CORRECTING and REPLACING Number of Women-Owned Businesses Growing 2.5 Times Faster Than National Average

The Seventh Annual State of Women-Owned Businesses Report,
Commissioned by American Express OPEN Finds There are 114% More
Women-Owned Businesses in the U.S. Than 20 Years Ago

Number of Firms Owned by Women of Color Has Grown by 467% Over the
Past 20 Years

NEW YORK–(BUSINESS WIRE)–In the release dated November 8, 2017, the link immediately preceding
the Methodology section should link to: http://about.americanexpress.com/news/docs/2017-State-of-Women-Owned-Businesses-Report.pdf.

The corrected release reads:

NUMBER OF WOMEN-OWNED BUSINESSES GROWING 2.5 TIMES FASTER THAN
NATIONAL AVERAGE

The Seventh Annual State of Women-Owned Businesses Report,
Commissioned by American Express OPEN Finds There are 114% More
Women-Owned Businesses in the U.S. Than 20 Years Ago

Number of Firms Owned by Women of Color Has Grown by 467% Over the
Past 20 Years

The number of businesses owned by women in the U.S. has more than
doubled in twenty years, as has their revenue, according to the annual
State of Women-Owned Businesses report, commissioned by American Express
OPEN. Women are starting an average of 849 new businesses per day, up 3%
from last year.

There are 11.6 million women-owned businesses, employing nearly 9
million people and generating more than $1.7 trillion in revenue. The
report is based on U.S. Census Bureau data adjusted by Gross Domestic
Product data each year.

“We’re encouraged to see the amount of female-owned businesses in the
U.S. has more than doubled in twenty years,” said Susan Sobbott,
President of American Express Global Commercial Payments. “Championing
women-owned businesses strengthens our economy, individual communities
and helps inspire the next generation of female entrepreneurs.”

The huge gain in the number of women-owned businesses and their revenue
growth has not been matched by employment growth, particularly after the
Great Recession. Over the past twenty years, the number of women-owned
firms increased 114% and revenues grew 103%, but employment grew only
27%. In the past year, job growth at women-owned companies is nearly
flat with an increase of only 0.1%.

Significant growth in firms owned by women of color

For the last twenty years, women of color have turned to
entrepreneurship at an astounding rate. While the number of women-owned
businesses grew 114% from 1997 to 2017, firms owned by women of color
grew at more than four times that rate (467%). In addition, the 5.4
million businesses owned by minority women make up almost half of all
women-owned firms (46%). These businesses employ more than two million
workers and generate $361 billion in annual revenue.

As of 2017, there are an estimated:

• 2.2 million African American, women-owned firms;
• Almost 2 million Latina-owned businesses;
• 1 million Asian American women-owned companies;
• 161,500 Native American/Alaska Native women-owned enterprises and;
• 34,200 Native Hawaiian/Pacific Islander women-owned firms.

The report estimates that if revenues generated by minority, women-owned
firms matched those currently generated by other women-owned businesses,
they would add $1.1 trillion in revenues and 3.8 million new jobs to the
U.S. economy.

Location doesn’t determine success for U.S. women-owned businesses

While states with large populations like California, Florida, Texas, New
York and Georgia have the most women-owned business, many rural states
are proving that they are a force to be reckoned with when it comes to
their growth rates of women-owned businesses. This report examined
economic clout, which in addition to growth in the number of firms,
includes growth in employment and revenues. The top five states
(including the District of Columbia) where women-owned businesses most
increased their economic clout between 1997 and 2017 are:

1. Nevada
2. District of Columbia
3. South Dakota
4. North Dakota
5. Georgia

The top metropolitan areas where women-owned businesses increased their
economic clout from 2002 to 2017¹ are:

1. Charlotte-Concord-Gastonia metro area, NC/SC
2. San Antonio, TX
3. Austin, TX
4. Indianapolis, IN
5. Riverside, CA (tie)
6. Salt Lake City, UT (tie)

Notably, the five states showing the highest employment vitality – a
measure of employment growth rate from 1997 to 2017 and average number
of employees at women-owned firms – tend to be rural. In ranked order,
they are:

1. North Dakota
2. Minnesota
3. Maine
4. Alaska
5. Virginia

Industry trends

In the past year, the growth rate in the number of women-owned firms
increased the most for these three industries: construction (15%), arts,
entertainment & recreation (12%) and other services (12%).

A majority of women-owned businesses can be found in three industries:

1. Other services (e.g., hair and nail salons and pet care businesses):
   23% of all women-owned firms (2.8 million firms)
2. Health care and social assistance (including child day care and home
   health care services): 15% of all women-owned firms (1.8 million firms)
3. Professional/scientific//technical services (including lawyers,
   accountants, architects, public relations firms and management
   consultants): 12% of all women-owned firms (1.5 million firms)

Explore the 2017 State of Women-Owned Businesses Report, here.

Methodology

The 2017 State of Women-Owned Businesses Report, commissioned by
American Express OPEN, is based on data from the United States Census
Bureau Survey of Business Owners (SBO), which is conducted every five
years in years ending in 2 and 7. Data from the 1997 and 2012 Census
surveys were collated, analyzed and extrapolated forward to 2017,
factoring in relative changes in Gross Domestic Product (GDP) not only
nationally but also at industry, state and metropolitan statistical area
levels. All GDP data were obtained from the Bureau of Economic Analysis
(bea.gov) – another bureau, like the Census Bureau, within the U.S.
Department of Commerce.

Specifically, growth in GDP from 2002 to 2012 ($10.8 to $16 trillion)
was compared to that from 2012 to the fourth quarter of 2016 ($16 to
$18.7 trillion). Relative annual growth rates were then used to estimate
the growth in the number of firms over the 2012 to 2017 period – thus
adjusting a straight-line extrapolation to account for relative economic
growth between the two time periods. This was done not only at the
national level, but also by applying actual gross state, metro area and
industry-level output figures (which were available up to the fourth
quarter of 2016).

About American Express OPEN

American Express OPEN offers the money, tools and know-how to help you
get business done. Through innovative products and services, we help
businesses with short-term financing, business management tools, cross
border payments, global currency solutions and travel. Learn more about
American Express OPEN at www.OPEN.com.

# # #

¹ The boundaries of metropolitan areas were changed after the
2000 Census, thus metropolitan area trends can only be analyzed back as
far as the 2002 Economic Census.

Contacts

M Booth
John McLaughlin, 212-481-7000
JohnM@mbooth.com
or
American
Express OPEN
Felicia Mowll, 212-640-1709
Felicia.A.Mowll@aexp.com