Business News

Banks Need to Court Women-Owned Businesses

By: C. Daniel Baker / Black Enterprise

The National Women’s Business Council releases a statement following a recent Washington Business Journal article.

The economic impact of women-owned businesses is significant and growing. Women entrepreneurs need access to more loans and NWBC encourages community banks and credit unions to increase their lending efforts to women, which will contribute to economic gains for women entrepreneurs and the nation’s economy.

Women entrepreneurs champion the title of ‘fastest growing sector in the small business community,’ even as access to capital remains a major challenge. The National Women’s Business Council (NWBC) research has found that businesses that start with more capital have higher rates of survival.”

“Loans from financial institutions are an important source of capital, but women-owned and women-led businesses obtain fewer loans than average,” said NWBC Chair Cara Harris.

As outlined in the 2013 NWBC annual report, we recommend community banks and credit unions implement a plan to court women-owned businesses. Our research highlights a Kauffman Firm Survey which tracked a group of firms started in 2004. In 2010, the average woman-owned firm in the sample received $38,217 of new financial capital, about half of what the average man-owned firm received.

We want to see this number grow. Additionally, a new report released by Treliant Risk Advisors and NAWBO Greater DC outlines strategic ways for banks to increase lending efforts to women business owners.

 

Source: Black Enterprise

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Sharon Sanders

Sharon Sanders is Co-Founder, Co-owner of the The MinorityEye. She is also a Digital Engagement Strategist and a Curator of information at The Minorityeye and the President of Clairvoyant, LLC which specializes in strategic communications and multimedia services. She has a B.A. in Psychology from Argosy University and she specializes in “Online Consumer Psychology.” Sharon provides companies with research and insight into the processes underlying consumer behavior in online environments…

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