Small business ownership by women has steadily increased since 1997, according to a recent report from the Institute of Women’s Policy Research (IWPR). Though women owned businesses have steadily grown over the years, this group still faces a variety of challenges that limit their growth.
Even with legislation, like the Small Business Jobs Act of 2010 and the Women’s Equity Contracting Act, which were specifically created to level the playing field for women and minority small-business owners, these groups still have to deal with issues like a significant wage gap and continually having smaller amounts of start-up capital than their male peers.
It’s no secret that women-owned businesses are less likely to have start-up capital, and the few that do get some capital report a difficult time obtaining loans. The few that succeed
then have to deal with terms that are less than favorable.
The research conducted by IWPR found that women are getting the shorter end of the stick because of the types of businesses they chose to open. The report notes that women-owned businesses are often smaller and concentrated in areas that bring less income than their male counterparts, making their businesses less attractive to banks.
Since women typically only receive 16 percent of conventional loans and 17 percent of SBA backed loans, this group of entrepreneurs have the option to consider alternative lending options, like our Funding Stream.
The Funding Stream is a new digital lending program that offers small business owners access to working capital, fast. Our mission is to provide lending solutions to all small businesses across the nation, no matter the demographic, and we continue to strive and meet this mission.