Women entrepreneurs are vital for worldwide economic recovery. In 2021, more than 40 percent of entrepreneurs offering innovative products in the U.S. were women, and women entrepreneurs were 84 percent more likely than men to utilize new technology in their early-stage startups. Studies have shown that if women participated in entrepreneurship at the same rate […]
Women entrepreneurs are vital for worldwide economic recovery. In 2021, more than 40 percent of entrepreneurs offering innovative products in the U.S. were women, and women entrepreneurs were 84 percent more likely than men to utilize new technology in their early-stage startups. Studies have shown that if women participated in entrepreneurship at the same rate as men, global GDP could rise by between 3 percent and 6 percent — adding trillions of dollars to the global economy.
But despite a rise in startup rates for women in the U.S. during the pandemic, women remain behind men in starting and growing small businesses.
Women still face many obstacles to entrepreneurship, like structural barriers to creating wealth and challenges accessing capital for startup and growth from commercial loans to angel investing. These barriers are even greater for women outside of large metropolitan areas, women with low incomes, and women of color. Minority-owned businesses, for example, are more likely to be denied when they apply for credit, and investors are less likely to invest in women founders despite better performance. Plus, women were four times more likely than men to report family reasons for business closures during the pandemic.
That’s why the U.S. Small Business Administration (SBA) offers several programs to help women start or grow their business. The WISE Women’s Business Center in Syracuse is an SBA Resource Partner offering free and low-cost counseling, advising, and training programs tailored to people identifying as women; their clients often find valuable support networks. Other SBA Resource Partners like the Watertown and Canton Small Business Development Centers have developed training programs for starting in-home childcare businesses, which not only support entrepreneurship, but also aim to offer childcare services that are crucial to the workforce.
SBA Resource Partners can also help woman-owned small businesses seek funding, from writing a business plan with strong financial projections to referring business owners to lenders that participate in SBA’s capital-access programs. In the SBA Upstate New York District, 92 traditional SBA loans with a total value of $32.3 million were made to woman-owned businesses in fiscal year (FY) 2022.
Our microloan program is another great option for women entrepreneurs looking for smaller loans with up to six-year terms, along with business advising. In FY 2022, lending partners in the Upstate New York District made 23 microloans to woman-owned businesses, totaling $468,200. SBA loans can be used for working capital, inventory, equipment, furniture or fixtures, or leasehold improvements — all of which can help a small business grow.
Woman-owned small businesses can also get certified to contract with the federal government with another SBA resource for business growth. In FY 2021, 1,371 federal contracts were awarded to woman-owned small businesses in the Upstate New York District who participate in SBA’s contracting assistance program, with total value of over $75.8 million.
Consider shopping local and support a woman-owned small business in your area, or reach out to our team at the SBA Upstate New York District Office to learn more.
Bernard J. Paprocki is director of the U.S. Small Business Administration Upstate New York District.