What if All Business Owners Had Fair and Equal Access to Credit?

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In the 1970s, female business owners could be denied access to credit by banks if they were unmarried or denied a credit card if her husband was unwilling to sign for it. How much better has it gotten?

TweetShareShare Women are an economic powerhouse. In the U.S. alone, the latest data shows that women own 11.6 million firms, employ nearly 9 million people, and generate $1.7 trillion in revenues. Yet, history shows that women business owners have faced significant obstacles compared to men in their quest to obtain credit and secure investment.

The reality for female entrepreneurs Throughout history, women have faced both legal and more subtle forms of discrimination. Only four decades ago in the 1970s, female business owners could be denied access to credit by banks if they were unmarried or denied a credit card if her husband was unwilling to sign for it.

A key finding is that women fear they’ll be turned down when applying for credit in part because their lending needs are often below the $100,000 loan minimum that traditional banks require. The good news is that technology is fueling systemic change and stripping away much of the bias that is built into the current financial system that puts women business owners at a disadvantage.

The end result? A fairer future and a greater probability of business owners—regardless of gender or type—finding access to the right financial services and the right credit, at the right time.

 

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