Every borough has experienced a major increase in female owned businesses over the last five years, with Brooklyn leading the pack with 118,489 businesses owned by a woman.
According to a new study by the Center for an Urban Future, there’s been a dramatic surge in female entrepreneurs in New York City, showing that the number of women-owned businesses grew four times as fast as male-owned businesses during the past five years. The study also details that Brooklyn alone has more women-owned businesses than all but three other U.S. cities — NYC, Los Angeles, and Chicago.
While the report finds that female entrepreneurs are having an increasingly large impact on the city’s economy, it also concludes that New York has only begun to harness the full potential of women owned businesses. The study, titled “Breaking Through: The Economic Impact of Women Entrepreneurs”, reveals that 91 percent of all women-owned firms in the five boroughs have no paid employees, suggesting that too few women-led firms are growing to the next level. To break that down for you in simple numbers, just 37,494 (9 percent) of the city’s 413,899 female owned businesses have employees collecting a paycheck.
“Women are making significant strides as business leaders and entrepreneurs, yet many continue to face common challenges related to managing and securing financing, as well as adopting technology,” said Keri Gohman, head of Small Business Banking at Capital One. “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.”
The report also breaks down what industries New York City women have been pursuing: educational services (55 percent); transportation and warehousing (50 percent); accommodation and food services (50 percent); professional, scientific, and technical services (38 percent); construction (33 percent); retail trade (26 percent); health care and social assistance (26 percent); manufacturing (23 percent); information (21 percent); real estate (20 percent) and wholesale trade (20 percent).
The report concludes that if just one quarter of the existing 376,405 women-owned businesses in the city with no paid employees added a single employee in the next three years, it would result in more than 94,000 new jobs.