HOUSTON (CW39) Women are taking matters into their own hands. That’s even more evident, when it comes to business ownership in the Houston and Surrounding area. According to a new report by a group called Self Financial , there are 126,711 female business owners in the Houston metro area, which amounts to 37.9% of all business owners there.
According to this report, women start businesses for many of the same reasons as men namely, to be their own boss, to follow a passion, or to pursue a new opportunity. But women are much more likely than men to cite increased flexibility and the ability to control their schedules as important motivators in starting their own businesses.
Although female business ownership is becoming more common, women are less likely than men to incorporate their businesses. While 41 percent of unincorporated business owners are women, they account for only 33 percent of incorporated business owners. In addition to advantages such as personal asset protection and tax benefits, business incorporation provides easier access to capital. As such, the difference in incorporation rates across men- and women-owned businesses contributes to the gap in earnings and funding between male and female businesses.
The data for the Houston-The Woodlands-Sugar Land, TX metro area:
Percentage of business owners who are female: 37.9%
Total number of female business owners: 126,711
Total number of female business owners (incorporated firms): 40,699
Total number of female business owners (unincorporated firms): 86,012
Most active industry for female business owners: Other Services, Except Public Administration
How this stacks up to the entire United States:
Percentage of business owners who are female: 38.4%
Total number of female business owners: 5,885,105
Total number of female business owners (incorporated firms): 1,900,931
Total number of female business owners (unincorporated firms): 3,984,174
The study also finds in every sector of employment, men tend to earn more than women. Whether employed at private companies, working in government, or self-employed, men earn an average of 25 percent more than women. Furthermore, self-employed women in unincorporated businesses actually earn even less than women employed in any other sector. Even women who own incorporated businesses still earn less than women in almost every other sector.
Female business ownership rates vary significantly on a geographic basis. Female business ownership is more prevalent on the West Coast and less common in the Midwest. At the state level, Hawaii and Oregon boast the largest share of business owners who are female, at 46 and 44.6 percent, respectively. Conversely, New Hampshire and North Dakota have the lowest rates of female business ownership, at 32.6 and 30.9 percent, respectively.
To see how women owned businesses in the Houston area compare to more than 350 metros areas and all 50 states, you can find this full study on Self Financial`s website.