Why Connecticut is a Hidden Gem for Women-Owned Small Businesses

By Valerie Martinelli, MPA and CEO of Valerie Martinelli Consulting

(small.news) — I am proud to be a female entrepreneur in Connecticut, which has had a reputation in the past for not being small business friendly. However, Connecticut is “women-friendly” and the policies here for female small business owners to excel have expanded in recent years.

This has led to more women starting small businesses, and we are now driving economic growth in the state.

Female Small Business Ownership in Connecticut by the Numbers

Around 35.3% of all small businesses in Connecticut are women-owned, according to Simply Business’ 2022 report. In the metro area of our state’s capital, Hartford, women owned around 498 small businesses, employed over 3,500 people, and generated around $150 million to $500 million as of April 2019.

There has been a 56% increase in women-owned businesses in Connecticut over the last 20 years, according to the state of Connecticut. These businesses contribute over $16 billion annually to the state’s gross product as of 2017, according to CBIA. Overall, the state also ranks high nationally for female small business owners, job creation, and sales growth in comparison to the national average.

As of April 2019, Hartford, Connecticut, was the fourth in the nation for female-led small businesses, according to Connecticut by the Numbers. I am proud that we are driving change and creating a positive impact for residents.

So, why does Connecticut have such a strong representation of female small business owners?

Vital Support, Resources, and a Strong Ecosystem

Connecticut has done an excellent job of creating a strong ecosystem for female small business owners by pulling together the necessary resources for us. Since there are so many women-owned small businesses, a visible community has been created of roles models and mentors for other women.

There are also robust grant and funding opportunities and strong childcare and work-life balance support in the state.

The Women’s Business Development Council: Where Women Boost Women

The Women’s Business Development Council (WBDC) is the go-to resource for female small business owners in Connecticut. They provide networking, mentoring, access to grants, a women-owned business directory, classes, business advising, and advocacy.

WBDC has seen remarkable growth in recent years. According to the council, they served nearly 3,600 female small business owners in 2024, which is a 32% increase from 2019 and a 20% increase from 2023. WBDC also distributed around $23.6 million in capital, including grants.

In 2025, three Connecticut WBDC clients received Small Business Administration (SBA) awards. These included Small Business Person of the Year and Women-Owned Small Business of the Year.

WBDC also maintains a partnership with the Office of Early Childhood Education, which supports childcare entrepreneurs. The state recently launched a $300 million endowment to support early childhood education as well. The objective is to provide free childcare for families earning under $100,000 by 2027.

I must note that 92% of childcare businesses in Connecticut are women-owned, many of which are owned by women of color. It is clear that women are driving economic chance in Connecticut.

Childcare is imperative for other women to work, especially single mothers. It is notable that women are helping other women to succeed and driving the strong ecosystem here.

The Benefits of More Women-Owned Small Businesses

Women-owned small businesses typically better serve their employees and communities. Women are reportedly more likely to create businesses with Personal Services and Community Services. These businesses also help solve pressing challenges in the communities where they operate.

Women have started businesses primarily out of the need for flexibility in their lives or because their motivations changed. For example, if their motivation was more flexibility, then they would provide that same flexibility to their employees.

Overall, women small business owners are bringing their own perspectives and experiences to the field. So, with all these benefits, what can we do to continue boosting women-owned small businesses?

How Policymakers Can Continue To Help Female Small Business Owners

It would be beneficial to help women build relationships with financial institutions and continue to build pathways to access private capital and other forms of funding. Access to funding is based on formal and informal networks, so we need to continue to cultivate those relationships. It would also be beneficial to expand grant programs, increase awareness of any funding opportunities, and promote any additional lending initiatives.

I believe by investing more in groups that effectively create networks of financial professionals and increasing the pathways to additional funding, we can help female small business owners to continue to succeed.

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