State Rankings for Women Entrepreneurs

A new study by Wix.com has ranked U.S. states based on their opportunities for female entrepreneurs. The study evaluated various factors, including the female-to-male ratio in management and executive roles, the business survival rate, and the total number of companies founded since 2014.

• The top 5 states for female entrepreneurs are Vermont, Massachusetts, Rhode Island, Maryland, and New Mexico.
• Vermont, despite having a lower business survival rate, boasts the highest female-to-male ratio in management roles, with over two female financial managers for every male.
• The bottom 5 states are Ohio, South Dakota, Indiana, Louisiana, and Alabama.
• Ohio’s low ranking is attributed to a combination of factors, including a low number of business startups and a disappointing women-to-men ratio in top executive roles.

Vermont: Top State for Female Entrepreneurs

Vermont stands out as the top state for female entrepreneurs, despite a relatively low business survival rate of 50.75%. It excels in workplace gender representation, with a high rate of women in management roles (0.94 per male).

Key Factors for Success

The Wix.com study identified several key factors that contribute to a state's ranking for female entrepreneurs:

• Female-to-Male Ratios: The proportion of women in management, executive, and financial manager roles plays a significant role in assessing a state's support for female entrepreneurs.
• Business Survival Rates: States with higher business survival rates are more attractive for female entrepreneurs as they indicate a supportive environment for starting and growing businesses.
• Number of Business Startups: A high number of business startups suggests a thriving entrepreneurial ecosystem and a positive environment for women entrepreneurs.

Challenges and Opportunities

While the study highlights positive trends in gender equity in financial management roles, a significant disparity remains in top executive positions. The female-to-male ratio in these roles averages just 0.49, indicating a need for continued efforts to support women in breaking through the glass ceiling in leadership roles.

The growth rate of women-owned businesses has been remarkable, outpacing their male counterparts by nearly double. This positive trend points to a growing recognition of the value of female entrepreneurship.

• States and businesses have a crucial role to play in fostering an environment that supports gender equity and provides opportunities for women to ascend to leadership positions.
• By empowering more women in business, we can drive broader economic growth and innovation.

The Future of Female Entrepreneurship

The Wix.com study provides valuable insights into the opportunities and challenges facing female entrepreneurs in the United States. It underscores the importance of promoting gender equality and supporting the growth of women-owned businesses.

As the number of women-owned businesses continues to rise, the focus on creating a more equitable and supportive environment for female entrepreneurs becomes even more critical.

• States and businesses should prioritize initiatives that address gender disparities in leadership roles and provide resources and mentorship to help women entrepreneurs succeed.
• By fostering a more inclusive and supportive environment, we can unlock the full potential of female entrepreneurs and drive economic growth for all.

Resources for Women Entrepreneurs

Here are some resources for women entrepreneurs seeking support and guidance:

• Wix.com: Provides a platform for building websites and online stores.
• SCORE: Offers free business mentoring and guidance.
• National Women Business Owners Corporation (NWBOC): Provides advocacy, networking, and resources for women entrepreneurs.
• Small Business Administration (SBA): Offers loans, grants, and other resources to support small businesses, including those owned by women.

Key Takeaways:

• Vermont is the top state for female entrepreneurs in 2024.
• States with higher business survival rates and a strong female-to-male ratio in management and executive roles offer the best opportunities.
• Despite positive trends, gender disparity remains in top executive positions, highlighting the need for continued efforts to empower women in leadership.
• Supporting the growth of women-owned businesses is essential for driving economic growth and innovation.