Despite recent research showing women falling behind men when it comes to vying for promotions, that gap may be confined to traditional corporate structures. Data from Sheryl Sandberg’s LeanIn.org shows that 80 percent of women sought a promotion in 2025 compared to 86 percent of men, creating an “ambition gap” that wasn’t previously present. However, other research suggests more women are turning to entrepreneurship as a path to advancement.
Women now own 39.2 percent of all U.S. businesses, generating $3.3 trillion in annual revenue, according to a 2025 report from Wells Fargo. While men still own more businesses overall, women-owned companies are growing at a markedly faster pace.
Between 2019 and 2024, women-owned employers expanded their workforce by 19.5 percent, compared to 6.6 percent for men-owned employers, according to Wells Fargo. Revenue growth followed a similar pattern: women-owned businesses grew revenue by 56.8 percent over the same period, compared to 50 percent for men-owned businesses.
Women also launched nearly half of all new businesses last year, according to data from Gusto. Women aren’t just outpacing men in growth; they’re closing the gap in sheer numbers as well.
LeanIn.org traced the so-called ambition gap to a lack of opportunity and support in the workplace. Return-to-office mandates, for example, have made advancement particularly challenging for women, who account for roughly two-thirds of caregivers nationwide. But women don’t lack ambition; they are simply shaping careers in what may be a more demanding way, said Rachel Blank, founder & CEO of Allara Health, a telemedicine platform for women.
“Women are expanding the definition of ambition beyond title-chasing to impact-building,” Blank told Observer. “For a long time, ambition was measured by how closely someone followed a linear, traditionally male career path—promotion by promotion, often at the expense of flexibility or well-being. Starting and growing companies allows women to define success on their own terms.”
“The corporate structure and the rigid demands of in-office work don’t support the flexibility many women need as we juggle careers and family responsibilities,” Jennifer Millard, a former Mastercard executive who now runs her startup, mainelove, a canned water brand, told Observer. “As an entrepreneur, I can prioritize my health and my family when needed. Ultimately, it’s about impact, and that extends to my team. I don’t care when they work as long as we accomplish our goals.”
Millard is far from alone in her desire for flexibility.
“After years of hybrid or remote work, women don’t want to compromise their happiness for this previous idea of success,” Julia Sherwin, who left a public relations firm to start her own company in 2023, told Observer. With stronger networks and resources born out of shared challenges, Sherwin said opportunities for younger generations are especially promising.
Despite these shifts in favor of women’s entrepreneurship, gaps remain. Venture capital deal counts for women-founded and mixed-gender companies are declining, even as global investing dollars are up 38 percent year over year, with much of that capital flowing to A.I. companies. High-profile female founders like the “godmother of A.I.” Fei-Fei Li may be carving paths forward, but the venture capital industry remains persistently gender-biased.
Logan Brown, founder of A.I.-powered legal platform Soxton.AI, told Observer that the venture capital industry relies on a practice known as pattern matching. “VCs are looking for founders that resemble prior successful investments. When there are fewer women founders, there are fewer patterns to match. As more women become founders, that’s getting much better,” she said.
While Sandberg has urged companies to counter weak gender equity by standardizing processes to limit bias, many women say they can’t wait for the traditional corporate landscape to catch up with their needs.
“Entrepreneurship doesn’t eliminate the burdens [that women face],” said Brown. “But it changes who sets the terms.”
Observer
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