Ernst and Young released a report earlier this year stating that while women start businesses at 1.5 times the rate of men and are at least half-owners of 46 percent of privately held firms, only 2 percent of women-owned businesses in the U.S break $1 million in revenue. However, a recent study by French bank BNP Paribas states that’s about to change.
In a recent survey, BNP Paribas found that while women don’t own as many businesses as men, their businesses are more successful. The report, which included more than 2,500 entrepreneurs from the U.S., Europe, Asia and the Middle East, revealed that women created 5 businesses compared to 4.3 for their male counterparts. The average turnover of primary business for women is higher ($9.1 million) compared to that of men ($8.4 million).
Annie Pilon of Small Business Trends reports that “while female entrepreneurs might face unique challenges, it doesn’t seem that they’re often actually held back from success. The main roadblock, according to some respondents, is simply getting women to start businesses in the first place. A lot of that has to do with confidence.”
As confidence continues to grow, it’s estimated that women-owned businesses are expected to increase 7 percent, with sales from those businesses growing to $2.967 trillion, representing nearly 18 percent of the projected GDP in 100 countries, as measured by the world bank.
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