NWBC Statement: Banks Need to Court Women-Owned Businesses
WASHINGTON, March 4, 2014 /PRNewswire-USNewswire/ -- The National Women's Business Council releases a statement following the recent Washington Business Journal article.
"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.
The economic impact of women-owned businesses is significant and growing. Women entrepreneurs need access to more loans, the 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.
View the Washington Business Journal article here: http://www.bizjournals.com/washington/blog/2014/02/banks-should-target-women-businesses.html?page=all
Contact: Krystal Glass
National Women's Business Council
SOURCE National Women's Business Council