Nearly half of all privately held U.S. businesses are women-owned.

Recently released figures expand the picture of the economic impact of women-owned firms and show that they continue to expand faster than all businesses. The figures were released by Center for Women's Business Research as part of a project titled "Completing the Picture." This phase of the project is underwritten by Pitney Bowes Inc., the Philadelphia chapter of the National Association of Women Business Owners (NAWBO) and Wells Fargo.

The analysis shows that there are 10.1 million privately held 50% or more women-owned businesses in the United States, generating 18.2 million jobs and contributing more than $2.3 trillion in sales to the economy.

"These firms represent a substantial portion (46%) of all privately held businesses," said Myra M. Hart, Harvard Business School professor and chair of Center for Women's Business Research. "By adding the privately held businesses that are 50% women-owned to the privately held majority women-owned firms, we get a more complete picture of the economic vitality of women's entrepreneurship."

Growth continues to be a major component of the picture of women-owned businesses. Between 1997 and 2002, the Center estimates that the number of privately held 50% or more women-owned businesses grew by 11%, more than 1.5 limes the rate of all privately-held firms (6%) and employment increased by 18%, more than twice the average (8%). Sales were up 32% compared to an increase of 24% for all firms.

"These numbers continue a trend of more than a decade of women-owned businesses growing at 1.5 to 2 times the rate of all firms," said Henry Hernandez, executive director, global diversity leadership, Pitney Bowes Inc.

"For us this means business," continued Hernandez, "as we increasingly turn to women-owned firms as suppliers and customers."

"One in 11 women in the US is a business owner," said Rene Jones, president of Heller & Jones and president of the NAWBO Philadelphia chapter. "As business owners, we are an increasingly dynamic part of the economy in every city in the U.S. But most of all, this information shows that for women, the dream of entrepreneurship can be a viable reality."

Earlier estimates of the number of women-owned businesses in the U.S. were based on the 1997 U.S. Bureau of the Census definition of a woman-owned business as an enterprise that is privately held and majority woman-owned.

"This definition excludes many businesses in which women play a major ownership and management role, including many of the largest women-owned and led firms," said Hart. "A top priority for the Center is to collect data on the missing segments, including the 50% women-owned businesses covered in this report. Future research will look at businesses in which women own controlling or substantial minority interest and publicly-traded companies."

This article was provided by the Center for Women's Business Research.