Bridging the Financial Gap: New Grant Empowers Women Small Business Owners
As National Small Business Week unfolds, the spotlight rightfully shines on the backbone of the American economy: entrepreneurs and small business proprietors. These enterprises not only bolster local communities but also drive innovation while contributing to the nation’s economic vitality. Despite the impressive surge in the number of women entering the realm of small business ownership—estimated at 13 million in the U.S., employing nearly 10 million individuals—there persists a glaring gap in financial support, hindering their progress and potential.
Understanding the Disparities: A recent study by Biz2Credit underscores the stark disparities faced by women entrepreneurs in accessing crucial funding. Shockingly, women-owned businesses trail significantly behind their male counterparts in funding acquisition. In 2021 alone, the funding rate for women-owned companies lagged by 40% compared to men-owned enterprises. Moreover, the disparity extends to the average loan size, with women-owned businesses receiving a meager $49,712 on average, compared to $83,198 for men-owned counterparts.
Highlighting the Challenges: The financial hurdles extend beyond mere loan amounts. Women-owned businesses also grapple with lower earnings, averaging $88,895, which is substantially less than the $136,147 recorded by male-owned firms. The disparity in credit scores further compounds the issue, with female business owners facing an average score of 580, notably lower than the 594 score recorded for male counterparts. Consequently, women are more likely to secure shorter-term loans at higher interest rates, exacerbating their financial burdens.
A Call for Action: Recognizing the pivotal role women entrepreneurs play in fostering community growth and economic resilience, Jamil Khan, Chief Strategy and Small Business Officer at H&R Block, emphasizes the urgency of leveling the playing field. Khan articulates the need to bridge the funding and support chasms, enabling women entrepreneurs to focus on realizing their aspirations and effecting meaningful change.
Empowering Women Entrepreneurs: In response to these pressing challenges, Block Advisors by H&R Block has launched the Fund Her Future small business grant program. This initiative aims to provide a lifeline to five deserving women-owned small businesses, offering a combined total of $100,000 in funding. The flagship grant package includes $50,000 in financial assistance alongside a year of invaluable small business services from Block Advisors. Additionally, four honorable mention recipients will each receive a $12,500 grant, accompanied by the comprehensive services package.
Taking Action: Business owners keen to seize this opportunity can submit their applications at BlockAdvisors.com/FundHerFutureGrant until May 26, 2024. Eligible applicants must be over 18 years old and own a United States-based business that is at least 51% women-owned. Notably, businesses that champion inclusivity and demonstrate tangible community impact are particularly encouraged to apply. Following the closure of submissions, finalists will undergo interviews in mid-June, with the five deserving winners notified by the month’s end.
Conclusion: As we navigate the intricate landscape of entrepreneurship, it is imperative to dismantle the barriers hindering the success of women-owned businesses. Through initiatives like the Fund Her Future grant program, we can foster an environment of inclusivity, empowerment, and opportunity, ensuring that women entrepreneurs not only survive but thrive, leaving an indelible mark on their communities and the broader economy.
Re-reported the article originally published in The Forbes
