Women-owned businesses continue to be a growth engine for the U.S. economy, and recent data shows their access to capital is an indicator of the phenomenon. The number of women-owned businesses that applied for funding in 2018 increased by 13 percent, according to an annual study of women-owned companies by Biz2Credit, a leading online credit marketplace for small companies. But it revealed that loans for women entrepreneurs where nearly one third less than for their male counterparts.
According to Biz2Credit figures, the top five states for applications from women-owned businesses were California , Texas , New York , Georgia , and Ohio . These are in technology centers and in places where the real estate markets are also booming. Statistics tell the story. Last year 1,821 new women-owned businesses were launched every day, the Amex-SCORE report revealed. Women of color founded 64 percent of those businesses.
Nonetheless, female-owned firms are booming. Women are opening an average of 849 new businesses per day, according to American Express's State of Women-Owned Businesses Report . The study found that the number of women-owned businesses has increased 114 percent in the past two decades, and the number of companies owned by women of color has increased 467 percent. Minority women now own 46 percent of all women-owned firms, according to the report.
Even though women-owned businesses are growing, they still face challenges, especially when the company is in a male-dominated industry. For instance, Maryam Zadeh, owner of the trendy HIIT Box gym in Brooklyn, New York, had a high credit score of 700 and a growing customer base, yet still found it challenging to secure funding.
Interestingly, credit scores for women business owners and the average age of women-owned companies applying for small business loans dipped.
The overall percentage of woman business owners is lower... is this accounted for?