Women are starting businesses at an unprecedented rate. Most women cite flexibility as the main reason for starting their businesses. It’s not a secret that the US is not number one when it comes to maternity leave and childcare so women are opting to have it all on their terms instead. According to Inc., women rank their happiness as three times as higher when they are entrepreneurs.
Women now account for 40% of businesses in the United States. According to a study by Vanderbilt conducted over the course of 50 years, women tend to go into the science of people, plants, and animals. That study is confirmed by the SBA’s data on female-owned businesses. According to the report, “53.2% of all women-owned businesses are in the 20 industries with the lowest sales. These industries tend to be very large, such as child day care, independent artists, and good services…For comparison, only 25.4% of all male-owned firms are in these industries.”
With all of those fun facts in mind, women also tend to start their businesses with less working capital. Is the reason because of the industry they’re in or is it the finance industry?
According to Inc., the problem lies in the finance industry. Most women have a harder time securing working capital for their business than their male counterparts. While the SBA reports most women start their businesses with personal financing instead of going the traditional venture capital route. The SBA also states that women tend to start their businesses with around $5,000 where men seem to seek large sums of capital before beginning their entrepreneurial journey. Women also tend to excel in the online funding space when they do need to raise capital.
Due to the difficulty of securing capital for female entrepreneurs, we put together a list of places to go for funding.
The SBA offers numerous programs for women ready to start their businesses.
Due to the lack of diversity in entrepreneurship, there are many grants to available to women when looking to start or grow their business.
3. National Association of Women Business Owners
Headquartered in DC, there are thousands of members across the country offering training and advice to women in business.
4. National Women’s Business Council
The NWBC works with the President. SBA and Congress to help women-owned businesses. They would make a great asset for female entrepreneurs.
5. Small Business Funding
A lot of these places require over a year in business, perfect credit, etc. SBF is here to help women find the funding they need without all the complexities.
Don’t rely on venture capitalists to help you launch your business. SBF is here to ensure every woman is running the thriving business of her dreams.