NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) -- In its annual analysis of over 53,000 companies, the Biz2Credit Women-Owned Business Study found that the funding percentage (36%) for women-owned businesses that applied for financing in 2024 increased from 35% in 2023. In comparison, the funding rate for male-owned businesses in 2024 was just 29%.
Additionally, that the average funding amounts women received jumped by 25% from 2023 to 2024. In 2023, the average funding amount for women-owned businesses was $53,678. A year later, in 2024, the average amount was $67,035.
Further analysis showed that the average annual revenue of women-owned firms in 2024 increased 15% to nearly $520,000, although expenses rose as well.
The Biz2Credit Women-Owned Business Study examined financial indicators including annual revenue, operating expenses, earnings, age of business, credit scores, funding rates, and funding amounts of companies that applied for credit on Biz2Credit’s online platform in 2024.
“The funding rate and average loan amount for women-owned businesses rose in 2024, which is good news,” said Rohit Arora, CEO and co-founder of Biz2Credit and one of the nation’s leading experts in small business finance. “The percentage of funding applications from women was 36%, compared to 29% for men last year. Women-owned businesses have also shortened the gap in average funding size to just 20% less than men-owned businesses, a significant improvement compared to last year’s difference of 40%.”
“All is not rosy, however,” Arora added. “Women business owners, along with their male counterparts, saw expenses rise significantly largely because of inflation in 2024. SMBs are hoping that costs will come down, although it has not happened yet.”
Key Findings:
Comparing Women-Owned and Men-Owned Businesses: A Year-over-Year Analysis
| 2023 | 2024 | |||
| Categories | Women | Men | Women | Men |
| Average Revenue | $451,443 | $688,611 | $519,886 | $743,643 |
| Average Operating Expenses | $363,909 | $541,602 | $503,426 | $711,670 |
| Average Age of Business (months) | 62 | 72 | 72 | 86 |
| Average Credit Score* | 643 | 660 | 653 | 670 |
| Average Funding Size | $53,678 | $75,045 | $67,035 | $80,140 |
| Funding Rate | 35 | 30 | 36 | 29 |
Comparison of Women-Owned and Men-Owned Businesses Year-over-Year (YoY)
| Categories |
Women YoY Difference |
Men YoY Difference |
| Average Revenue | +15% | +8% |
| Average Operating Expenses | +38% | +31% |
| Average Age of Business (months) | +10 | +14 |
| Average Credit Score* (points) | +10 | +10 |
| Average Funding Size | +25% | +7% |
| Funding Rate | +3% | -3% |
*Average credit score is derived from the personal FICO credit scores of business owners.
Top 5 Financing Applications by State in 2024 for Women-Owned Businesses
| States | Women |
| California | 12.8% |
| Florida | 12.5% |
| Texas | 10% |
| Georgia | 6.6% |
| New York | 5.1% |
Top 5 Financing Applications by Industry in 2024 for Women-Owned Businesses
| Industries | Women |
| Other Services (except Public Administration) | 14.9% |
| Health Care and Social Assistance | 14.5% |
| Retail Trade | 13.5% |
| Accommodation and Food Services | 12.1% |
| Professional, Scientific, and Technical Services | 9.5% |
Importance of Women-Owned Businesses
During 2024, women-owned businesses had an estimated $2.1 trillion in receipts, 11.4 million employees, and $508.5 billion in annual payroll, as reported by Census Bureau (Nov. 2024).
According to the National Women’s Business Council (NWBC) Annual Report, there are 14.5 million women-owned businesses that account for 39.2% of all businesses in the U.S. This number is a 11.5% increase from 2019 to 2024 and demonstrates that women-owned firms emerged stronger from the COVID pandemic than they did from the 2008 financial crisis.
Methodology
The dataset for Biz2Credit’s Women-Owned Business Study comprises over 53,000 completed commercial funding applications received via the Biz2Credit platform in 2024. The four most important variables in the analysis were: annual revenue, operating expenses, age of business, and personal credit score. The data was then tabulated to examine women-owned and men-owned businesses based on annual revenue, operating expenses, age of business, personal credit score, funding rate, and average loan size. The study looked at 20 different industries, as well as geography.
About Biz2Credit
Founded in 2007, Biz2Credit has helped thousands of companies access more than $10 billion in small business financing. The company is expanding its industry-leading Biz2X technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit www.biz2credit.com, LinkedIn, Instagram, Facebook, and X (formerly Twitter).
Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com