How Women-Owned Firms Still Face a Financing Gap

Mar 28, 2014

A woman walks past the Federal Reserve Board Building in Washington, D.C. Photographer: Andrew Harrer/Bloomberg

Women have made great strides in the business world. The number of women-owned businesses surged by nearly 60% between 1997 and 2013. But women business leaders still face a key obstacle — in the form of financing.

This infographic shows a number of ways in which women-owned businesses remain at a distinct disadvantage when it comes to accessing capital.  Small business lender Biz2Credit found that while women-owned firms enjoyed nearly twofold increase in applications and were more likely to obtain a loan, approval rates still lagged those of male-owned businesses.

The relative youth of women-owned firms accounted for part of the discrepancy, says Rohit Arora, CEO of Biz2Credit, though he predicts the gap will continue to narrow. "I expect that this scenario will correct itself as women-owned companies mature and expand,” he said.

The infographic also demonstrates how women are gaining traction in key areas of growth funding — in areas such venture capital and crowdfunding:

The Gender Cap

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