Despite progress towards gender equality in business ownership, women still face numerous barriers to achieving economic parity. For example, only 4% of total small business loan dollars go to women and companies with female founders receive just 2.1% of total venture capital investments. These disparities result from factors such as conscious and unconscious bias, unequal access to networks and education, and women’s disproportionate responsibility for caretaking and household work. Despite the passing of the Women’s Business Ownership Act of 1988, 29% of women business owners still do not believe they will ever have equal access to capital. Women’s networks tend to be smaller and they often face bias, contributing to gender disparities in access to capital. However, there are alternatives to traditional business loans, such as rewards-based crowdfunding, regulation crowdfunding, and online lenders. It is critical that women entrepreneurs learn which financing options are right for their situation. Additionally, changing attitudes towards lending to women requires holding funders accountable and reducing bias. Celebrating the stories and accomplishments of female founders can help bring attention to the problem and push institutions to change, ultimately improving lending opportunities for women. Overall, women need access to capital, training opportunities, and the market to propel their ventures to success.
