Fierce, focused: Women business owners bring optimism, impact to work

By Mohamad Hammoud

Women entrepreneurs are having a transformative impact on the U.S. economy, highlighting the importance of supporting and investing in this critical and often overlooked sector.

While gender should not be a barrier in the 21st-century world of entrepreneurship, leadership, and influence, obstacles persist that women — more so than men — must continue to overcome. Despite these barriers, women entrepreneurs consistently display resilience, tenacity, and drive.

These qualities are reflected in the 2024 Bank of America Women & Minority Business Owner Spotlight, which reveals rising optimism among women business owners, who foresee growth and favorable conditions in 2025.

Nearly four out of five (78%) of small and mid-sized women-owned businesses anticipate revenue growth over the next 12 months — an encouraging sign as the U.S. economy and business owners continue to recover from the pandemic’s impact.

As someone working at the ground level with entrepreneurs in Michigan, I see this on a daily basis. Women business owners in Michigan are seeing opportunities in expanding, diverse and inclusive entrepreneurship, and recognize that Michigan is increasingly a business-friendly environment. These entrepreneurs generally express cautious optimism about the future, balancing confidence in business growth with concerns about economic challenges.

Regarding future goals, women business owners are prioritizing community impact and innovation. Many are looking to expand in areas such as digital marketing, staff growth, and remodels, despite the ongoing difficulties in hiring and retaining skilled workers.

The Bank of America report surveyed more than 2,000 small and mid-sized business owners across the country, exploring their outlook, access to capital, employee management, and community engagement. Notably, women business owners are broadly optimistic about their enterprises and plan to expand and increase hiring:

• 57% plan to grow their business

• 46% plan to hire more employees

• 83% plan to seek additional funding

Women business owners are also cautiously optimistic about the economy. Nationally, 60% believe the economy will improve, 57% expect improvement globally, and 66% foresee better conditions locally, the report finds.

Breaking Barriers

Starting, maintaining, and growing a business requires capital — a challenge that many women business owners still face. While 60% of women entrepreneurs believe they have equal access to funding today, 18% feel women will never attain equal access, and 25% report obstacles with financing.

Another obstacle is that women business owners face a lack of connections with lenders more often than men, with 30% saying they lack confidence in their knowledge or qualifications when applying for funding. Addressing these barriers benefits everyone, as it encourages a more equitable and dynamic economy in Michigan and throughout the nation. Private lenders, government bodies, and investors all have roles to play in creating a more level playing field.

One important item to note is that minority women entrepreneurs in Michigan report greater challenges in areas like access to capital, which remains a key barrier across the board. While they are resilient and thrive despite obstacles, more supportive policies and efforts to diversify business ownership can help to further remove these barriers.

Raul Anaya, president and co-head of Business Banking for Bank of America, aptly describes women business owners as “the heart of the U.S. economy.” Their achievements deserve celebration, especially considering the strides made in just a generation or two.

Today, the numbers speak to this progress:

• 42% of all U.S. businesses are owned by women

• Women-led businesses employ 9.4 million workers and generate $1.9 trillion in annual revenue

• 800 new women-owned businesses are started each day in the U.S.

• Women-owned businesses have grown by 114% in the last two decades

• Nearly half of U.S. startups are founded by women

• One-third of businesses worldwide are owned by women

• Companies with gender-diverse executive teams are 25% more likely to achieve above-average profitability

All this has been achieved despite persistent challenges:

• All-women teams receive only 1.9% of venture capital funding

• One in three female entrepreneurs reports facing sexism as a business owner

• Women-owned firms receive loans that are, on average, 50% smaller than those awarded to male-owned firms

• Only 2.4% of U.S. venture capital funding goes to female founders

• 31% of women business owners have school-aged children at home

The drive to foster a more inclusive economy for women business owners has far-reaching effects. Supporting women in business is not only about fairness but about tapping into the talents and perspectives that will fuel the next generation of growth and innovation.

With an environment that champions equal opportunity, women entrepreneurs in Michigan can continue to lead change and contribute to a thriving, dynamic economy for all.

Mohamad Hammoud is Senior Vice President and Market Executive in Business Banking at Bank of America.