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Guest post by: Richard Matheson Become an Author

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Not only are the number of small businesses on the rise throughout North America, but so too are the number of women-owned small businesses. Female entrepreneurs are rapidly becoming a major playing force in the world economy. In the United States alone, it’s estimated that women-owned small businesses employ more than 27 million people and generate over three and a half trillion dollars for the country’s economy. Taking that into account, one has to then wonder why small business loans for women are still in short supply.

The U.S. Small Business Administration reports that women entrepreneurs continue to face a disproportionate number of challenges in starting up their businesses than their male counterparts. One of the most glaring differences comes in the availability of bank loans for women entrepreneurs.

Some outside observers might think that the reason for this points directly to discrimination. While I am fully in favour of supporting female entrepreneurs, there are in fact a number of sound reasons why banks are hesitant to lend to women versus women. Many women who choose to start their businesses do so as their first career. They have spent most of their lives looking after their children and husbands and thus do not have the experience nor the capital nor the personal credit required to be a suitable candidate for a loan.

That being said, however, there have been improvements in the number of small business loans for women. In the U.S., for instance, the Small Business Administration provided almost 18,000 loans or $2.5 billion to female entrepreneurs in the past year. That figure is more than double the amount as just five year earlier. Women-owned small business also received $1.5 billion more in federal government contracts than in 2003.

Aside from the actual dollar signs, the SBA is also useful in terms of the advice and services it has designed specifically for women entrepreneurs. Whether you’re a mother, a young woman, a woman with a disability, the SBA has programs geared directly towards you and your mother.

Today, it is by no means as easy for a woman to get a loan for her business ventures as it is a man. It’s a sad fact, but that doesn’t mean that it’s impossible. All it takes is a little extra effort to look for the relevant information and loans they may qualify for. The SBA website and the Internet in general is one of your best resources to get yourself pointed in the right direction.

There is no question that women entrepreneurs are equally capable as their male counterparts when it comes to running their business. The availability of small business loans for women has yet to catch up with that fact. The more women entrepreneurs who find the support that they need, the better off the economy as a whole will be. Don’t be discouraged if the big banks turn you down. There are other options out there waiting to be grabbed by the right women entrepreneur. It could just be you!

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