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Women Entrepreneurs Need Access To Capital
Women entrepreneurs have a 50 percent or greater stake in 48 percent of all privately-held businesses in the United States. These entrepreneurs generate approximately $2.3 trillion in sales and employ 19.1 million people nationwide, according to the Center for Women’s Business Research.
Despite this economic clout, a recent survey conducted by financial holding company National City Corporation showed that women-owned businesses remain an underserved segment when it comes to access to capital. In addition, women business owners are less likely to take advantage of the credit that’s available to them.
Almost 41 percent of the women business owners who responded to the survey said that they do not have credit services with any bank or financial institution. Of this group, one out of three attributed their lack of credit to being a startup business.
The other top reasons women business owners gave for not pursuing financing are a belief that they would not qualify for credit (25.9 percent) and the perception that the credit process is too difficult or cumbersome (20.4 percent).
“The financial services industry in the U.S. must continue to aggressively assist women entrepreneurs,” says Linda Stevenson, vice president, director of National City’s Women Business Owner Initiatives.
“The support needs to include enhanced education, increased access to capital and a concerted effort toward networking and relationship building. We need to work harder at encouraging women business owners to apply for credit instead of them thinking they are not worthy of it. The credit process is simpler than they realize.”
What You Can Do
Don’t let a lack of capital stifle your small business. Use these resources to find the funding you need:
- The U.S. Small Business Administration (SBA) can help you find lenders that specialize in small and startup business. At www.sba.gov/financing/basics/lenders.html, you can search for SBA certified and preferred lenders by state. You can also search for SBA microloan lenders by state.
- Women who need small loans to launch their businesses should check out Count-Me-In, www.count-me-in.org. The organization provides access to business loans and education. As an online micro-lender, Count-Me-In makes loans of $500 to $10,000 available to women across the United States.
- If you’re a woman entrepreneur who owns a high-growth potential company, check out Springboard Enterprises, www.springboardenterprises.org. This national not-for-profit organization is dedicated to accelerating women’s access to the equity markets. The organization produces programs that educate, showcase and support entrepreneurs as they seek equity capital and grow their companies.
- For a multitude of financing ideas, explore the free Success Skills Seminar “Find Financing For Your Business” at www.entrepreneurialconnection.com/skills/module18/skills_home.asp. Seminar topics include:
- Traditional lenders
- Government sources
- Venture capitalists
- Angel investors
- Small-time cash
- Factoring
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