Money Makers - Best States for Female-Owned Businesses

 A new study reveals the leading states for female-owned businesses. 

The research, conducted by demand planning software Algo, analyzed the latest U.S. Small Business Administration data to determine which states have the highest percentage of women-led firms across both employer and non-employer categories. 

Georgia stands at the top of the rankings for female-owned businesses, with 512,667 female-owned establishments out of a total of 1,215,635. This equates to 42.2% of all firms. Women own 45.7% of non-employer businesses in the state, while maintaining a 22.1% ownership rate in employer businesses. 

Hawaii secures the second position, with 40.6% of businesses owned by women. The data shows that out of 133,811 total businesses in the state, 54,353 are female-owned. The state displays a higher percentage of women-owned non-employer businesses, at 44.5%, compared to employer businesses, at 22.5%. 

Oregon is the third-best state for women in business, with women owning 40% of all businesses. The Pacific Northwest state has 157,382 female-owned businesses out of a total of 393,942. The data shows women own 45.2% of non-employer businesses and 22.4% of employer businesses in the state. 

In joint fourth place, with a 39.9% total female ownership rate, are South Carolina, Louisiana, and New Mexico. Despite the matching totals, 43.8% of businesses are female-owned non-employer firms in South Carolina, compared to 44.0% in Louisiana and 44.8% in New Mexico. 

Maryland has 253,343 female-owned businesses out of 636,055 total businesses. Out of these, women own 43.2% of non-employer businesses and 22.4% of employer businesses. With women owning 39.8% of all businesses, Maryland ranks fifth.

Table 1: The top 10 best states for female-owned businesses

Rank	State	Total female-owned businesses	Percentage of female-owned businesses
1	Georgia	512,667	42.2%
2	Hawaii	54,353	40.6%
3	Oregon	157,382	40.0%
=4	South Carolina	189,390	39.9%
=4	Louisiana	184,528	39.9%
=4	New Mexico	63,060	39.9%
5	Maryland	253,343	39.8%
6	Mississippi	104,663	39.6%
7	North Carolina	394,295	39.4%
8	Alabama	164,376	39.3%
=9	Virginia	318,105	39.2%
=9	Tennessee	258,304	39.2%
10	Florida	1,218,083	39.1%

With 39.6% of all firms owned by women, Mississippi is the sixth-best state for women in business. According to the data, women own 43.8% of non-employer businesses compared to only 16.5% of employer businesses, which is the lowest employer percentage among the top 10 states.

North Carolina ranks seventh, with a 39.4% female-owned business rate, followed by Alabama in eighth, with 39.3%. Virginia and Tennessee rank in joint ninth, with 39.2% female business ownership rates, respectively. Florida is the tenth-best state for female-owned businesses, with 39.1% of establishments owned by women. 

At the other end of the study, Delaware and South Dakota share the lowest percentage of female-owned businesses. Women own 32.8% of businesses in both states, including 32,096 firms in Delaware and 29,348 in South Dakota.  

Wyoming follows as the second-worst state for women in businesses. According to the study, 32.9% or 23,879, of all businesses are female-owned. Out of these, 26.9% are non-employer and 19.7% are employer.  

Utah ranks third lowest, with 33.6%. In joint fourth place, Maine and New Jersey both record a female ownership rate of 33.7%. New Hampshire rounds out the five lowest-ranked states, with female-owned businesses accounting for 34% of the total. 

Table 2: The top 10 worst states for female-owned businesses

Rank	State	Total female-owned businesses	Percentage of female-owned businesses
=1	Delaware	32,096	32.8%
=1	South Dakota	29,348	32.8%
2	Wyoming	23,879	32.9%
3	Utah	112,131	33.6%
=4	Maine	50,046	33.7%
=4	New Jersey	318,971	33.7%
5	New Hampshire	46,325	34.0%
6	New York	750,018	34.2%
=7	Nebraska	61,934	34.3%
=7	Pennsylvania	367,512	34.3%
8	North Dakota	25,419	34.5%
9	Montana	44,836	34.7%
10	Wisconsin	158,111	34.8%

Sanjeev Balasubramanian, SVP of Solution Architecture at Algo, commented on the findings, 

"These numbers paint a clear picture of female entrepreneurship across America, with strong regional patterns emerging. The data shows women have made remarkable progress in business ownership, particularly in states like Georgia and Hawaii where cultural and economic factors may be more supportive. 

"What stands out most is the significant gap between non-employer and employer firm ownership. This suggests that while initial barriers to business ownership are being overcome, women entrepreneurs still face challenges in scaling their businesses to the point of hiring employees. State policies that specifically address growth-stage support could help close this gap.” 

Post courtesy https://algo.com.  

Methodology 

This study determines which states have the highest average number of female-owned employer firms in America, according to the latest U.S. Small Business Administration data. States are ranked based on the average percentage of employer and non-employer female-owned businesses. For this analysis, majority-female-owned businesses are defined as those where women own more than 50% of the business. Note: Minnesota has been removed from the study due to inconclusive data. 

Source 

• U.S. Small Business Administration