The statistics are not all good but there is reason to be optimistic for the revenue growth rate and employment growth for women-owned businesses in Indiana is above the national average, on the flip side tougher certification policies could be in part reasons for the slower rate of growth for new women-owned businesses.
Growth of women-owned businesses has stalled, but some make inroads locally
By Andrea Holecek
Times Correspondent
Women own about 132,500 businesses in Indiana, twice the national average, but the growth of Hoosier firms owned by females has stalled.
Julie Weeks, president and chief operating officer of Women Able, authored a report for American Express that used 2010 census data to look at that number as well as employment and revenue generation of women–owned businesses nationally and by state.
The study estimates that Indiana has 132,500 women–owned firms, up from 107,082 in 1997.
Although double the national average, the number of women–owned business in Indiana is about what is expected because the figure is based on a state’s population, Weeks said.
“Those with the highest populations typically have the highest number of business in the category,” she said. “Correspondingly, those with lower populations normally have fewer.”
The growth rate for Indiana’s women–owned business since 1997 is just 24 percent, while the national average is 50 percent, ranking the state 47th in the nation, Weeks’ study shows.
Yet, the good news is revenue growth and employment for the state’s women-owned businesses is above the national average of 53 percent for revenue growth and 8 percent growth in employment. Revenue for Indiana women–owned business grew at 59 percent while employment had a 16 percent growth rate.
Hoosier women–owned businesses currently employ 152,800 –21,000 more than in 1997; plus they now have about $21.5 million in revenue annually, up 58.6 percent from $13.6 million in 1997.
“It tells me new business formation is not going well, but the existing women–owned business are, and they’re beating the national average, actually doubling it,” Weeks said.
Dody Russell, president of Hammond–based Bellsom Electric, says the growth of women–owned business in Indiana may be below the national average because it has become tougher in Indiana to certify a businesses is woman–owned.
“There’s no longer an advantage for men to put their businesses in their wives names like they did in the past,” Russel said. “I’ve been in business 17 years and for the first seven it was easy to get certified as a women–owned enterprise. The state’s cracked down on that, so that could be why the numbers have fallen.”
Revenues and employment in Indiana may be higher because the state now has more women-owned businesses in the construction industry or in the trades where employment and revenues are higher, she said
“It’s not just a local Hallmark anymore,” said Russell of Griffith, whose company is a full–service electrical contractor with 80 percent to 90 percent of its work done at the area’s casinos. It is certified as a Women’s Business Enterprise in Indiana, Illinois and Chicago.
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