The findings of a 2022 Biz2Credit Women-Owned Business Study paint a dismal picture of the performance of many female-owned businesses during 2021, revealing declining revenues coupled with rising expenses.
The study further suggests that the effects of the COVID-19 pandemic in 2021 were harder on female-owned companies, many of which have been historically less well-funded compared to male-owned firms.
Key findings
The study analyzed 100,000 firms from across the U.S. for the entire year of 2021 to garner insights into the financial performance of female-owned, small- to mid-sized companies. Here are the study’s key findings:
• The average annual revenue for female-owned businesses posted a 4% dip while expenses went up by 3%.
• The average earnings (that is, the difference between annual revenue and operating expenses) of female-owned businesses decreased by 26%.
• Texas registered the most business loan requests from female-owned businesses, at approximately 10.84%.
• Services emerged as the top industry in the survey, representing close to 31.93% of the female-owned companies.
Here’s a more comprehensive look at the performance of female-led businesses:
| Performance of female-owned businesses | ||
| Metrics | 2021 | 2020 |
| Average annual revenues(↓) | $475,707 | $493,401 |
| Average earnings(↓) | $88,895 | $119,654 |
| Average expenses(↑) | $386,712 | $373,748 |
| Average credit scores(↓) | 580 | 588 |
When weighing the performance of female-owned and male-owned businesses for the stated period, the data underscores a larger problem: Female-owned companies posted a revenue gap, earning $199,936 less on average than male-owned firms in 2021.
Further, while the average annual revenue for female-owned businesses declined by 4%, those of male-owned companies experienced a decline of only 2%.
Women were outpaced by male-owned businesses in other parameters as well. For instance, their average loan size was a staggering 41% lower than the average loan size for businesses owned by men.
Here are some specifics from the study:
Metric
Female-owned businesses
Male-owned businesses
Women-to-men borrowing ratio
33%
67%
Average annual revenue
$475,707
$675,643
Average credit score
580
594
Average loan size
$49,712
$83,198
Average age of business
4 years (45 months)
4 years (48 months)
Even Round 2 of the Paycheck Protection Program, wherein Congress appropriated $284 billion for small business COVID-19 relief, exhibits a similarly disconcerting picture of female-owned businesses. Perusing data from PPP loan applicants, the study finds that 49% of the applicants for PPP Round 2 were female business owners. But the average approved amount for these female entrepreneurs on the Biz2Credit platform was just $23,101, in contrast to $36,348 for those applicants who identified as male business owners.
Other findings
By geography: Texas produced the most business loan applications from women-owned companies, followed by Georgia, Illinois, Florida, California and New York.
By industry: Almost one-third of the female-owned companies that applied for business loans during 2021 were in the services industry (except public administration). Here’s a more detailed look at the related Biz2Credit figures:
Sector
Female loan applicants
Services
31.9%
Retail
15.07%
Accommodation & food services
9.07%
Health care & social assistance
7.41%
Transportation & warehousing
5.44%
Arts, entertainment & recreation
4.66%
Wait, there’s a brighter side too
Although average annual revenue for female-owned businesses dipped, one of the reasons is that women founded new startups at a higher rate during the COVID-19 pandemic. Further, the average age of female-owned businesses also declined — from 56 years old in 2020 to 45 years old in 2021.
When weighing the performance of female-owned and male-owned businesses for the stated period, the data underscores a larger problem: Female-owned companies posted a revenue gap, earning $199,936 less on average than male-owned firms in 2021.
Further, while the average annual revenue for female-owned businesses declined by 4%, those of male-owned companies experienced a decline of only 2%.
Women were outpaced by male-owned businesses in other parameters as well. For instance, their average loan size was a staggering 41% lower than the average loan size for businesses owned by men.
Here are some specifics from the study:
| Metric | Female-owned businesses | Male-owned businesses |
| Women-to-men borrowing ratio | 33% | 67% |
| Average annual revenue | $475,707 | $675,643 |
| Average credit score | 580 | 594 |
| Average loan size | $49,712 | $83,198 |
| Average age of business | 4 years (45 months) | 4 years (48 months) |
Even Round 2 of the Paycheck Protection Program, wherein Congress appropriated $284 billion for small business COVID-19 relief, exhibits a similarly disconcerting picture of female-owned businesses. Perusing data from PPP loan applicants, the study finds that 49% of the applicants for PPP Round 2 were female business owners. But the average approved amount for these female entrepreneurs on the Biz2Credit platform was just $23,101, in contrast to $36,348 for those applicants who identified as male business owners.
Other findings
By geography: Texas produced the most business loan applications from women-owned companies, followed by Georgia, Illinois, Florida, California and New York.
By industry: Almost one-third of the female-owned companies that applied for business loans during 2021 were in the services industry (except public administration). Here’s a more detailed look at the related Biz2Credit figures:
| Sector | Female loan applicants |
| Services | 31.9% |
| Retail | 15.07% |
| Accommodation & food services | 9.07% |
| Health care & social assistance | 7.41% |
| Transportation & warehousing | 5.44% |
| Arts, entertainment & recreation | 4.66% |
Wait, there’s a brighter side too
Although average annual revenue for female-owned businesses dipped, one of the reasons is that women founded new startups at a higher rate during the COVID-19 pandemic. Further, the average age of female-owned businesses also declined — from 56 years old in 2020 to 45 years old in 2021.
