Key Takeaways:
- Mississippi ranks as the worst state, where women face a 10.3-year longer wait than men to start a business, highlighting the need for wage equity and financial support programs.
- Idaho follows with a seven-year gap, showing the importance of expanding grants and mentorship opportunities.
- Texas ranks third with a 6.9-year delay, reinforcing the need for greater access to capital and investment funds.
International Women’s Day isn’t just a celebration — it’s a moment to spotlight the ongoing fight for gender equality in every industry.
To honor it, DesignRush released an exclusive state analysis revealing the three least favorable U.S. states for women to start a business.
The financial burden of starting a business, $40,000 on average, is significantly harder for women due to a systemic gender pay gap.
DesignRush found that, on average, women must wait 4.3 years longer than men to become their own boss.
However, in states with wider gender wage gaps, this delay stretches even further, making business ownership even less accessible for women.
Mississippi stands out as the most challenging state due to a combination of low wages, slow savings rates, and systemic barriers that keep women from economic independence.
Although Idaho and Texas have different economic conditions, both states share the common factor of financial roadblocks that make it significantly harder for women to start businesses.
Mississippi Salaries Overview
The most difficult is for women in Mississippi.
They must wait 10.3 years longer than men before they can afford to start their own businesses.
The state's poor ranking can be attributed to low wages for women, which creates the largest gender pay disparity in the U.S.
Mississippi's average monthly salary for women is $2,887 — 35% lower than men's $4,477 — resulting in significantly slower savings rates.
With women only able to set aside $115 per month on average, it takes nearly three decades for them to save enough to launch a business, making entrepreneurship an uphill battle.
| METRIC | MEN | WOMEN |
| Monthly Salary | $4,477 | $2,887 |
| Monthly Savings | $179 | $115 |
| Years to Save | 18.6 | 28.9 |
Idaho Salaries Overview
Following Mississippi is Idaho, which has a gender wage gap of 31%, with women earning $3,705 monthly compared to men's $5,369.
This creates financial barriers that delay business ownership, where women must wait 7.0 years longer than men.
| METRIC | MEN | WOMEN |
| Monthly Salary | $5,369 | $3,705 |
| Monthly Savings | $215 | $148 |
| Years to Save | 15.6 | 22.5 |
Texas Salaries Overview
Third place is Texas, facing similar challenges where the financial gap restricts women's ability to be their own boss, threatening the state's reputation as a business hub.
With women earning 27% less than men and saving just $132 per month, it takes them nearly seven years longer to afford to start a business.
| METRIC | MEN | WOMEN |
| Monthly Salary | $4,509 | $3,289 |
| Monthly Savings | $180 | $132 |
| Years to Save | 18.6 | 25.5 |
What Stakeholders Can Do
DesignRush's findings highlight a critical barrier to entrepreneurship: when women earn less and they take longer to save, delaying business ownership and economic progress.
Bridging this gap requires action from multiple stakeholders:
- Women Entrepreneurs: Seeking alternative funding sources like grants and microloans, build savings with realistic timelines, and leverage women-led networks for mentorship and support.
- Businesses: Close the gender pay gap with salary audits, create funding or incubator programs for women-led startups, and prioritize partnerships with women-owned businesses.
- Policymakers & Financial Institutions: Expand access to capital through grants and low-interest loans, implement policies that incentivize female entrepreneurs, and invest in financial education programs to equip women with business ownership skills.
By taking these steps, women can overcome financial hurdles, while businesses and policymakers can help foster a more inclusive entrepreneurial landscape.
Methodology
This campaign was ranks U.S. states based on how long it takes women to save enough to become business owners, with a key focus on the gap between women and men.
The primary metrics include:
- Salaries by gender (2024)
- Source: Current Population Survey (CPS)
- Total CPS sample size: 546,413 respondents
- CPS datasets for each month of 2024 were aggregated to calculate average salaries.
- CPS salary sample size after data cleaning.
- Business Startup Costs:
- Source: Shopify Report on Cost to Start a Business
- Average startup cost: $40,000 (including filing and annual fees)
- State Filing & Startup Fees
- Savings Rate (Latest Data - December 2024)
Using salaries, savings rates, and total startup costs, we calculated how many years it would take for both women and men to save enough money to start a business.
We then ranked states based on the gender savings gap.
If you're a woman entrepreneur seeking resources to launch or scale your business, you can connect with trusted experts through the DesignRush agency directory.
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