Panel, Fireside Chat, Conference Presentation
Spotlight on Issues Affecting Women Entrepreneurs
- Women entrepreneurs are launching businesses at twice the rate of men, with the total number of women business owners increasing by over 30% and projected to continue rising, while 28% report difficulty accessing capital compared to male counterparts.
- Access to capital gaps persist as women hold 51% of the SBA microloan portfolio ($50,000 and below) but represent less than 20% of SBA 7A working capital and 504 real estate loan portfolios (up to $5 million), having received small business loans at a rate 21% lower than men two years ago.
- The SBA plans to collaborate with banks on revised underwriting for smaller dollar loans to create a pipeline from microloans to working capital loans, aiming to enable women to eventually secure larger loans, while also targeting 5% federal contracting for women-owned small businesses and 23% total federal spend for small businesses.
- Strategic outreach includes connecting with CDFIs, utilizing 68 SBA district offices, and engaging resource partners to help entrepreneurs increase revenues to $14.2 million, the average for women-owned businesses with export employees.
- While 77% of women believe a glass ceiling exists and 25% lack access to new business opportunities, 70% feel they have equal access to clients and resources, though 22% report less access to outside resources and 1 in 10 report limited access to clients specifically.
- Historical constraints are noted, with women gaining full legal capacity to sign leases and obtain loans without male co-signatures only within the last 40 years, despite traditional male-owned businesses having had a prior head start.
- Future economic impact is expected to be significant, with the SBA and private sector anticipating that increased women's participation will drive GDP growth, supported by initiatives like the Troy Birch Foundation Capital Program for affordable loans.
- Business owners are advised to establish banking relationships and lines of credit before capital is urgently needed, as waiting until the need arises is considered too late, and entrepreneurs should expect to build a team of mentors since they cannot afford all necessary advice.
- Women with export employees currently average $14.2 million in revenue, a benchmark the SBA aims for businesses to reach or exceed through its resource partners, while acknowledging that being scared indicates an entrepreneur cares about their venture.