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Challenges Women Entrepreneurs Face (Wiki Page) (view source)
Revision as of 16:36, 8 June 2016
, 16:36, 8 June 2016no edit summary
(Resource: [http://www.microbiz.org/wp-content/uploads/2014/07/21st-Century-Barriers-to-Womens-Entrepreneurship.pdf 21st Century Barriers to Women’s Entrepreneurship]published by the 2014 Senate Small Business and Entrepreneurship Committee.
*On average, men start their businesses with nearly twice as much capital as women ($135,000 vs. $75,000). This disparity is slightly larger among firms with high-growth potential ($320,000 vs. $150,000), and much larger in the Top 25 firms ($1.3 million vs. $210,000).(“Top 25”: the largest 25 firms for each gender, as measured by employment.)
(Resource:[https://www.nwbc.gov/sites/default/files/Access%20to%20Capital%20by%20High%20Growth%20Women-Owned%20Businesses%20(Robb)%20-%20Final%20Draft.pdf|Access to Capital by High-Growth Women-Owned Businesses]published by National Women’s Business Council in 2013.
=Reasons=
*Women owners use different sources of financing relative to men. Women are more likely to launch their businesses with large amounts of owner-provided equity and smaller amounts of outsider equity and outside sources of financing such as bank loans, angel investments and venture capital for their business ventures. This might be explained in two ways. On the one hand, women appears to use outside financial sources less frequently may suggest that is their preference. On the other hand, the less frequent outside financial utilization can be seen as women are more likely to be turned down for outside financing or do not apply for outside financing because they fear being turned down.
*Women owners are more risk averse than men, especially on financial risks and business ventures.
(Resource:[https://www.dol.gov/wb/media/Women-Owned_Businesses_in_The_21st_Century.pdf|Women Owned Businesses in 21st Century]prepared by U.S Department of Commerce Economics and Statistics Administration in Oct.2010) This is a very comprehensive report on women owned businesses in the US, concerning both status of women owned businesses and the role of gender in business ownership.
=Effects=
*Women owned firms are typically smaller than men owned firms
*Average sales/assets/profits/employment for women owned firms are much lower than men-owned firms, and have grown in a slow rate
(Resource:[https://www.dol.gov/wb/media/Women-Owned_Businesses_in_The_21st_Century.pdf|Women Owned Businesses in 21st Century]prepared by U.S Department of Commerce Economics and Statistics Administration in Oct.2010)
=Efforts in Solving the Problem=
*From government:
Congress has focused on improving and expanding SBA-backed small business lending programs. Women are three to five times more likely to be approved for an SBA-backed loan than a traditional loan[http://www.microbiz.org/wp-content/uploads/2014/07/21st-Century-Barriers-to-Womens-Entrepreneurship.pdf]. Through the [https://www.sba.gov/about-sba/sba-initiatives/small-business-jobs-act-2010|Small Business Jobs Act], Congress increased the maximum SBA Microloan amount from $35,000 to $50,000, which has given women-owned businesses access to more credit to start and grow their businesses.
*From Corporations:
Capital program from [http://www.toryburchfoundation.org/about/|Tory Burch Foundation] with Bank of America offers access to affordable loans through Community Lenders to women entrepreneurs.Goldman Sachs launched [http://www.goldmansachs.com/citizenship/10000women/news-and-events/10kw-progress-report/progress-report-full.pdf|10,000 Women] to provide women entrepreneurs around the world with business management education, mentoring and networking, and access to capital.
*From investors:
[http://blog.girltank.org/angel-investors-looking-for-women-entrepreneurs/|List] of angel investors focus on supporting women entrepreneurship.
