Women form a huge part of small business sector of today. There has been a tremendous increase in the number of women enrolling in business and finance related programs in the universities around the world. Therefore, it is not a surprise that 28% of all the small businesses have been owned by women and 55% of all the new startup businesses are also owned by women.
Just like any other kind of business, a women-owned business also needs to be properly capitalized. There are several programs run by the government that provide loans to women business owners, that a comparable men-owned business would not have even qualified to apply. As a result, the number of women-owned businesses increased by 19.8% from 1997 to 2002. At the same time, the employment opportunities created by women-owned businesses also grew by 150%.
The first thing that a female entrepreneur can do is to contact her bank and ask about any small business loan programs for women. Women’s Funding Network consists of over 150 organizations which aim at financing women’s solutions around the world. The members of the network are women’s foundations which span private foundations, public charities and funds within the community foundations. The Office of Women’s Business Ownership also helps women entrepreneurs in getting start up loans and funding for the expansion of their existing business. Financial Women International is a clearing house providing all kind of information regarding female entrepreneurs.
If you are a female business owner but do not have any credit, then your lending application process will be based upon your character, reliability and experience. There may be some loan programs especially designed for women who care for young children and want to start a home based business. Microfinance programs target women entrepreneurs in the poverty stricken regions. Most of the business women in poor regions need very small investments to start their business and therefore, getting small amounts of loan is quite easy and quick.
There are several funding options available for female entrepreneurs but make sure that you are not being caught up in a scam. There are several websites over the Internet which are especially designed for taking advantage of the people who are already looking for guidance. The best thing to do is to beware of the financers who themselves contact you. You should not give them any kind of information unless you have checked all its credentials.