Best States for Women-Owned Businesses

Women-owned businesses (WOB) account for 44.1% of all businesses in the United States. They are vital to the American economy, generating $2.7 trillion in annual revenue and employing almost 12.2 million people.

Unfortunately, women business owners often lack access to funding and capital. According to the most recent Small Business Administration (SBA) data, women-owned businesses gained only 4.91% of prime contracting dollars in the 2023 fiscal year.

Some states offer a better business environment for women entrepreneurs. To determine which states are best for women-owned businesses, B2B Reviews compared all 50 states and the District of Columbia across eight key metrics and identified the top ten states.

To learn about how we determined our list, please refer to our methodology below.

Top 10 States for Women-Owned Businesses

See how the best states did in every category.

1. Oregon

Oregon takes first place for the best states for women-owned businesses. Oregon has the highest percentage of women-owned businesses at 48.5% as a state and is second nationally, just behind the District of Columbia. This success in entrepreneurship highlights the potential for greater representation in corporate leadership, where female CEOs remain underrepresented. The state also has a lower-than-average gender pay gap, with women making 84.9% of what men make. With a lower than average women’s unemployment rate (3.60%) and the fifth highest percent increase in women-owned businesses (3.63%), Oregon secures its place on our list.

• Percent of Women-Owned Businesses: 48.5%
• Percent Increase of WOB: 3.63%
• Unemployment Rate in Women: 3.60%
• Women Laborforce Participation Rate: 74.3
• Women’s Earnings per Men’s Earnings: 84.9%
• Percent of Women in Poverty: 27.9%
• Percent of Women Uninsured: 8.5%
• Percent of Women in Poverty: $190,000,000

2. North Carolina

North Carolina takes second place. With the second-highest percent increase in women-owned businesses (3.84%), women earning an average of 86.9% per men’s earnings, and a large sum of capital dollars invested ($877,000,000), North Carolina is one the best states for women entrepreneurs.

• Percent of Women-Owned Businesses: 46.0%
• Percent Increase of WOB: 3.84%
• Unemployment Rate in Women: 4.00%
• Women Laborforce Participation Rate: 72.9
• Women’s Earnings per Men’s Earnings: 86.9%
• Percent of Women in Poverty: 34.4%
• Percent of Women Uninsured: 14.7%
• Percent of Women in Poverty: $877,000,000

3. Colorado

Colorado takes third place. At 45.5%, it has a higher-than-average percentage of women-owned businesses. The state also has a low poverty rate for women, at 23.7%, and a higher percentage of women’s earnings compared to that of men, at 83.7%, thus lowering the gender pay gap.

• Percent of Women-Owned Businesses: 45.5%
• Percent Increase of WOB: 1.79%
• Unemployment Rate in Women: 3.00%
• Women Laborforce Participation Rate: 77.2
• Women’s Earnings per Men’s Earnings: 83.7%
• Percent of Women in Poverty: 23.7%
• Percent of Women Uninsured: 9.4%
• Percent of Women in Poverty: $801,000,000

4. Florida

Florida follows closely behind third, taking fourth place on our list. At 46.1%, the state is among the top ten for the percentage of women-owned businesses, at 46.1%. It saw a 2.22% increase in such businesses between 2022 and 2024. Florida is eighth for venture capital in female-only-run businesses, investing $857,000,000.

• Percent of Women-Owned Businesses: 46.1%
• Percent Increase of WOB: 2.22%
• Unemployment Rate in Women: 2.80%
• Women Laborforce Participation Rate: 73.0
• Women’s Earnings per Men’s Earnings: 84.9%
• Percent of Women in Poverty: 28.1%
• Percent of Women Uninsured: 17.3%
• Percent of Women in Poverty: $857,000,000

5. Vermont

Vermont comes in fifth. This New England state has one of the lowest women’s unemployment rates, at only 2.00%. It also has a high women’s labor force participation rate, at 79.5. Vermont also comes in second for a low gender pay gap, with women making 87.7% of what men normally earn. That state also saw a high increase in women-owned businesses, at 3.35%, the tenth highest in the nation.

• Percent of Women-Owned Businesses: 43.2%
• Percent Increase of WOB: 3.35%
• Unemployment Rate in Women: 2.00%
• Women Laborforce Participation Rate: 79.5
• Women’s Earnings per Men’s Earnings: 87.7%
• Percent of Women in Poverty: 27.9%
• Percent of Women Uninsured: 4.5%
• Percent of Women in Poverty: $34,000,000

6. Massachusetts

Massachusetts takes sixth place due to its low unemployment rate (2.90%), high labor force participation rate (79.1), second-lowest percentage of uninsured women (3.2%), and third-highest capital investment ($2,900,000,000) in the nation.

• Percent of Women-Owned Businesses: 40.8%
• Percent Increase of WOB: 2.26%
• Unemployment Rate in Women: 2.90%
• Women Laborforce Participation Rate: 79.1
• Women’s Earnings per Men’s Earnings: 85.9%
• Percent of Women in Poverty: 29.0%
• Percent of Women Uninsured: 3.2%
• Percent of Women in Poverty: $2,900,000,000

7. Hawaii

Hawaii comes in seventh, but it comes in fifth for the percentage of women-owned businesses, at 47.5%. It also saw a higher-than-average percent increase in WOB, at 2.81%. Hawaii also has the third lowest gender pay gap, with women making an average of 87.5% of men’s earnings. The state also saw some of the lowest percentages of women-led families in poverty (23.5%) and those without health insurance (5.4%).

• Percent of Women-Owned Businesses: 47.5%
• Percent Increase of WOB: 2.81%
• Unemployment Rate in Women: 3.80%
• Women Laborforce Participation Rate: 77.2
• Women’s Earnings per Men’s Earnings: 87.5%
• Percent of Women in Poverty: 23.5%
• Percent of Women Uninsured: 5.4%
• Percent of Women in Poverty: $2,900,000

8. Georgia

With the fourth highest percentage of WOB (47.7%) and a percent increase of 3.47%, Georgia takes eighth place. The state also stands out for its lower-than-average gender pay gap, with women earning an average of 82.4% of what men earn.

• Percent of Women-Owned Businesses: 47.7%
• Percent Increase of WOB: 3.47%
• Unemployment Rate in Women: 3.60%
• Women Laborforce Participation Rate: 73.0
• Women’s Earnings per Men’s Earnings: 82.4%
• Percent of Women in Poverty: 34.0%
• Percent of Women Uninsured: 17.1%
• Percent of Women in Poverty: $372,000,000

9. Minnesota

Minnesota ranks ninth on our list due to its low unemployment rate of 2.10% (the fourth lowest in the nation) and for its women’s labor force participation rate of 81.5 (the second-highest in the nation). The state also has low percentages of women in poverty (26.1%) and without insurance (5.4%).

• Percent of Women-Owned Businesses: 42.1%
• Percent Increase of WOB: 2.43%
• Unemployment Rate in Women: 2.10%
• Women Laborforce Participation Rate: 81.5
• Women’s Earnings per Men’s Earnings: 85.1%
• Percent of Women in Poverty: 26.1%
• Percent of Women Uninsured: 5.4%
• Percent of Women in Poverty: $304,000,000

10. Delaware

Delaware rounds out our list, coming in tenth. The state saw one of the highest percentage increases in women-owned businesses, at 3.55%. It also scored well because of its lower gender pay gap, with women making an average of 87.0% of what men make. The state also invested a decent amount of capital into female-only-led startups, investing $157,000,000.

• Percent of Women-Owned Businesses: 43.7%
• Percent Increase of WOB: 3.55%
• Unemployment Rate in Women: 4.10%
• Women Laborforce Participation Rate: 75.7
• Women’s Earnings per Men’s Earnings: 87.0%
• Percent of Women in Poverty: 30.4%
• Percent of Women Uninsured: 7.5%
• Percent of Women in Poverty: $157,000,000

Methodology

Our research team compared all 50 states and the District of Columbia across eight key metrics (explained below) to determine which states are most effective at supporting women-owned businesses. The corresponding weight for each metric is listed below.

Our research team used data from the Small Business Administration (SBA), the U.S. Department of Labor, America’s Health Rankings, the National Women’s Law Center, and PitchBook’s News & Analysis to pull metric data.

States were ranked within each metric, earning a score based on the weighted value. They were then graded on a 100-point scale, with 100 points being the best.

Percent of Women-Owned Businesses—Total 20 Points

Using the most recent data available from the SBA, B2B Reviews gathered the percentage of businesses owned by women in each state. States with the higher percentage earned more points.

Percent increase of Women-Owned Businesses—Total 15 Points

B2B Reviews compiled the percentage of women-owned businesses from 2022 to 2024 and calculated the difference. We then found the percent increase. States with a bigger percent increase scored better.

Women Unemployment Rate—Total 10 Points

Women’s unemployment rate affects potential employees and customers, making it important for women-owned businesses. We identified women’s unemployment rate in each state; those with a lower unemployment rate scored higher.

Women Labor Force Participation Rate—Total 10 Points

Women’s labor force participation rate affects women-owned businesses’ access to talent pool and fosters a more inclusive workforce. As such, states with higher female labor force participation rates earned more points.

Gender Pay Gap—Total 15 Points

Using the most recent data from the Department of Labor, B2B Reviews identified the percentage of women who make more than men on average. States with a higher percentage (therefore, a lower gender pay gap) scored higher.

Economic and Healthcare—Total 10 Points

Women’s economic status and access to healthcare play important roles in strengthening the local economy and impacting women-owned businesses, which may rely on local women for support.

Women in poverty—Total 5 Points

Using data from the National Women’s Law Center, we identified the percentage of female-headed families living in poverty in each state. States with a lower percentage scored better.

Percent of women without health insurance—Total 5 Points

Looking at data from the National Women’s Law Center, B2B Reviews found what percentage of women (ages 19-64) lacked health insurance coverage. States with a lower percentage scored higher.

Venture capital invested in women-owned businesses—Total 20 Points

To get a glimpse into women-owned business funding, we examined how much venture capital investment was offered to female-only headed startups. States that offered larger sums of capital to female-only led startups scored more points.

The Bottom Line

As women-owned businesses continue to help drive the American economy, it’s crucial to continue both public and private efforts to advance women’s economic empowerment. While some states provide a strong foundation for women entrepreneurs through equitable pay, access to funding, and a healthy labor environment, others have room for improvement.

To create a more favorable environment for women-owned businesses, states can take the following steps:

• Expand Access to Capital: Increasing funding opportunities by offering state-backed grants, loans, and venture capital for female-led businesses will help support women entrepreneurs.
• Close the Gender Pay Gap: Policies that promote pay transparency and initiatives are important for ensuring equal and fair pay for women’s work.
• Improve Healthcare Accessibility: States can expand affordable healthcare options to increase access to necessary medical care.
• Enhance Business Support Programs: Offering mentorship networks, training programs, and resource hubs will help lead women business owners to success.

By prioritizing these initiatives, states can remove financial and structural barriers, ensuring that women-owned businesses thrive and contribute even more to the economy.

Fair Use Statement

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