By Victor Ochieng
New York City tops the list of U.S. cities with the highest number of women entrepreneurs. Other high ranking cities are Los Angeles, Houston, and Chicago.
Although New York ranks high in terms of the number of women entrepreneurs, out of the 25 largest U.S. cities, Dallas rises to the top of the list in terms of revenue earned by women-owned businesses. Sales, on average, for women-owned businesses in the city are $198,599. The second on the list was San Antonio, Texas, which posted $191,223, and the third was Fort Worth with $186,435. This was followed by Houston with $181,122 and San Francisco with $175,766.
The figures are drawn from a Center for an Urban Future study, and aided by Capital One’s Future Edge Initiative that dug into the increase in the number of women-owned businesses and the effect of the growth in these U.S. cities, and the predominant challenges still faced by women entrepreneurs.
According to the report, the number of women-owned businesses in the top 25 cities jumped by 43% over the last half a decade, a figure higher than the national increase, which stood at 27%.
Out of the 25 largest cities, only one of them registered a percentage increase shy of the national average over the same period. For the period 2002 – 2012, Michigan, Tennessee, Detroit, Memphis, and Fort Worth, each posted 175% growth in the number of women-owned businesses.
Interestingly, according to the report, “Breaking Through: Harnessing the Economic Potential of Women Entrepreneurs,” of all the women-owned businesses across the nation, a whopping 90% don’t have paid employees.
The 90% translates into 8,842,742 businesses. If a quarter of these businesses added one employee each over the next period of three years, they’ll be able to create 2.2 million new jobs for the economy.
“Women entrepreneurs have become a major catalyst for economic growth in cities across the country, but there is still more that could be done to harness their tremendous economic potential,” the executive director of the Center for an Urban Future Jonathan Bowles said.
Although women are making notable progress in entrepreneurship, many of them still face numerous challenges in relation to managing and securing financing and introducing technology, said Keri Gohman, Capital One’s head of small business banking.
“The great news is there are a variety of quality, accessible resources—through organizations and programs like Grameen America, BusinessAdvising.org and others—designed to help business owners understand, plan, and communicate their financials effectively,” added Gohman.