Report puts Pa. seventh in women-owned firms
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A new report ranks Pennsylvania among the top 10 states for the number of women-owned businesses. On a less bright note, the state falls short in the amount of revenues those firms generate compared with female-owned enterprises nationwide.
The study by American Express Open -- a branch of the giant financial and travel services company that analyzes small business development -- ranked Pennsylvania seventh among all 50 states with approximately 282,600 women-owned firms, up 40 percent since 1997.
But the state was 36th in revenue growth at women-owned businesses during that time period. Sales generated by the female-owned firms in Pennsylvania were estimated at $49.5 million, up from $34 million in 1997.
Several people who track female entrepreneurship believe that women-owned businesses often hit a plateau once they reach $1 million in sales and have a tough time growing beyond that level.
"Over $1 million in revenues is the challenge," said Joanne Quinn-Smith, a past president of the National Association of Women Business Owners' Pittsburgh chapter and owner of an online marketing company based in the city's West End.
"Women are willing to take the initial risk to start a business up to a certain point. But if they have to put up their houses [as collateral for loans] to go beyond that, there's an anti-risk culture here. There are not people out there saying, 'Go for it,' like men who are rallying other men."
Nationwide, according to the Amex report, which analyzed data released by the U.S. Census Bureau in December, the number of women-owned business grew by 50 percent from 1997 until this year. Those 8.1 million firms generate combined revenues of $1.3 billion and employ 7.7 million people.
Firms that are majority held by women comprise 29 percent of all businesses in the United States, employ 6 percent of the national workforce and account for about 4 percent of all business revenues, the Amex study said.
Even in states other than Pennsylvania, female-owned enterprises seem to stumble when they hit the $1 million revenue mark, said Julie Weeks, research adviser on women's entrepreneurship for Amex and the author of the report.
"We found women-owned businesses keeping pace well along the growth journey up to 100 employees and $1 million in revenues. That's when they're faltering compared to the growth of all U.S. businesses."
First Published April 13, 2011 12:00 am
