t's a man's world, at least in the world of startups. But that's quickly changing. The number of female entrepreneurs is growing. Twenty-three percent of entrepreneurs seeking angel investing were female in 2018, up from 19 percent in 2014.
Of course, women still face challenges. For example, studies show women who apply for business loans generally receive 45 percent less capital than their male counterparts. Others show, the overwhelming majority of venture capitalists are men. Throw in lingering concerns about the interruption of women raising families while running a company – and many funders and supporters questions a woman's ability to succeed.
With those challenges and more facing budding female entrepreneurs, the truth is that WHERE you start your new business may be just as important to its survival as the type of business. With that in mind, FitSmallBusiness.com ranked each state in the country to determine which are the best for female entrepreneurs -- the second annual study of Best States for Female Entrepreneurs.
Only two of the states that made our Top 10 Best States for Female Entrepreneurs list last year, were included in this year's Top 10. This is due to a variety of reasons including new legislation, and saturated markets. For example, Texas jumped from eighth place last year to first place this year, and Georgia moved from first to tenth. You can find the full list HERE.
THE TOP 10 STATES FOR FEMALE ENTREPRENEURS - 2019
FitSmallBusiness used the following metrics and weights to analyze and eventually rank the Best States for Female Entrepreneurs:
General Business Climate/Opportunity (25%)
Rate of startup growth and share of scale-ups
High-growth company density
Outlook for Women in Business (25%)
Percentage of minority business owners
Number of SBA women's business centers
Economic and Financial Health (25%)
Cost of living index
Corporate tax rate
Livability for Females (25%)
Women's economic and social well-being rank
Women's health and safety rank
"There are many variables that can prevent a startup from taking off," according to Eric Noe, Editor-in-Chief, FitSmallBusiness. "With the information that we've collected, women entrepreneurs can see which states offer them the best chances for success."