This story originally appeared on Volusion.
Nationwide, there are nearly 6 million female entrepreneurs who account for 7.7% of the female workforce, according to data from the U.S. Census Bureau. For many of these women, entrepreneurship offers more flexibility than traditional jobs.
But starting a business is also risky. New business owners often take a pay cut, as it can take years for new businesses to turn a profit. The median annual income for full-time female entrepreneurs is $40,000, slightly lower than the median annual income among all full-time female workers of $43,000.
Compared to men, women earn less across all worker classes. However, the gender wage gap among full-time entrepreneurs — a full $15,000 per year difference — is the largest.
Research by the JPMorgan Chase Institute shows that female-owned small businesses tend to be smaller and generate less revenue than male-owned small businesses. One reason is that women-owned startups are underrepresented among firms that receive external financing, according to the JP Morgan Chase report.
However, the median income for full-time female entrepreneurs varies widely across cities and states. To find the locations with the most successful female entrepreneurs, researchers at Volusion used data from the U.S. Census Bureau and the Bureau of Economic Analysis to calculate a comparable metric of purchasing power across locations.
We adjusted median incomes for full-time female entrepreneurs up or down based on each location’s relative cost of living. In highly expensive cities, like San Francisco, cost-of-living adjusted incomes are lower than actuals; whereas, in more affordable cities, such as Cincinnati, cost-of-living adjusted incomes are higher than actuals.
To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis. Following are the large metropolitan areas with the highest-paid female entrepreneurs.
15. San Jose, California
- Median income for full-time female entrepreneurs (adjusted): $44,309
- Median income for full-time female entrepreneurs (actual): $58,000
- Median income for all full-time female workers (actual): $68,000
- Percentage of female workers that are entrepreneurs: 8.2%
14. Cincinnati
- Median income for full-time female entrepreneurs (adjusted): $44,444
- Median income for full-time female entrepreneurs (actual): $40,000
- Median income for all full-time female workers (actual): $44,000
- Percentage of female workers that are entrepreneurs: 4.9%
13. Seattle
- Median income for full-time female entrepreneurs (adjusted): $44,723
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $55,000
- Percentage of female workers that are entrepreneurs: 9.4%
12. Las Vegas
- Median income for full-time female entrepreneurs (adjusted): $44,923
- Median income for full-time female entrepreneurs (actual): $43,800
- Median income for all full-time female workers (actual): $40,000
- Percentage of female workers that are entrepreneurs: 8.1%
11. Providence, Rhode Island
- Median income for full-time female entrepreneurs (adjusted): $45,135
- Median income for full-time female entrepreneurs (actual): $45,000
- Median income for all full-time female workers (actual): $48,000
- Percentage of female workers that are entrepreneurs: 5.3%
10. Washington, D.C.
- Median income for full-time female entrepreneurs (adjusted): $47,297
- Median income for full-time female entrepreneurs (actual): $56,000
- Median income for all full-time female workers (actual): $63,000
- Percentage of female workers that are entrepreneurs: 7.6%
9. Tucson, Arizona
- Median income for full-time female entrepreneurs (adjusted): $47,319
- Median income for full-time female entrepreneurs (actual): $45,000
- Median income for all full-time female workers (actual): $37,600
- Percentage of female workers that are entrepreneurs: 9.2%
8. Hartford, Connecticut
- Median income for full-time female entrepreneurs (adjusted): $49,116
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $56,000
- Percentage of female workers that are entrepreneurs: 6.6%
7. Portland, Oregon
- Median income for full-time female entrepreneurs (adjusted): $49,164
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $50,000
- Percentage of female workers that are entrepreneurs: 10.6%
6. Austin, Texas
- Median income for full-time female entrepreneurs (adjusted): $49,751
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $49,000
- Percentage of female workers that are entrepreneurs: 9.2%
5. Raleigh, North Carolina
- Median income for full-time female entrepreneurs (adjusted): $51,975
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $47,400
- Percentage of female workers that are entrepreneurs: 7.8%
4. Memphis, Tennessee
- Median income for full-time female entrepreneurs (adjusted): $54,885
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $40,000
- Percentage of female workers that are entrepreneurs: 4.4%
3. Louisville, Kentucky
- Median income for full-time female entrepreneurs (adjusted): $55,006
- Median income for full-time female entrepreneurs (actual): $50,000
- Median income for all full-time female workers (actual): $41,000
- Percentage of female workers that are entrepreneurs: 5.0%
2. Birmingham, Alabama
- Median income for full-time female entrepreneurs (adjusted): $56,351
- Median income for full-time female entrepreneurs (actual): $50,040
- Median income for all full-time female workers (actual): $42,000
- Percentage of female workers that are entrepreneurs: 5.2%
1. Denver
- Median income for full-time female entrepreneurs (adjusted): $56,444
- Median income for full-time female entrepreneurs (actual): $60,000
- Median income for all full-time female workers (actual): $50,000
- Percentage of female workers that are entrepreneurs: 8.8%
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