The Best Places in the U.S. for Women Entrepreneurs in 2024

Top States and Metro Areas for Women Entrepreneurs: An Interactive Overview

This section presents the U.S. states and metro areas that are most supportive of women’s business endeavors. To use the interactive table, click on its column headings to sort by various factors that contribute to the growth and success of women-owned businesses.

California, New York, Florida, Texas, and Colorado emerged as the best environments for women-owned businesses. Florida led with the highest percentage of women-owned businesses, while Texas shone brightest with the second-highest number of women-owned businesses having 500 employees or more. These states could be great starting points for women looking to grow their businesses.

Colorado and New York also made notable contributions, ranking highly for the number of women-owned businesses per capita and promoting gender pay equity, respectively. This can attract more female hires for a diverse and talented workforce, enhancing innovation and productivity for businesses.

Zooming in on major metro areas, New York-Newark-Jersey City, Los Angeles-Long Beach-Anaheim, and Chicago-Naperville-Elgin led as the top locales for women-owned businesses. New York-Newark-Jersey City took the top spot for the number of female-owned small businesses per 10,000 residents. This major metro area also stood out by ranking first in both the number of female-owned businesses with 500 employees or more and those generating revenue upwards of $1 million. Los Angeles-Long Beach-Anaheim followed closely, ranking second in these same three categories.

Breaking Down the Best Ecosystems by Ranking Factor

Next, we’ll examine the distinctions that mark the most conducive environments for women-led enterprises, from density per capita to substantial revenue and employment figures.

Montana led the nation with the most female-owned businesses per 10,000 residents, signaling a strong presence of female entrepreneurship within its borders. The New York-Newark-Jersey City metro area mirrored this achievement, boasting the highest density of women-owned firms per capita. Such findings underscore the vibrant ecosystems these areas offer for female entrepreneurs.

Florida was the state with the highest percentage of female-owned businesses. Meanwhile, New Bern, North Carolina, took the crown in this category among metro areas, emphasizing the diversity and strength of female-led businesses within these communities.

California stood out for its ability to foster large-scale women-owned enterprises, leading the rankings for businesses with 500 employees or more and those generating revenue exceeding $1 million. The New York-Newark-Jersey City area dominated these categories at the metro level, highlighting its pivotal role in supporting significant women-owned ventures.

North Dakota and the Fargo, ND-MN metro area had the lowest female unemployment rates, indicating a favorable job market for women. Meanwhile, Vermont and the Walla Walla, WA metro area showed the highest women’s-to-men’s pay ratios, showcasing regions that have come closest to equal pay among men and women.

Growth and Decline of Women-Owned Businesses

The following interactive graphics display the expansion and contraction of women-owned businesses, visualizing the evolving national landscape of female entrepreneurship over the past three years.

North Dakota stood out with an astounding 444% increase in women-owned businesses, a testament to the state’s burgeoning environment for female entrepreneurs. Conversely, Maine experienced the largest decrease, with a 59% downturn in women-owned businesses during the same period. Understanding the factors contributing to such a significant contraction is crucial for developing strategies to reverse this trend and foster a more inclusive and supportive environment for female business owners.

Investment Trends in Female-Led Ventures

This part of our study highlights the locales where the average investment per deal sets a promising stage for growth and innovation in women-led ventures.

Massachusetts topped the charts with the highest average amount per deal ($13 million), demonstrating a robust investment climate for women-owned businesses. California and Nebraska followed with average venture capital deals of $10.7 million and $7.9 million, respectively. Based on Clarify Capital’s previous study on the best states for women-owned small businesses, Nebraska has ascended into the top 10 (a notable shift from two years ago), taking over New Mexico’s previously held position. Minnesota also carved out a spot in the top 10, edging out Utah.

Empowering Female Entrepreneurship

This journey through the best states and metro areas for women-owned small businesses in 2024 paints a promising picture of the evolving landscape for female entrepreneurs. California, New York, Florida, Texas, and Colorado, alongside metro areas such as New York-Newark-Jersey City and Los Angeles-Long Beach-Anaheim, turned out to be beacons of opportunity, showcasing significant growth and supportive environments for women-led ventures.

However, the contrast between the rapid growth in North Dakota and the decline in Maine highlights the diverse challenges and opportunities facing women in business today. As we look ahead, these insights can urge policymakers and investors to cultivate a more inclusive and equitable business environment for women entrepreneurs.

Methodology

The meta-ranking for the best overall states and metro areas for women-owned businesses synthesized the following six variables:

• Percentage of women-owned small businesses
• Women-to-men pay ratio
• Female unemployment rate
• Number of female-owned businesses with annual revenue of $1 million or more
• Number of female-owned businesses with 500 employees or more
• Number of female-owned businesses per 10,000 residents

These variables determine which states have the friendliest environments for female entrepreneurs. All data was obtained from the most recent (2022) U.S. Census Bureau Annual Business Survey (ABS) and the most recent (2023) Annual Community Survey (ACS).

Metrics and Weights for the Metaranking

• Number of women-owned businesses per 100,000 (weight = 16.67%)
• Percentage of women-owned businesses (weight = 16.67%)
• Number of women-owned businesses with revenue >$1 million (weight = 16.67%)
• Number of women-owned businesses with at least 500 paid employees (weight = 16.67%)
• Female Unemployment Rate (weight = 16.66%)
• Women-to-men pay ratio (weight = 16.66%)

We used Pitchbook data to determine which states had the most lucrative deals for female-founded startups. The total capital invested was divided by the total deal count to calculate the amount invested per deal in each state. Data was collected on February 22, 2024; Pitchbook updates this data monthly.

About Clarify Capital

Clarify Capital empowers small business owners by providing instant loans with low rates and fast approval. We treat clients like family and offer every entrepreneur a personalized and supportive experience, helping them become visionaries and innovators within their fields.

Fair Use Statement

If you find the insights from our study on the best states for women-owned small businesses in 2024 valuable, we encourage you to share this article for any non-commercial use. Please attribute the information to Clarify Capital by including a link to this page so readers can access the full findings and methodology.