NWBC: Banks Need to Court Women-Owned Businesses

The National Women’s Business Council releases a statement following a recent Washington Business Journal article.

The economic impact of women-owned businesses is significant and growing. Women entrepreneurs need access

to more loans and NWBC encourages community banks and credit unions to increase their lending efforts to women, which will contribute to economic gains for women entrepreneurs and the nation’s economy.

RELATED: NWBC Continues to Promote Women Entrepreneurship

“Women entrepreneurs champion the title of ‘fastest growing sector in the small business community,’ even as access to capital remains a major challenge. The National Women’s Business Council (NWBC) research has found that businesses that start with more capital have higher rates of survival.”

“Loans from financial institutions are an important source of capital, but women-owned and women-led businesses obtain fewer loans than average,” said NWBC Chair Cara Harris.

As outlined in the 2013 NWBC annual report, we recommend community banks and credit unions implement a plan to court women-owned businesses. Our research highlights a Kauffman Firm Survey which tracked a group of firms started in 2004. In 2010, the average woman-owned firm in the sample received $38,217 of new financial capital, about half of what the average man-owned firm received.

We want to see this number grow. Additionally, a new report released by Treliant Risk Advisors and NAWBO Greater DC outlines strategic ways for banks to increase lending efforts to women business owners.