The study, from boutique lending firm Clarify Capital, ranked the best U.S. states for women-owned businesses based on metrics like percentage of female-owned small businesses:
found that closing the gender gap could add as much as $2 trillion to the global gross domestic product while creating up to 433 million new jobs.
Clarify Capital also noted that California is one of the country's top states for funding female-founded startups — averaging $10.2 million per deal for female founders in recent years, according to numbers from. That's second only to Massachusetts' $13 million average, and a big deal in its own right: Only about 2.1% of venture capital dollars in the U.S. went to female-founded startups in 2021, according to Pitchbook.
In second place is Colorado, which has seen a 52% bump in women-owned businesses since 2002, Clarify Capital noted. Colorado also boasts the most female-owned businesses per 10,000 residents. New York is third, offering the second-best women-to-men pay ratio and the third-highest number of women-owned businesses bringing in at least $1 million in annual revenue.
On the other end of the spectrum, the states at the bottom of the ranking suffer from higher female unemployment rates and women-to-men pay ratios that fall below the national average. Here are the worst states for women-owned businesses, according to Clarify Capital:
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