These Are the 10 Best U.S. Cities for Women Entrepreneurs, According to New Report

MoMo Productions | DigitalVision | Getty Images

While the coronavirus pandemic is having a huge impact on women entrepreneurs, with just 47% saying they feel like their business is in "somewhat or very good" health, compared to 62% of male business owners in July, data shows that overall the number of new entrepreneurs in the U.S. is continuing to increase.

Between January and September, more than 3.2 million people filed an application for the employer identification number entrepreneurs need to start a business. That number is an increase from 2.7 million during the same time period last year, according to the U.S. Census Bureau, which does not provide a gender breakdown for this data. Among those filing for business applications are gig workers and independent contractors who experts say have been forced to start their own companies after being laid off.

To see which cities have the best success rate for women-owned businesses, personal finance site SmartAsset created a list of best places for women entrepreneurs in 2020. Looking at 50 of the largest metro areas in the country, SmartAsset used Census Bureau data to rank each city based on key factors including the percent of women-owned businesses, the percent of companies with 500 or more employees that are owned by women, the number of start-ups that are still active after one year in the state, the amount of new business applications in the state in 2020 as it relates to previous years, the women-to-men pay ratio and the overall September 2020 unemployment rate.

With all of these factors in mind, SmartAsset ranked the Minneapolis, St. Paul and Bloomington metro area in Minnesota as the best place for women entrepreneurs due to its relatively low unemployment rate of 5.9%, which is below the national average 6.7%, and its early start-up success rate of 80.44%. Also, nearly 20% of businesses in the area are owned by women and nearly 3% of its businesses with 500 or more employees are owned by women. In 2016, roughly 99% of women-owned companies in the U.S. had fewer than 500 employees, with the average women-owned firm employing eight workers, according to the Small Business Administration.

The Los Angeles, Long Beach and Anaheim metro area in California also ranked high on the list coming in second place. Though the area had a high unemployment rate of 13.6% in September, its large population presents a nearly 21% share of women-owned businesses, with early start-ups in the state having an 81.33% survival rate.

Take a look below to see what other cities rounded out SmartAsset's list of best places for women entrepreneurs.

LeoPatrizi

10. Dallas; Forth Worth; Arlington, Texas

Percent of women-owned businesses: 20.13%

Women-owned businesses as a percent of businesses with 500 or more employees: 3.19%

Early start-up survival rate: 79.80%

Women-to-men pay ratio: 74.29%

September 2020 unemployment rate: 7.5%

Number of new business applications in the state in 2020 so far: 42,640

9. Miami; Fort Lauderdale; Pompano Beach, Florida

Percent of women-owned businesses: 21.88%

Women-owned businesses as a percent of businesses with 500 or more employees: 3.17%

Early start-up survival rate: 77.94%

Women-to-men pay ratio: 81.19%

September 2020 unemployment rate: 10.1%

Number of new business applications in the state in 2020 so far: 39,070

8. Charlotte; Concord; Gastonia, North Carolina

Percent of women-owned businesses: 18.51%

Women-owned businesses as a percent of businesses with 500 or more employees: 3.26%

Early start-up survival rate: 79.66%

Women-to-men pay ratio: 75.34%

September 2020 unemployment rate: 7%

Number of new business applications in the state in 2020 so far: 20,740

dowell | Moment | Getty Images

7. Seattle; Tacoma; Bellevue, Washington

Percent of women-owned businesses: 21.25%

Women-owned businesses as a percent of businesses with 500 or more employees: 2.98%

Early start-up survival rate: 79.74%

Women-to-men pay ratio: 68.21%

September 2020 unemployment rate: 7.4%

Number of new business applications in the state in 2020 so far: 20,740

6. Tampa; St. Petersburg; Clearwater, Florida

Percent of women-owned businesses: 20.34%

Women-owned businesses as a percent of businesses with 500 or more employees: 2.43%

Early start-up survival rate: 77.94%

Women-to-men pay ratio: 79.68%

September 2020 unemployment rate: 6.1%

Number of new business applications in the state in 2020 so far: 39,070

5. Sacramento; Roseville; Folsom, California

Percent of women-owned businesses: 19.67%

Women-owned businesses as a percent of businesses with 500 or more employees: 2.45%

Early start-up survival rate: 81.33%

Women-to-men pay ratio: 78.15%

September 2020 unemployment rate: 8.9%

Number of new business applications in the state in 2020 so far: 53,370

MoMo Productions | Getty Images

4. Denver; Aurora; Lakewood, Colorado

Percent of women-owned businesses: 21.78%

Women-owned businesses as a percent of businesses with 500 or more employees: 2.82%

Early start-up survival rate: 78.74%

Women-to-men pay ratio: 73.22%

September 2020 unemployment rate: 6.5%

Number of new business applications in the state in 2020 so far: 9,870

3. Atlanta; Sandy Springs; Alpharetta, Georgia

Percent of women-owned businesses: 21.92%

Women-owned businesses as a percent of businesses with 500 or more employees: 2.69%

Early start-up survival rate: 75.58%

Women-to-men pay ratio: 76.79%

September 2020 unemployment rate: 6.7%

Number of new business applications in the state in 2020 so far: 22,940

2. Los Angeles; Long Beach; Anaheim, California

Percent of women-owned businesses: 20.99%

Women-owned businesses as a percent of businesses with 500 or more employees: 3.20%

Early start-up survival rate: 81.33%

Women-to-men pay ratio: 80.95%

September 2020 unemployment rate: 13.6%

Number of new business applications in the state in 2020 so far: 53,370

1. Minneapolis; St. Paul; Bloomington, Minnesota

Percent of women-owned businesses: 19.78%

Women-owned businesses as a percent of businesses with 500 or more employees: 2.99%

Early start-up survival rate: 80.44%

Women-to-men pay ratio: 74.24%

September 2020 unemployment rate: 5.9%

Number of new business applications in the state in 2020 so far: 6,370

Don't miss: Amex Blue Cash Preferred is offering an elevated welcome bonus for a limited time

Check out: 22 jobs at high risk of slow recovery after the coronavirus pandemic

Copyright CNBCs - CNBC
Contact Us