Roadblocks preventing the growth of women-owned businesses in Utah

Utah continues to have one of the strongest economies among the states. In 2025 alone, Inc.com ranked Utah No. 3 in their Top 10 Friendly States for Entrepreneurs, and WalletHub ranked Utah No. 3 for the Best States to Start a Business and No. 2 in their Best State Economy ranking. In 2024, Bankrate also listed Utah at No. 2 in a Best States for Small Business ranking. However, the news is not so rosy for women. In 2025, WalletHub gave Utah a ranking of 41 of 50 states on the Entrepreneurship-Rate Disparity, which compares the number of women- and men-owned businesses.

So, the question is: Within the context of a strong economic and business climate, how good is Utah for women entrepreneurs? A recent report by the Utah Women & Leadership Project (UWLP) identified significant roadblocks that undermine women entrepreneurs. Removing the roadblocks can help Utahns minimize the barriers women business owners face and make Utah’s economy even stronger.

Roadblocks

First, a lack of equitable access to capital remains one of the foremost concerns for women-owned small businesses. National and global research continues to highlight this challenge for women and note that deep-rooted gendered bias continues to play a notable role in limiting the establishment, expansion and growth of women-owned businesses. In fact, recent research shows that women-owned businesses receive only 2.3 percent of available funding worldwide.

Other research has found that, when trying to secure investment for their business, women face distinctly different experiences from those of men. For example, investors often ask men entrepreneurs about opportunity and the potential for gains, while women entrepreneurs are questioned about the potential for losses. In addition, women are interrupted 4.7 times more frequently during their pitch presentations and are asked 2.1 times more questions about personal commitments and family plans. These differences in treatment have been shown by researchers to contribute to a lower success rate in securing additional capital. For many women, the inability to access their fair share of financial capital leads to reduced opportunities for growth.

Second, Utah women, when compared to their male counterparts, have less access to mentors, sponsors and other power connections. Research has shown that these developmental relationships can play a critical role in one’s career choices and opportunities. When small-business owners receive mentoring early on in their development, they have a better chance of success. Importantly, women of color often have even less access to mentoring and sponsoring than white women. Mentoring matters for women when starting and growing their businesses.

Third, Utah women tend to have a lack of awareness of business training and existing groups, programs and resources. The great thing is that there are programs and resources available, so increasing awareness of these important resources is critical.

In other Utah-focused research, additional barriers specifically identified included balancing life responsibilities (such as lack of support and isolation), accessing child care, encountering issues related to gender challenges (such as women not being taken seriously and facing exclusion from male-dominated industries), lacking resources (such as funding and training), and a variety of others. Related quotations from Utah women include the following:

“One of the difficulties I have experienced is balancing growing my business and the needs the community has, alongside the need of my young family and the expectations that come
with that.”

“My husband and I co-own our business, but I am the primary owner and operator. He has a separate job. Still, many of the individuals who have accounts and services with us expect to contact and work with him directly (as the owner) instead of me. This is frustrating, and it makes me feel like people don’t take me seriously as a business owner.”

“Sometimes it’s challenging to get men to view me as an equal, especially when they don’t realize this is a problem for them.”

“It was hard to get a business loan as a female-only-owned business.”

Since 2023, the UWLP has tracked Utahns’ responses to four questions related to women and entrepreneurship in annual fall surveys. In 2024, many Utah women agreed at some level that if they had the opportunity and resources, they would like to start a business. They also felt that if they started a business, their family and friends would approve and support their decision. Yet, when asked if they knew how and where to access resources and support, they were less likely to agree.

Recommendations

So, what can be done to encourage and support more women to start and expand their businesses?

First, we need to help women create connections. Valuable training and resources can be found with the Women’s Business Center of Utah, Small Business Development Centers, Business Resource Centers and SCORE chapters that can expand the possibilities for information and resource-sharing, networking and mentoring. In addition, there are a host of women in business groups throughout the state that include many women entrepreneurs who are interested in mentoring others.

Second, we can all encourage lenders to support women-owned businesses. Spotlighting successful venture funds investing in diverse women-founded enterprises could encourage other venture capitalists to support women-owned businesses. Strengthening microloan programs to serve small women-owned businesses more effectively has also been shown to be successful. We can do better here in Utah!

Third, we need to change perceptions that starting and owning a business is only for men. Many women-owned businesses are successful in Utah, with over 3,000 being highlighted in the Women-Owned Business Directory. In the past, it has been assumed that when a woman decided to be an entrepreneur, she would run a “lifestyle business” as a way to augment the family income. National research now shows that 56 percent of women business owners are the sole or primary source of household income (65 percent for women of color). With the economic realities Utah families now face, often all adults in a household are employed.

Finally, for those who want to get involved in positive change, A Bolder Way Forward has an area of focus on entrepreneurship that will probably provide opportunities for all.

Conclusion

Despite the hurdles women face in starting and expanding small businesses here in Utah, women are establishing businesses that not only generate revenue and employ other Utahns but also contribute to the quality of life and prosperity of Utah families — and bolster the state’s economy. The potential for success will continue to increase as more women receive adequate funding, access resources, and seek support from strong professional networks. As an important segment of productive business owners, women certainly are getting things done and, by so doing, are strengthening others and blazing a trail to an improved economy for Utah.

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Dr. Susan R. Madsen is a professor of organizational leadership in the Jon M. Huntsman School of Business at Utah State University and is the founding director of the Utah Women & Leadership Project and the visionary behind A Bolder Way Forward.