There are more than 9.1 million of them in the United States.
They employ more than 7.9 million people.
And generate 1.4 trillion in sales.
They represent a variety of industries. And are only growing stronger.
In fact, according to a report from American Express OPEN, in the past 17 years, the number of them has increased at a rate of 1.5 times the national average.
They are women-owned businesses and a powerful force that contributes to the success and vitality of the United States economy.
Yet, despite their success and position as the fastest growing business segment, women-owned businesses still must overcome some major challenges, including their biggest one – getting credit. These businesses not only don’t get the credit they deserve for helping boost the economy, but also don’t get the credit or financing they need to help grow their businesses.
Why is that?
One reason is that women-owned businesses tend to be newly established businesses with little collateral. As such, it is difficult for them to obtain bank financing as banks have tightened credit standards for these types of businesses. Another reason is that they typically don’t have access to sources of external funds, such as venture capital firms, which are more available to their male counterparts. Because of this, they really only have one source of financing – banks. And that brings up another problem – many financial institutions don’t understand them. Women business owners are very cautious about their borrowing. They don’t just want capital; they want networking and information opportunities so they can learn how to grow their businesses.
As part of its focus on serving the needs of ALL small businesses, DNB First recognizes the importance of meeting the needs of each and every business, including those owned by women. That is why we have a dedicated female Small Business Relationship Manager who is well attuned to the unique needs and challenges of this growing market.
In the coming months, DNB First will continue to work on helping women-owned businesses connect to the resources and information they need to succeed. Because let’s face it, when women-owned businesses grow, our economy roars.