SIOUX FALLS, S.D. (KELO) — If you’re a woman who owns a business in South Dakota there’s a good chance that revenue is below $1 million, according to a study from Clarify Capital.
The study ranks the state 50th in terms of women-owned businesses with revenue of more than $1 million. Overall, the study ranks South Dakota the 22nd best state for a woman to own a business.
That’s behind Minnesota (7th) and North Dakota (8th), Wyoming (11th) and Nebraska (20th) but ahead of Iowa (24th).
California is the top state for women-owned businesses, according to the study. The state has many women-owned business, in part because of population, but also because of the business climate.
South Dakota ranks 21st in the percentage of small businesses owned by women, but 32nd in terms of the number of female-owned business per 10,000 people.
The number of businesses owned by women has grown from 2002 to 2020.
According to the U.S. Census Bureau, “women-owned firms made up only 19.9% of all firms that employed people in the United States in 2018.” But the number was higher than in the prior years.
The pace of the growth in South Dakota is slower than in neighboring states. States that ranked higher in best states for a woman to own a business, generally had a higher percentage growth change in the number of female-owned businesses.
South Dakota’s growth is 7.84% compared to 44.18% in North Dakota, 24.44% in Minnesota, 8.2% in Iowa, 15.25% in Nebraska and 26.24% in Wyoming.
In 2018, the most recent report in the category, the Status of Women in the States report ranked South Dakota 24th for employment and earnings. The Status report is from the Institute for Women’s Policy Research.
While female ownership of businesses is growing, according to a 2013 report from the U.S. Chamber Foundation, 90% of female-owned businesses employed only one person.
The Clarify Capital report also included information about how states are helping female business owners.
California, Colorado and New York have the friendliest environments for women-owned businesses, according to the Clarify Capital study.
South Dakota did not rank in the top 10 in terms of capital investment.
The U.S. Department of Transportation Federal Highway Administration announced in March a Disadvantaged Business Enterprise/Supportive Services program to help a specific group of business owners compete for highway projects. “A DBE is a for-profit, small business owned and controlled by minorities, women or other socially and economically disadvantaged individuals or, in the case of a corporation, one in which 51% of the stock is owned by one or more such individuals,” the Federal Highway Administration said.
The program designated about $99,000 for South Dakota.
The Minneapolis Federal Reserve explored a variety of issues in January of 2022 regional economic conference.
One expert weighed in on the top of minority and women-owned businesses after the conference in a story published by the University of Minnesota.
“Overall, minority and women-owned businesses’ performance has lagged that of businesses overall, and that has a lot of spillover effects,” Ron Wirtz of the Federal Reserve said in the U of Minnesota story.
But by March, there were indications that things were changing. The Minneapolis Federal Reserve’s March 2022 report said that minority- and women-owned businesses saw growth and were optimistic in their outlooks.