Several factors were weighed revealing significant differences between top-ranked states and those at the bottom.
Women entrepreneurs continue to strive for parity with their male counterparts, but much more needs to be done. Whether it is gaining greater access to funding, more support for balancing family and career, or other hurdles, women need more resources and opportunities to succeed.
The cloud-based web development services company Wix.com recently addressed this through a study revealing which U.S. States offer the most opportunities for aspiring women entrepreneurs.
The company’s findings showed Vermont to be the best state for female entrepreneurs, boasting the highest female-to-male ratio in management roles, one of the key factors in determining rankings. Massachusetts, Rhode Island, Maryland, and New Mexico complete the top 5 states.
Vermont garners top recognition despite a relatively low business survival rate of 50.75%. The state excels in workplace gender representation with over two female financial managers for every male and the highest rate of women in management (0.94 per male) among all states studied.
While Vermont edged out the succeeding four states for the top spot, it is noteworthy that those other States had significantly higher business survival rates, 70.46%, 60.56%, 78.91%, and 79.04%, respectively. For female entrepreneurs seeking locations to start and grow a business, a State with a high business survival rate may warrant their attention that includes California with the highest rate of 86.22%.
In contrast, Ohio ranked the lowest State for female entrepreneurs, with South Dakota, Indiana, Louisiana, and Alabama, comprising the bottom five states in ascending order.
Ohio’s poor ranking arrived through a combination of factors with a ranking score of 10 being the highest. The State’s ranking was negatively impacted by its low number of business startups – 1,339 per 100,000 people – combined with a disappointing women-to-men ratio of 0.37 in top executive roles. Ohio’s final score was 5.51/10 versus 8.91 for Vermont.
Rebecca Tomasis, Growth Expert at Wix.com, commented on the study’s findings with a look toward the future:
“The growth rate of women-owned business from 2019 to 2023 has been remarkable, outpacing their male counterparts by nearly double, according to a new report. Interestingly, while our findings highlight encouraging trends in gender equity within financial management roles across most states, there remains a noticeable disparity in top executive positions, where the female-to-male ratio averages just 0.49.
This gap presents a significant opportunity for progress in leadership roles and underscores the need for continued efforts to support women in breaking through the glass ceiling in America. To continue this momentum, it is essential for states and businesses alike to foster environments that support gender equity and provide opportunities for women to ascend to these higher echelons of leadership. Doing so will not only empower more women in business but also drive broader economic growth and innovation.”
The ranking of states by opportunities for female entrepreneurs was based on several factors: the female-to-male ratios across management occupations, top executives, and financial managers as well as business survival rates and the total number of companies founded since March 2014 and others.
The Wix.com study provides a full data set of the 50 U.S. States addressing female entrepreneur opportunities. It is valuable for the insight it offers about where women are making strides and receiving support to gain gender equality. The latter has gained center stage recently through the highly publicized efforts of Melinda French Gates.
