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Number of Women-Owned Arkansas Businesses Rises

2 min read

Since 1997, there has been a 73 percent increase in women-owned businesses in Arkansas, with an estimated 73,700 in the state, according to the fifth annual State of Women-Owned Business Report.

The report, commissioned by American Express OPEN, analyzes data from the U.S. Census Bureau’s business census, conducted every five years. It shows Arkansas in line with the national growth of nearly 74 percent.

A woman-owned business is defined as one that is 51 percent or more owned, operated and controlled by a woman or women.

Julie Weeks, a research adviser and author of the study, said that Arkansas is one of the states that has been able to bounce back from the recession, as opposed to some states that are still lagging.

“It shows that Arkansas has a conducive environment for women starting businesses,” Weeks said. “The growth is exceeding the growth pre-recession.”

Arkansas is ranked No. 16 with 143 percent in post-recession (2007-2015) growth of women-owned businesses versus the pre-recession period (2002-2007).

Sales Spike

The report said that this year there are an estimated 73,700 women-owned firms in Arkansas that have done a combined $12.8 billion in sales, up nearly 98 percent since 1997. Nationwide, sales by women-owned firms rose by about 79 percent.

While Arkansas is in-line or ahead of trends in the number of women-owned businesses and those businesses’ sales, it lags in employment.

In the past 18 years, employment at women-owned firms has decreased by about 7 percent; nationally, it employment as increased by 12 percent.

The industries with the highest concentration of women-owned firms are health care and social assistance (53 percent) and educational services (45 percent).

“Generally speaking, there’s just been a real diversification in the kinds of businesses that women own,” Weeks said. “More and more women have higher levels of education and are more likely to open practices as doctors and dentists.”

Weeks also said the report shows an increase in racial diversity among women business owners.

“I think for the country as a whole, that is the other overwhelmingly positive trend,” Weeks said. “The growth has been nothing short of phenomenal.”

A generation ago, one out of every six female business owners was a woman of color; today it is one out of every three.

Ranking of Arkansas With Top Ten States for Women-Owned Firms

  Rank in Growth in Number of Firms Rank in Growth of Revenue Rank in Employment Growth Combined Rank, 2015
North Dakota 4 1 2 1
Wyoming 15 2 5 2
District of Columbia 23 3 1 3
Arizona 20 10 3 4
Georgia 1 25 13 4
Nevada 7 11 12 4
Maryland 8 22 9 7
Texas 2 20 24 8
Utah 11 4 30 8
Hawaii 18 26 6 10
Arkansas 16 19 45 28
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