It is hard to deny the fact that women entrepreneurs are on the increase. The number of women-owned businesses in the United States has increased by 20% over the past 114 years, with women starting an average of 849 new businesses every day. But what is more impressive is that most of them combine their work with the role of homemaker. This is not an easy task - and conditions for working women can be dramatically different in different cities in the United States.
Редакция GOBankingRates I tried to find out whether working mothers are more likely to succeed depending on where they live. The study identified both the best and worst places to start a business based on the share of working women in these cities, the pace of the emergence and development of new businesses, the number and survival of startups, and the average cost of childcare.
The worst cities for working moms
Such cities are located in the Northeast, Midwest and Northern California. The share of women entrepreneurs in these areas is less than 1% of the workforce. In addition, the cost of childcare is high enough to offset the benefits of combining work and motherhood.
10. San Jose, California
This city in California's Silicon Valley is one of the hottest spots for new ventures, but not women’s businesses. Women entrepreneurs make up only 0,67% of the city's workforce, and the cost of childcare is one of the highest in the country.
Detroit is one of the worst places to start a women's business, as less than 50% of businesses are five years old and women entrepreneurs make up just 0,54% of the workforce.
Cleveland has the lowest startup density for every 1000 businesses. It has one of the lowest entrepreneurship rates, measuring the percentage of adults who start businesses in any month of the year.
7. Sacramento, CA
In the capital of California, it is most expensive to care for children, which can increase the cost of doing business for mothers-entrepreneurs. In addition, the total 0,56% of Sacramento workforce is women in business.
This city is not the friendliest place for women starting a business; they account for only 0,6% of the workforce. In addition, the city has one of the lowest percentages of adults becoming entrepreneurs any month.
Childcare in Indianapolis is more accessible than most other worst cities for working moms. However, women may face other obstacles: in this city, a low labor force ratio, covering women in business, low levels of new entrepreneurs, low start-up density, and survival rates for new businesses.
Pittsburgh is even less friendly than the rest of the Pennsylvania cities on our list. The rate of emergence of new entrepreneurs (only 0,13%) is the lowest among the worst cities. Pittsburgh, among other things, has the second lowest startup density after Cleveland.
3. Providence, Rhode Island
The cost of childcare in Rhode Island's capital and largest city is higher than most cities. Providence is also one of the worst cities for women entrepreneurs, accounting for just 0,73% of the workforce. The growth rates of the number of new entrepreneurs and the number of startups per 1000 companies are also low.
Working mothers pay exorbitant childcare costs - the highest on our list. The average cost of one year of infant care here is $ 20, while for a 125-year-old it is $ 4. Boston has one of the lowest percentages of female entrepreneurs at 14%.
Milwaukee is the worst city for working moms due to its low scores across all the factors considered in this study. It has the lowest percentage of female entrepreneurs (just 0,50%) and the second highest rate of new entrepreneurs among the 10 worst cities. Milwaukee's startup density and survival rates in new business groups are also the lowest, with childcare costs relatively high.
The best cities for working mothers
The best cities for business moms are in the South and West. These cities not only have created favorable conditions for entrepreneurs and more affordable childcare - here the percentage of women in business is much higher.
Dallas is the only city in the top 1 cities for working moms, with less than XNUMX% of the workforce being women entrepreneurs. However, childcare costs are among the lowest in the city. Dallas has a relatively high level of new businesses and a high density of startups.
Denver has one of the highest percentages of female entrepreneurs at 1,44%. This is not an astronomical number, but it is higher than most of the cities on the list. The percentage of new entrepreneurs and the density of startups is also high, but there is also a problem for working mothers - the high cost of childcare - $ 15 per year for a toddler and $ 138 for a 11-year-old preschooler.
8. Orlando, FL
The city is known for its tourist attractions, most notably Walt Disney World. But Orlando is also one of the best places for a mom to start a business. Childcare costs are among the lowest on the list. In addition, Orlando offers 105 startups for every 10 companies - the second highest startup density among the top XNUMX cities for moms.
7. Charlotte, North Carolina
The relatively low cost of childcare and the relatively high level of female entrepreneurs in the workforce make the largest city in North Carolina a good place for moms who are going to start a business. In addition, Charlotte has a higher percentage of new entrepreneurs than in most cities on our list.
6. Los Angeles
In Los Angeles, the highest percentage of new entrepreneurs from this study, along with Miami. It also has a relatively high density of startups, with 92 new ventures per thousand. In addition, female entrepreneurs make up 1,34% of the workforce in Los Angeles, which is higher than in most cities.
5. Portland, Oregon
Portland is one of the top two cities for business moms with a survival rate of over 50% for new business. Oregon's largest city has the fourth-highest rate of female entrepreneurs (1,55%) and ranks second among the cities where the cost of caring for a 4-year-old child is most profitable at $ 6 per year.
4. Tampa, FL
The high level of female entrepreneurship makes Tampa one of the best cities for working moms. In fact, Florida has the third highest rate of female entrepreneurs in the workforce at 1,6%. Plus, the cost of childcare in Tampa is one of the lowest on our list.
3. Austin TX
Among the top 10 cities for moms, Austin has the second highest percentage of women entrepreneurs at 1%. But moms looking to start a business here can benefit from the relatively low cost of childcare and a good ranking of startups. Austin has one of the highest rates of new entrepreneurs and one of the best start-up densities, with about 105 new businesses for every 1000 companies.
This southern city has the highest rate of female entrepreneurs in the workforce at 1,75%. Plus, working moms can take advantage of affordable childcare options: less than any other city on our list. The problem is low survival rate for startups. Only 45,5% of new businesses are five years old.
A thriving startup scene, high levels of female entrepreneurs, and low childcare costs make Miami the best city for moms to own a business. Along with Los Angeles, Miami has the highest rate of new entrepreneurs and startup density among the top 10 cities. However, just like Atlanta, the startup survival rate in Miami is around 45 percent.
With affordable childcare, thriving start-ups, and the fast pace of women’s businesses, several cities can offer more opportunities for entrepreneur moms. Research has shown where these cities are located. But all of the above does not mean that your venture will not be successful if you are a working mom who lives elsewhere.