USU UWLP releases research on the status of women and entrepreneurship in Utah

Throughout the nation, women are building and running successful businesses every day. Utah, which was recently ranked the third best state in the nation to start a business, is seeing more women step into entrepreneurship and take advantage of its strong economy. This growing trend shows that women aren’t just entering the business world, they’re taking the lead. 

The Utah Women & Leadership Project (UWLP) at Utah State University recently published a research report, “The Status of Women and Entrepreneurship in Utah: A 2025 Update.” This update to reports in 2016 and 2020 highlights both the progress women entrepreneurs have made in Utah’s thriving economy and the ongoing challenges they face. The report examines recent data, national trends, and expert insights to provide an overview of the current landscape for women-owned businesses in the state.

National Trends – A Time of Growth: Between 2019 and 2024, women-owned businesses were a major driving force in the U.S. economy, growing by 12.4% to total more than 14.5 million firms, representing 39.2% of all U.S. businesses. Employment at women-owned businesses increased by 37.2%, reaching 12.9 million workers, while revenue generated by these businesses surged 73.7%, totaling $3.3 trillion.

Women-Owned Businesses by Industry: Nationally, women-owned businesses are a large and fast-growing force in the U.S. economy and are just as successful as men-owned businesses. Five industries dominate women-owned employer businesses: health care and social assistance (such as daycare/homecare, mental health practitioners, physicians); professional, scientific, and technical services (bookkeeping, consulting); retail trade (health/personal care stores, clothing/accessories, florists, pet stores); other services (hair/nail salons, pet care, laundries/dry cleaners); and accommodation and food services (lodging, meal preparation, snacks, and beverages). While women have traditionally started businesses in service industries like healthcare, professional services, and retail, recent trends show a shift toward greater diversity, with more women-owned employer firms entering sectors such as food and accommodations, real estate, and transportation and warehousing.

Utah Trends: In 2020, Utah had 287,803 small businesses employing 572,888 people, accounting for 46.2% of the state’s workforce. By 2024, that number had grown by 29% to 371,569 businesses, with small business employment rising 20.5% to 690,069, or 45.4% of all workers in the state. During this period of economic growth, the percentage of women-owned businesses in Utah also increased significantly, from 31% in 2020 to 44.5% in 2024. Despite this progress, challenges remain: Salt Lake City was recently ranked the lowest among the 50 most populous U.S. metro areas for the percentage of female-owned businesses, at just 14.8%, and the state overall was ranked 45th in the nation, with only 15.8% of businesses being majority female-owned. In fact, in 2024 Utah was ranked sixth in the nation in economic clout for women-owned business, despite ranking 35th in the overall share of women-owned businesses. 

“While women entrepreneurs in Utah benefit from its economic strength, there is a stark disparity between their experience and that of Utah men who are entrepreneurs,” said Susan Madsen, founder of the UWLP and co-author of the report. “Women-owned businesses are scarce in the most lucrative fields, such as construction and professional, scientific, and technical services.

Madsen said specific, female-focused programs have been shown to be particularly encouraging and helpful for women entrepreneurs, but it’s important to remember the continued need to support and elevate women entrepreneurs, even in Utah’s strong business climate.

Barriers to Women’s Entrepreneurship: Women-owned businesses, especially microenterprises, play a critical role in job creation and economic mobility for women in Utah. Yet many still face significant barriers, including unequal access to capital, lack of affordable childcare, and limited mentorship and awareness of business training and resources. Women receive just 2.3% of available funding and often rely on personal savings to start businesses. In Utah, childcare shortages are especially challenging, with licensed care meeting only 21% of demand. Additionally, although mentorship is proven to increase business success, many women lack access to strong networks and role models, especially those in male-dominated industries.

Recommendations: To support the potential economic trajectory of women-owned businesses, changes are needed in business practices and attitudes. Strategies to do so include creating connections and networks, encouraging lenders to support women-owned businesses, changing perceptions about entrepreneurship, data collection and use, and supporting affordable, accessible, quality childcare.

“The potential for success will continue to increase as more women receive adequate funding, access to resources, and seek support from strong professional networks,” said Madsen. “To support women’s entrepreneurship, we encourage debt and equity financers to consider new and innovative ways to improve accessibility and opportunities for women. As an important segment of productive business owners, women certainly are getting things done and, by so doing, are impacting others and blazing a trail to an improved future for Utah.”

April Townsend, UWLP research fellow, co-authored the report.

The “A Bolder Way Forward” initiative provides opportunities for Utahns to learn and contribute to meaningful change across 18 areas of focus. For more information, visit the UWLP website at utwomen.org. The UWLP is affiliated with the Jon M. Huntsman School of Business and USU Extension.