WOMEN OWNED BIZE$ ARE KICKIN’ BUTT, TODAY

 

Women’s History Month has 1981 origins when Congress passed a public law requesting that the prez proclaim 3/7/81 as Nat’l Women’s History Wk! Since 1995 Prezes Clinton, Bush and Obama have issued proclamations stating that March is Women’s History Mo. (womenshistorymo.gov) Since we at the Scope will celebrate the biz part of Women’s History Mo, we want to recognize one of America’s 1st real biz woman. Sarah Breedlove (aka Madam CJ Walker, Biography.com) was an African American who became a self-made millionaire. She suffered from a scalp ailment and developed a home remedy to solve her problem, eventually manufacturing an extensive line of hair products. Her personal fortune was valued at over $1M when she died in 1919 ($13.6 M in 2016 $$).

Our contributions to Women’s History Mo shall focus on the growth of Women Owned Bizes (WOB), the Industries that produce the most WOB and the States/Metro Areas which have the greatest # of WOB, the most employment b/c of WOB and their great sales/revenues.

SUMMARY OF FINDINGS

Our WOB issue owes a deal of gratitude to American Express’ Open yearly report on The State of Women Owned Businesses (from 1997-2015). Our distillation follows. (Our Table 1-5 are appended)

The Landscape of American Biz: Privately Held vs Publicly Traded Firms (See T-1)

  • In 1997 2% of US FIRMS were privately held. They accounted for 57.0% of the US’ EMPLOYMENT and 45.2% of its SALES/REVENUE.

 

  • By 2015 5% of US FIRMS were privately held accounting for 43.5% of US’ EMPLOYMENT and ONLY 33.5% of its SALES/REVENUE. (This means in 2015 publicly traded firms accounted for ONLY 3.5% of ALL US firms while being responsible for 56.5% of ALL EMPLOYMENT and an amazing 66.5% of ALL SALES/REVENUE).

 

Women Owned Bizes, WOB vs Men Owned Bizes, MOB vs Equally Owned Bizes, EOB (See T-2)

 

  • Since 1997 WOB have grown more quickly in # of FIRMS than MOB or WOB have increased 74% regarding their firm # (vs 37% for MOB & 44% for EOB).

 

  • Since 1997 WOB have grown EMPLOYMENT more quickly than MOB or EOB. (While only growing 12% b/t 1997 & 2015, it is a much greater growth pattern than MOB at -7.1% or EOB at 7%).

 

  • Since 1997 WOB have grown SALES/REVENUE 78% vs 49% for MOB &5% for EOB.

 

WOB Employment by Industry (See T-3)

 

  • Overwhelmingly, Healthcare & Social Assistance Srvcs; Professional Scientific & Tech Srvcs; Administrative, Support & Waste Management Srvcs; and Retail Trade Srvcs are the WOB industries with the highest EMPLOYMENT #s.

 

WOB with the Greatest Sales/Revenues (See T-4)

 

  • The Wholesale, Retail, Health Care, Professional/Scientific/Tech Srvcs and Manufacturing industries represent the TOP 5 SALES/REVENUE generators for WOB.

 

 

The TOP 5 States & Metro Areas for WOB (See T-5)

 

  • Regarding the 3 metrics of WOB (# of FIRMS, EMPLOYMENT and SALES/REVENUE) it is no surprise that CA, TX, NY, FL & IL or PA are the TOP US States. (MI is #9 in # of WOB; #10 in most EMPLOYED by WOB; and #13 in SALES/REVENUE).

 

  • Regarding the same 3 metrics of WOB, the Metro Areas with the most WOB are NYC, LA & CHI. ATL, DLS & DC are also some of the TOP Metro Areas for WOB. DET is #11 for # of WOB; #8 for WOB with the most EMPLOYEES and #15 in generating SALES/REVENUE.

 

 

APPENDIX

 

T- 1 ALL PRIVATELY HELD vs PUBLICALLY TRADED FIRMS
A.       ALL PRIVATELY HELD FIRMS
 
1997 2002 2007 2015
# of Firms 20,439,934 (98.2%) 22,480,432 (97.8%) 26,304,486 (97.0%) 30,297,100 (96.5%)
         
Employment 58,901,815 (57.0%) 55,427,792 (50.0%) 57,260,527 (48.3%) 56,143,100 (43.5%)
         
Sales ($000) 8,392,001,047 (45.2%) 8,993,351,617 (38.9%) 10,979,477,627 (36.4%) 12,741,031,700 (33.5%)
B.       PUBLICLY TRADED/ OTHER FIRMS
 
1997 2002 2007 2015
# of Firms 382,000      (1.8%) 494,253       (2.2%) 805,533       (3.0%) 1,093,900    (3.5%)
         
Employment 44,458,000 (43.0%) 55,358,624 (50.0%) 61,352,899 (51.7%) 72,854,900 (56.5%)
         
Sales ($000) $10,161,242,000 (54.8%) $13,833,816,063 (61.1%) $19,196,411,634 (36.6%) $25,347,555,100 (66.5%)

 

  • T-1 A & T-1 B tell us that both PRIVATELY HELD FIRMS and PUBLICALLY TRADED FIRMS have grown from 1997 to 2015. PRIVATELY HELD FIRMS however, grew at a 2% rate while PUBLICALLY TRADED FIRMS grew at a rate of 186.4%.

 

  • From 1997 to 2015, Employment in PRIVATELY HELD FIRMS decreased 7% while Employment in PUBLIC HELD FIRMS grew by 63.9%.

 

  • B/T 1997 and 2015 Sales/Revenue in PRIVATELY HELD FIRMS grew 8% while Sales/Rev grew in PUBLICALLY TRADED FIRMS by 149.4%.

 

  • A measuring stick is that in 1997, PRIVATELY HELD FIRMS were 2% of ALL the firms. Today (2015) they are 96.5% in 2015. PRIVATELY HELD FIRMS had 57.0% of the employees in 1997 (vs 43.5% in 2015). In 1997 45.2% of the Sales belonged to PRIVATELY HELD FIRMS vs 33.5% in 2015.

 

  • The Best Comparative of America’s Biz today is that in 1997 PUBLIC TRADED FIRMS accounted for 8% of ALL Biz Firms in the US. These firms generated 43.0% of ALL Employment and 54.8% of ALL Sales/Revenue. In 2015 the PUBLIC TRADED FIRMS accounted for 3.5% of ALL firms. 56½% of ALL Employment and 66.5% of ALL sales. WOW!

 

 

 

 

 

T-2: WOMEN, MEN & EQUALLY OWNED FIRMS
A.       WOMEN OWNED BIZES (WOB)
1997 % 2007 % 2014 % 2015 % ∆% 2014 – 2015 ∆% 1997 – 2015
# of Firms 5,417,034 26.5 7,739,139 29.4 9,087,200 30.8 9,410,800 31.0 3.60% 73.70%
Employment 7,076,081 12.0 7,076,081 12.4 7,854,200 13.8 7,922,900 14.0 0.90% 12.00%
Sales/Rev ($000) 818,669,084 9.7 1,202,115,758 10.8 1,410,940,800 11.2 1,463,166,300 11.3 3.70% 78.70%
B.       MEN OWNED BIZES (MOB)
1997 % 2007 % 2014 % 2015 % ∆% 2014 – 2015 ∆% 1997 – 2015
# of Firms 11,374,194 55.6 13,906,658 52.9 15,285,800 51.8 15,630,800 51.5 2.30% 37.40%
Employment 43,532,114 73.9 41,701,315 73.2 40,704,300 71.8 40,454,900 71.6 -0.60% -7.10%
Sales/Rev ($000) 6,635,374,691 79 8,574,060,362 77.5 9,629,868,600 76.9 9,893,917,600 76.8 2.70% 49.10%
C.        EQUALLY OWNED BIZES (EOB)
1997 % 2007 % 2014 % 2015 % ∆% 2014 – 2015 ∆% 1997 – 2015
# of Firms 3,641,263 17.8 4,603,255 17.5 5,127,200 17.3 5,258,200 17.3 2.60% 44.40%
Employment 8,284,537 14.0 8,152,650 14.3 8,080,800 14.2 8,062,900 14.2 0.20% 2.70%
Sales/Rev ($000) 943,880,584 11.2 1,283,401,141 11.6 1,468,304,000 11.7 1,514,546,700 11.7 3.20% 60.50%

 

  • It is clear that WOB have prospered much more quickly on all 3 BIZ METRICS (# of firms, Employment and Sales/Rev) b/t 1997 and 2015 AND from 2014 to 2015 than MOB or EOB. (From 1997 to 2015 WOB increased 74% in their #, 12% in their employment and 79% in their sales/revenues “knocking the socks” off MOB & EOB. From 2014 to 2015 they repeated their TRIPLE HEADER victory with reasonable growth in the # of Firms 6% and in sales/revenue 3.7%) AND WOB employment growth vs its MOB & EOB competitors. CONGRATS to the new beacon of gender bizes WOB. WOB’s growth (vs Men Owned and Equally Owned) speaks volumes about the stick-to-itiveness and desire of WOB to succeed. CONGRATS!

 

  • Another view of the same data is that in 1997 WOB were 5% of the mix of WOB, MOB & EOB. They employed 12.0% and generated 9.7% of Sales/Rev. In 2015, WOB were 31.0% of the aforementioned Mix of Firms, generated 14.0% of the Employment picture and 11.4% of the Sales/Revenue $$. Again, we say to WOB, THX for being a growth engine in the US economy. CONGRATS!

 

 

T-3: THE TOP 5 & BOTTOM 5 for WOB by INDUSTRY

TOP 5 WOB by firm #s TOP 5 WOB by Employment TOP 5 WOB by Sales/Rev ($000)  
1. Health Care         1,579,800 1. Health Care   1,429,100 1. Wholesale  $      288,657,100  
2. Other Services         1,457,600 2. Adm/Support/WMS   1,295,100 2. Retail  $      236,533,300
3. Prof/Sci/Tech         1,248,500 3. Accomodations   1,036,300 3. Health Care  $      137,449,400  
4. Adm,Support,WMG            987,300 4. Retail Trade      822,600 4. Prof/Sci/Tech  $      134,407,800  
5. Retail Trade            889,800 5. Prof/Sci/Tech      706,800 5. Manufacturing  $      134,184,000
6. Education            460,200
BOTTOM WOB by Firm #s BOTTOM 5 WOB by Employment BOTTOM WOB by Sales/Rev ($000)  
1. Mgmt of Cos. 1,300 1. Utilities          1,900 1. Utilities  $          1,043,700
2. Utilities 2,500 2. Agri,Frstry,F&H          7,800 2. Agri,Frstry,F&H  $          1,987,000  
3. Mining 25,000 3. Mining        25,000 3. Mgt of Cos  $          4,540,600  
4. Agri,Frstry,F&H 35,900 4. Mgt of Cos        38,300 4. Education  $        15,256,000  
5. Manufacturing 116,700 5. Information        96,800 5. Arts & Rec  $        20,197,800  

 

  • The TOP 5 workplaces for WOB given firm #s, employment #s and sales/revenue are HEALTH CARE, PROFESSIONAL/SCIENTIFIC/TECHNOLOGY and RETAIL TRADE.

 

  • The BOTTOM 5 industries for WOB given the metrics of # of firms, # employees and Sales/Revenue are MANAGEMENT OF COMPANIES, UTILITIES and the AGRICULTURAL, FORESTRY, and FISHING AND HUNTING INDUSTRY.

 

T-4: The CONCENTRATION DISTRIBUTION of EMPLOYEES in WOB

 

A.       % Concentraition w/i Industry of WOB B.       Distrib of WOB Across Intustries
1. Health Care & Soc Asst 52.8% 1. Health Care & Soc Asst 16.8%
2. Ed Services 44.9% 2. Other Services 15.5%
3. Other Services 41.6% 3. Prof/Sci/Tech 13.3%
4. Adm,Support, WMS 37.4% 4. Adm/Support/WMS 10.5%
5. Retail Trade 32.1% 5. Retail Trade 9.5%
6. Arts, Entr & Recr 30.7% 6. Real Estate 8.3%
7. Tot, All Industries 30.0% 7. All Other Industries 6.1%
8. Prof/Sci/Tech 29.2% 8. Arts, Entr & Recr 4.9%
9. Real Estate 26.1% 9. Ed Services 4.9%
10. Accomodations 24.7% 10. Accom & Fd Serv 2.4%
11. Finance & Insurance 19.7% 11. Construction 2.3%
12. Wholesale Trade 19.4% 12. Finance 2.1%
13. All Other Industries 18.9% 13. Transport & Warehouse 1.8%
14. Transport & Warehouse 11.4% 14. Wholesale Trade 1.6%
15. Construction 7.4%

 

  • T-4 A shows WOB in the industries of HEALTH CARE, ED SERVICES and ALL OTHER SERVICES have over 40% of the work force in these industries. The avg is almost 31% with RETAIL TRADE and ARTS, ENTERTAINMENT & RECREATION being above the avg.

 

  • T-4 B shows the % Employment of WOB across all industries with HEALTH CARE accounting for 8% followed by OTHER SERVICES and PROFESSIONAL, SCIENTIFIC and TECH SERVICES being #2 & #3. ADMIN/SUPPORT & WAST MGT SERVICES and RETAIL TRADE being #4 & #5.

 

T-5: THE TOP 5 STATES & METRO AREAS for WOB as related to # of Bizes, # of employees and Sales/Revenue Generated

 

    A.       TOP 5 WOB STATES

 

   
TOP 5 States for WOB by # of Firms TOP 5 States for WOB by # Employed TOP 5 States for WOB by Sales/Rev
1. CA                    1,219,500 1. CA           997,000 1. CA $218.86B
2. TX                       825,400 2. TX           663,400 2. TX $127.28B
3. NY                       745,600 3. FL           484,700 3. NY $102.55B
4. FL                       616,200 4. NY           470,700 4. FL $80.99B
5. IL                       402,700 5. PA           313,200 5. IL $59.18B
9. MI                       289,300 10. MI           254,700 13. MI $33.77B
    B.       TOP 5 Metro Areas Given TOP 25 Areas    
TOP 5 Metro Areas Given TOP 25 by # of Firms By # of Employees TOP 5 Metro Areas Given by # of Sales/Rev
1. NYC                       676,600 1. NYC           498,100 1. NYC $106.00B
2. LA                       436,900 2. LA           395,800 2. LA $88.26B
3. CHI                       305,000 3. CHI           265,100 3. CHI $48.16B
4. MIA                       244,100 4. DC           194,800 4. HST $42.13B
5. DLS                       221,100 5. ATL           163,900 5. DLS $38.00B
11. DET                       127,900 8. DET           135,500 15. DET $15.68B

 

  • Given the population size of the states it is no surprise that CA, FL, NY & TX were on 3 lists of # of WOB FIRMS, # EMPLOYED by WOB & SALES/REV generated by these WOB.

 

MI was #9 in # of WOB FIRMS, #10 in #EMPLOYED by WOB and #13 in SALES/REV by WOB.

 

  • NYC, LA & CHI repeated in largest Metro Areas in the TOP 25 Metro Areas that had the most FIRMS, most EMPLOYED and greatest SALES/REV.

 

  • Detroit Metro had the 11th most FIRMS WOB for a Metro Area. It had the 8th most Employees in a Metro Area and the 15th greatest Sales/Rev from its WOB.

 

 

OFTEN THE BE$T MAN FOR THE JOB I$ A WOMAN

 

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About bernacmd

For over 24 years, University of Detroit Mercy Marketing Professor Michael Bernacchi, Ph.D., J.D, has produced "uNDER tHE mIKE-rOSCOPE", a newsletter discussing current "marketing and advertising¹s bends, trends & ends." A well-know fixture in Detroit and national media, UDM's marketing guru has made several appearances on CNN's "Talk Back Live," the Voice of America worldwide radio network (VOA), ABC, CBS, NBC, MSNBC and on the pages of Sports Illustrated, Time, TV Guide, the New York Times, USA Today, the Wall Street Journal and the Washington Post, to name a few. At University of Detroit Mercy, he has taught courses in Marketing Management, Consumer Behavior, Marketing Communications, Research and Corporate Social Responsibility and Sports and Entertainment Marketing. Michael Bernacchi can be reached at 313-993-1116 or bernacmd@udmercy.edu. Please appropriately attribute the following for their work on uNDER tHE mIKE-rOSCOPE: Yen Ju Lee Robert Rouse Vidhyasagar Natarajan Eric Baumgardner & Ian Young
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