Businesses owned by Black, Latina and Asian women are growing at a faster rate than all U.S. firms in terms of growth of revenues and number of employees.

The number of companies owned by women of colour has skyrocketed over the past decade making them the nation's fastest-growing segment of all privately held firms, recent studies show.

The Center for Women’s Business Research in a recent study places the number of firms now owned at least 50 percent by women of colour at 2.3 million, providing 1.7 million jobs and generating $235 billion in revenues.

The report shows that businesses owned by Latinas and Black and Asian women are growing at a faster rate than all U.S. firms in terms of growth of revenues and number of employees.

Margaret A. Smith, chair of the Center for Women's Business Research, notes that "the face of women entrepreneurship is changing."

Today, women of colour represent 26 percent of all women business owners - up from 20 percent just a few years ago. These business owners are a vital driver of economic growth in every community and a vibrant source of suppliers and customers. As of 2008, there were 2.3 million firms [that were] 50 percent or more owned by women of colour, providing 1.7 million jobs and generating $235 billion in revenues."

Today, women of colour represent 26 percent of all women business owners - up from 20 percent just a few years ago.

According to the study, businesses at least 50 percent owned by Latinas and Black and Asian women grew twice as fast in terms of revenue (35 percent versus 15 percent) and three times as fast in terms of number (30 percent versus 9 percent).

Among Latinas and Black and Asian women (as of 2008), Black women owned the second highest number of firms (734,664), employed 281,055 people, and had revenues of more than $32 billion. Latinas had the largest number of businesses, owning nearly 747,108 firms, employing 430,000 workers and generating revenues of $62 billion. Asian-American women's companies outpaced all others in growth in numbers, employment and receipts.

A report by the U.S. Department of Commerce's Minority Business Development Agency concluded that minority women entrepreneurs are establishing businesses twice as fast as male minority business owners - and more than four times the rate of non-minority men and women.

The number of firms owned at least 51 percent by women of color increased 57 percent between 1997 and 2002 to nearly 1.5 million companies with $111 billion in gross receipts. By contrast, minority male-owned firms increased 31 percent, all women-owned businesses jumped 20 percent, and all male-owned firms increased by 16 percent.

The MBDA study said women of color have expanded predominantly into the health care and social assistance fields. It found that to be the case for 35 percent of African-American business owners, 23 percent of Latina business owners, and 15 percent of Asian entrepreneurs. Asian women entrepreneurs, however, were more likely to own firms offering "other services," or 23 percent.

"Women see entrepreneurship as the key to freedom – providing flexibility and wealth creation," said Ronald N. Langston, MBDA's national director. "Women are taking advantage of their talents and experience establishing businesses throughout our communities at astounding rates. Many choose entrepreneurship as a way to battle the glass ceiling that still, unfortunately exists in corporate America."

Despite the rapid growth in numbers, minority business women have yet to reach parity based on population and they trail minority male-owned businesses in gross receipts and employees, the MBDA report concluded.

Minority women entrepreneurs are establishing businesses twice as fast as male minority business owners.

According to experts in US entrepreneurial studies said the growth in minority women-owned businesses is a phenomenon underscoring the strides in education, opportunity and access to capital made by women of colour as they increasingly invest in their own ventures rather than fight limitations imposed by corporate America.

Some point to the fact that, with fewer barriers to capital, better education among young entrepreneurs, and a discovery of second-career opportunities for older women, it is inevitable that increased numbers of women – and minority women – own businesses.

The perception and reality of a glass ceiling in regard to gender and race is also cited by experts as a reason for frustration with traditional employment, driving minority women to choose to pursue other avenues where they are not dealing with negative behaviour and therefore choosing to be their own boss.

For more from the Center for Women's Business Research, visit http://www.nfwbo.org