We will help you discover game-changing strategies to budget effectively, manage cash flow smoothly, and secure necessary funding. We will address the unique financial challenges you face and provide you with practical insights for achieving your business goals.
Essential Insights for Financial Success:

• Healthy Cash Flow is Key: You will learn how to maintain a strong cash flow and align your budget with your business goals. This is crucial for your financial stability and growth.
  
• Master Your Business Finances: By mastering budgeting and exploring diverse funding options, you empower yourself to make strategic choices that will drive your business’s long-term success.
  
• Build Your Business Network: You will see the importance of creating a supportive network. Through mentorship and community engagement, you will overcome challenges together and foster collaborative problem-solving with other women business owners.

Challenges Faced by Women Owned Businesses

Controlling the things that you can will help you get ahead in your business. Which is why we created this guide to financial management for women. While financial management principles apply universally to all small business owners, it is crucial to recognize that women do encounter unique challenges in the financial landscape.
Women-owned businesses face many challenges, including:

• Funding: Women may have limited access to capital and investors and may face gender bias when seeking funding.
• Work-life balance: Women entrepreneurs may have difficulty balancing work and family responsibilities.
• Gender inequality: Women may face discrimination and stigma based on gender, religion, culture, and politics.
• Bias: Women may face gender bias when seeking funding, partnerships, or customers.
• Lack of networks: Women may have fewer networks to learn about opportunities and find mentors and sponsors.
• Hostile work environments: Women may experience harassment and hostile work environments.
• Subtle biases: Women may face subtle biases in the business ecosystem.

Empowering Financial Management Strategies

Understanding these challenges is the first step toward turning them into opportunities for growth. Women small business owners face unique hurdles in today’s business landscape, but with effective financial management practices, you will transform potential financial challenges into pathways for success.Financial management goes beyond simple bookkeeping; it involves making strategic decisions that align with your business goals.

The Importance of Understanding Financial Management

Effective financial management is key to your success as it empowers you to make smart financial choices that support your vision and ensure your business thrives.

As you sharpen your financial skills, you will reduce risks and boost your revenue helping you overcome the unique challenges many women face in the business landscape.

Understanding these essential concepts will empower you to choose wisely based on data insights that align with your goals, allowing you to adapt your strategies as market conditions change.

These skills will help you track every expense against incoming funds, creating a solid foundation for scaling your business.

Mastering Your Business Finances

Navigating the financial landscape of your business requires a solid understanding of your financial transactions. This means diligently tracking all expenses and sources of income to accurately assess your company’s financial health. By regularly reviewing key documents like balance sheets, profit-and-loss statements, and cash flow summaries, you will gain insights into your firm’s strengths and weaknesses. Analyzing these reports—alone or in comparison to industry benchmarks—will empower you to make strategic decisions that foster growth and future success. This comprehensive approach allows you to see how assets stack up against liabilities, ensuring a clear picture of your overall financial well-being.With a strong understanding of financial management principles, you can now focus on practical budgeting strategies to enhance your financial health.

Budgeting and Planning

Creating precise budgets is essential for successful financial management in your business.

As a woman business owner, you may face harder challenges in gaining capital, so it’s crucial to make the most of every cent you have.

By using effective budgeting methods like zero-based budgeting, you will accurately predict your expected income and expenses over a specific period. It’s important to consider both variable and fixed costs in your budget plans to ensure a clear understanding of your financial commitments.

What is Zero-Based Budgeting?

Zero-Based Budgeting (ZBB) is a strategic approach to managing your finances that starts from zero. Instead of merely adjusting last year’s budget, you begin with a clean slate for each new period, justifying every expense to ensure it aligns with your current business goals. Here’s how zero based budgeting works:

1. Start Fresh: Each budgeting cycle begins at zero. You build your budget by justifying all expenses, ensuring that every dollar is necessary and valuable.
   
2. Justify Every Expense: You’ll assess what you really need to spend on. This means no more automatic renewals—everything gets a fresh look!
   
3. Align with Your Goals: You allocate funds based on your current business goals, ensuring that your spending supports your vision for growth.
   
4. Regular Check-Ins: You’ll regularly review your expenses to make sure they still meet your needs. If something isn’t working, it’s time to rethink it!
   
5. Stay Flexible: This approach allows you to adapt quickly to changes in the market or your business, helping you stay on the path to success.

How to Get Creative with Your Budgeting:Creativity in your budgeting can open doors to cutting costs while also discovering new income sources. By thinking outside the box, you’ll be better equipped to manage your finances effectively.

• Prioritize Your Expenses: Start by separating your expenses into two categories: needs and wants. Needs are essential items like rent, utilities, and inventory—the must-haves for keeping your business running. Wants might include new décor or fancy marketing materials that, while nice, aren’t essential for daily operations.
  • Example: If you’re a café owner, your needs would include coffee supplies and employee wages, while wants could be new furniture or an expensive advertising campaign. By focusing on needs first, you can ensure that your essential costs are covered before spending on wants.
• Look for Cost-Cutting Opportunities: Get creative in finding ways to reduce expenses. Consider negotiating with suppliers for better rates or exploring bulk purchasing options to save money over time.
  • Tip: If you operate a smaller company, think about sharing a larger space with another business to reduce rent costs. This not only cuts expenses but can create joint marketing opportunities!
  • Example: For instance, consider negotiating with suppliers to secure better rates or implementing energy-efficient practices to lower utility costs.

• Explore New Income Sources: Think about innovative ways to diversify your revenue. This could involve offering new products, services, or even experiences that align with your business model.
  • Example: If you own a fitness studio, consider introducing online classes or selling branded merchandise. These additional streams can boost your income without significant upfront costs.
• Use Technology Wisely: Leverage budgeting tools and apps that can help you visualize your expenses and income more clearly. Many software options allow you to track spending in real-time, helping you identify patterns and areas for adjustment.
  • Tip: Explore apps that offer expense-tracking features and report generation. This insight can guide you in making informed decisions about where to allocate your resources.

Tips for Financial Forecasting:

1. Use Historical Data: Start by looking at your past financial performance. For example, if you notice that sales typically increase during the holiday season, you can forecast higher revenue during that period and plan accordingly.
2. Create Projected Financial Statements: Develop forward-looking statements such as income statements, cash flow projections, and balance sheets for the next quarter or year. This will help you see where your money will come from and where it needs to go.
3. Reforecast Regularly: Don’t wait until the end of the year to adjust your forecasts. If you notice changes in the economy—like an unexpected drop in sales—revisit your projections. Frequently updating your revenue forecasts allows you to make quick adjustments to your business model as needed.
4. Consider Different Scenarios: Prepare for various outcomes. Create a best-case, worst-case, and most-likely scenario. For instance, if you run a boutique and hear about a potential economic downturn, forecasting lower sales in your worst-case scenario helps you prepare for that possibility by adjusting your budget and cost structure.
5. Stay Informed: Keep an eye on market trends and economic indicators that could affect your business. For example, if interest rates rise, borrowing costs may increase. This knowledge allows you to stay ahead of the curve.
6. Engage Your Team: Involve your employees in the forecasting process. They can provide valuable insights about operations and sales trends that might affect financial outcomes.
7. Use Technology: Consider using accounting software like QuickBooks or forecasting tools that help streamline the process and enable real-time updates. These tools can help you visualize your data and take educated actions more quickly.

Managing Cash Flow

Managing cash flow is essential for the smooth operation of any business. It involves monitoring how money moves in and out of your business to meet financial obligations, such as paying debts, covering payroll, and compensating suppliers.

Key Strategies for Effective Cash Flow Management:

1. Implement Strong Cash-Handling Strategies: Develop cash-handling processes that allow you to predict fund availability accurately. For instance, if you often face cash shortages, a cash flow forecast can help you anticipate when you might need extra funds or when to scale back on expenses.
   
   Example: A construction company might create a cash flow forecast that accounts for the timing of client payments and project expenses, helping them manage their finances more effectively as projects progress.
2. Establish Invoicing Systems: Create efficient invoicing systems with clear payment terms. Using electronic invoicing can improve speed and accuracy. Set payment terms to encourage timely payment, such as offering discounts for early payments.
   
   Tip: Use software like QuickBooks or FreshBooks to automate invoicing and payment reminders. This can help you receive payments on time and improve cash flow.
3. Create a Contingency Fund: It’s important to have a reserve set aside for emergencies. Financial experts suggest having an emergency fund that can cover three to six months of operational costs. This will protect your business from unexpected financial challenges and provide the flexibility needed during tough times.
   
   Example: A retail store might save a percentage of its monthly revenue into a dedicated account that can only be accessed in case of emergencies, ensuring that they can manage any sudden drops in sales.
4. Understand Cash Flow Statements: Regularly create and review cash flow statements, which show how money flows in and out of your business during a specific time frame. This will give you insights into your liquidity and operational status.
   
   Tip: Schedule monthly reviews of your cash flow statements to identify trends and spot potential cash shortages early. This allows for proactive adjustments rather than reactive.
5. Schedule Payments Wisely: Timing your payments can significantly impact your cash flow. Try to defer non-essential expenses and spread out your payables. Additionally, synchronize the timing of your receivables and payables to ensure you have liquidity when needed.
   
   Example: A marketing agency might negotiate payment terms with suppliers to pay invoices at the end of the month, aligning them with when they receive client payments.

Funding Options for Women Business Owners

Exploring a variety of funding sources is crucial for women business owners on the path to achieving your goals.

Traditional Financing Options:

• Loans and Grants: Women-led businesses can turn to traditional loans and grants provided by banks and government programs.
  • Tip: Research different lenders to find one that fits your needs. The application process can be paperwork-intensive, so prepare your documentation in advance.
• Microloans: If you’re a startup or growing business that can’t get a traditional bank loan, consider microloans. Organizations provide microloans ranging from $5,000 to $150,000, often with more flexible eligibility requirements than traditional banks.
  • Example: A new bakery might secure a microloan after just one year of operation to purchase necessary equipment and invest in marketing to attract more customers.

Alternative Funding Methods:

• Crowdfunding: This approach allows you to raise funds from a large number of people, typically via online platforms. Not only can crowdfunding provide the necessary financial support, but it also serves to validate market interest in your business concept.
  • Example: If you create a new skincare line, you can set up a campaign on platforms like Kickstarter or GoFundMe and offer early backers exclusive products or company perks.
  • Tip: Engage with your crowd by sharing your story and progress updates to keep your backers excited and informed, which can help your campaign succeed.
• Angel Investing: Angel investors are individuals who invest their personal funds in startup companies in exchange for equity or convertible debt. This type of funding is particularly beneficial if you need not just capital but also guidance and mentorship from someone experienced.
  • Example: Suppose you’re launching a tech startup focusing on educational software. You can pitch your idea to local angel investor groups or attend pitch competitions to attract individual angels who have a background in education or technology.
  • Tip: Network with local entrepreneurial groups to connect with potential angel investors who align with your business vision.
    

Alternative Loan Options:

• Home Equity Loans: If you have significant equity in your home, you might consider a home equity loan to fund your business. While this can provide access to necessary cash, it’s essential to understand the risks involved, such as putting your home on the line.
  • Tip: Evaluate the total cost of borrowing, including interest rates and fees, and ensure that your business plan demonstrates a sound strategy for repayment to minimize risk.
    
• Peer-to-Peer (P2P) Lending: P2P platforms allow individuals to lend money directly to entrepreneurs. These loans typically have lower interest rates and fewer requirements than traditional loans but be cautious, as the terms can vary widely.
  • Tip: Before applying for a P2P loan, carefully read the platform’s terms and weigh the advantages and disadvantages.
• Family and Friends Loans: Borrowing from family and friends can be a quick way to secure funding, but it’s vital to handle these transactions professionally. Clearly outline loan terms and repayment schedules to avoid potential tension.
  • Example: If you’re starting a home cleaning business and your sibling wants to help, consider drafting a simple agreement that details the loan amount, repayment timeline, and any interest involved.

Networking and Mentorship

Creating a strong support network is essential for women business owners. Engaging with mentors and fellow female entrepreneurs can provide invaluable guidance, encouragement, and opportunities for collaborative problem-solving. 

How to Secure Mentors:

• Join Professional Organizations: Look for industry-specific groups or associations that focus on women entrepreneurship. These organizations often have mentorship programs designed to connect you with experienced professionals in your field
  • Example: If you’re a tech entrepreneur, consider joining Women Who Code or similar organizations. They offer mentorship opportunities and networking events tailored for women in tech.
• Attend Networking Events: Make it a point to attend conferences, workshops, and networking events. These gatherings provide an excellent opportunity to meet potential mentors face-to-face.
  • Tip: Be prepared with your elevator pitch to introduce yourself and explain your business. This preparation makes it easier to connect with someone who resonates with your goals.
• Utilize Online Platforms: Platforms like LinkedIn and Meetup are fantastic for finding and connecting with mentors. Join groups relevant to your industry or interests and participate in discussions to attract the attention of potential mentors.
  • Example: On LinkedIn, you might find a female entrepreneur in your industry who regularly shares insights. Don’t hesitate to reach out and ask if she would be willing to chat about her career path and provide some guidance.
• Leverage Your Existing Network: Sometimes, your best connections are closer than you think. Reach out to your current contacts—friends, colleagues, or alumni from your school—and ask if they know anyone who would be a good mentor for you.
  • Example: If you’re a recent graduate starting a business, your university’s alumni network could be a valuable resource. Alumni often love to give back and may be willing to mentor someone from their alma mater.
• Be Open and Authentic: When approaching potential mentors, be genuine about your goals and why you admire their work. Most people appreciate authenticity and are more likely to want to help someone who is sincere.
  • Tip: When you reach out, suggest a casual coffee chat (in-person or virtual) to discuss their experiences. This low-pressure approach makes it easier for potential mentors to say yes.
• Stay Engaged and Follow Up: Once you’ve secured a mentor, be proactive in fostering the relationship. Schedule regular check-ins, provide updates on your progress, and always express gratitude for their support.
  • Example: If a mentor helps you prepare for a presentation, follow up after the event to let them know how it went and share what you learned.

Active participation in mentorship-focused networks enables women business owners to develop solid support systems that help navigate the challenges of entrepreneurship. These connections provide essential advice, motivation, and collaborative strategy development, especially when facing setbacks on the path to success. Remember, supporting women-led businesses through these networking efforts is vital for fostering a thriving entrepreneurial community!

Effective Financial Management to Grow Your Business

Effective financial management is a crucial foundation for the success of women-owned small businesses. Mastering key aspects such as budgeting, cash flow analysis, and securing funding is vital for building a sustainable and profitable enterprise.By implementing the strategies outlined in this article, you will take control of your financial future confidently. Arm yourself with the necessary knowledge, wisely utilize available resources, and cultivate strong support networks that can help you overcome entrepreneurial challenges while seizing valuable opportunities.Though the business journey will present challenges, equipping yourself with the right skills and mindset empowers you to transform those challenges into opportunities, making your path to business success not only achievable but excitingly attainable.Start your financial empowerment today by exploring the valuable resources and personalized coaching available through AOFund, designed to help you unlock your business’s full potential.

Frequently Asked Questions:

What unique financial challenges do women small business owners face?

Women entrepreneurs often encounter challenges such as limited access to funding, balancing multiple roles, and navigating industries dominated by men. These challenges can impact decision-making and growth opportunities.

How can I improve my business’s cash flow management?

Improving cash flow management can involve implementing strong invoicing systems, regularly forecasting cash flow, and creating a contingency fund to cover unexpected expenses. It’s also essential to track payments and expenses closely.

What are the benefits of using crowdfunding to finance my business?

Crowdfunding not only provides access to funds but also helps validate your business idea by gauging market interest before launching a product or service. It can also create a community of early supporters who are invested in your success.

How can I effectively build a professional network as a woman entrepreneur?

Start by attending industry conferences, joining women-focused business organizations, and participating in local networking events. Utilizing platforms like LinkedIn can also help you connect with other entrepreneurs and mentors in your field.

What essential documents should I gather before applying for a business loan?

Before applying for a business loan, gather all necessary documentation such as a solid business plan, financial statements, and a clear understanding of your credit score. Research potential lenders and tailor your application to highlight how the loan will benefit your business.

 

In this guide, we will look at different networking options designed specifically for women business owners. From local groups to national conferences, we’ll share tips on how to interact effectively with others, who to connect with, and how to make a strong impression.
Whether you are just starting or trying to expand your network, this guide will help you navigate the networking world with confidence.
Whether you are just starting or trying to expand your network, this guide will help you navigate the networking world with confidence.

Explore more about how to set up a small business network here. 

Different Levels of Networking

Joining local women business owner groups, chambers of commerce, or business meetups can greatly benefit business owners.These organizations offer important support for small businesses and provide valuable resources in your community. Networking in your local area not only helps you become more visible but also increases your credibility as a business owner.

For or additional strategies on networking, check out 10 Ways to Network.For women small business owners, networking is crucial for acquiring customers. In fact, over 40% of in-person B2B meetings lead to new client opportunities. Additionally, 80% of B2B purchasing decisions are influenced by interpersonal experiences, highlighting the significance of strong networking relationships for business success.Engaging with local groups allows you to collaborate with like-minded individuals, learn from peers, and tap into shared resources that can propel your business forward.As you build relationships, you open doors to new partnerships, gain insights into market trends, and discover innovative solutions to challenges faced in your industry. This approach to networking can significantly impact your business’s growth and success.

How to Find Local Networking Opportunities for Women in Your Area

Finding local networking opportunities tailored specifically for women business owners is easier than ever with the power of the internet.

By using Google, you can easily uncover a wealth of resources and events that align with your business goals. To assist you in your search, consider the following Google search ideas:

• “women business owner groups [Your City/State]”
• “local business networking events [Your City/State]”
• “women in business networking [Your City/State]”
• “chambers of commerce [Your City/State]”
• “networking events for web designers [Your City/State]”
• “digital marketing meetups [Your City/State]”
• “information technology networking groups [Your City/State]”
• “content creators networking events [Your City/State]”
• “SCORE chapters near me”
• “NAWBO [National Association of Women Business Owners] chapters near me”
• “local women’s business associations [Your City/State]”
• “business workshops for women [Your City/State]”
• “meetups for women in business [Your City/State]”
• “Facebook groups for women entrepreneurs [Your City/State]”
• “LinkedIn groups for women in business [Your City/State]”
• “Zoom networking for women entrepreneurs [Your City/State]”
• “women in tech networking [Your City/State]”
• “women in finance networking events [Your City/State]”

By trying out these search terms with your city or state added, you can easily discover a variety of networking opportunities that can connect you to resources, mentors, and other business owners who share your passion for growing your business.

For resources specific to women-owned businesses, visit Free Online Resources for Women-Owned Businesses.

Preparing for Effective Networking

Before you dive into networking, it’s essential to equip yourself with the right tools and strategies. Understanding the potential costs, identifying and researching people you want to talk with and learn from, and knowing what to bring to events can significantly enhance your networking experience. This section outlines tips to ensure you make lasting impressions and cultivate meaningful connections that can benefit your business.

• Consider the Cost: Typically low-cost or free, although some organizations may charge membership fees.
• Think About Who You Want to Meet: Consider the specific skills or services that could enhance your business. For instance, if you need a web designer, digital marketer, information technology specialist, or writer, target networking opportunities where you can meet professionals in those fields.
• Know What to Bring: Bring business cards, a notepad, and a pitch about your business to effectively communicate your goals.
• Make a Good Impression: Be approachable, engage genuinely with others, and showcase your personality. Building authentic connections can lead to valuable collaborations.
• Follow Up After the Event: Connect on social media platforms like LinkedIn, send a thank-you note to those you met, and suggest a coffee meeting to deepen the connection.

To further understand the benefits entrepreneurs gain through networking, read 8 Ways Entrepreneurs Benefit from a New Way to Network.

Online Networking for Women

Online networking opens up a world of possibilities for women entrepreneurs. It gives you the chance to connect, learn, and grow your business without the limits of your local area. By joining webinars, online workshops, and forums that focus on women in business, you can meet people from all around the country (or even the globe).One of the best things about networking online is that it makes it easier to connect with a variety of people and ideas. You don’t have to travel or be in the same place as others, which means you can learn from different experiences and viewpoints. By using these online platforms, you can build relationships that might lead to helpful mentorship, new partnerships, funding for your business, or even exciting new business ideas.In short, online networking is a powerful tool that can help you grow personally and professionally while connecting with a diverse community of women entrepreneurs.

• Consider the Cost: Online networking opportunities can range from free (many webinars) to moderate costs (for specialized webinars or memberships).
• Know What to Bring: Ensure you have a strong internet connection and a professional profile. Be prepared to engage with insightful questions and topics for discussion that resonate with the audience.
• Tips for Making an Impression: Actively participate in discussions by sharing your insights and experiences while being supportive and encouraging of others’ contributions. This approach not only showcases your expertise but also demonstrates your collaborative spirit.
• Follow-Up Tips: After the event, connect with other participants on LinkedIn and send personalized messages that address points discussed during the meeting. This can help solidify your newly formed connections.

Online Networking Opportunities

Here are some examples of online network opportunities. 

1. AOFund.org: Access an array of live and recorded webinars tailored to professional development, including topics relevant to women in business.
2. Women’s Energy Network: Join a community of women entrepreneurs and attend various networking events online. This platform offers access to resources and connection opportunities.
3. American Business Women’s Association (ABWA): Join ABWA for networking opportunities, workshops, and webinars specifically designed for women in business.
4. HerCorner: Engage in coaching programs, networking events, and workshops aimed at women entrepreneurs.
5. Mentor: Join and participate in free webinars and meetings aimed at connecting mentors and mentees in various industries.
6. Eventbrite: A popular platform for discovering and hosting events, including numerous networking opportunities for women entrepreneurs, workshops, and webinars tailored to specific industries.
7. Meetup.com: This platform allows users to find and join local groups organized around various topics, including women in business. Discover both in-person and virtual networking events tailored to your interests.

National Networking Opportunities for Women

Going to national conferences for women entrepreneurs is a fantastic way to meet new people and learn things that can help your business grow. At these events, you can connect with other women who are also working hard to succeed.These conferences offer great opportunities to learn new skills and get helpful advice from experienced professionals and industry leaders. You will find workshops, panels, and discussions that provide valuable information to help you on your business journey.Attending these events not only helps you expand your network but also gives you the chance to gather insights that can really make a difference for your business. It’s a great step towards building meaningful connections and gaining knowledge that will support your success.Below are some upcoming conferences to consider:

• National Association of Women Business Owners (NAWBO) Annual Conference
  • Date: Typically in June
  • Where: Typically Washington, DC
  • Description: This annual conference brings together women entrepreneurs from across the country for networking, education, and advocacy.
• Women’s Business Enterprise National Council (WBENC) Annual Conference
  • Date: Typically in June
  • Where: Typically in New Orleans
  • Description: This premier event for women business owners offers networking, workshops, and opportunities to connect with corporate and government leaders.

• U.S. Chamber of Commerce Events 
  • Date: Various events throughout the year, including summits and workshops.
  • Where: Around the United States
  • Description: The U.S. Chamber of Commerce hosts numerous events geared toward small business owners, including women entrepreneurs.
• SCORE Workshops and Conferences
  • Date: Various dates throughout the year across the USA.
  • Where: Around the United States
  • Description: SCORE offers workshops, webinars, and networking events specifically geared toward women entrepreneurs and small business owners.
• American Business Women’s Association (ABWA) National Conference
  • Date: Typically in September
  • Where: Typically in Overland Park, Kansas
  • Description: ABWA’s national conference provides women in business with resources and networking opportunities to enhance their business capabilities.

Understanding the Costs of Networking

It’s important to know how much different networking opportunities will cost you in terms of money and time. Here’s a simple breakdown of various options to help you plan:

Simple Strategies for Effective Networking

To get the most out of networking, it’s important to prepare before going to events. Here are some easy tips to help you connect with others:

Before the Event

• Know Who’s Coming: Research the people who will be attending. This can help you find common ground and start conversations.
• Craft Your Elevator Pitch: Prepare a short and clear pitch about your business. Aim to keep it around 90 seconds and adapt it for different groups (local, national, online) to share your goals effectively.

During the Event

• Start Conversations: Use open-ended questions to help spark conversations. This encourages others to share their stories and experiences.
• Be Interested in Others: Show genuine interest in what others do. Listening to their stories makes your interactions more memorable.

After the Event

• Follow Up Quickly: Reach out to people soon after the event while details are still fresh. Sending a quick message can make a big difference.
• Leverage Social Media: Keep in touch through social media platforms. This helps maintain the connections you’ve made even after the event ends.

By following these simple strategies, you can build meaningful relationships that can help support your business growth.

Tips for Standing Out and Representing Your Business Well

To leave a great impression and represent your business well, here are some simple tips:

• Know Your Unique Value: Understand what makes your business special. This could be your products, services, or your personal story. Being clear about this helps you share your message with others.
• Use Digital Business Cards: Consider using digital business cards or simple one-page documents that highlight your business. These can make it easy for people to remember you and your brand.
• Get Involved in Community Service: Participate in community service or local initiatives that support your values. Showing you care about positive change can help others see the meaningful side of your business.

By following these tips, you can make a lasting impression and connect with others in a way that highlights the strengths of your business.

Building and Maintaining Your Network

To keep your connections strong, here are some simple ways to cultivate your network:

• Regular Check-Ins: Make it a habit to check in with the people you’ve met, whether through a simple message or a coffee chat. This helps keep your relationships strong.
• Share Your Journey: Consider starting a newsletter or a blog where you can share updates and insights about your business. This keeps your connections informed and shows them your progress.
• Engage with Your Network: Stay involved in your network by replying to messages and participating in conversations. Showing that you care strengthens your relationships.

Inspiring Stories of Networking Success

Networking can play a huge role in helping people grow personally and professionally. To motivate others, think about sharing personal stories or examples of women who have gained positively from their networking experiences.These stories show how important it is to build connections. They also highlight how working together with others can lead to amazing results.By listening to these success stories, you can inspire yourself and others to take advantage of networking opportunities. Remember, everyone’s journey is unique, and sharing these experiences can show the true power of connection and collaboration.Here are a few success stories from women featured on Accion Opportunity Fundthat you can draw inspiration from:

1. Innovative Funding Strategies for Entrepreneurs
   
   This article talks about different creative ways to find funding for your business. It includes examples of entrepreneurs who used networking to gain the resources and partnerships they needed to succeed.
2. How to Start a Food Truck: A Comprehensive Guide
   
   This guide shares stories from successful food truck owners, showing how networking helped them tackle challenges and build their businesses.
3. Wing Suite: Embodying Entrepreneurial Spirit and Crafting Company Culture
   
   This article highlights Kartisha Henry, the founder of Wing Suite, who shares her story of overcoming challenges in a male-dominated industry. It emphasizes how networking and community engagement have been pivotal in building her restaurant and a supportive company culture.
4. LipRevolt: Give Back to Your Community Through Business
   
   This piece discusses Courtney Wright, founder of LipRevolt, who created a makeup brand that combines beauty with social activism. It showcases her unique fundraising strategies and how networking, along with education from programs like the FedEx E-Commerce Learning Lab, has empowered her to effectively market her socially-conscious business.
   

Sharing success stories can motivate others to look for networking opportunities. These stories remind everyone that building relationships is crucial for growth in their careers. By showing the real benefits of networking, you can inspire more women to get involved in these important practices.

Unlock Your Business Potential Through Networking

Networking is an important tool for women small business owners. It creates chances for visibility, support, and working together with others. By building strong connections, you can access valuable resources and insights that help your business grow.Take action today—access resourcesdesigned specifically to help you build your business. Embrace the power of networking to elevate your business and build a supportive community that fosters growth and success. 

External financing can be a great way to help you reach your business goals, but with so many different terms, rates, and fees, it can be difficult to compare financing options. So, how much does a line of credit cost, and how does that compare to the cost of a term loan?

Term Loan Vs Line of Credit:Typical Uses

While they are both types of debt capital, lines of credit and term loans have very different uses in small business finance. For a deep dive into the differences between term loans and lines of credit, check out our article: Term Loans and Lines of Credit: What’s the Difference?

In general, lines of credit and term loans are best used for the following small business expenses:

Line of Credit

• Inventory
• Payroll
• Seasonal working capital
• Short term costs

Term Loan

• Equipment
• Real estate
• Start-up capital
• Larger costs
• Longer time needed to repay

Term Loan and Lines of Credit Cost Comparison

Interest rates

, annual fees, principal, and credit scores can make for a confusing time when it comes to comparing term loan and line of credit cost. To help you determine the best financing option for your business, we’ve broken the costs down into a side-by-side comparison.

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What is the Prime Interest Rate?

Prime or the prime interest rate

is the prevailing interest rate that traditional banks charge to customers with excellent credit scores. The prime rate is usually the same as the interest rate set by the US Federal Reserve. If your credit score could use some improvement, you will likely be charged more than prime.

Merchant Cash Advance (MCA)

Merchant Cash Advances or MCA are another common type of business financing. When a small business owner takes out a merchant cash advance, they’re given cash up front, which they repay through a predetermined percentage of their daily debit and credit card sales. This can be a great lending option for businesses with fairly stable debit and credit card sales, but it is also a common vehicle for predatory lending practices. If you are considering a Merchant Cash Advance, make sure you read and understand the terms carefully before agreeing to the loan.

Cost vs Flexibility

All three of these popular loan options have pros and cons that you need to consider before choosing a loan for your business. The chart below helps you consider the total cost of a loan verses the flexibility of it’s repayment terms (i.e. how much and how often you will make payments).

Which is Right for Your Business?

Comparing the cost of term loans and lines of credit can feel a bit like comparing an apple and an orange. If you are considering an MCA as well, the decision can get even more confusing. The best way to decide what is right for your business is to start with what your business can afford in terms of monthly or weekly payments, what the loan will be used for, and what loan terms work best for your business’s financial situation. Once you have that list, you can start comparing it to different financing options to find the best fit for your business.

Financing with Accion Opportunity Fund

If you do decide that a term loan is right for you and your business, consider working with Accion Opportunity Fund. At Accion Opportunity Fund, our goal is not only to help you get the funding and support you need to launch your business, but to help you grow and thrive once you’ve got your foot in the door. Accion Opportunity Fund is a government-regulated, non-profit financial institution with a mission to help small business owners reach their goals. Find out more about our small business loan program and apply online today.

Disclaimer: Average interest rates and typical loan terms can change rapidly, so please thoroughly check with any provider to confirm rates and terms.

Learn More About Business Financing

When it comes to your finances, you want clear guidance and easy to implement tools based on your unique needs. Visit Accion Opportunity Fund. to get started strengthening your financial management and meeting your goals.

Experience a different kind of financial education. Learn with AOF has flexible, on-demand courses developed by small business owners, for small business owners. Learn on your schedule, with no time commitment or limit. Save your progress any time to fit courses into your busy schedule.

If you’ve had trouble getting funding for your business as a female entrepreneur, you’re not alone. While women employ over 9 million Americans and own about 42% of all firms in the US, they only receive about 4% of all conventional small business loan dollars — and only about 2% of venture capital.

Investors, traditional banks, and even some credit unions have historically denied women equal access to business funding, mostly due to unconscious biases and outdated stereotypes. Some women entrepreneurs turn to crowdfunding instead — or keep their fingers crossed for an angel investor — but both these options can come with more uncertainty than traditional loans. The good news is that there’s a growing number of small business loan programs designed specifically for women entrepreneurs, including those who have struggled to secure financing in the past.

8 Best small business loans for women entrepreneurs

Loans are a critical source of funding for small and early-stage businesses. Here are some of the best small business loans for women- and non-binary-led businesses in 2023.

1. Women’s Enterprise Action Loan Fund

The Women’s Enterprise Action Loan Fund (WEALF) helps women entrepreneurs in the New York Tri-State area become financially self-sufficient. WEALF does this by combining no- and low-interest loans of up to $10,000 with one-to-one mentoring. The loans are granted without collateral requirements or personal guarantees, which makes them highly accessible to women and entrepreneurs of color. To apply, you’ll need to fill out a short form on the website.

2. USDA Farm Service Agency

The USDA Farm Service Agency sets aside a portion of all its loan funds for minority and women farmers and ranches. These are then divided into three types of loans:

• 1. Farm Operating Loans: These are loans of up to $400,000 that help finance the cost of operating a farm, including the purchase of livestock and equipment.
• 2. Farm Ownership Loans: These loans, which cap out at $600,000, help farmers and ranchers purchase or enlarge family farms, expand current operations, increase productivity, and assist with land tenure to save farmland for future generations.
• 3. Microloans: These are loans of up to $50,000 that focus on the business financing needs of small farms, beginning farmers, niche operations, and non-traditional farms.

You must be a woman and/or an African American, Alaskan Native, Native American, Latino/a, Asian American, Native Hawaiian, or Pacific Islander to apply for targeted funding.

3. Grameen America

Grameen America

is a nonprofit Community Development Financial Institution (CDFI) that provides microloans to small businesses and entrepreneurs. In April, the organization announced that it will award 8,300 loans to emerging businesswomen — a total endowment of $5 million. The funds will be awarded to applicants from financially underserved U.S. communities between now and 2030.

First-time loans from Grameen American cap out at $2,000, but members become eligible to receive larger loans every six months. While no minimum credit score, collateral, or business income is required to receive a microloan, applicants must live near one of the Grameen America branches to meet the eligibility criteria.

4. The Tory Burch Foundation and Bank of America Capital Program

The Tory Burch Foundation helps women in business overcome obstacles through mentorship, networking, education, and access to capital. It created its Capital Program in partnership with Bank of America to help women entrepreneurs gain access to loans. Here’s how it works: Tory Burch provides funding to various Community Development Financial Institutions (CDFIs), or community lenders that specialize in small business development. The CDFIs then dole out loans between $500 and $100,000 to established businesses, while Bank of America provides each successful candidate with a financial mentor.

To qualify, entrepreneurs must be able to prove that their business is at least two years old, generating revenue, sustainable, and has a satisfactory credit rating. Interested businesses must first complete a pre-screening form on the website. The organization will then reach out to let you know if your credit and revenue are sufficient to apply.

5. Union Bank Diversity Lending

Union Bank’s Business Diversity Lending Program

aims to empower small businesses — including those founded and run by women, minorities, and veterans. While these loan products are essentially the same as Union Bank’s traditional business loans, which provide businesses with financing of up to $2.5 million, the Diversity Lending program offers more flexible credit guidelines. That helps open the door to a wider range of business owners, including those with bad credit.

To be eligible, a business must have been in operation for at least two years, and be at least 51% owned, operated, controlled, and actively managed by a woman, minority, or veteran. Additionally, annual sales of the business must not exceed $20 million.

6. Enrichher

Enrichher

is the only Black woman-owned fintech lender serving minority-owned businesses. Over the last two years, Enrichher has deployed a whopping $14 million in capital to businesses owned by women and people of color. It currently offers direct loans and lines of credit between $10,000 and $250,000 with payment terms of 12 to 36 months. The application process is quick and painless, and successful applicants receive funding within 48 hours.

7. Coralus

The founders of Coralus, believe it’s time to stop forcing women and non-binary folk into existing molds; instead of leveling the playing field, they want to build an entirely new one. The company does this by bringing together “Activators,” i.e. women and non-binary folk from different backgrounds who volunteer to contribute to the cause. Activators donate to what Coralus calls its “Perpetual Fund.” That funding is then loaned at zero-percent interest rates to women- and non-binary-led ventures that will have a positive impact on their communities. Since its founding in 2015 (it was originally called SheEO), the organization has supported 107 ventures with over $7 million in loans from 7,000+ Activators.

To qualify for a loan, your company must:

• Be majority-owned or -led by women, non-binary, gender-fluid, or gender non-conforming people.
• Have generated between $50,000 and $2 million in the US, Australia, New Zealand, or Canada, or between £40,000 and £2 million in the United Kingdom, in recurring revenue, from customers, in the last 13 months with a product or service in the market.
• Be working to create a better world through your business model, product, or service as defined by the UN Sustainability Goals.

8. Accompany Capital

Accompany Capital serves New York-area immigrant, refugee, and underserved entrepreneurs by providing them access to affordable credit, financial education, and training in technology and best business practices. Founded in 1997 (and originally called the Business Center for New Americans), Accompany Capital was created in part to help resettle World War II refugees. Today, the organization has provided more than 4,530 loans totaling nearly $44 million dollars.

Accompany Capital also partners with organizations like New York Women in Business to sponsor and highlight female entrepreneurs. It offers SBA-backed loans ranging from $75,000 to $250,000 to any qualifying small businesses in Queens and Staten Island, and to qualifying immigrant, refugee, and women-owned businesses in Brooklyn, Manhattan, and the Bronx. The loan application fee is $50, and you’ll need to fill out a pre-qualification form before you apply.

Types of small business loans for women

There are several types of small business loan options available to women-led businesses. Some of these include:

SBA Loans

The U.S. Small Business Administration offers a variety of small business loans that, while not exclusive to women-led businesses, can be a fantastic source of funding for women and non-binary entrepreneurs looking for financing. If you meet the criteria, an SBA loan can help cover startup costs for a new business, working capital requirements, real estate purchases, and more. SBA loans often have flexible terms and low interest rates, but your business will need a high credit score to qualify. Some of these loans include:

• SBA 7(a) loans: These include loans of up to $5 million, which can be used for working capital, expansion, and equipment financing.
• 504 loans: The maximum loan amount for these is $5 million. Each loan provides long-term, fixed-rate financing for major fixed assets. You’ll need to prove that those assets will be used to promote business growth and job creation.
• Microloans: For smaller businesses looking for a quick cash injection, the SBA microloan program offers loans of up to $50,000. The actual funds are distributed through designated intermediary lenders.

Bank business loans

Bank loans are usually the first port of call for most entrepreneurs looking for finances. These are your typical term loans that are offered for a certain period of time and come with a specified payment schedule. Bank loans, while quite common, can be difficult to get for women and minority business owners, especially those with poor credit.

Microloans

Microloans

, sometimes called “small-dollar loans,” are short-term loans that max out around $50,000. They’re typically provided to small, for-profit businesses that find it difficult to get financing from traditional banking and financial institutions. Most microloans come with additional support — such as mentoring, training, and networking — in addition to funding. Microloans are most often available through nonprofit organizations, like Accion Opportunity Fund, or groups like the SBA. They have low interest rates and flexible payment options.

Online loans

Generally speaking, “online lender” refers to any lender that doesn’t operate from a traditional bank and conducts the majority of its borrower communications online. Online loans can include business lines of credit, peer-to-peer lending, working capital loans, and merchant cash advances.

The primary benefit of online lenders is the speed with which they grant loans. They also have more relaxed requirements regarding credit scores and financial history. With online loans, you can apply online, be approved within minutes, and receive the cash in your account in less time than it would take to drive to the bank. For this convenience, however, you’ll likely pay higher interest rates.

Tips on getting approved for a small business loan

Getting a small business loan can feel like climbing a mountain, especially if you’re a woman-owned business and have already been turned down by banks and other financial institutions. However, it could just be that you’re missing the right strategy. The key to getting funding is anticipating what the lender wants to see and making sure you give it to them. Here’s what you need to get right to get your small business loan approved.

1. Know the lender’s criteria

There are a few things lenders have in common: they want to know you’ll use their money wisely, make your repayments on time, and hopefully grow your business and cash flow along the way. Each lender also has its own unique criteria.

Some want to support businesses that are making a difference in their communities. Other lenders want to support businesses that have a mission to grow into multimillion-dollar companies. Others still are interested in lifting up only the most underserved entrepreneurs. Carefully read and understand your lender’s criteria before you apply. That way you’ll be able to clearly highlight your relevant qualifications in your application.

2. Get your finances in order

Some lenders will consider your credit or cash flow more closely than others, but all of them will want to take a look at your financials before offering you a loan. Be sure to include your business’s annual revenue and business credit report in addition to your personal credit history. The more information you can give a lender, the easier their job will be — which means they’ll be able to get you the money you need faster.

3. Put together a solid business plan

It doesn’t matter if you’re working with a big national bank or a little Community Development Financial Institution: no one wants to fund a business that isn’t going anywhere. For the lender to buy into your vision, you need to be able to share it in a clear, compelling way. A solid business plan will help you do just that. Be sure to demonstrate your business’s growth so far, as well as your plans for expansion.

Other valuable funding resources for women-owned small businesses

In addition to the loans listed above, there are lots of other resources available to women small business owners looking for financing options. Here are a few to get you started:

• • Women’s Business Centers: This national network of entrepreneurship hubs provides free and low-cost counseling and training to women. Because they work closely with the National Women’s Business Council (a federal organization that advocates for women entrepreneurs) they have a great pulse on national issues facing women entrepreneurs. They also specialize in helping small businesses secure lucrative government contracts.
  • National Association of Women Business Owners (NAWBO): The NAWBO is a dues-based organization that advocates for female business owners. It currently represents 11.6 million women-owned businesses and offers networking opportunities through its local chapters. NAWBO’s website also provides a rich database of online business resources.
  • WomensNet: WomensNet was one of the first online organizations to introduce small business grants for women. They are most well-known for their Amber Grant, which provides $10,000 in funding to one woman entrepreneur each month.
  • Accion Opportunity Fund resources library: Accion Opportunity Fund (AOF) is a non-profit online lender that works specifically with small business owners and entrepreneurs from underserved backgrounds, including women. Our comprehensive resource library includes articles, video trainings, and webinars for women entrepreneurs. Resources are available in both English and Spanish.

Explore women owned small business loans with AOF

At Accion Opportunity Fund, our goal is not only to help you get the funding and support you need to launch your business, but to help you grow and thrive once you’ve got your foot in the door. To that end, we provide a number of different types of loans — including both small-dollar loans and equipment financing loans — specifically designed for women-led businesses and other underserved groups. Each loan is customized to your business’s unique needs and comes with flexible repayment terms. Find out more about our small business loan program and apply online today.

 

SEE OUR LOANS

According to the National Women’s Business Council, there are 13 million women-owned businesses in the U.S, employing 9.4 million workers and generating $1.9 trillion in revenue. Those are some impressive numbers! With that, there are a number of resources out there to help women-owned businesses get equal opportunities for success.

Both governmental and private organizations have demonstrated a commitment to helping women-owned businesses compete in the US market. These groups provide mentoring, employment contracts, education, networking, and even federal contract priority to ensure that women-owned businesses get a fair shake.

While there are a variety of business resources targeted toward women-owned businesses in general, there are additional resources available for women in traditionally male-dominated industries, such as STEM-related fields. Women are beginning to break down barriers and now represent a growing faction of those working in areas such as public works, utilities, construction, engineering, and architecture. Additional resources for funding, federal contract procurement, and education in these areas are especially vital for women so that their presence can continue to grow in these highly technical fields.

These are some of the organizations that offer resources to help women start and run their organizations:

 

Small Business Administration Federal Contracting Program

The Small Business Administration (SBA) is one of the biggest sources of support for women-owned businesses and aspiring female entrepreneurs. The SBA focuses on entrepreneurial recruitment, free education, and the advancement of businesswomen through technical support, funding, and special government incentive programs.

The most innovative program supported by the SBA helps women find gainful employment through accessible government contracts. The Women-Owned Small Business (WOSB) Federal Contracting Program began in 2011 to assist women and women-owned companies in expanding their scope in technically demanding industries.

Under this program, the SBA helps Economically Disadvantaged WOSBs (EDWOSBs) get improved access to technical industries, where women have been historically underrepresented. Under federal law, a certain number of contracts are set aside for qualified EDWOSBs, so they’re there for the taking if you meet the SBA’s requirements. WOSB has helped to level the playing field for women in the STEM sectors and promote their advancement in male-dominated business realms.

 

Women-Specific Grants and Loans

One of the most important things a small business owner needs to do at the outset is secure financing. Without proper funding, a small business will never get off the ground. The numbers show that men are more likely to receive funding, such as loans and equity funding than women (38% vs. 30%).  That’s discouraging, but the good news is that there are specific programs available exclusively to female entrepreneurs. For example, there are a variety of grants available for women in business.

One of the most impactful sources of funding for women in business is the SBA’s Women-Owned Business Program. A business that is 51% owned and controlled by women will have access to federal funding in the form of special grants and loans, as well as priority access to federal contracts in over 80 STEM-related industries. Regional SBA offices can help you find out the options available for your women-owned company. Contact your local SBA here for more details.

 

Additional Small Business Funding Options

Of course, the SBA provides loans to all small businesses, not just women-owned companies. Below are additional options to consider when funding your own business:

The 7(a) Loan Program is intended for small business owners to fund their start-up or run their existing businesses.

Microloans are generally smaller business loans. They typically have a maximum loan amount of $50,000 but the average microloan is a more manageable $13,000. These loans are intended to help small businesses with smaller start-up costs or ongoing business costs, such as inventory, business supplies, payroll, leasing, or working capital. Each lender has different restrictions on their loan programs, so it’s best to check with your lender to check what your loans are designated for.

The CDC/504 Loan Program allows businesses to purchase real estate or business equipment, so the business can build capital and credit while acquiring fixed assets. This is an excellent option for a brick-and-mortar shop.

Disaster Loans are designed to help a business rebuild after suffering a catastrophic loss from a natural disaster. These loans are for emergency use only, and not intended to fund a start-up business.

Loan programs offered specifically to small businesses generally provide more lenient qualifying terms, as well as some flexibility for loan repayment parameters. Researching available small business lenders and different programs makes you an informed consumer, so take your time with this all-important decision to ensure you are apprised of all the obligations as a lendee.

 

Women’s Business Enterprise National Council (WBENC)

WBENC

provides women-owned companies with support in the form of mentorships, scholarships, and advocacy. Their mission statement is “to fuel economic growth globally through access to opportunities, by identifying, certifying, and facilitating the development of women-owned businesses.”

In addition to providing business development resources as the top advocate for women-owned businesses, the WBENC boasts that they are the largest third-party certifier of women-owned businesses. The certification includes a formal assessment and a site visit to validate that the business is at least 51% women-owned. Many of the other programs that offer women-specific resources require this kind of certification in order to qualify for their programs. In other words, that certification can put you in line for special business opportunities, grants, and contracts.

Certification can be provided by any of the council’s fourteen regional partners. For more information, check out the WBENC site for details on their specific programs.

 

U.S. Women’s Chamber of Commerce (USWCC)

USWCC

is an independent organization that provides resources and advocacy for women business owners. The Women’s Chamber can also provide qualifying companies with WOSB certification so the company can pursue women-targeted opportunities and federal contracts.

Aside from resources and certification, the Women’s Chamber also plays an important advocacy role for women’s rights in the business world. USWCC was involved in litigation against the SBA for failure to adhere to federally mandated set-asides for women-owned contracts. The Women’s Chamber prevailed in their suit and ensured that federal set-asides would continue to help women-owned businesses grow.

Years before the set-aside litigation, the USWCC supported the Lilly Leadbetter Act, which provided for equal pay for men and women in the workplace.

 

National Association of Women Business Owners (NAWBO)

NAWBO’s

private, membership-based organization focuses on networking amongst members within its 60 national chapters. Aside from networking opportunities, NAWBO also provides online educational resources and discounts which can be used for business costs. This organization focuses on connecting women in business with each other so they can meet and learn from others with similar entrepreneurial experiences and support each other’s ventures.

NAWBO memberships are split into four distinct categories ranging from student-level membership to an established, active entrepreneur membership level. Application costs vary by level of membership so you can get involved even if you’re just starting out and have limited resources. Interested prospective applicants can find more information about the process and membership levels here.

 

The Bottom Line

Women have been making their mark on the business world for years. The number of women-owned businesses continues to grow as female entrepreneurs seek to make their mark. Meanwhile, women continue to join the ranks of the STEM industry in record numbers. However, women are still fighting an uphill battle for recognition and equal opportunities in the business world. These resources can help level the playing field.

Next Article: Free Online Resources for Women Owned Businesses

You know you need money to start a business. And access to loans, investor backing, or grants for funding are especially important for women-owned businesses. The sad reality is that women have a harder time securing business loans or investors than their male counterparts. This funding challenge is even more pressing for minority women.

Microlenders offer an affordable way for women-owned businesses to secure competitive rates on loans so they can get up and running. Better yet, microloans are not just a smart option for business funding. Many of these loan programs also provide lendees with mentoring and business resources to help give fledgling businesses what they need to succeed from the outset.

What is a microloan?

Microloans are designed to provide funding to women, low-income, veteran, and minority entrepreneurs and small-business owners who find it difficult to get access to capital through traditional banks. They’re essentially specialized business loans available through nonprofit, community-based organizations. These loans generally have a maximum borrowing cap of $50,000, making them affordable for new businesses.

While loan terms and interest rates can vary significantly between lenders, interest rates usually range between 2.25% and 18% unless the borrower is extremely high-risk. The term length is generally in the three- to six-year range, and the average microloan offered by the U.S. Small Business Administration is about $13,000.

The overarching mission behind microloans is providing qualified small businesses with start-up funding, as well as mentoring, training, and education. It’s not just about getting a business off the ground — it’s about setting it up for success.

How do microloans work?

Microlending works much the same way traditional lending does. With a microloan, you borrow a lump sum of money — typically a lower amount than you would through a bank or traditional lender — and pay back the amount with interest via regular payments.

To take out a microloan, you’ll have to find a microlender. Most of the time, this will be a nonprofit community organization or a similar group. However, the U.S. government also runs microloan programs. One of the biggest microlenders is the U.S. Small Business Administration.

Another option is the USDA microloan program, also referred to as FSA (Farm Service Agency) microloans. These serve the needs of agricultural operators such as young farmers, farmers in the midst of starting new operations, and nontraditional agriculturalists.

What can microloans be used for?

Microloans aren’t exclusively for startups. Entrepreneurs can also use microloan funding to give their businesses a financial boost as they work to expand current operations.

Qualifying entrepreneurs may use microloans for:

• working capital
• business leases
• paying employees
• business office supplies and costs
• insurance
• business licensing fees
• continuing education
• purchasing inventory

Certain microlending programs do have clearly delineated restrictions. It’s important to first speak to your lender and review how you plan to spend the funds to ensure you’re compliant.

The need for small business loans for women

It has been said that startup investors often ask male entrepreneurs how they will promote success and female entrepreneurs how they will avoid failure. Those questions veil some serious internal biases that contribute to the gender gap in funding allocation. According to recent data, only $1 out of every $23 in conventional small business loans goes to women entrepreneurs.

The result of that discrimination is stunted growth for a significant number of promising new businesses — a problem that costs the U.S. nearly $800 billion each year. Perhaps the 2019 State of Women-Owned Businesses Report (commissioned by American Express) puts it best: “The potential of women entrepreneurs for spurring economic growth has not been fully realized.” Microlending is considered one way to bridge the funding gap and give women the capital they need to succeed.

Key findings for women-owned small businesses

Among other key findings, the American Express report demonstrates that women, particularly women of color, are launching new businesses faster than any other demographic. Over the past five years, the growth rate of women-owned businesses clocked in at 21%, in contrast to a 9% growth rate for businesses overall.

However, the report also shows that women’s share of funding still lags far behind that of male entrepreneurs. Not only that, but this revenue gap has actually increased in recent years. In 2019, women-owned businesses generated just 30 cents for every dollar generated by a privately owned company. (In 1997, that ratio was 37 cents to the dollar.) Furthermore, the report states that women-owned businesses in 2019 “averaged earnings of $142,900 compared to $474,900 for all privately held businesses and $1.4 million for all firms.” That’s a significant difference.

THE GENDER GAP IN SMALL BUSINESS LOANS FOR WOMEN: BY THE NUMBERS

Though these trends reflect a complex set of financial and societal patterns, access to and utilization of funding opportunities likely play a key role in perpetuating the existing disparities. SCORE’s Megaphone of Main Street: Women’s Entrepreneurship Report reveals several notable statistics related to funding of women-owned businesses:

• Men are more likely to seek out financing for their businesses (in 2018, 34% of men sought financing for their businesses compared to 25% of women).
• Men were also more likely to succeed in obtaining funding, including loans and equity funding (38%, compared to 30% of women).
• Women relied more heavily on credit cards (46% of women compared to 39% of men) to fund their business ventures.

Securing microloans for women

Encouragingly, there is some preliminary evidence to suggest that women are receiving their fair share of microloans, with 57.4% of the SBA Microloan program’s loans going to women-owned businesses.

A new report from the Female Founders Forum — a partnership between The Entrepreneurs Network think tank and the Barclays bank in the UK — also provides some hope. The report shows that female-founded, equity-backed businesses have now closed the gender funding gap in GreenTech. Female representation within GreenTech businesses is also now higher on average than in other sectors.

However, many industries still have a long way to go, and microloans could help them get there. That’s because many women-led businesses are small, and traditional lenders are less willing to take a chance on very small operations. Microlending, however, helps provide loans in small, manageable chunks that help new business owners develop the confidence and credit they might need to get the ball rolling. Today, women make up more than 70% of microfinance clients worldwide.

Am I eligible for a microloan?

Every microlender has its own criteria and requirements for loan eligibility. However, most are designed to make it easier for startups and early-stage businesses to qualify. While some microlenders require a minimum credit score and a detailed business plan, others ask for nothing more than the last three years of accounts and proof of cash flow.

Some microloans are only available for certain markets, industries, or geographical areas. Others are designed to provide business financing specifically for women, entrepreneurs of color, or immigrants.

If you meet a microloan’s specific criteria, there are typically only two things your lender wants to know:

1. Can you repay the loan?
2. Does your business have the potential to grow?

Your loan application will, therefore, be judged on the following:

• Your credit score
• Available collateral
• Proof of revenue and/or steady cash flow
• Background check
• Your comprehensive business plan
• How you plan to use the money

How do I apply for a microloan?

You can find microloans from a range of community development and nonprofit organizations, including Accion Opportunity Fund, LendingClub, Upstart, Kiva, and Funding Circle. The U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA) also offer microloans.

Each institution has its own application process. In the case of an SBA loan, for example, a small business must meet with an intermediary lender to apply for a microloan. Many institutions will allow for the applications to be made online.

To apply for a microloan, you’ll need to follow these steps:

1. 1. Find a lender and read the requirements

Research lenders, specifically in your geographical region, and look through their eligibility criteria to see which ones you can apply for. Make sure you understand the type of loan offered and the repayment terms.

1. 1. Complete your paperwork

To streamline the process, first gather all the documents you need. These include LLC documentation, your IRS Employer Identification Number (EIN), business licenses, bank statements, details of employees, annual revenue, and your credit report.

1. 1. Draw up a comprehensive business plan

Lenders want to know how your business will make money. Make sure you have a detailed business plan that lays out the type of business you run and how you plan to grow it.

1. 1. Calculate the loan amount

How much money will you borrow to meet your business needs? How do you intend to use it? Put together a general plan for spending.

1. 1. Identify collateral, if any

If you’re going to be offering business or personal collateral — or having someone provide a personal guarantee — get those details finalized so you can present your plan to your lender.

1. 1. Apply

You’ll need to fill out a separate application for each institution and microloan. Some providers will ask you to come talk in person, which gives you an additional opportunity to share your strengths and talk about your business potential.

Tips on getting approved for a microloan

Getting approved for a microloan is all about making sure your application simplifies the lender’s credit decisions. Here are some things to keep in mind.

Submit a complete application

To speed up the process, be sure to provide all the necessary documentation on your first go. Remember that your goal is to prove that you have a business that’s growing and will be able to repay the loan. Proving that you’re organized and on top of things can go a long way toward securing your lender’s confidence.

Submit a business plan

Even if your lender hasn’t specifically asked for a business plan, it can be helpful to submit one. Lay out how you plan to take your newly formed startup to a fully operational company, both in the short term and over the long haul. This gives prospective lenders the confidence to back your business.

Get your financial documents in order

When you apply for a loan, lenders will want to know your current financial situation, your creditworthiness, and your business’s profitability. While a good business credit score is helpful, it’s not always necessary. If you have no credit history, financial institutions can often look at your personal credit history and savings accounts instead.

Guarantee the loan

Many — though not all microlenders — ask borrowers for some form of collateral to secure the loan. This is especially true if you don’t have much credit history. Both business or personal assets, such as real estate holdings, can serve as collateral.

Find out if a microloan is right for you

While financial equality has come a long way in recent history, the playing field is still far from level. The good news is that even if traditional lenders aren’t willing to back your business, you still have options. Microloans can help traditionally disadvantaged business owners, such as women, veterans, or minorities, secure the funding they need to help their businesses thrive.

To find out if applying for a microloan is the right choice for your small business, visit Accion Opportunity Fund’s interactive webpage. For comprehensive information on government grants, educational programs, and networking opportunities available to women entrepreneurs, visit Resources for Women-Owned Businesses.

Thank you to the Coca-Cola Foundation for supporting Accion Opportunity Fund in expanding economic opportunity for women business owners.

 

View Resources!

None of us go into entrepreneurship knowing absolutely everything we need to succeed. We have an idea, motivation, and ambition, but we may not know much about bookkeeping or supply chain management, or regulatory compliance. And that’s okay. All of those are skills that you can learn or manage. Better yet, you no longer have to go to school to get that information. In the age of the Internet, almost everything you need to know is just a few clicks away. Tutorials, networking tools, professional memberships, applications for loans and grants, and more are all available online. And many of these valuable resources are free! These are our top picks for the best free online networks, communities, educational tools, and resources for women-owned businesses.

1. Office of Women’s Business Ownership

The Small Business Administration’s (SBA) Office of Women’s Business Ownership heads up the national network of Women’s Business Centers (WBCs). These government-supported centers number almost 100 nationwide. Each center provides women business owners with training, education, and support for their entrepreneurial aspirations. According to their website, “WBCs seek to level the playing field for women entrepreneurs, who still face unique obstacles in the business world.”

The WBC offers tons of great online resources on everything from basic bookkeeping skills to managing a commercial lease to handling employment issues.

2. Women Entrepreneur

Entrepreneur magazine is a rich resource of current business trends, resources, and news. Women Entrepreneur is their online section catering to the relevant topics impacting women entrepreneurs.

Sadly, women-owned businesses are still at a disadvantage compared to male-owned businesses. This resource can help you navigate the issues that are specific to women-owned businesses (like the fact that it’s harder to get traditional loans and other funding) and figure out ways to level the playing field.

3. Mompreneur Center

Another great resource is Entrepreneur magazine’s  site for “mompreneurs.”  Articles on this site covers topics ranging from work-life balance to business ideas to success stories from moms who are making their own entrepreneurial dreams come true.

Starting your own businesses can give you the opportunity to work from home or otherwise be more flexible with family time – and that’s really valuable! However, it’s not something you’re going to learn in school or in a traditional workplace. Balancing kids and a business is hard and this is a great place to look for tips on how to make it all work together.

4. The Women’s Venture Fund

This nonprofit focuses on developing businesses in underserved and urban communities. The Women’s Venture Fund supports diversity in business by offering both funding and business advice to women entrepreneurs in urban areas.

Women-owned businesses are already at a disadvantage compared to their male-owned counterparts and the difference is especially severe in urban and minority-dominated areas. The Women’s Venture Fund offers helpful information on available funding and opportunities in your area.

5. Women’s Business Enterprise National Council (WBENC)

Certification as a women-owned company can help small businesses compete for contracts and funding. The WBENC helps women business owners certify their businesses so they can have greater business opportunities. This organization has a broad national reach as well as a full roster of valuable contacts.

You can register on their website and use that certification to help you qualify for grants and other opportunities.

6. National Organization of Women Business Owners (NAWBO)

The National Organization of Women Business Owners shares articles, resources, and links through their online database. This is generally advised by women entrepreneurs for women entrepreneurs, so their tales from the trenches can give you a really good sense of what you’ll need to do to make your business successful.

Those resources are free, but you also have the opportunity to pay a small yearly fee to get access to in-person events and other benefits.

7. American Business Women’s Association (ABWA)

The American Business Women’s Association provides leadership, education, and networking support. Their site provides free links to news, trends, social media updates, and job postings. This organization also focuses on women’s social issues and outreach impacting female entrepreneurs.

This is a great place to go if you’re interested in developing practical, relevant business skills. They “encourage all national members to practice business skills like public speaking, facilitating a meeting, marketing, selling or writing a business plan by participating in a local ABWA group in their community.” Member meetings are held each month. According to their site, more than “15,000 business/networking meetings are hosted each year in more than 300 cities across the nation.”

In addition to the free resources, you have the option to pay a small fee to attend in-person conferences and networking events.

8. Women’s Home Business

Women’s Home Business

aggregates trending topics pertinent to women entrepreneurs who own or want to start up home-based businesses. The resources highlight a range of topics – from success stories to home business ideas to career tips – for the female work-at-home entrepreneur. The site also provides links to specific woman-at-home business ideas.

Take Advantage of These Great Resources

Women entrepreneurs are making their mark on the face of business. One of the toughest parts of starting up a new business is learning the ropes and educating oneself. The Internet is rich with free, valuable content for female entrepreneurs and women-owned businesses. In fact, many organizations and websites exist solely to help women get ahead in the world of entrepreneurship. Start with our curated list and then branch out from there on relevant topics to help you start up, run, or expand your women-owned business.

Thank you to the Coca-Cola Foundation for supporting Accion Opportunity Fund in expanding economic opportunity for women business owners.

 

Next Article: 5 Grants for Women Owned Businesses

The number of women-owned businesses is skyrocketing, and that number is expected to continue to grow. According to the 2019 State of Women-Owned Businesses Report, in the period from 2014 to 2019, the number of women-owned businesses increased by 21% for a grand total of nearly 13 million, with revenue also rising 21% and totaling $1.9 trillion.

Perhaps even more significantly, that same source found that the annual growth rate in the number of women-owned firms was double that of all other businesses. As of 2021, women-owned businesses employed more than 10.1 million people.

Like any start-up, women-owned businesses need capital. You can go through traditional bank loans or other types of lenders, but you also have another option: grants.

Why are grants important?

The reality is that even the most innovative and well-thought-out business ideas won’t come to fruition without adequate financial backing. Lack of capital can tank a start-up or prevent a sophomore business from taking off and expanding. Unfortunately, data indicates that women entrepreneurs may have difficulty qualifying for traditional small business loans, and when they do, the funding may be less generous than that received by others: according to Biz2Credit’s 2020 Women-Owned Business Study, the average amount of funding provided to women entrepreneurs is 33% less than what their non-women-owned business counterparts receive.

This is where grants come in. Instead of a traditional loan, which you have to pay back with interest, grants are more like gifts. If you qualify, you get the money and you don’t have to pay it back. Grant funding can be a great opportunity for women who have challenges qualifying for traditional funding and present opportunities to compete in the entrepreneurial playing field.

How grants work

Grants are obviously preferable to loans since they’re basically free money. Of course, it’s not as simple as asking and receiving. The application process can be long and intensive and often involves a significant waiting period. You’ll also have to meet specific requirements to qualify.

Grants exist in many forms, from federal grants to state grants to grants funded by private organizations, non-profits, or charitable foundations. The grantor (the entity dispersing the grant funds) will determine the qualifications and stipulations of the grantee (the person or organization receiving the money).

Many experts advise women-owned businesses to start researching grants at the state level. The requirements for state grants may not be as stringent, and more options may exist than with federal funding. Each state will have a state website with a business section detailing available small business grants for women entrepreneurs and minority businesses. Many states also have grant programs for women-owned businesses in traditionally male fields, like construction. So, start with your state’s website and check out what options are available.

11 Grants for Women-Owned Businesses

As we mentioned, there are lots of grants available for women entrepreneurs at every level of government and in the private sector. In addition to checking out those options, make sure to take a look at these 5 grants. They’re some of the best available and if you qualify, they can make a huge difference in your business.

1. FedEx Small Business Grant

FedEx awards grants of up to $50,000 to several winners of their annual FedEx Small Business Grant. There are gold, silver, and bronze winners – who also receive various FedEx business products to supplement their prize winnings. Entry for the grant money requires a business plan, business description, and photos and video (optional) of your intended business goals. To read about previous FedEx Small Business Grant winners, visit here.

Accion Opportunity Fund also partners with FedEx through the FedEx E-Commerce Learning Lab. The program is designed to help diverse small business owners, primarily women and people of color, who are looking to develop or expand their e-commerce operations as they continue to adapt their business models in the wake of COVID-19. Recipients get a $5,000 business grant to support their e-commerce growth plans. They also gain access to immersive e-commerce courses and workshops, coaching from industry experts, networking with fellow entrepreneurs, and online sales support and order fulfillment assistance. Applications are currently closed but you can check the website for future rounds.

2. The Amber Grant Foundation

The Amber Grant Foundation started in 1998 with the mission of giving grants to women entrepreneurs. Today, the Amber Grant Foundation offers a $10,000 grant to one women-owned business each month. At the end of the year, one of the monthly grant awardees will receive a larger grant amount (to the tune of $25,000!) to fund her business.

The board selects the winners of the grant and rewards those who demonstrate both strong entrepreneurial ideas and passion for their business ideas. To view past recipients, visit here.

3. National Association For The Self-Employed Growth Grants

The National Association for the Self-Employed (NASE) is a nonprofit organization focused on providing tools and resources to entrepreneurs looking for assistance with running businesses successfully. In addition to a wide variety of members-only resources, NASE offers business development grants, called Growth Grants, of up to $4,000. These grants can be used for “marketing, advertising, hiring employees, expanding facilities and other specific business needs.”

In order to apply for a NASE growth grant, you must be a member in good standing, demonstrate that the grant could fulfill a business need, provide a detailed explanation of how you would use the grant funding and how it would increase your business success, and submit supporting documents (e.g., a business plan). To learn more about recent NASE grant recipients, visit here.

4. Cartier Women’s Initiative Award

The Cartier Women’s Initiative is an annual international entrepreneurship program that was founded in 2006 with the goal of empowering female entrepreneurs. The program is open to women-run and women-owned businesses from any country and sector that focus on sustainability and/or the environment.

Awards are across 10 regions with three grants awarded per region. The prize for the first place award is $100,000, the second place award $60,000, and the third place award $30,000. Winners also receive one-on-one expert coaching, business workshops, and media coverage.

The Cartier Women’s Initiative has distributed a total of $6,440,000 in grants so far to fellows in 62 countries. To meet the eligibility requirements for this award, you must own or run a for-profit business, be in the early stages of development (between one and five years), and meet at least one of the United Nations Sustainable Development Goals.

5. Tory Burch Foundation

The Tory Burch Foundation runs an annual Fellows program for women entrepreneurs. The 50 selected fellows receive a one-year fellowship, including a $5,000 grant to advance their business education, access to an online community to connect and collaborate with other founders, and a trip to the Tory Burch offices in New York City.

In addition to being majority women-owned, qualifying businesses must be U.S.-based, for-profit, early-stage (1-5 years), and generating revenues of a minimum of $75,000. Applications for the program open in the fall and there is no application fee.

6. Visa Global She’s Next Grant Program

The Visa Global She’s Next Grant Program is a collaboration between Visa and IFundWomen to create access to funding and education for women-owned small businesses around the world. Various global or regional programs are launched throughout the year, many of which offer monetary grants, coaching, and memberships. So far, the program has given out $1.6M in funding to women who own businesses through 149 business and 159 coaching grants.

Keep an eye on the She’s Next Grant Program website for new opportunities to become available.

7. Dream Big Awards

The Dream Big Awards are presented by the U.S. Chamber of Commerce to highlight and celebrate the best American small businesses. The winner of the Dream Big Small Business of The Year award gets a $25,000 cash prize, a one-year Chamber of Commerce membership, a promotional video about their business played during the awards ceremony, and a feature article in CO magazine. There are additionally eight other awards, which include Minority-Owned Business Achievement Award, LGBTQ-Owned Business Achievement Award, Woman-Owned Business Achievement Award, and Community Support and Leadership Award.

To qualify, applicants must be for-profit businesses operating for at least one year, primarily within the United States, and have less than 250 employees or have gross revenues of less than $20 million for each of the two previous years.

8. Women Founders Network Fast Pitch Competition

The Women Founders Network Fast Pitch Competition opens every year to early-stage, women-owned businesses with high growth potential. The company must have a founder/co-founder/CEO who is a woman or the business must be majority-owned by a woman. In addition, the business must be based in the United States with no more than $750k in outside funding, including personal cash funds. Judges select the five top finalists who pitch their companies in a way that appeals to Angel and VC investors for the chance to win more than $55,000 in cash prizes and over $100,000 in professional services.

9. Digitalundivided Breakthrough Program

Digitalundivided is a nonprofit and social startup that develops innovative programs and initiatives with the goal of creating economic growth in Latina and Black women communities. Their BREAKTHROUGH program, in collaboration with JPMorgan Chase’s Advancing Black Pathways, “provides founders with a deeper understanding of their customers, startup funding, growth marketing strategies and networking opportunities to scale their ventures.” Each company accepted into the program receives a $5,000 grant.

To be considered, founders must:

• Identify as a woman.
• Identify as Black or Latina (or both).
• Have a business that’s been registered for at least a year.
• Have majority ownership of an established business with traction.
• Have a technology component incorporated in business (website or mobile app).
• Generate a minimum of $50,000 annual business revenue.

Applications are opened on a rolling basis for specific cities. Check their website to find out what city cohorts will be based next.

Where to find more business grants for women entrepreneurs

1. Grants.gov

Grants.gov

is the best resource available to locate government grants. The grants available through this webpage span a variety of different agencies and offer numerous opportunities. However, small business grants may be more challenging to come by through the government. Still, it is worth browsing through the available offerings in order to determine if you might qualify (and to be sure you understand the guidelines and requirements of each).

2. Small Business Development Centers (SBDC)

It can be a little overwhelming to search through all the potential grants available to you, so the SBA has set up Small Business Development Centers (SBDC) all over the country to help you figure out what grants are available for women entrepreneurs. While the SBDCs don’t actually offer grants, they do offer meetings with local advisors that have comprehensive knowledge of the grants in your area and nationally.

For more info and contact information of your local SDBC, visit this resource.

3. Grantsforwomen.org

Founded in 2002, Grants For Women helps small business owners, primarily in the United States, Canada, the UK, Australia, and South Africa, find and research grant opportunities. The grants differ in scope, region, qualifying criteria, and amount, based on the institution offering them.

Grants for Women provides this resource with the mission of empowering, educating and enabling women to accomplish their goals in the fastest way possible. The website collects the various opportunities into an easily searchable database and it’s an excellent place to start your search for women-focused opportunities. It should also be noted that the database is not business-specific, though many of the grants on the platform cater to female entrepreneurs and startup founders.

4. Ifundwomen Universal Grant Program

While IFundWomen offers several grant programs in collaboration with various partners (such as the VIsa Global She’s Next Grant program mentioned above), the organization also maintains the excellent IFundWomen Universal Grant Application (UGA) database, which stores your information and notifies you of any grants for which you qualify.

5. Women’s Business Centers

The U.S. Small Business Administration has over one hundred Women’s Business Centers (WBCs) that are part of a national network of entrepreneurship centers throughout the United States. The WBCs “provide free, to low-cost counseling and training and focus on women who want to start, grow, and expand their small business.”

While the WBCs don’t offer grants or SBA loans, they can help you identify grants and small business loans in your local area. They also provide networking, training, technical assistance, and mentorship, as well as workshops to help with all aspects of business development.

The SBA also helps level the playing field for women business owners by making certain federal government contracts available to economically disadvantaged women-owned small businesses through the Women-Owned Small Business Federal Contracting Program (WOSB Program). This is typically in industries where women are underrepresented, such as forestry, construction, HVAC, and manufacturing.

If you need funding to develop technology and chart a path towards commercialization, it’s also worth looking at the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

6. Minority Business Development Agency (MBDA)

The Minority Business Development Agency is the only federal agency solely dedicated to the growth and global competitiveness of minority business enterprises. While the agency itself doesn’t give out grants directly, it does organize grant competitions every year that are funded by angel investors. The MBDA offers advice on how to find these grants and how to apply on its website.

7. National Women’s Business Council

The National Women’s Business Council is “a non-partisan federal advisory committee serving as an independent source of advice and policy recommendations… on issues of importance to women business owners and entrepreneurs.” One of their biggest areas of focus is access to capital and opportunity for small women-owned businesses, which the NWBC recognizes remains the largest barrier to market entry and success for female founders and women-owned firms. The council offers business mentoring to its members through resources such as webinars, public meetings, and virtual roundtables.

The Bottom Line

Loans are a classic way to fund your business and build credit, but grants can help fill in any gaps. Unlike loans, grants don’t have to be repaid, which means they can help provide capital without adding to the burden of your business debts. In addition, many women-owned businesses find that it’s harder for them to get traditional funding opportunities than for their male counterparts, which can make grants for women entrepreneurs an even more critical source of funding.

Before you commit to a loan, consider checking out the grants available to you. If you’ve considered all your grant options and still need capital, consider a small business loan from Accion Opportunity Fund.

Explore AOF’s business loans

Women-owned small businesses are vital to the US economy as well as the health of local communities. In fact, women are founding businesses at double the national rate. That means there are a lot of resources out there to help all you women entrepreneurs achieve your dreams!

Small Business Majority, Accion Opportunity Fund, and women’s business organizations across the country hosted a Women’s Small Business Month webinar for women entrepreneurs. Featured speakers include Felena Hanson, founder of HeraHub, and Dina Grossman, Co-Owner of Spinning J. Check out this webinar that provides education and resources on issues impacting women entrepreneurs, including access to capital, marketing and building a scalable business.

 

 

There are a number of organizations that seek to specifically help women-owned businesses out. In this article, we’ll take a look at the programs offered by the Small Business Majority, Accion Opportunity Fund, and the government. Check out some of the resources they offer that can help your business succeed!

 

Small Business Majority

Small Business Majority is an education and advocacy organization founded and run by small business owners. They have nine locations across the country and offer programs to help women-owned businesses get financing, business education, and more. They also publish the Small Business Monthly, which focuses on vital day-to-day issues affecting small businesses, including access to funding, workforce, healthcare, taxes, and other key issues.

Here’s a quick look at a couple of the programs they offer for women entrepreneurs – click on the links for more detailed info!

 

• In-Person and Online Events: Small Business Majority offers a variety of presentations in both in-person and online formats to assist business owners and entrepreneurs, including women, on current issues and policy considerations in the world of business. Topics include access to capital, healthcare, retirement/asset building, and workforce/employment issues. Visit here to learn about upcoming events.
• Venturize.org: Venturize, a free resource hub managed by Small Business Majority, helps small business entrepreneurs navigate the funding landscape, which can be complicated and tough for new entrepreneurs to break into, by offering unbiased education and resources. The portal helps women entrepreneurs connect with funding sources and programs so they can get the capital they need to get started or grow.

Accion Opportunity Fund

Accion Opportunity Fund supports small business owners during every phase of the entrepreneurial process. One important focus of AOF is to connect small business owners with needed funding to get their businesses off the ground. AOF’s lending arm Opportunity Fund provides funding in the form of microloans; which are often easier for small business owners to qualify for than traditional bank loans. These microloan programs have enabled thousands of new business owners to take the plunge as CEO of their own small companies. In particular, AOF does a lot of work with women-owned businesses and minority-owned businesses, which often have a harder time getting funding than other startups.

AOF also provides business resources, education, and workshops and events to its entrepreneurs. AOF supports all small businesses but is invested in expanding, supporting, and funding the role of women, veterans, and minority groups in the entrepreneurial field.

 

Government Programs

The federal government offers some programs aimed at supporting small businesses. Some of the most important programs are the set-aside programs, in which the government dedicates a certain percentage of its contracts to small, private businesses. Some of those programs are specifically aimed at minority- and women-owned businesses.

 

Who Runs The World?

Women entrepreneurs are the key drivers of US entrepreneurship today. Women are starting up businesses at two times the national rate. And many of these women-owned businesses are headed by women of color. In fact, in recent years, the number of businesses led by women of color has grown by up to 300%.

With a plethora of tools and resources available to become an entrepreneur, it’s never been easier to start your own business. So if you’re on the fence, know there is plenty of help to get you started. And if you feel so inclined, take the plunge and start your own business today!

“When you welcome opportunity, it tends to lead to new, better and exciting things that result in even more opportunities.” – Amanda Greenberg

 

Just fifty years ago, the idea of a female entrepreneur heading up her own company would have seemed ambitious at best. Today female entrepreneurs are not only recognized in the work force, they’re starting and leading their own companies in record numbers.

Female entrepreneurs are finding cures for cancer, redefining the media industry, inventing the next big things, and revamping the ever-evolving world of technology. They’re taking aim at the proverbial glass ceiling – and they’re climbing through.

Check out these powerful female entrepreneurs and learn how they’re taking the business world by storm, one extraordinary accomplishment at a time. You may be inspired to create your own entrepreneurial success story!

 

1. Female entrepreneurs may hold the key to the future of our economy.

According to the Women Business Enterprise National Council, female entrepreneurs own 40% of all businesses in the U.S. And that number seems to be steadily climbing – the number of women-owned businesses has increased by an enormous 114% since 2000.

It’s clear that female entrepreneurs are making lasting contributions to the American business landscape in record numbers. Experts in financial policy and corporate growth are recognizing that female entrepreneurs are poised to boost economic expansion in a major way. Female entrepreneurs have become a vital, essential part of the U.S. economic health and the nation’s prosperity.

 

2. Female entrepreneurs have more options than ever before.

Some experts posit that we are currently in the midst of the Golden Age for female entrepreneurs. Market conditions, access to varied business opportunities, and female entrepreneurs’ readiness to jump into the world of business ownership create a winning trifecta.

“We believe that today provides a perfect opportunity, a perfect storm if you will, for women entrepreneurs. Interest rates are at record lows, creating a robust environment for commercial borrowing,” said Carla Harris, NWBC’s chair , Chair of the National Women’s Business Council. “Record levels of cash are on the sidelines with both institutional and individual investors and on corporate balance sheets. And all of these entities are looking for good ideas, particularly as the appetite for risk continues to increase in the market.”

It looks like the future will continue to be bright for female entrepreneurs seeking to head up their own companies. With access to plentiful capital to fund their million-dollar ideas, the sky is the limit for these groundbreaking women.

 

3. Being a female entrepreneur leads to higher life satisfaction.

According to Inc

. “Women entrepreneurs in the United States rank their happiness at nearly three times that of women who are not entrepreneurs or established business owners.” That’s an impressive fact! Running your own business may be the key to happiness – who knew?

Plus, it’s a great way to create financial stability – and financial worries are one of the top causes of stress in the country.

 

4. Most of the richest businesswomen in the country founded their own companies.

Many of the richest female entrepreneurs created their own wealth. In fact, most of the female entrepreneurs who topped Forbes America’s 50 Richest Self Made Women list created and founded their own companies.

Check out the mind-boggling stats of the top ten Richest Self Made Women:

 

1. Diane Hendricks, Co-founder of ABC Supply, Net worth: $6.98 Billion
2. Marian Ilitch, Co-founder of Little Ceasar’s, Net worth: $6.12 Billion
3. Judy Faulkner, Founder and CEO of Epic Systems, Net worth: $4.98 Billion
4. Meg Whitman, former CEO of Hewlett-Packard and eBay, Net worth: $4.7 Billion
5. Johnelle Hunt, Co-founder of J.B. Hunt Transport Services, Net worth: $4.56 Billion
6. Oprah Winfrey, Founder of OWN, O! Magazine, Media mogul, Net worth: $4.4 Billion
7. Judy Love, Co-founder of Love’s gas stations, Net worth: $4.27 Billion
8. Doris Fischer, Co-founder of GAP, Net worth: $3.99 Billion
9. Elaine Wynn, Co-found of Wynn Resorts, Net worth: $3.7 Billion
10. Lynda Resnick, Co-founder of the Wonderful Co., Net Worth: $3.42 Billion

5. Women-led technology companies are more capital efficient.

Female entrepreneurs have proven that they are world-class financial managers and CEOs (as if there were any doubt!). Data has demonstrated that female-led technology corporations are more capital efficient – achieving up “35 percent higher return on investment.” Woman-led companies have also boasted high rates of venture capital deals, proving that investors are more than willing to fund a female-led tech company.

This demonstrated ability to manage capital means that the door may open in the future for more women in tech. These numbers are encouraging for women who wish to enter into what was once a mostly-male dominated industry. It’s an unfortunate fact that there’s still skepticism in those stereotypically male-dominated industries about the ability of women to compete – these numbers are powerful evidence to the contrary.

 

6. Female entrepreneurs rank higher on several elements of leadership.

Female entrepreneurs have demonstrated that they can not only handle the spotlight, but that they excel in leadership roles. In fact, according to a study conducted by the Harvard Business Review, women ranked higher on several major elements of leadership than their male counterparts.

The study determined that, “At every level, more women were rated by their peers, their bosses, their direct reports, and their other associates as better overall leaders than their male counterparts – and the higher the level, the wider that gap grows. Specifically, at all levels, women are rated higher in fully 12 of the 16 competencies that go into outstanding leadership. And two of the traits where women outscored men to the highest degree – taking initiative and driving for results – have long been thought of as particularly male strengths.”

The bottom line: Women are not just working in entrepreneurial roles, they’re excelling at leading companies to excellence.

 

7. Female entrepreneurs are making strides in healthcare.

Healthcare is a booming field and female entrepreneurs are dominating it. Over the past ten years, the number of female entrepreneur-owned healthcare companies has almost tripled. In addition, these “companies are growing at an impressive rate – 54.9 percent across all healthcare and social assistance firms, and nearly 183 percent for firms with over $10 million in revenue.”

As the baby boomer generation continues to age, the need for more and better health care and services is only going to grow. And female entrepreneurs are well-placed to take advantage of that opportunity.

 

Women At Work

Ready to become an entrepreneur yourself? Starting your own business is challenging, rewarding, and exciting. It can also be a little intimidating and you’re going to have to pick up a lot of new skills very quickly. Fortunately, there are a ton of amazing, talented female entrepreneurs that have been where you are – starting from scratch. One of the best things you can do for your new business is finding an experienced mentor to help show you the ropes, give you advice, and support you as you get your project off the ground. They’ve helped to clear the way for your success, so take advantage of their knowledge!

Women today have more options than ever before – from stay-at-home parent to CEO of a Fortune 500 Company to small-business owner and everything in between. And if starting your own business is your dream, there’s never been a better time!