Ranks of Self-Employed Women Grow

Women-owned firms without employees (i.e., the self-employed) are growing faster in number and in revenues than other non-employee firms.

A study by the Center for Women’s Business Research and underwritten by Wells Fargo, shows that there are 5.4 million women-owned businesses with no employees in the United States.

Women have traditionally been strong in service businesses.  However, this research shows that women’s businesses have grown in “non-traditional” (read: male dominated) industries:

The highest growth rate for women-owned non-employer firms is in non-traditional industries, defined as those industries that are historically dominated by men.   Between 1997 and 2004, the number of majority women-owned firms without employees grew by an estimated 29% in agriculture services; 27% in construction; and 26% in transportation, communications, and public utilities.  Slightly more than half (53%) of women-owned non-employer firms are in the service sector and the next highest percentage (14%) is in retail trade.

In my view this entire area of no-employee businesses (numbering 18 million+ in the United States alone) has long been either ignored or lumped into something called the SOHO market, with little effort to distinguish it.  But there is quite a bit of difference between an office-oriented business such as consulting or public relations, and a construction or agricultural business. 

It’s good to see work being done to further define and segment these no-employee firms, to better understand the nuances and different needs.

Read the press release about this research.