Study: R.I. 40th in nation for growth in women-owned businesses

RHODE ISLAND ranked 40th in the nation for 24.9 percent growth in the number of its women-owned firms from 2007 to 2016, according to the sixth annual survey from Amex OPEN. / COURTESY AMEX OPEN
RHODE ISLAND ranked 40th in the nation for 24.9 percent growth in the number of its women-owned firms from 2007 to 2016, according to the sixth annual survey from Amex OPEN. / COURTESY AMEX OPEN

PROVIDENCE – Rhode Island ranked 40th for 24.9 percent growth in women-owned business firms from 2007 to 2016, according to the sixth annual State of Women-Owned Businesses Report, commissioned by Amex OPEN.
Rhode Island has an estimated 33,000 women-owned firms, employing 28,100 with approximately $4.8 million in sales.
Florida ranked first for 67 percent growth in women-owned businesses during the nine-year time period, while New Hampshire was last, for 14.1 percent growth.
Nationally, the number of women-owned firms increased by 45 percent, to 11.3 million enterprises, compared with just a 9 percent increase among all businesses since 2007. The study found that over the past nine years, the number of women-owned firms has grown at a rate five times faster than the national average.
“We are pleased to see the continued rise of the vital role that women-owned businesses play in our country’s post-recession recovery,” Susan Sobbott, president of American Express Global Commercial Payments, said in a statement. “We are inspired by these women who are continuing to pursue their entrepreneurial passions, and are strengthening our communities and economy even further.”
Rhode Island ranked higher in categories of revenue and employment, ranking 13th in the nation in both. Rhode Island’s women-owned businesses experienced nearly 44 percent revenue growth during the nine-year time span, and a 25.4 percent employment increase. For economic clout, which combines growth in the number, employment and revenue of women-owned businesses over the past nine years, the Ocean State ranked 19th, while North Dakota, South Dakota and Texas tied for first place, and New Hampshire was last, preceded by Connecticut.
The study found that firms operated by women of color are growing, as their numbers have more than doubled since 2007, to nearly 5 million. They comprise 44 percent of all women-owned firms. These businesses employ 2 million workers and generate $344 billion in annual revenue.

It said that the five states home to the greatest number of women-owned firms as of 2016 are: California, Texas, Florida, New York and Georgia, and the top metropolitan areas are: New York City, Los Angeles, Miami, Chicago and Atlanta.
As for industry trends, the study found that in the wake of the recession, women are turning to “traditional industries” such as lifestyle and services companies. Between 2007 and 2016, the following four industries saw the greatest increase in the number of women-owned firms:

  • Other services (such as home care, hair and nail salons and pet care businesses), up 98 percent;
  • Administrative, support and waste management services (including janitorial and landscaping businesses as well as office administrative support and travel agencies), up 64 percent;
  • Accommodation and food services, up 62 percent;
  • Construction, up 56 percent

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