Business Value by Gender

Definition

Ratio of the average business value, in terms of sales and receipts, of female-owned businesses to male-owned businesses, 2007. A women- or men-owned business is one in which women or men own 50% or more of the equity, interest or stock of the business.

Calculated by dividing the higher value by the lower value, i.e., male-owned business average value divided female-owned business average value.

A ratio of 1 indicates perfect equality; the higher the ratio, the greater the inequality. For example, the value of male-owned businesses is 3.4 times higher in South Dakota than for female-owned businesses.

Description

Business ownership is a fundamental engine for wealth creation, and the value of these businesses, measured in annual sales, can demonstrate the extent of the profitability of the business and the potential for wealth creation. Not only do women own businesses at a rate less than men, the businesses owned by women have significantly lower sales than those owned by men, on average in every state. For example, the average sales and receipts of businesses owned by men in Connecticut are almost four times higher than for businesses owned by women.

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Business Value by Gender

State	Average Receipts of Male-Owned Businesses ($)	Average Receipts of Female-Owned Businesses ($)	Ratio	Rank
United States	$527,103	$199,387	2.64
Alabama	$535,564	$168,338	3.18	46
Alaska	$466,397	$198,532	2.35	9
Arizona	$498,159	$228,625	2.18	2
Arkansas	$488,638	$199,819	2.45	14
California	$531,152	$241,572	2.20	4
Colorado	$460,682	$171,540	2.69	27
Connecticut	$712,995	$191,415	3.72	51
Delaware	$567,276	$199,434	2.84	35
District of Columbia	$565,269	$231,052	2.45	15
Florida	$397,789	$168,946	2.35	10
Georgia	$513,238	$173,512	2.96	40
Hawaii	$426,554	$171,930	2.48	17
Idaho	$436,785	$190,173	2.30	7
Illinois	$603,075	$196,529	3.07	42
Indiana	$629,159	$192,640	3.27	47
Iowa	$529,010	$181,387	2.92	37
Kansas	$632,477	$193,492	3.27	48
Kentucky	$476,597	$184,181	2.59	22
Louisiana	$536,869	$239,720	2.24	5
Maine	$363,192	$153,913	2.36	11
Maryland	$517,732	$167,207	3.10	43
Massachusetts	$591,177	$186,406	3.17	45
Michigan	$494,591	$156,952	3.15	44
Minnesota	$579,885	$194,954	2.97	41
Mississippi	$493,644	$174,196	2.83	34
Missouri	$530,852	$208,024	2.55	20
Montana	$372,338	$165,228	2.25	6
Nebraska	$576,695	$198,655	2.90	36
Nevada	$639,744	$248,916	2.57	21
New Hampshire	$498,171	$206,902	2.41	13
New Jersey	$614,736	$234,095	2.63	24
New Mexico	$441,513	$201,803	2.19	3
New York	$529,115	$179,463	2.95	39
North Carolina	$491,185	$181,894	2.70	29
North Dakota	$546,330	$165,989	3.29	49
Ohio	$552,412	$189,402	2.92	38
Oklahoma	$476,076	$203,774	2.34	8
Oregon	$530,990	$198,256	2.68	25
Pennsylvania	$587,577	$210,401	2.79	31
Rhode Island	$488,314	$179,446	2.72	30
South Carolina	$487,173	$174,047	2.80	33
South Dakota	$568,600	$166,099	3.42	50
Tennessee	$468,362	$184,293	2.54	19
Texas	$507,324	$203,398	2.49	18
Utah	$506,568	$212,120	2.39	12
Vermont	$378,862	$140,562	2.70	28
Virginia	$516,463	$184,731	2.80	32
Washington	$591,686	$240,303	2.46	16
West Virginia	$495,236	$184,487	2.68	26
Wisconsin	$653,720	$249,764	2.62	23
Wyoming	$563,786	$296,267	1.90	1

Source

Survey of Business Owners. Washington, DC: U.S. Department of Commerce, Census Bureau, 2007.