Female-led small businesses have gained a lot of positive attention in recent years. From 2000 to 2012, women-owned businesses grew 27 percent. In contrast, U.S. businesses only averaged a 2 percent growth rate during the same time period. Surprisingly, despite these economic and social advances for female business owners, few are taking advantage of certain benefits offered by alternative lenders.
These changes in the economic landscape demonstrate the exciting shift to a more welcoming atmosphere for female entrepreneurs. Even with the headway women-owned businesses have made in the past 10 to 20 years, there is always room for improvements. NerdWallet’s infographic, for example, reveals that females only comprise 15 percent of corporate executives, even though they account for 52 percent of college graduates.
According to National Funding, “This gap has created a lot of room for burgeoning female entrepreneurs to carve out their niche in the business world”.
While it is possible – and many entrepreneurs do – operate on a thin profit margin, it does not provide the business owner with enough working capital to reinvest in their business. The ability to reinvest can benefit and grow the business in many ways, including: new technology, additional inventory, hiring more employees, etc. According to National Funding’s Small Business Blog, “Without being able to grow the company, female small business owners will continue to lag behind their male counterparts in terms of revenue and growth opportunities.”
While the Gallup/Wells Fargo survey did not reveal why a small number of female small business owners were planning to seek out new loans, 55 percent of female respondents shared that they were extremely or very confident they could secure one. With such strong claims, it is rather puzzling that so few have taken advantage of loans or new lines of credit. Even if a business has a successful stream of new and recurring customers, revenue may never reach a level that allows for reinvestment and expansion.
If you are female that currently owns or has plans of starting a business, take advantage of every route available to you. Merchant loans for startups from a high risk provider like FAM can help you overcome growth and expansion hurdles. Women-owned businesses can secure the funds they need with minimal paperwork. Take advantage of the funding options an alternative lender can offer your business so you can restructure and grow your operation.Get Started Now