Women’s Capital Access: Challenges and Opportunities Unveiled

Here’s the great news: Women-owned businesses represent about 39% of U.S. businesses, generating $2.7 trillion in revenue. Between 2019 and 2023, the number of women-owned businesses grew almost twice as fast as men-owned ones. This impressive growth benefits the broader economy significantly.

Gender Bias in Investing Despite progress, women still struggle more than men to secure investments. A study by Harvard, the University of Pennsylvania, and MIT found that investors prefer pitches from male entrepreneurs over identical pitches from female entrepreneurs. Male entrepreneurs were 60% more likely to receive funding than their female counterparts.

Increasing access to capital for women founders benefits the economy. Despite strides toward gender equality, women still face challenges in securing capital. One solution is for female entrepreneurs to seek organizations dedicated to their needs, such as private small-business grants for women. Forbes has a list of these grants. Many banks also offer programs focused on women entrepreneurs, such as Goldman Sachs’ 10,000 Women program and the Bank of America Center for Women Entrepreneurs.

Underrepresentation in Decision-Making Positions In finance, entry-level positions are split roughly equally between men and women, yet C-suites are still male-dominated. In private equity, only about 10% of senior positions are filled by women. The lack of women in key decision-making roles contributes to a lack of tailored financial products for female entrepreneurs.

Promoting Financial Literacy Financial literacy impacts everyone. A 2022 FINRA study found that 56% of adults experience anxiety about their finances, with the highest levels among young adults. Education can alleviate this anxiety. At our firm, we prioritize empowering women through client relationships and networking programs. Nonprofits like the American Association of University Women also offer courses in financial literacy and salary negotiation.

Empowering women financially is not just a soft metric; it’s an economic imperative. By addressing the challenges women face and implementing inclusive solutions, we can build a more equitable and prosperous future for everyone. As a financial advisor, I am committed to championing these efforts and working towards a world where women have equal opportunities in finance.

Re-reported the article originally published in Forbes.