The growth rate of new businesses in the U.S. is particularly slow, but the latest government data shows that the number of women-owned firms has increased quite significantly.
This week's U.S. Census Bureau data shows that the number of firms in America increased by sluggish 2 percent to 27.6 million from 2007 to 2012. But according to the same data, the number of women-owned firms spiked up by an impressive 27 percent during the same period.
To qualify as a woman-owned, a woman should own at least 51% of the business stock or equity. The decline of new business creation in America is worrisome as the number of companies with paid employees dropped by 5 percent to 5.4 million from 2007 to 2012, which is 2 percent less than the figures in 2002.
Another highlight in the census is the fact that a big number of women who owns small businesses are black and Hispanic women. The economic turmoil faced by women with color during the recession is one of the major reasons why many of them opt to become entrepreneurs.
These women seek to supplement their existing income or create a primary source of income for themselves.
According to the Center for American Progress, a quarter of the 8 million woman-owned businesses in the U.S. are owned by minority women. The African-American women have the entrepreneurial spirit, but their major challenge is getting access to funding and venture capital.
According to an economist from the University of Maryland, there are more firms dying than start-ups every year from 2008 to 2012. The decline in new business formation can be attributed to population growth, greater regulation, and increased business concentration.
But according to Brookings Institution's Robert Litan, the internet has made it easier for businesses to get started and expand than they could 10 years ago.
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