Unlocking Assets: Building Women’s Wealth Through Business Ownership

Authors: William Darity Jr., M’Balou Camara, Khaing Zaw, Mitchell J. Murphy, Martine Aurelien, and Amy Fan

Introduction: The number of women-owned businesses in the United States has increased significantly in the past two decades. In fact, in January 2017, an estimated 11.6 million privately owned businesses were owned and operated by women— a growth rate of 114% since 1997 (two and a half times the average for all businesses).1 These businesses employ close to 9 million people across the country and generate more than $1.7 trillion in total annual sales revenue– increases of approximately 27% and a remarkable 103% respectively since 1997.2 Despite this impressive rate of growth, women-owned firms have not generated the same levels of wealth for their owners as male-owned firms. This report explores ways business ownership can serve as a wealth-building tool for women, explains the systemic barriers impeding women’s ability to build wealth through business ownership, and suggests ways grant makers, policy advocates, and practitioners can intentionally promote wealth-building by entrepreneurial women through business ownership. Across the nation, households are increasingly reliant on women’s earnings—in 2015, nearly two out of three mothers in the U.S. were their family’s sole, primary, or co-breadwinners, contributing at least 25% of household income.3 The increasing relevance of women to the long-term financial security of American families is both an opportunity and a challenge for grant makers concerned with household financial security.