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Beginner's handbook

The Best US States for Women in Business

The Best US States for Women in Business
Printful Team

By Printful Team

9 min read

Female-owned businesses are on the rise in the US, growing a staggering 114% over the last two decades. From startups to corporate leadership, female entrepreneurs are having a huge impact across the country. But, some states provide better access to funding, mentorship, and business-friendly policies, making it easier for women to launch and grow their ventures. So, which states are the best for women in business? 

To find out, we analyzed key factors across 42 US states, including the number of female-owned businesses, the female unemployment rate, the women-to-men pay ratio, and the number of venture capital deals. Each state was ranked based on these metrics, with the combined scores revealing the top locations where women entrepreneurs have the greatest opportunities to thrive.

The leading US states for female entrepreneurs

1. California 

Taking the crown as the best state for women in business, California boasts the highest number of female-owned businesses with revenues exceeding $1M, totaling an impressive 43,788 overall. This is no surprise, considering California is home to the world-famous Silicon Valley, the unofficial capital of tech and innovation. With a strong entrepreneurial ecosystem and many networking opportunities, women are making strides in the business world here. California also leads with the number of venture capital deals for female-founded or co-founded businesses, as our study shows 13,516 venture capital deals closed. 

With 2,279 female-owned businesses per 10,000 businesses, the state provides a strong entrepreneurial environment for women. However, California’s female unemployment rate stands at 27.8%, one of the highest among the top 20 states, showing there are challenges in workforce participation. 

The state’s women-to-men pay ratio is 78.9%, slightly below the national average of 84% but certainly not the lowest of all the states in our study. Overall, California’s thriving startup ecosystem and investment landscape make it a great place for female entrepreneurs despite employment and wage equality challenges. 

2. New York

New York ranks second among the best states for women in business, with 2,224 female-owned businesses per 10,000 and 22,176 overall generating $1M+ in revenue. 

As a massive leader in global tech, second only to Silicon Valley in terms of the size and strength of its tech expertise, the state has become a breeding ground for innovation and entrepreneurship. It’s also home to many venture capital firms and private equity firms that play a huge role in nurturing and funding startups, which is beneficial for women trying to climb the ladder and build their own businesses from the ground up. 

The state also sees a strong investment landscape, securing 6,293 venture capital deals for female-founded or co-founded businesses, second only to California. New York’s female unemployment rate is 24.5%, which, while lower than California’s, still presents workforce challenges. 

The women-to-men pay ratio is 78.5%, indicating persistent wage disparities despite the state’s reputation as a business hub. Overall, New York provides a strong foundation for women entrepreneurs, driven by a high concentration of businesses in various industries and many investment opportunities. 

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3. Maryland 

In third place is Maryland, with 2,354 female-owned businesses per 10,000, indicating a strong entrepreneurial presence. The state also boasts a high women-to-men pay ratio of 81.3%, one of the best in the country, suggesting a more equitable business environment. 

Maryland is one of the most diverse states on the East Coast, making it a fantastic environment not only for female-owned businesses but also for other minority entrepreneurs. In fact, there are many programs designed to invest in socially and economically disadvantaged small business owners, like the Minority Business Enterprise Program, which offers a free training program to help small, minority, women, and veteran-owned companies. 

While only 5,941 female-owned businesses generate over $1M in revenue, Maryland benefits from a relatively low female unemployment rate of 21%. Plus, access to federal contracts, a highly educated workforce, and proximity to Washington, D.C., create opportunities for women entrepreneurs in healthcare, technology, and government services. The state’s 585 venture capital deals for female-led businesses reinforce its supportive ecosystem.

While some states offer an ideal environment for women entrepreneurs to thrive, others are falling behind. To shed light on the challenges women face in business, we analyzed our findings to identify the states with the most difficult conditions for female entrepreneurs.

West Virginia tops this list, with only 933 female-owned businesses earning over $1M in revenue. To make matters worse, the state has the highest female unemployment rate—a staggering 31.9%. Women in West Virginia also struggle to secure venture capital, as the state ranks second-lowest in the nation, with just 12 venture capital deals closed for female-founded businesses. 

Close behind are Alabama and Idaho, where businesswomen face similar obstacles, from limited high-revenue businesses to low access to funding. These states show just how difficult it can be for women to thrive in the business world without strong support and opportunities.

Top states dominated by female business owners 

42% of all US businesses are owned by women, but which state has the most female-owned companies? 

Florida ranks first with 2,385 female-owned businesses per 10,000 businesses statewide, meaning nearly a quarter of all businesses in the Sunshine State are owned by women. Not only this, but organizations like the Florida Women’s Business Center play a key role in supporting female entrepreneurs by providing free business counseling, workshops, and resources to help women start their businesses.

Maryland takes second place with 2,354 female-owned businesses per every 10,000, and it’s no surprise. The state has a strong network of women entrepreneurs, particularly in healthcare, professional services, and tech industries. Baltimore, in particular, has become a hotspot for women-led startups, thanks to incubators like the Baltimore Women’s Business Center and programs that support female entrepreneurs. Virginia follows behind in third place with 2,342 per every 10,000 businesses. 

Rank State No. of female-owned businesses per 10,000 businesses 
1 Florida 2,385
2 Maryland 2,354
3 Virginia 2,342
4 Colorado 2,332
5 Oregon 2,292
6 Alaska 2,287
7 Illinois 2,279
8 California 2,279
9 Georgia 2,247
10 Hawaii

2,233

We also looked at the number of female-owned businesses that earn a revenue of over 1M dollars. Perhaps unsurprisingly, California knocks it out of the park here, with 43,788 businesses earning over $1M—that’s almost double the second-best state on our list. Texas ranks second, home to 25,582 female-owned businesses earning over $1M, followed by New York, where 22,176 businesses earn over this amount. 

Rank State

No. of female-owned businesses with revenue over 1M

1 California 43,788
2 Texas 25,582
3 New York 22,176
4 Florida 21,129
5 Illinois 12,779
6 New Jersey 9,673
7 Georgia 9,411
8 North Carolina 8,880
9 Pennsylvania 8,388
10 Virginia 7,862

Gender pay gaps across US states

Ever wonder how your state stacks up when it comes to pay equality? Well, the pay ratio tells us how much women earn compared to men. The closer the number is to 100%, the smaller the gap. While no state has completely closed the wage gap, some are doing better than others. So, which states are leading the way for fair pay, and which have a little more work to do? 

Vermont ranks first in pay equity, with women earning 83.3% of what men make, the highest ratio in the US. This could be because of the state’s progressive labor policies and strong social programs. The Equal Pay Compact, for example, is a voluntary online pledge for Vermont employers committed to addressing the gender wage gap. By signing the Compact, employers agree to take steps to improve gender equity in the workplace. 

Maryland follows closely with an 81.3% pay ratio, reflecting not just its Equal Pay for Equal Work law, similar to those in many states, but also its strong workforce policies. The state benefits from a strong presence of government and healthcare jobs with standardized pay structures and additional measures like salary history bans and pay transparency laws.

Alaska takes third place at 80.8%, likely due to the state’s high-paying industries like oil, fishing, and public sector jobs, where wage gaps tend to be narrower. Alaska’s high-paying industries and union presence help reduce gender pay differences. However, as with most other states, factors like occupational segregation and career interruptions still contribute to a small wage gap.  

Rank State Women vs. men pay ratio
1 Vermont 83.3%
2 Maryland 81.3%
3 Alaska 80.8%
4 Rhode Island 79.9%
5 Nevada 79.6%
6 Delaware 79.3%
7 California 78.9%
8 Hawaii 78.7%
9 New York 78.5%
10 Oregon 78.3%

Where are women securing venture capital deals? 

From the tech-heavy hubs of California and New York to emerging markets in Texas and Colorado, where are female entrepreneurs landing the most venture capital support? 

Unsurprisingly, California takes the lead with a whopping 13,516 venture capital deals for women-owned businesses. Its solid startup support system provides women founders with better access to investors, funding networks, and accelerator programs. Plus, California is home to Silicon Valley, the land of startups, after all!

New York takes second place with 6,293 deals, proving the Big Apple is something of a startup haven. New York City’s strong finance industry has naturally led to the growth of venture capital. Since the city is home to many banks, hedge funds, and private equity firms, there’s already a deep pool of financial expertise. 

Massachusetts ranks third in the US for venture capital deals, with 2,940 investments. The state is a major hub for startups, especially in biotech, healthcare, and AI, thanks to its world-class universities like MIT and Harvard. These schools provide cutting-edge research, talent, and strong connections with investors. 

Rank State Venture capital deal count for female businesses
1 California 13,516
2 New York 6,293
3 Massachusetts 2,940
4 Texas 2,019
5 Washington 1,399
6 Florida 1,293
7 Colorado 1,189
8 Illinois 1,109
9 Pennsylvania 1,059
10 North Carolina 728

Methodology 

To find the best US states for women in business, we collected data across 4 key factors: the volume of female-owned businesses, their financial success, female unemployment rates, and the gender pay gap. 

  1. State population data: We used population data from the World Population Review, recording each state’s total population as of January 15, 2025.

  2. Female-owned business rate: We accessed data from the Census Bureau, focusing on the number of female-owned businesses per 10,000 companies. This was calculated by dividing the number of female-owned companies by the total number of companies in each state, then multiplying by 10,000.

  3. Female-owned businesses with high revenue: From the Census Bureau, we recorded the number of female-owned businesses in each state that generate $1M or more in revenue by filtering for companies with such sales.

  4. Female unemployment rate: Female unemployment data was sourced from the Census Bureau. The unemployment rate was calculated by dividing the number of women who didn’t work in the past 12 months by the total female workforce, then multiplying by 100.

  5. Gender pay ratio: The gender pay gap was calculated using data from the Census Bureau. The pay ratio was determined by dividing the average female income by the average male income, then multiplying by 100.

  6. Venture capital deal count: We obtained data on venture capital deals for female-led businesses from PitchBook and recorded the total deal count by state. 

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By Printful Team on Feb. 3, 2025

Printful Team

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Printful is an on-demand printing and fulfillment service that helps businesses create and ship custom products.

Printful is an on-demand printing and fulfillment service that helps businesses create and ship custom products.