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1. Women-Owned Business Report 2015

2. ZipBooks commissioned this report in August 2015 in conjunction with the release of the preliminary results from the United States Census Bureau's 2012 Survey of Business Owners (SBO). The 2015 Women-Owned Business Report was published in October 2015. We are proud to offer this report for those interested in the growing success of women-owned businesses in the United States today. With the most complete information publicly available, we hope to shed light on current state and trends in women-owned businesses. We would like to thank the US Census Bureau for timely manner in which the delivered this data and their continued effort in providing meaningful data for industry analysts.

3. Table of Contents Introduction..................................................................................................................................................4 Executive summary.....................................................................................................................................5 Women-owned firm and employment growth.....................................................................................6 Women-owned business revenue growth............................................................................................7 Women-owned business job growth.....................................................................................................8 Geographic trends....................................................................................................................................12 Women-owned businesses by race......................................................................................................15 Women-owned businesses by ethnicity.............................................................................................16 Tables...........................................................................................................................................................17

4. 4 INTRODUCTION ZipBooks is proud to offer this updated report for those interested in the growing success of women-owned businesses in the United States today. This publication covers similar themes to the 2015 State of Women-Owned Businesses Report published by American Express, although this ZipBooks report accounts for some additional data, presenting a more accurate picture for 2015. For example, the 2012 Census Bureau survey was factored into this report (while it was not incorporated into the American Express report). With current information, we can more precisely and accurately present important trends? like the fact that there are actually just over 9.9 million small women-owned businesses in the US currently, rather than American Express? s estimated 9.4 million. But like the American Express report, this ZipBooks publication still reinforces an overall trend we have been seeing? that the number of women-owned firms continues to increase at rates surpassing the national average, and yet those firms are still smaller than the average firm. It is our intention that these updated findings advise business owners, allowing them to make informed decisions that will lead to increasing success in years to come.

5. Executive Summary 5 As of 2012, the US Census Bureau calculated that there are just over 9.9 million women-owned businesses in the US. Furthermore, these businesses generate more than $1.5 trillion in revenues, employing over 9 million people. Sources: 1997 (not online), 2002, 2007, 2012, Census Bureau. Nominal revenue has been adjusted using 2009 chained dollars. Refer to Appendix Table A : Women-Owned Firms Statistics.

6. Women-Owned Firm and Employment Growth 6 It was possible to make an educated guess about the current state of women-owned businesses by combining the 2012 Census data with standard regression analysis. It is now estimated that the total number of women-owned businesses is quickly approaching 12 million? employing 10.5 million employees. Sources: 1997 (not online), 2002, 2007, 2012, Census Bureau. Nominal revenue has been adjusted using 2009 chained dollars. Refer to Appendix Table A : Women-Owned Firms Statistics.

7. Women-Owned Business Revenue Growth 7 This same approach was used to estimate the total revenue generated by women-owned businesses in 2015. Based on strong revenue growth from 2007-2012, it is now estimated that women-owned businesses will actually generate $1.86 trillion in revenue. Sources: 1997 (not online), 2002, 2007, 2012, Census Bureau. Nominal revenue has been adjusted using 2009 chained dollars. Refer to Appendix Table A : Women-Owned Firms Statistics.

8. Women-Owned Business Revenue Growth 8 This approach was also used to estimate the total revenue generated by women-owned businesses in 2015. Based on strong revenue growth from 2007-2012, it is now estimated that women-owned businesses will actually generate $1.86 trillion in revenue. Sources: 1997 (not online), 2002, 2007, 2012, Census Bureau. Nominal revenue has been adjusted using 2009 chained dollars. Refer to Appendix Table A : Women-Owned Firms Statistics.

9. 9 Women-Owned Business Driving Economic Recovery? These rates surely fit the narrative of what we already know? small business growth is being driven in large part by women-owned businesses. And according to ADP, small businesses have been leading the charge on new job creation.

10. 10 Women-owned business job growth Using more recent census data from 2012, we can begin to understand how women-owned businesses contribute to job growth. When the overall economy was bleeding jobs, private companies began hiring employees only after 23 straight months of private sector job loss. But during 2007-2012, women-owned payrolls grew by 19.5% (compare this to men-owned payrolls' 11.5% increase). Additionally, women-owned businesses created roughly Sources: 1997 (not online), 2002, 2007, 2012, Census Bureau. Refer to Table B : Employee Count. the same amount of new jobs as men-owned businesses from 1997-2012 (1.9M vs. 2.2M), despite employing less than a fifth as many employees.

11. 11 Women-owned business reach Women-owned firms now account for 36% of all enterprises, and they are growing faster in number and employment than most other firms. Despite this fact, women-owned firms employ only 7.8% of the country? s workforce and contribute just under 5% of business revenues? roughly the same share they contributed in 1997. However, women-owned firms contribute 15% of employment and 11% of revenues when large, publicly-traded firms are excluded.

12. GEOGRAPHIC TRENDS 12 Here are the numbers of female-owned businesses by state in 2012 and 2007. They have been normalized using the population of the state. See Table C: Growth Rate By State

13. 13 Top 10 gainer states by percentage State 2007 2012 change Louisiana 830067 1243151 0.497651 Mississippi 488007 724767 0.485157 Texas 5228967 7717118 0.47584 District of Columbia 156778 227719 0.452493 Florida 4969387 7135946 0.435981 South Dakota 134913 192470 0.426623 Tennessee 1138989 1599791 0.404571 Georgia 2274819 3136638 0.378852 Arizona 1152640 1580774 0.371438 Nevada 528617 723002 0.367724

14. Top 10 loser states by percentage 14 State 2007 2012 Change Maine 308122 341817 0.109356034 New Hampshire 280032 315112 0.125271398 Massachusetts 1461031 1669898 0.142958637 Vermont 162784 190415 0.169740269 Pennsylvania 2138966 2523303 0.179683548 Connecticut 760231 899716 0.183477127 West Virginia 265245 317287 0.19620351 Rhode Island 214502 257994 0.202758016 Kansas 528115 637132 0.206426631 Minnesota 1073675 1296657 0.207681095

15. 15 Women-owned businesses by race US POPULATION Race of Female Owners (Legend is sorted high to low)

16. 16 Women-owned businesses by ethnicity By 2009, the proportion of the female population that was non-Hispanic White dropped to 65.2 percent and the proportion that was Hispanic increased to 15.0 percent. This means that Hispanic females own more businesses than demographic breakdown would suggest. Ethnicity of Female Owners (Legend is sorted high to low) Source? http://www.mchb.hrsa.gov/whusa11/popchar/pages/102usfp.html

17. Table A : Women-Owned Firms Statistics 17 Year # Firms Employment Nominal Revenue ($B) Price Index * Real Revenue ($B) 1997 5.4 7.1 819 1.281860951 1049 2002 6.5 7.1 940 1.175932589 1105 2007 7.8 7.5 1196 1.027359507 1228 2012 9.9 9 1616 0.950437318 1535 Source: 1997 -2012, US Census Bureau * Price Index uses 2009 chained dollars

18. Table B : Employee Count 18 Year All firms Privately Held Men-owned Women-owned Equally- owned Publicly-traded 1997 103,359,815 58,901,815 43,532,114 7,076,081 8,284,537 44,458,000 2002 110,766,605 55,234,825 42,428,508 7,141,369 5,664,948 55,398,389 2007 117,310,118 56,626,555 41,051,438 7,520,121 8,054,996 60,683,564 2012 115,249,459 61,844,429 45,768,326 8,982,588 7,093,515 53,405,030* Source: 1997 -2012, US Census Bureau * The 'publicly held and other firms not classifiable by gender, ethnicity, race, and veteran status' category is not included in the preliminary tables. We used all firms' employees minus privately-held firm employees to estimate the number.

19. 19 Table C : Growth Rate By State State 2007 2012 State 2007 2012 Florida 0.260419 0.373957 Illinois 0.219034 0.272931 District of Columbia 0.253268 0.36787 Louisiana 0.181445 0.271741 Hawaii 0.257705 0.328555 Nevada 0.194342 0.265807 New York 0.257275 0.324801 Oregon 0.218887 0.265803 Colorado 0.25636 0.320449 Alaska 0.19569 0.257435 Georgia 0.23183 0.319659 Maine 0.231925 0.257287 California 0.241393 0.318258 Michigan 0.203836 0.255032 Vermont 0.259793 0.30389 New Mexico 0.205767 0.252989 Texas 0.204003 0.301076 Massachusetts 0.221134 0.252747 Maryland 0.241385 0.30095 Connecticut 0.211957 0.250847 Montana 0.217071 0.290296 Tennessee 0.177973 0.249976 Wyoming 0.221043 0.280496 New Jersey 0.202481 0.247595

20. 20 Table C : Growth Rate By State cont'd State 2007 2012 State 2007 2012 Washington 0.190842 0.232671 Virginia 0.194675 0.246091 Oklahoma 0.179732 0.23192 North Carolina 0.189382 0.24568 Rhode Island 0.204162 0.245557 South Carolina 0.171524 0.230817 Arizona 0.178225 0.244425 Utah 0.177518 0.225379 Mississippi 0.163901 0.243418 Kansas 0.183987 0.221967 Minnesota 0.200788 0.242488 Delaware 0.163226 0.219754 North Dakota 0.177594 0.241064 Iowa 0.173505 0.21932 New 0.212498 0.239118 Ohio 0.174085 0.217178 Idaho 0.178428 0.234705 Arkansas 0.160083 0.21238 Alabama 0.179416 0.234298 Indiana 0.160535 0.205019 South Dakota 0.16381 0.233696 Pennsylvania 0.167842 0.198 Nebraska 0.179112 0.233171

21. Table C : Growth Rate By State cont'd 21 State 2007 2012 Kentucky 0.158494 0.197971 Wisconsin 0.15849 0.192038 West Virginia 0.142996 0.171053

22. Table D: INDUSTRY TRENDS - Top 10 gains in women-owned firms (absolute) 22 Other services (except public administration) (605) 2859148 Health care and social assistance 1741665 Administrative and support and waste management and remediation services 1434774 Professional, scientific, and technical services 1096750 Retail trade 627810 Arts, entertainment, and recreation 462695 Educational services 426693 Accommodation and food services 372763 Real estate and rental and leasing 350297 Wholesale trade 133555

23. Table E: INDUSTRY TRENDS - Top 10 gains in women-owned firms (% change) 23 Agriculture, forestry, fishing and hunting (606) 0.76 Other services (except public administration) (609) 0.54 Accommodation and food services 0.470299316 Administrative and support and waste management and remediation services 0.436378866 Educational services 0.382952543 Utilities 0.370935187 Mining, quarrying, and oil and gas extraction 0.364574828 Management of companies and enterprises 0.361067504 Health care and social assistance 0.338971819 Arts, entertainment, and recreation 0.305720612