Women own more than a third of all US businesses but have significantly less access to capital than male entrepreneurs. Why is that? Read more to get the facts straight about women business owners.

Women own more than a third of all US businesses but have significantly less access to capital than male entrepreneurs. Why is that? Read more to get the facts straight about women business owners.

 

The Number of Female Entrepreneurs is Growing Faster Than Ever

Since the Great Recession, the number of women-owned businesses increased by 45% compared to only 9% of all businesses. Only 40 years ago, women owned less than 10% of firms – now they own more than 30%! With the increase in programs, grants, and access to education, more women are deciding to open their own businesses, and hopefully these numbers will continue to climb.

Not only are women-owned businesses growing faster than male-owned businesses, but women of color are the fastest-growing business segment. Women of color made up 78% of all net-new women-owned businesses between 2007 and 2016.

Women-owned businesses are crucial to the US economy. They had a better recovery rate after financial crises, and they contributed more job growth than all but publicly traded companies.This means that women are contributing way more than they are credited and surpass all stereotypes about women in business leadership.

Women are too often associated with being less credible, less legitimate, and incapable of being powerful leaders in business. However, these stereotypes are simply incorrect and are damaging to the opportunities women need in order to succeed in the business world.

Women Entrepreneurs Have Less Access to Capital

Gender bias is one of the reasons why women have less access to capital. Since a big part of getting funding is based on pitching your business, gender bias plays a big role in the perception of investors towards female entrepreneurs. Women start their businesses with half as much funding than men do, and they receive only 7% of venture funding, less than 5% of federal contract dollars, and 16% of small business loans.

It’s Time to Break the Glass Ceiling

The good news? Innovation is more strongly and positively associated with women than men. Innovation is what can drive the country to break the glass ceiling. So get out there and network with other female entrepreneurs to improve your own skills and help each other succeed. Develop your leadership as a small business owner, inspire other young women to start their own businesses, and put yourself out there with confidence.

Opportunity Fund stands with women entrepreneurs, with 30% of our loans going towards women-owned businesses.

 

For information about Opportunity Fund’s small business loans, please contact us at 866-299-8173 or loans@opportunityfund.org.  For questions about your existing loan or other customer service questions, please contact us at 866-299-8173 or sbhelp@opportunityfund.org.


Opportunity Fund is tackling economic inequality so that hard work and perseverance means a shot at getting ahead, not just struggling to get by. Our programs are supported by a community of donors and investors whose contributions help to fund small businesses, support college students, and build stronger families and vibrant neighborhoods. Since 1994, the team has deployed $600 million and helped 20,000 families earn, save and invest in their own futures. Opportunity Fund has earned a 4-star rating from Charity Navigator, America’s largest independent charity evaluator, for our commitment to accountability and transparency.

Visit us online at http://opportunityfundloan.org and follow us on Facebook and Twitter

Opportunity Fund. Working Capital for Working People. opportunityfund.org