R.I. last among states for employment growth among women-owned businesses

WOMEN-OWNED BUSINESSES grew nearly 75 percent nationwide from 1997 to 2015, according to the fifth annual State of Women-Owned Businesses Report by American Express OPEN. / COURTESY AMERICAN EXPRESS OPEN
WOMEN-OWNED BUSINESSES grew nearly 75 percent nationwide from 1997 to 2015, according to the fifth annual State of Women-Owned Businesses Report by American Express OPEN. / COURTESY AMERICAN EXPRESS OPEN

PROVIDENCE – Rhode Island ranked last among the states and the District of Columbia for employment growth among women-owned businesses between 1997 and 2015, and also ranked second to last for combined economic clout, according to a report from American Express OPEN.
In Rhode Island, the number of women-owned firms grew to 29,100 in 2015 from 19,886 in 1997. Interestingly, even though the number of firms increased, employment dropped 31 percent during the same period to 19,800 from 28,678, while sales increased 34.5 percent to $3.6 million from $2.7 million.

And, the only state that was worse than Rhode Island for combined economic clout, which averages together the rankings in growth in number, revenue and employment of women-owned firms, was Iowa. Maine was third worst, followed by Vermont and Ohio.
The survey said that in terms of growth in combined economic clout, North Dakota, Wyoming, the District of Columbia and Arizona, Georgia and Nevada (all three tied for 4th place) ranked highest.

Rhode Island also ranked 37th among the states and the District of Columbia for its 46 percent growth in women-owned businesses over the past 18 years.

The Ocean State also ranked 47th in growth of firm revenue between 1997 and 2015 at 34.5 percent, according to the fifth annual State of Women-Owned Businesses report.
And it ranked 38th among the states in terms of its 72 percent post-recession growth in women-owned businesses from 2007 to 2015.
Nationally, women-owned businesses grew 74 percent since 1997 to 9.4 million, employing 7.9 million.

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Georgia led the states with the fastest growth in the number of women-owned firms over the past 18 years at 132 percent, followed by Texas at 116 percent; North Carolina, 98 percent; and North Dakota and New York, both 89 percent.
States with the lowest growth in women-owned firms during the same 18-year period are: Alaska, 14 percent; West Virginia, 26 percent; Iowa, 27 percent; Kansas, 32 percent; and Maine, 36 percent.

“Women-owned businesses are key contributors to the post-recession recovery,” Lisette Bernstein, vice president at American Express OPEN, said in a statement. “With this report, we hope to draw attention to the growing diversity of women-owned enterprises and inspire even more women entrepreneurs tor each their full potential.”

A significant driver in the growth of women-owned
businesses is multicultural enterprises, according to the report. In 1997, there were 929,445 multicultural women-owned firms nationwide, accounting for one in six (17 percent) women-owned firms. That number has jumped to an estimated 3.1 million firms as of 2015, now comprising one in three (33 percent) women-owned firms, the report said.

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