By StartBusinessByStatePublisher: Robert SmithResearch process
Original research · Census Annual Business Survey (ABS) 2024 · Reference year 2023 · Company Summary ownership · Employers only · Published September 16, 2026
Who owns service employers? Ownership mix varies far more by industry than a simple “best state for women-owned businesses” headline suggests. Nationwide, about 22.9% of employer firms are women-owned, 23.6% minority-owned, and 4.4% veteran-owned — but personal care employers sit near 62.1% women-owned while construction sits near 8.7%. Minority shares at the all-sector state level largely track demographics (Hawaii ~53.5%; Vermont ~3.8%). This is ABS employer ownership — distinct from our employer credit-access study and from nonemployer pages.
Source: Census ABS Company Summary API (2023/abscs). Universe: employer firms only. Shares = owned employer firms ÷ all employer firms in the same geography × NAICS. Categories across sex / race / veteran status are not mutually exclusive. Suppressed cells are shown as em dashes — never imputed.
Key findings
- Industry dominates women-owned shares. U.S. women-owned employer share is 22.9% overall, but 62.1% in personal care (8121), 60.1% in child day care (6244), 18.3% in services to buildings and dwellings (5617), and only 8.7% in construction (23). The U.S. 2-digit sector band for women (27.8 pp among focus sectors) is more than twice the all-sector state band (11.2 pp).
- Minority-owned shares at state level are mostly demographic. All-sector state minority shares span ~49.6 pp (3.8% in Vermont to 53.5% in Hawaii) — larger than the U.S. 2-digit industry band (22.8 pp). That does not make a state “best for minority owners”; it largely reflects population composition. Industry still matters: accommodation & food (40.1%) and personal care (45.6%) exceed construction (17.3%).
- Veteran-owned shares are low and relatively flat. About 4.4% of U.S. employer firms are veteran-owned. Focus 2-digit sectors only span ~2.9 pp; all-sector states ~4.6 pp. Child day care (1.9%) and personal care (1.3%) sit below construction (5.5%).
- State ranks flip by sector (when published). For women-owned shares, only Florida, Maryland overlap between the top-8 all-sector states and the top-8 admin & support (56) states. Sector leaders include Hawaii, Illinois, Kentucky, Missouri. Construction women-owned cells are heavily suppressed (28 of 51 states).
- Employers ≠ nonemployers. ABS Company Summary covers employer firms. Cleaning, landscaping, and salon markets are nonemployer-heavy — see nonemployer share by state. Credit behavior is a different ABS module: employer credit access by state.
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Ownership mix by sector (U.S.)
| Sector | NAICS | Employer firms | Women-owned % | Minority-owned % | Veteran-owned % | Hispanic-owned % | Black-owned % | Asian-owned % |
|---|---|---|---|---|---|---|---|---|
| All sectors | 00 | 5,934,950 | 22.9% | 23.6% | 4.4% | 8.4% | 3.4% | 11.5% |
| Construction | 23 | 774,636 | 8.7% | 17.3% | 5.5% | 12.5% | 1.9% | 2.5% |
| Specialty trades | 238 | 501,671 | 9.1% | 18.0% | 5.6% | 13.6% | 1.9% | 2.0% |
| Building equipment | 2382 | 195,747 | 8.1% | 13.8% | 7.0% | — | — | — |
| Admin & support | 56 | 369,239 | 21.5% | 22.0% | 5.4% | 13.1% | 4.4% | 4.1% |
| Admin support | 561 | 346,145 | 22.0% | 22.5% | 5.3% | — | — | — |
| Buildings & dwellings | 5617 | 213,158 | 18.3% | 24.0% | 4.7% | 17.1% | 4.6% | 2.3% |
| Health & social | 62 | 683,909 | 36.5% | 28.1% | 4.5% | 6.3% | 7.7% | 13.8% |
| Social assistance | 624 | 138,057 | 43.1% | 25.0% | 1.9% | — | — | — |
| Child day care | 6244 | 60,837 | 60.1% | 33.2% | 1.9% | 11.4% | 15.1% | 7.3% |
| Other services | 81 | 410,671 | 32.4% | 29.6% | 3.4% | 9.0% | 3.4% | 17.1% |
| Personal & laundry | 812 | 220,878 | 52.8% | 38.4% | 2.0% | — | — | — |
| Personal care | 8121 | 136,707 | 62.1% | 45.6% | 1.3% | 7.9% | 4.2% | 33.6% |
| Accom. & food | 72 | 563,147 | 23.2% | 40.1% | 2.5% | 10.8% | 2.4% | 26.7% |
| Food services | 722 | 506,533 | 24.1% | 39.0% | 2.6% | — | — | — |
How to read ownership: Women-owned = SEX Female with other dimensions at Total. Minority-owned = RACE_GROUP Minority (includes Hispanic and non-White race categories per Census ABS). Veteran-owned = VET_GROUP Veteran. A firm can appear in more than one column. Hispanic / Black / Asian columns are shown for U.S. depth; they are not additive to “minority.”
State patterns (where published)
| State | Employer firms (all) | Women % (all) | Minority % (all) | Veteran % (all) | Women % constr. (23) | Women % admin (56) | Women % health/social (62) | Women % other svc (81) | Women % food (72) | Minority % admin (56) | Minority % food (72) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Alaska | 16,222 | 27.2% | 14.2% | 7.0% | — | — | — | 42.8% | 46.4% | 22.6% | 18.7% |
| Virginia | 147,928 | 25.3% | 26.6% | 6.9% | — | 22.9% | 40.5% | 36.6% | 24.1% | 20.2% | 45.7% |
| Colorado | 140,658 | 25.2% | 15.3% | 5.4% | 6.6% | 23.5% | 41.9% | 38.5% | 23.4% | 18.3% | 35.9% |
| Georgia | 188,525 | 24.6% | 28.9% | 5.2% | 10.4% | 22.5% | 37.6% | 35.1% | 25.7% | 21.4% | 52.7% |
| Florida | 500,294 | 24.1% | 31.5% | 4.7% | 8.9% | 24.7% | 37.4% | 34.0% | 20.9% | 29.8% | 42.4% |
| North Carolina | 181,475 | 24.1% | 17.0% | 5.5% | 10.4% | 22.1% | 39.7% | 33.5% | 20.8% | 16.9% | 33.8% |
| Maryland | 104,496 | 24.0% | 30.1% | 5.1% | — | 24.9% | 40.8% | 35.2% | 24.8% | — | 50.8% |
| Oregon | 91,384 | 24.0% | 15.7% | 4.0% | — | 16.9% | 37.9% | 30.2% | 29.6% | 19.2% | 35.2% |
| New Mexico | 32,406 | 23.9% | 29.8% | 6.0% | — | — | 39.1% | — | 19.9% | 37.1% | 48.4% |
| California | 791,791 | 23.9% | 39.3% | 3.1% | 7.1% | 21.5% | 36.9% | 31.3% | 24.6% | 40.8% | 61.8% |
| Hawaii | 23,211 | 23.7% | 53.5% | 4.8% | — | 30.8% | — | 39.5% | 23.6% | 52.8% | 66.1% |
| Washington | 153,111 | 23.7% | 21.9% | 4.1% | — | 23.5% | 38.5% | 40.4% | 26.4% | 26.2% | 44.5% |
| District of Columbia | 14,583 | 23.3% | 31.1% | 2.9% | — | — | — | — | 18.5% | 23.0% | 45.0% |
| Arizona | 119,314 | 23.0% | 20.6% | — | 8.4% | 17.4% | 34.3% | 32.5% | 24.8% | 20.7% | 42.6% |
| New York | 427,227 | 23.0% | 25.4% | 2.7% | 8.9% | 20.7% | 38.2% | 37.7% | 24.0% | 22.4% | 38.6% |
| South Carolina | 86,169 | 22.9% | 15.4% | 7.3% | — | 20.7% | 36.9% | 32.8% | 22.9% | 14.8% | 32.6% |
| Nevada | 59,486 | 22.8% | 26.4% | 4.6% | 11.2% | 19.8% | 31.7% | 29.0% | 23.6% | 23.8% | 39.3% |
| Texas | 470,732 | 22.8% | 34.5% | 4.8% | 11.8% | 22.3% | 35.0% | 28.1% | 19.9% | 29.2% | 54.2% |
| Illinois | 238,091 | 22.2% | 21.1% | 3.4% | — | 24.4% | 40.8% | 29.6% | 22.1% | 25.4% | 36.8% |
| Missouri | 102,850 | 22.0% | 11.9% | 4.7% | 10.2% | 23.9% | 34.6% | 28.0% | 22.9% | 9.4% | 27.3% |
| Montana | 34,269 | 21.2% | 5.0% | 4.8% | 6.2% | — | 40.3% | 25.4% | 30.8% | 7.4% | 13.8% |
| Minnesota | 110,485 | 21.1% | 10.7% | 4.1% | — | 21.4% | 38.2% | 29.9% | 24.3% | 16.0% | 26.9% |
| Wyoming | 19,113 | 21.1% | 9.1% | 6.1% | — | — | 30.1% | — | 22.3% | — | 20.6% |
| Mississippi | 41,925 | 20.9% | 13.6% | — | — | — | 36.8% | 17.4% | — | — | 36.1% |
| Oklahoma | 69,555 | 20.8% | 17.8% | 5.4% | 9.2% | 24.1% | 32.2% | 31.8% | 22.2% | 19.2% | 38.4% |
| Michigan | 163,461 | 20.7% | 10.5% | 3.8% | — | 18.7% | 38.4% | 27.3% | 21.1% | 9.5% | 19.3% |
| New Jersey | 185,622 | 20.7% | 28.2% | 2.7% | 7.7% | 18.7% | 33.4% | 36.9% | 19.2% | 22.1% | 37.2% |
| Ohio | 170,013 | 20.6% | 11.7% | 5.1% | 10.5% | 17.8% | 32.9% | 32.6% | 22.4% | — | 25.3% |
| Louisiana | 77,611 | 20.6% | 14.6% | 5.3% | — | 14.1% | 34.0% | 25.5% | — | — | 29.7% |
| Massachusetts | 137,011 | 20.6% | 16.7% | 4.0% | 8.2% | 14.6% | 32.4% | 42.6% | 23.3% | 12.8% | 32.4% |
| Indiana | 103,466 | 20.3% | 12.2% | 4.3% | 8.5% | 21.5% | 32.5% | 26.4% | 24.3% | 12.6% | 28.7% |
| Pennsylvania | 212,827 | 20.3% | 14.0% | 3.8% | 8.1% | 20.9% | 34.7% | 32.8% | 21.1% | 9.8% | 28.7% |
| Vermont | 16,582 | 20.1% | 3.8% | 3.7% | — | — | — | 22.7% | — | — | 17.7% |
| Maine | 32,944 | 20.0% | 4.7% | 5.8% | — | — | 41.6% | 29.9% | 24.3% | — | 13.7% |
| Kansas | 52,627 | 19.9% | 11.5% | 4.6% | 9.4% | 13.6% | 29.6% | — | 23.3% | — | 38.9% |
| Rhode Island | 23,020 | 19.9% | 13.7% | 3.9% | — | 15.6% | 45.5% | — | 18.0% | 17.1% | 23.4% |
| Connecticut | 65,346 | 19.8% | 15.8% | 3.3% | — | 17.3% | 34.2% | 30.2% | 20.2% | 13.5% | 27.4% |
| Wisconsin | 101,315 | 19.5% | 9.3% | 3.8% | — | 17.5% | 37.1% | 30.0% | 24.6% | 10.5% | 17.9% |
| Arkansas | 49,201 | 19.5% | 11.8% | 5.9% | — | — | 33.9% | — | — | — | 37.3% |
| Tennessee | 96,320 | 19.4% | 14.2% | 5.8% | 10.3% | 16.9% | 28.4% | 30.5% | 21.4% | 9.8% | 40.7% |
| Nebraska | 41,718 | 18.8% | 7.8% | 5.0% | — | 23.2% | 33.0% | 20.6% | 26.0% | 11.2% | 20.2% |
| Alabama | 70,676 | 18.7% | 14.9% | 6.0% | 6.3% | 14.3% | 30.9% | 22.0% | 21.2% | 11.4% | 41.1% |
| Idaho | 46,244 | 18.6% | 9.1% | 4.9% | 7.9% | 18.0% | 27.6% | 23.1% | 28.5% | 11.9% | 18.5% |
| Iowa | 57,666 | 18.6% | 6.9% | 4.8% | — | 13.6% | 31.3% | — | 27.5% | — | — |
| West Virginia | 22,945 | 18.1% | 6.7% | 6.4% | 4.6% | 30.8% | 22.7% | 26.1% | — | 4.7% | 20.5% |
| North Dakota | 18,519 | 18.0% | 5.4% | 5.5% | — | — | 37.5% | — | 18.9% | 3.8% | 18.9% |
| Utah | 76,759 | 17.9% | 11.0% | 3.1% | — | 19.4% | 20.2% | 34.9% | 19.2% | 13.9% | 33.5% |
| Delaware | 22,350 | 17.8% | 20.2% | 3.8% | — | 12.8% | 31.6% | 30.1% | 15.9% | 19.3% | — |
| New Hampshire | 29,391 | 16.8% | 7.4% | 5.7% | — | — | — | 32.3% | 16.9% | — | 18.5% |
| South Dakota | 22,507 | 15.9% | 5.0% | 6.8% | — | — | 27.0% | — | 29.1% | — | 19.2% |
| Kentucky | 62,546 | — | 10.8% | 4.7% | 8.0% | 25.8% | 30.5% | — | 21.3% | — | 29.5% |
Suppression counts (ownership share cells): construction women 28/51; admin & support women 12, minority 13, veteran 20; other services veteran 35/51.
Hypothesis check — industry vs “best state for X owners”
We hypothesized that ownership mix varies more by industry than by a simple “best state for X-owned businesses” narrative. For women-owned employers, that holds cleanly: the U.S. sector band (27.8 pp) dwarfs the all-sector state band (11.2 pp), and state leaderboards flip when you switch from all sectors to admin & support. For minority-owned employers, all-sector state spreads are large (49.6 pp) — but they track demographics more than a transferable “best state” brand, and industry gaps remain large (personal care / food vs construction). Veteran-owned shares stay low and comparatively flat on both axes. This page is deliberately not a best-state scorecard.
Your next step: plan your LLC formation
Downloads
- State × sector ownership CSV (women / minority / veteran; suppressed flagged)
- State all-sectors ownership CSV
- U.S. sector ownership CSV
What this means for planning
For an owner putting the plan into practice, our LLC setup guide covers company formation and records. The business financing comparison helps separate startup funding from options aimed at established businesses.
Ownership demographics describe who runs employer firms in a sector — not who should start one, and not credit outcomes. Useful companions:
- Industry guides: cleaning · landscaping · HVAC · daycare · hair salon
- Employer credit behavior (different ABS module): small business credit access by state
- Structure context: nonemployer share by state · business formation statistics · SBA loan statistics
- Income maps (different tax universes): sole prop net profit by state · partnership ordinary income by state
- Insurance is a separate decision: cleaning insurance · daycare insurance · landscaping insurance · HVAC insurance
Methods and limitations
- Survey: Census Annual Business Survey, collection year 2024, reference year 2023. API dataset
abscs(Company Summary). - Ownership slices: Women = SEX
002; Minority = RACE_GROUP90; Veteran = VET_GROUP002; each with other ownership dimensions held at Total (001/00). - Share: Owned employer firms ÷ all employer firms (same geo × NAICS) × 100. We do not use receipt- or employment-weighted ownership here.
- Universe: Employer firms in ABS. Nonemployers and many Schedule C operators are out of scope.
- Suppression & error:
FIRMPDEMP_F = S(and missing firm counts) → em dash. Relative standard errors (FIRMPDEMP_S) retained in downloads; thin state×sector cells can be noisy. - Industry grain: State tables use 2-digit NAICS (
00,23,56,62,81,72). Finer codes (5617, 6244, 8121, 238, 722, …) are U.S.-level. State×6-digit ownership generally fails / is unpublished. - Not credit access: Ownership demographics ≠ CREDAPP/CREDREC financing behavior. See the companion credit page for apply/receive rates.
- Not a ranking product: High minority shares in Hawaii or California are demographic facts, not endorsements.
FAQ
Can shares exceed 100% across columns?
No single firm is counted twice inside one column, but the same firm can be women-owned and minority-owned (different columns). Columns are not designed to sum to 100%.
Why is construction women-owned often “—” by state?
Census suppresses many state×construction×women cells. We show U.S. construction / specialty-trade detail and leave state cells blank when flagged.
How is this different from the credit-access page?
Credit access uses ABS Module Business Characteristics (CREDAPP/CREDREC). This page uses Company Summary ownership characteristics. Same ABS program year; different questions and tables.
Dataset license and reuse
Reuse terms, version September 27, 2026. You may quote our original findings and summary statistics with credit to StartBusinessByState.com and a link to this page. Keep the source names, data years, units and relevant limitations with quoted figures.
This permission covers our original contributions to this dataset. It does not relicense underlying source data or grant blanket permission to redistribute third-party datasets. Source data retains its provider’s terms, and public-domain material remains public domain. Any additional reuse permissions stated elsewhere on this page still apply. For other reuse of our original material, contact us.