Revenues, Profits of Companies Owned by Women Decreased During 2021: Biz2Credit Women-Owned Business Study

Analysis of 100,000 Firms Finds Pandemic Revenues and Profits Fell Last Year

NEW YORK, March 08, 2022 (GLOBE NEWSWIRE) -- The annual Biz2Credit Women-Owned Business Study found that profits for female business-owners dropped 26% in 2021 from 2020, while average annual revenues dipped 4%. Additionally, the study found that operating expenses increased, the primary reason profits fell in 2021.

“The cost of doing business rose significantly in 2021, particularly labor costs, fuel costs, and raw materials and inventory prices, which skyrocketed because of supply chain disruption,” explained Rohit Arora, CEO of Biz2Credit, one of the country’s leading experts in small business finance and FinTech. “These economic pressures hurt women-owned firms especially hard. Supply chain shortages negatively impacted the earning potential of small businesses.”

“Further, the emergence of the omicron variant at a time when the first wave of COVID began to wane and the persistence of restrictions hurt small businesses. This resulted in the reluctance of consumers to patronize restaurants, Broadway theaters and other entertainment venues, and travel and tourism-related businesses,” Arora added.

Women-owned business profits averaged $88,995, much less than 2020’s figure of $119,654, and $47,152 less than the average for male-owned firms ($136,147) in 2021. The analysis also revealed that the average credit score (580) for a female business owner decreased from 588 last year and was 14 points lower than the average score of a male business owner (594) in the study.

The Biz2Credit study reviewed 100,000 credit inquiries from across the country for the full prior year (2021) and examined the financial performance of women-owned small- to mid-sized companies in the United States. Despite austerity imposed by the COVID-19 pandemic many women-owned businesses continue to find growth opportunities.

The Biz2Credit Women-Owned Business Study examined financial indicators, including annual revenue, operating expenses, age of business, and credit scores of loan applicants. Key findings:

Performance of Women-Owned Businesses

  • Average Annual Revenue dropped from $493,401 in 2020 to $475,707 in 2021.
  • Average Profits (annual revenue – operating expenses) of women-owned business fell to $88,995 in 2021 from $119,654 in 2020
  • Average Expenses increased from $373,748 in 2020 to $386,712 in 2021.
  • Average Credit Score for female business owners dropped from 588 in 2020 to 580 in 2021.
  • Top Industry: Services (except public administration) represented 31.9% of the women-owned companies in 2021.

“Although average annual revenue for women-owned businesses declined, one of the reasons is because women began starting new businesses at a higher rate during the pandemic. That’s the bright side,” Arora said. “The decline in the average age of business declined, which is an indication of younger businesses seeking funding on our platform in the past year.”

Comparison of Women-Owned and Men-Owned Companies

Biz2Credit compared male-owned and female-owned businesses in its study, and the numbers underscore a larger problem: women-owned companies are experiencing a revenue gap. Some specifics:

  • Women-to-Men Borrowing Ratio: 33% female vs 67% male business loan applications according to Biz2Credit data in 2021.
  • Average Annual Revenue: Women-owned businesses ($475,707) earned $199,936 less on average than male-owned firms ($675,643) in 2021.
  • Average Credit Score: On average the credit score for women-owned businesses (580) were 14 points lower than male-owned Businesses (594) in 2021.
  • Average Loan Size for women-owned businesses ($49,712) was 41% lower than the average loan size for businesses owned by men ($83,198) in 2020.
  • Average Age of Business for women-owned businesses was almost 4 years (45 months) and was lower than the age of business for male-owned companies of exactly 4 years (48 months).


Almost one-third (31.9%) of the women-owned companies that applied for business loans during the past 12 months have been in Services (except Public Administration). Retail accounted for 15.1% of the applicants, followed by Accommodation and Food Services (9.1%), Health Care and Social Assistance (7.4%), Transportation and Warehousing (5.4%), and Arts, Entertainment, and Recreation (4.7%).


Texas was the state that produced the most applications from women-owned companies, followed by Georgia, Illinois, Florida, California, and New York.

Paycheck Protection Program (PPP) Round 2: Women-owned vs. Male-owned businesses

In December 2020, Congress appropriated $284 billion for small business COVID relief for a second round of the Paycheck Protection Program (PPP). Biz2Credit examined its data from PPP loan applicants and discovered that 49% of the applicants for PPP Round 2 were women business owners (compared to all SBA lenders at 34%). The average approved amount for PPP Round 2 applicants who identified as women business owners on the Biz2Credit platform was $23,101, compared to $36,348 for those who identified as male business owners.

Importance of Women-Owned Businesses

There are nearly 13 million women-owned businesses in the U.S. as of 2019, and from 2014 to 2019, the number of firms owned by women of color increased by 43%, according to American Express’s State of Women-Owned Businesses Report. An estimated 10 million people are employed by women-owned companies, and they generate nearly $1.8 trillion in revenue, according to the Census Bureau.

Biz2Credit partnered with the Association of Women's Business Centers, which works to secure economic justice and entrepreneurial opportunities by supporting and sustaining a national network of 140 Women’s Business Centers (WBC). These centers help women succeed by providing training, mentoring, business development, and financing opportunities to over 150,000 women entrepreneurs each year.

“Women’s Business Centers have grown tremendously in number of locations and clients served. As economic first responders to the pandemic, Women’s Business Centers assisted a record number of clients to access a record level of funding for their businesses, compared to prior years,” said Corinne Hodges, CEO of the Association of Women’s Business Centers. “The national network of 140 Women’s Business Centers provides free counseling, training, networking opportunities and perhaps most importantly, access to much needed funding (or capital) for businesses to get started and/or grow.”

In 2021, WBC locations served 88,000 clients, helped start 3,300 firms, and supported 89,697 jobs by offering thousands of more than 27,000 training sessions and nearly 170,000 counseling hours. Clients of WBCs received a higher total in SBA loans ($262,455,406) in 2021 than 2020 (up 31%).

A Story of Success

Women business owners expressed the importance of securing financing during the difficult economic circumstances of the COVID-19 pandemic, which continued to ravage many small businesses during 2021. Many entrepreneurs who were able to obtain funding said it they received a lifeline.

“The funds that I received allowed me to alleviate a lot of tension and pressure and enabled me to keep my staff,” Debbie Elder, who has owned Shady Oak Primary School in Richmond, TX, since 2014. “Once I received my money, that whole headache went away. I was then able focus on bringing in more students, marketing, and making sure that this financial situation never happens to us again.”

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The dataset for Biz2Credit’s Women-Owned Business Study is comprised of nearly 100,000 completed credit applications received via the Biz2Credit platform in 2021. The four most important variables in the analysis were: annual revenue, operating expenses, age of business, and personal credit score. The data was then tabulated to examine women-owned and male-owned firms based on annual revenue, operating expenses, age of business, personal credit score, funding rate, and average loan size. The study looked at 20 different industries, as well as geography.

About Biz2Credit

Founded in 2007, Biz2Credit has arranged more than $7 billion in small business financing. The company is expanding its industry-leading technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit or Twitter @Biz2Credit, Facebook, and LinkedIn

Media Contact: John Mooney, (908) 720-6057,