Categories: BlogBusiness and Transactional Law

Women-Owned Businesses are Thriving in the South

Austin is renowned for being a magnet for innovators, problem-solvers and risk-takers. Startups account for a larger share of businesses here than in nearly all U.S. metros.

According to Forbes, Florida, Georgia and Louisiana now rank among the top states for thriving women-owned businesses. Miami is now the top metro in the U.S. for the concentration of women-owned firms, with Memphis having more women business owners than men.

What about Austin?

In these growing Southern states, business owners point to strong support programs, business-friendly policies, and rising populations as key drivers of women’s entrepreneurship.

Austin shares many of those strengths. The region offers a favorable business climate, low tax burden, a highly educated workforce, and a quality of life that continues to attract big tech, mid-market companies, and startups alike.

Today, 22.5% of employer firms in Austin are women-owned, well above the 19.9% national rate.

However, momentum may have recently been slowed by the State of Texas’ temporary suspension of new and renewed certifications under the Historically Underutilized Business (HUB) Program.

While existing HUB-certified firms can still compete for contracts, the pause leaves many new and growing women-owned businesses uncertain about the path forward.

To protect progress and strengthen opportunities, the City of Austin proposed a Task Force for Austin Women Entrepreneurs to gather strategic insights to help woman-owned businesses thrive and encourage entrepreneurship.

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What Does the Data Say?

Thriving Industries

While large employers make up much of the job base, young companies are growing quickly. New firms that are less than two years old employ 34,872 people, with the biggest gains in:

Accommodations & foodservice
Professional & scientific services
Healthcare & social assistance
Retail & administrative support

Entrepreneurship is redefining Austin’s workforce and industry mix.

Business Diversity

Austin is significantly more diverse in business ownership than the national average. Here’s the data broken down into women-owned, minority-owned, and veteran-owned firms in the Austin Metro area.

Women-Owned Firms

9,377 businesses
22.5% of employer firms
9.3% of area employees
Austin ranks 5th nationally for employees working at women-owned firms

Minority-Owned Firms

19.3% of employer firms (slightly above national average)
Hispanic-owned firms make up 9.1% of employer businesses
Hispanic-owned firms also support 4.3% of Austin’s workforce—nearly double the national rate

Veteran-Owned Firms

4.4% of Austin employer firms
Strong presence in construction and manufacturing

This business diversity fuels innovation, resilience and economic expansion for the area. However, women entrepreneurs face significant challenges in long-term success.

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The New Challenge: Keeping Austin Competitive for Women Entrepreneurs

While Austin has strong numbers, recent findings show that progress is slowing.

In March 2024, the Mayor’s Task Force for Austin Women Entrepreneurs revealed that Austin ranks among the top U.S. cities for startup activity. However, women do not benefit equally from that success.

The Task Force surveyed more than 300 Austin women founders, held focus groups and analyzed business data. Their findings were clear:

Women entrepreneurs in Austin face three major barriers:

Access to capital

Austin women received less than 1% of venture capital in 2023
Women receive fewer and smaller SBA loans than men

Access to strong, integrated networks

Many feel excluded from investor circles and established tech culture
Women report a “gatekeeping” effect in local deal flow and mentorship

Access to affordable business resources

Office space, childcare, training programs and technology are increasingly costly
Permitting delays can drain startup budgets before a business even opens

Despite this, women-owned businesses in Austin continue to outperform the national average.

Why is Supporting Women Entrepreneurs So Vital?

Women-owned businesses make communities stronger.

Women tend to reinvest their income locally into families, neighborhoods, charitable causes, and future talent. Their companies are more likely to support an inclusive workplace that offers flexible scheduling and diverse hiring.

In short, supporting the development and growth of women-owned businesses leads to more innovation, more opportunity, and a more resilient economy.

Support Networks for Austin Women Entrepreneurs

Are you interested in starting a business? These Austin-area groups are a great introduction to support, mentorship, and more.

Your Business’s Success — Front & Center

Richards Rodriguez & Skeith is an established Austin-based law firm providing practical legal solutions for businesses. Over the years, the firm has helped many woman-owned businesses navigate their growth journeys. If you’re seeking a business-minded law firm with a personal touch, we welcome the opportunity to review your business needs and discuss your options.

Richards Rodriguez & Skeith