Knowledge Center

Why Women Become Entrepreneurs

• A Catalyst study found that the top reasons women cited for leaving companies to start their own businesses were:1

• During the U.S. economic downturn in 2008, another Catalyst study found that 5% of high potential women and 4% of high potential men left their companies to start their own businesses.2

Counting Women-Owned Business

• In 2008-2009, 10.1 million firms were 50% or more owned by women:3
  • These firms employed over 13 million people.4
  • Over $1.9 trillion in sales were generated from these firms.5
  • 3% of all women-owned firms have revenues of $1 million or more, while 6% of men-owned firms have revenue with $1 million or more6
• Three-quarters of all women-owned businesses are majority-owned (in which women own 51% or more).7
• Women-owned firms have grown at two times the rate of all firms for the past two decades.8
• 40% of all privately held firms were owned by women.9

Women of Color

• In 2008-2009, women of color were the majority owners of 1.9 million firms.10
  • These firms generated $165 billion in revenue.11
  • 1.2 million people were employed by these women of color- owned firms.12

* Total equals more than 100% because of mixed racial heritage.

African-American women:

• As of 2008, there were an estimated 650,309 majority-owned, privately-held firms owned by African-American women in the U.S., and they generated almost $26 billion in sales.13

Latinas:

• As of 2008, there were an estimated 642,458 majority-owned, privately-held firms owned by Latinas in the U.S., and they generated $45 billion in sales.14

Asian-American women:

• As of 2008, there were an estimated 496,413 majority-owned, privately-held firms owned by Asian-American women in the U.S., and they generated over $86 billion in sales.15

Native American and Alaska Native women:

• As of 2008, there were an estimated 100,453 majority-owned, privately-held firms owned by Native American and Alaska Native women in the U.S., and they generated $6.6 billion in sales.16

Native Hawaiian and Pacific Islander Women:

• As of 2008, there were an estimated 12,922 majority-owned, privately-held firms owned by Native Hawaiian and Pacific Islander women in the U.S., and they generated $9.9 million in sales.17

Venture Capital

• In 2009, about 11% of U.S. firms with venture-capital backing had current or former female CEOs or female founders.18
• Women represented 11% of overall venture capital investors in 2011.19
  • Women represented 18% of VC investors in life science and clean technology industries, 12% in business-to-business information technology, and 11% in consumer IT.20

How to cite this product: Catalyst. Catalyst Quick Take: Women Entrepreneurs. New York: Catalyst, 2012.

• 1. Catalyst, Women Entrepreneurs: Why Companies Lose Female Talent and What They Can Do About It (1998).
• 2. Nancy M. Carter and Christine Silva, Opportunity or Setback? High Potential Women and Men During Economic Crisis (Catalyst, 2009).
• 3. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 4. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 5. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 6. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 7. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 8. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 9. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 10. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 11. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 12. Center for Women’s Business Research, "Key Facts about Women-Owned Businesses, 2008-2009."
• 13. Center for Women’s Business Research, Biennial Update 2008: Businesses Owned by Women of Color in the United States (2008).
• 14. Center for Women’s Business Research, Biennial Update 2008: Businesses Owned by Women of Color in the United States (2008).
• 15. Center for Women’s Business Research, Biennial Update 2008: Businesses Owned by Women of Color in the United States (2008).
• 16. Center for Women’s Business Research, Biennial Update 2008: Businesses Owned by Women of Color in the United States (2008).
• 17. Center for Women’s Business Research, Biennial Update 2008: Businesses Owned by Women of Color in the United States (2008).
• 18. Shira Ovide, " Addressing The Lack Of Women Leading Tech Start-Ups ," The Wall Street Journal (August 27, 2010).
• 19. National Venture Capital Association and Dow Jones Venture Source, "Diversity Increases Among Newer Venture Capital Professionals While Gender Composition of Industry Remains Largely Unchanged: NVCA and Dow Jones VentureSource Release 2011 Venture Census Data" (November 21, 2011).
• 20. National Venture Capital Association and Dow Jones Venture Source, "Diversity Increases Among Newer Venture Capital Professionals While Gender Composition of Industry Remains Largely Unchanged: NVCA and Dow Jones VentureSource Release 2011 Venture Census Data" (November 21, 2011).