WOMEN BUSINESS OWNERS FACE HURTLES IN GETTING LOANS AND GOVERNMENT CONTRACTS

Women small business owners are now a force in the U.S. economy.  A recent report by the U.S. Senate Small Business & Entrepreneurship Committee found that woman owned businesses represent 30% of small companies,  yet receive  only 4.4% of the total dollars in conventional small business loans—— that’s $1.oo for every $23.00 loaned.   A close look at the numbers of loans given to businesses owned by women reveal—

*Conventional small business loans—–16%

*Small Business Administration backed loans——17%

When it comes to venture capital funding, these woman owned businesses receive only 7%.  Government contracts are also difficult to receive.  Only four percent (4%) of these businesses  in 2012  received government contracts.  The committee hopes to make changes in the SBA’s microloan program aimed at helping companies borrow up to $50,000.  The Intermediary Lending Program, a program that allows business owners to borrow between $50,00 and $200,00o  is up for reauthorization and the committee recommends continuation.

WHAT ARE THE BEST THINGS ABOUT OWNING A SMALL BUSINESS?

Starting   and growing a small business is hard  work,  but those who do find the rewards  are great.  In fact seventy-seven (77%) said  they wouldn’t hesitate to do it again, while 77% said they would recommend owning a small business to their children.  The benefits of owning a small business include—-

*Being your own boss                                     79%

*Independence                                                  77%

*Making strategic decisions                          77%

*Close relationships with customers          73%

 

Source:   The Citibank Small Business Pulse, a survey conducted by telephone of 802 small business owners in April 2014.