Across the country, women entrepreneurs are starting businesses at a rate much faster than men – but not all states are equally welcoming to women-owned small businesses.
Thumbtack’s annual Small Business Friendliness Survey is a one-of-its-kind look at what makes a state or local government work for small businesses. Based on survey responses from 18,000 small business owners nationwide, we ask questions about the friendliness of local tax laws, licensing rules, and the regulatory environment, and we try to get a sense of what the opportunities for training and networking are for business owners nationwide.
We use these responses to rank cities and states based on their friendliness to small business, from best (Texas) to worst (Rhode Island). This year, we also wanted to know what states were best for female entrepreneurs.
Based on our survey, the data shows that these are the top ten states for women-owned small businesses, shown here with their friendliness ranks overall:
Some states, like New Hampshire and Texas, are great for both male and female business owners. Other states, like Oregon and Oklahoma, do significantly better for female entrepreneurs than males, jumping from 18th to 6th and 12th to 4th respectively.
We found that the top issues for women entrepreneurs were tax regulations, training opportunities, and labor rules. Nationwide, female entrepreneurs were less likely to be employers and more likely to say they paid “the right share” of taxes.
According to the Census Bureau women own 36 percent of all businesses in the United States, and 89 percent of those businesses have no employees – creating the right environment for female entrepreneurs to start and grow their businesses is critical to give these women a chance to increase their role as business leaders and employers.
You can explore more and see how women-owned small businesses say your state did in this interactive map: