Are Things Really Getting Better For Women In Business In 2025?

Forbes

3 days ago

In recent years it's felt like the momentum for women entrepreneurs has been growing. There are more women starting businesses, more conversations about the funding gap, and more visibility for women-led businesses. But visibility does not always translate to progress. So, the real question is, are things actually getting better for women in business when you look at the numbers?
In 2025 we're still up against decades of systemic barriers such as unequal access to funding, networks, and mentorship, but is the tide starting to turn? Are we slowly making headway?
Let's explore the latest data and ask whether the business landscape is becoming more equitable, or if we're still applauding small wins instead of real change.
The Boom in Women-Owned Startups
According to the 2025 Global Entrepreneurship Monitor (GEM) report, the number of women starting new businesses has reached an all-time high. In North America, women now account for nearly half of all new business owners, with the sharpest growth coming from Gen X. This isn't a trend; it's a shift in who is shaping the small business economy.
While the surge in new women-led startups is encouraging, the bigger question is whether these businesses are positioned for long-term success. Early data shows that many of these ventures remain micro-businesses, with limited access to funding and slow paths to scalability. Starting a business is one thing but building a profitable and sustainable business is another. The rise in women-owned businesses is powerful, but it must be matched with the resources, mentorship, and systems that help them grow beyond survival mode.
Breaking the 1.9% Million-Dollar Ceiling for Women in Business
The long-standing benchmark that only 1.9 percent of women owned businesses make over $1 million in revenue per year remains largely unchanged in 2025. That percentage still holds, reinforcing just how elusive the million-dollar milestone remains for women entrepreneurs, even as new businesses enter the market.
Recent data shows modest progress. From 2019 to 2024, the number did grow by nearly 10 percent. That signals upwards momentum, although from a very low base point. Still, among those businesses, 2023-2024 saw a sharp slowdown where women owned million-dollar firms posted only a 0.3 percent revenue growth year over year, compared to a 9 percent for men.
Across the broader landscape, women-owned businesses collectively generate around $2.7 trillion in revenue, accounting for approximately 5.8 percent of total US business revenue. Average revenue still lags behind with male-owned small businesses averaging roughly $607k in annual revenue versus $219k for women; a gap of nearly 40 percent.
Are Women in Business Finally Getting Funded?
Despite the attention the funding gap has received in recent year, venture capital funding for women remains shockingly low in 2025. According to Pitchbook, women-only founding teams received just 2.5 percent of all venture capital dollars in the first half of the year. That statistic is pretty much unchanged as the average over the last decade has held between 2-3 percent.
However, alternative funding sources are starting to see more traction. Women are increasingly turning to angel investors, crowdfunding platforms, and government-backed grants as funding options that don't rely on traditional venture capital networks.
Industry leaders must continue to challenge the status quo and call out the disconnect between DEI rhetoric and actual investment dollars. Until investors and institutions are held responsible for where the money goes, progress will continue to lag behind the headlines.
The funding gap is more than a numbers problem; it's a systemic barrier that needs structural change.
The bottom line is that the data in 2025 is telling us a mixed story where more women are starting businesses, visibility is growing, and alternative funding paths are expanding, but the deeper structural gaps in revenue growth, funding, and scale remain relatively unchanged. Progress is happening, but it is small. If we want to see real change, it will take more than inspiration. It will take investment, accountability, and a collective agreement to build an ecosystem where women entrepreneurs don't just start a business, rather they thrive in their businesses.