The recent Wells Fargo report indicates that women-owned businesses are expanding at a faster rate than those owned by men. Despite challenges in securing funding, women benefit from digital platforms and educational opportunities. Following the surge in growth of black women-owned firms post the BLM movement in 2020, progress has somewhat slowed.

The latest report by Wells Fargo highlights the increasing success of women entrepreneurs compared to men. In the last five years, the number of women-owned businesses has grown more rapidly than those owned by men. Small businesses led by women have witnessed accelerated growth in employment and revenue, as per the analysis of Census data done by Wells Fargo.

Entrepreneurship offers women a chance to break free from corporate limitations, as noted by Geri Stengel, president of Ventureneer, who collaborated with Wells Fargo on the report. While challenges persist in accessing capital, digital platforms have opened up new opportunities for entrepreneurship, especially for women. The growth of women entrepreneurs has been further fueled by government support during the pandemic.

Higher rates of college attendance and graduation among women are contributing to their increasing presence in entrepreneurship. Despite the progress, women remain underrepresented in top corporate positions, with women-owned companies accounting for only 2.4% of businesses earning over $20 million annually, compared to 22.5% for men-owned businesses.

The gender gap in revenue earned by women-owned businesses is gradually narrowing, though women are projected to achieve equal parity with men in 120 years if the current trend continues. The report also sheds light on the significant growth rate of black women-owned employer firms, which was three times higher than the average for all women-owned businesses, partly due to initiatives like Buy Black and diversity programs.

Following the heightened support for Black/African American businesses post the killing of George Floyd in 2020, the growth of black women-owned employer firms surged at 51.2% between 2019 and 2024, outpacing the growth rate of all women-owned businesses at 17.2%.