Women are starting businesses at an unprecedented rate. There are over 12.3 million businesses are of women, generating sales of $1.7 trillion. In fact, 39% of all privately held firms are women-owned businesses. To put this in perspective, the dpi was just 402,000 in 1972. That's a whopping 2960% increase.
Most women cite flexibility because the main reason for starting their businesses. It isn't a secret that the US is not number one with regards to maternity leave and childcare so women are opting to be all on their terms instead. Based on Inc., women rank their happiness as 3 times as higher when they are entrepreneurs.
Women Receiving Less Funding For Business Then Men
Despite the rapid growth of women-owned businesses, they tend to start their businesses with less working capital. The issue lies in the finance industry.
Most women have a harder time securing capital for his or her business than their male counterparts. While the Small Business (SBA) reports most women start their businesses with personal financing instead of going the traditional venture capital route.
The SBA also states that ladies have a tendency to start their businesses with around $5,000 where men appear to seek large sums of capital prior to starting their entrepreneurial journey. Almost three-fourths (72%) of non-employer women-owned businesses begin with less than $5,000, when compared with 55% for male-owned businesses.
Women are Can not Get Funding
It's evident women are beginning businesses nowadays more in the past. However, funding provided to women is not always proportionate towards the rate at which women are starting those businesses.
Women-led startups apply for funding at an almost identical rate to men, but 28% of ladies were outright declined for funding while 64% received less than the things they requested.
In addition, based on a report by the National Women's Business Council a male entrepreneur will probably start their business with double the amount capital like a female will. This is troubling, as a company that does not have sufficient capital will typically see less profits. You may already know, it takes money to earn money.
What About Private investors or Venture Capital?
Where a lady is most affected by preconceived notions and disparity in the industry world happens when you are looking at funding. For those women who look for investors to help get their ideas off of the ground, exactly the same options exist however with alarmingly spun sentences.
When you are looking at Angel and Venture capital it's thought that these kinds of investors have a natural tendency to offer support to people who they can connect with. Therefore, a guy is much more prone to begin to see the potential in another male and the product prior to being in a position to recognize the need for a ladies entrepreneurial idea.
Of all available venture capital opportunities, males are still receiving the majority, with simply 2% going to women.
With numbers like this, we thought it might be useful to showcase some of those places women can acquire the funding they need to run the process of their dreams.
Business Grant for Women
iFundWomen
iFundWomen is a funding platform providing use of capital through crowdfunding and grants for women-owned startups and businesses. According to the SBA, most women will crowdfund or dip into personal savings to start-up their perfect business.
The platform offers a free 20-minute call to help you with your fundraising campaign. They also offer business coaching and a network of other women business people to help you really work through your businesses.
InnovateHER Challenge
The SBA hosts a yearly competition for businesses that positively change up the lives of ladies. The winner of the competition gets $40,000 and the prizes reduction in size for the second and third place. To participate, look for a local InnovateHER Challenge.
Eileen Fisher Women-Owned Business Grant
Eileen Fisher is a women's clothing retailer but it awards $100,000 in grants to 10 women-owned businesses per year. Women must own 51% from the company and must not do over a million dollars in revenue each year. Ladies, your business must also focus on environmental or social change.
The Girlboss Foundation Grant
The Girlboss Foundation Grant awards $15,000 in grants to every recipient. This semi-annual grant is awarded to women entrepreneurs pursuing creative endeavors.
Amber Grant for Women
The Amber Grant for Women is through WomensNet. They award a $4,000 grant each month with the monthly winner eligible for one more $25,000 grant awarded at the end of every year.
Government Grants for Women
All federally sponsored grants are available at Grants.gov. Here searching and apply for federal funding opportunities. All application submissions can be achieved through this site. Be sure to filter those grants to fit your specific needs.
Small Business Funding for Women
Small Business Funding is much more than happy to help women find the perfect loan that will help you thrive in business. Here at Small company Funding, we concentrate on just a few things to help get you the advance you need.
1 – Time in business
Traditional banks are looking for multiple years' worth of fiscal reports to see a history. For all those just starting their business, this can be a huge problem. Small Business Funding includes a minimum dependence on only 6 months running a business.
2 – Credit score
Small Business Funding focuses on many other data points besides your credit score. You still need a minimum score of 600 to be considers but we put more focus on additional factors just like your business performance.
3 – Revenue
Since our most of our funding options are unsecured, we put certain requirements in place to minimize our risk. One requirement is really a minimum annual revenue of $180k (or $15k/month) that need considering.
While there are more factors that determine your approval, most people can be approved for an advance based on these parameters. Ladies, you don't need to maximize your charge cards anymore.
With such stellar options, there's no reason ladies have to start their businesses with less capital. We're here that will help you discover the perfect option for your business.
Conclusion
No matter the number of women you may find in today's boardrooms heading large companies, there might be no denying that they had to operate harder than their male peers to get there. A woman business proprietor faces a range of challenges unique to her gender for various reasons. The bottom line is to recognize those challenges and switch them around to dedicate yourself you.
Women business people who're successful have achieved this by carving their own niche in the industry world, embracing their own position inside a predominantly male environment, and modifying those inherent traits that may harm their business goals while emphasizing the ones that are beneficial.
The challenge may be greater, but by leveraging your natural ease in building relationships, you may create a network of respected business people that can offer superb advice on the funding opportunities available, alternative financial loans, and the best means of obtaining them.
