As small-business owners continue to make inroads on the improved economy, earning higher profits and hiring at a steadier clip to keep up with the growth in customer traffic, franchises are also performing quite well, as new data shows more women are becoming franchisees. Recently released statistics appear to illustrate the groundswell.
"Female franchisees soared 71% between 2011 and 2016."
Between 2011 and 2016, franchise ownership among women jumped dramatically, up 71 percent nationwide, based on recent data from FranNet. Over the same five-year span, male franchisees also rose, but at a slower 26 percent upward pace.
Not only are more women taking a bite out of the business apple, but the vast majority are still going strong after entering the entrepreneurial orchard. Indeed, 91 percent of female franchisees were still up and running two years into their tenure, FranNet reported from its analysis. And 85 percent remained in business five years later.
Average of 849 companies started by women in U.S. per day
Women-owned businesses have skyrocketed in the U.S., particularly during the previous 20 years. For example, there's been a 467 percent increase in minority women who own and operate their own companies since 1997, according to data compiled by American Express OPEN. That translates to around 849 new businesses launched by women per day.
With more women in ownership positions, they're largely responsible for the uptick in employment, as the national jobless rate is down to a 17-year low, according to the Labor Department's most recent figures. More specifically, of the 11.6 million women-owned businesses currently in operation, around 9 million Americans are in positions where women are at the helm.
On a state-to-state basis, the uptick in women franchisees varies, but in certain parts of the country, it's flourished, particularly in Michigan, up steadily from 2013 through 2017, Grand Rapids Business Journal reported from the FranNet data.
Clothing boutique franchisee Sue Yocum, who got started in March 2017, told GRBJ that opening a franchise has enabled her to feel like she's part of the community by contributing to its economic vitality.
"Most franchise owners will tell you it's about being involved in the community," Yocum explained. "It's something corporate giving used to do, but you see in the past 15 to 20 years corporations have increasingly distanced themselves from the communities in which they work."
"Total entrepreneurial activity in Detroit is up 20%."
Michigan was deep within the throes of the recession during the downturn, experiencing double-digit unemployment rates as many companies were forced to close under the weight of higher operating and costs and fewer returns. Conditions have improved, however, with total entrepreneurial activity among millennials up 20 percent in Detroit, according to figures released by Babson College last November.
Economic clout greater for more women entrepreneurs
Other states have bounced back nicely now that the economy is on firmer ground, particularly as it relates to businesses launched by women. Leading the pack since 1997 are Nevada, South Dakota, North Dakota and Georgia, based on the report from American Express. These are the states where revenues and employment among women business-owners have grown the most, which the study refers to as "economic clout."
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Contact us to learn more about the loan application process, business consulting or see if you're eligible for one of our programs.