into the coming decade.