CPA News Releases, Advisories, and Editorials

Washington, DC — As women leaders from across America prepare for Summit ’98, a three day conference focused on women and the economy, a new issue brief shows that women-owned businesses – nearly 8 million in all – are the fastest growing segment of the economy. The issue brief from the Center for Policy Alternatives (CPA) shows that women-owned businesses are 36% of all U.S. companies in 1996 and CPA estimates that the share could rise to 50% by the year 2000.

The top ten states for women business owners are: the District of Columbia (43.5%); New Mexico (41.4%); Arizona (40.9%); Colorado (39.7%); Oregon (39.4 %); Nevada (39.3%) Washington (39.2%); Maryland (38.8%); Wyoming (38.8%) and Hawaii (38.7%).

“Women really are the economic engines of the future,” says CPA President Linda Tarr-Whelan. “As successful entrepreneurs, they’re making money, creating jobs, contributing tax dollars and building better economic bases for their families at the same time.” Women entrepreneurs generate $2.3 trillion a year in sales and provide jobs for one in four company workers. That’s remarkable, according to Linda Tarr-Whelan, in view of how little help or incentives women have had in starting and building businesses.

“States and communities use tax breaks and other incentives to attract large companies,” says Tarr-Whelan. “If governors and state legislatures help women grow their businesses with similar incentives, this investment will pay big dividends.”

The new CPA issue brief comes as women from across America prepare for a three day Summit ’98 to explore the economic role of women and how to realize the economic power of women. CPA is in the center of the debate, focusing on how to encourage women entrepreneurs, and offering a business plan for the Summit to be held October 14-16 at the University of Maryland.

Entrepreneurship is one of four major components of a women-led economic agenda and action plan developed over the last two years as the product of the Women’s Economic Leadership Summit co-sponsored by the Center for Policy Alternatives at the White House. That event drew women leaders from corporations, small businesses, state and federal governments, universities and national and grassroots organizations. The action plan aims to tap women’s enormous economic power and potential.

Both the power and the potential are reflected in the dramatic growth in women-owned businesses – from just over 400,000 in 1972 to nearly 8 million today. That growth rate has out-paced all other business growth in each of the fifty states.

Women-owned businesses generate 15% or more of the gross business revenues in twenty-seven states and 20% or more in Alaska, Arizona, Delaware, Georgia, Hawaii, Louisiana, Nebraska, New Hampshire, New Mexico and Washington.

Statistics in the issue brief refer to 1996, the most recent data available.

Click here to view the entire issue brief online.