The United States is one of the top countries for opportunities for female entrepreneurs – not just in resources available, but also in funding options. Although men are more likely than women to receive traditional bank loans, women win out in other funding sources, and are more likely receive funding through networks and affiliations they’re already a part of. Here are six things you didn’t know about funding for woman-owned businesses.
Women involved in mentoring and networking find it easier to find funding for their businesses.
In 2013, the EY G20 Entrepreneurship Barometer Survey reported that 27 percent of women who had mentors or were otherwise involved in mentoring programs found it “easy” to gain access to funding for their businesses, in comparison to 19 percent overall.
Women business owners involved with their Chamber of Commerce had greater access to funding.
25 percent of respondents to the Barometer survey reported “easy” access to funding as a result of participation in their local chamber of commerce. Aside from helping to find capital, being a member in local business organizations gave woman business owners new ideas and inspiration, plus helped to build credibility.
Women entrepreneurs are more likely to reach their funding goals on crowdfunding sites like Kickstarter than male business owners. Thirty-seven percent of women-founded campaigns on crowdfunding sites have hit their fundraising goals, while only 32 percent of male-started campaigns have done the same. For women who are seeking funding in the tech industry especially, crowdfunding is a worthwhile funding option to consider: more than 65 percent of women-owned businesses reach their goal, while only 30 percent of male tech startups had successfully-funded campaigns.
Angel Investors are an increasingly viable source for funding for women.
Thanks to organizations like 37 Angels that are teaching more successful women how to choose companies to invest in, angel investors are becoming an increasingly viable option for capital. Women investors are more likely to invest in other women, providing valuable funding for women-owned startups.
Many women find funding through the associations they already have.
Aside from federal funding opportunities like grants.gov, most states have grants available for female residents. Finding a list of state resources can be as simple as performing a search for the state, plus “grants for women.” Additionally, many universities and colleges have grants available for alumni. Many women also find funding sources amongst the non-profits they are already involved in or volunteer with – even some churches offer education and funding options for their congregation members.
Corporations are an often-untapped source of funding for women business owners.
Many corporations seek to foster entrepreneurship and aid in economic growth through providing funding, resources and recognition for women in business. Some examples include the Women Veteran Entrepreneur Corps and the Walmart Women’s Economic Empowerment Initiative. Women business owners can also research corporations who share their personal values to discover if they have similar programs.
Check out our blog 5 Things You Didn’t Know About Women Business Ownership for more great content on female entrepreneurs. Stay up-to-date on the Liberty Tax Franchise Blog by following us on Facebook and Twitter!