Women-owned Small Businesses Growing, but Require More Funding
According to business publication The Next Women, obtaining a small business loan may be more difficult for those who do not develop strategic relationships with funders. As a result of this, self-employed individuals who are more pressed for time, due to responsibilities in their family life, may encounter more obstacles when it comes to securing appropriate financing.
Although women-owned small businesses are on the rise, many women are juggling conflicting obligations stemming from both family life and work. A shortage of face-time with investors may hinder some small business owners when it comes to securing funding. Without the proper funding, it is difficult for a small business to grow.
The American Express’ The State of Women-Owned Business Report for 2013 recently revealed female-owned businesses are increasing in the United States. Even though the report found small businesses owned by women contribute to job creation and revenue growth – the 8.6 million women-owned firms in business today are generating more than $1.3 trillion in revenue, and employing close to about 7.8 million people – they still employ just 6 percent of the nation’s workforce, and bring in fewer than 4 percent of business profits.
Although the number of businesses owned by women has increased by 59 percent since 1997, many female small business owners are hesitant about securing financing or have a harder time getting approved for a small business loan for a variety of reasons, such as going into the retail business, which is often not as profitable as other industries.
Overall, hiring aspirations among small business owners are expected to remain relatively stagnant across the board for the next six months due to worries related to financing. A new PNC survey revealed that around three-quarters of U.S. small businesses reported they may not hire over the next six months. However, having a strong team in place is often essential for business growth.
Any small business seeking funding to start hiring employees can contact National Funding about securing a small business loan or merchant cash advance to prepare themselves for greater growth and success.