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JPMorgan Chase Institute Finds Gender Discrepancies in US Businesses

Women make up 36 percent of business owners in the US. And according to a JPMorgan Chase Institute report on small enterprises released Thursday, female-owned companies start with revenue levels already 34 percent below male-owned firms. The report used the bank’s customer data to track certain economic trends. Institute President Diana Farrell said, “Young and female small business owners are well-represented among firms that grow organically, but underrepresented among firms with external financing.” The study also highlighted a discrepancy in the gender of owners by sector. Women are more likely to own servicing firms, especially those in personal services, and men are more likely to own firms in construction and high-tech manufacturing industries. Exploring these trends is crucial to understanding our economy since businesses with less than 500 employees produce almost half of our GDP and create 65 percent of new jobs.

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