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*Women owners are more likely to be turned down for loans with less favorable term than men. Some women do not apply for loans simply because they fear being turned down.*Differences in business credits, firm size and business growth potential explain most of differences in loan approval rates for men and women owners. Women owners tend to have lower business credit scores compare to men owners.*Women owners face lending discrimination when they operate in national instead of local markets. Study shows that women-owned businesses are viewed as more risky than white men owned businesses operated in the same market with the same observable credit characteristics.
*Women owners are more risk averse than men, especially on financial risks and business ventures.
Challenges Women Entrepreneurs Face (Wiki Page) (view source)
Revision as of 15:49, 9 June 2016
, 15:49, 9 June 2016no edit summary
In terms of loans and funding, statistics show that women account for only 16 percent of conventional small business loans and 17 percent SBA loans, even though they represent 30 percent of small firms. Of conventional small business loans, women only account for 4.4 percent of total dollar value of loans from all sources. In other words, just $1 of every $23 in conventional small business loans goes to a woman-owned business[http://www.microbiz.org/wp-content/uploads/2014/07/21st-Century-Barriers-to-Womens-Entrepreneurship.pdf].
===Reasons===
*Women-owners are more likely to be turned down for loans with less favorable term than men, and some women do not apply for loans simply because they fear being turned down.
*Differences in loan approval rates for men and women-owners might be explained by differences in business credits, firm size and business growth potential. Women owners tend to have lower business credit scores compare to men owners.
*Women owners are more risk averse than men, especially on financial risks and business ventures.
*Women owners face lending discrimination when they operate in national instead of local markets. Study shows that women-owned businesses are viewed as more risky than white men owned businesses operated in the same market with the same observable credit characteristics.
=Lack of Mentorship=
==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.
(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.
