As inconceivable as it may sound, female entrepreneurs needed a man to co-sign their business loan up until October 25, 1988
That is a mere 30 years ago.
by Small Business Trends
This information comes from a new infographic by CNote, which points out the challenges female entrepreneurs faced in the past and continue to face to this day.
With women businesses adding $1.7 trillion in revenue to the US economy and employing around 9 million people, removing any remaining obstacles will increase the contributions women make to the economy even more.
Data From the Infographic
The infographic says even though women have more access to credit today, they still face a considerable challenge when it comes to getting the capital they need.
Even today small businesses owned by women only get 4.4% of the total dollar amount of all small business loans. CNote says this comes out to $1 out of every $23 loaned out.
The number goes slightly higher for conventional small business loans, but female entrepreneurs still only get just 16% of that total. And when a woman-owned business with a strong credit rating is looking to secure a loan, she’s less likely to get it compared to a male owned business with similar credit ratings.
The numbers are even more dismal for women entrepreneurs looking for venture capital. In this environment, women only get $1 for every $50 invested, which comes out to around 2% of all venture capital funding.
Overall women-led companies only make up 4.9% of venture capital deals.
Despite these hurdles, women still persevere. Between 2017 and 2018, there were 1,821 net new women-owned businesses added per day.