Data, facts and discussion from the Empowered PhXX roundtable discussion on funding and increasing the flow of capital to female entrepreneurs in Phoenix.
7. The major constraint limiting the growth,
expansion, and wealth creation of small
firms—especially women- and minority-
owned businesses—is inadequate capital.
Studies indicate that women entrepreneurs
have less access to financial capital or
make less use of it than male
entrepreneurs.
- SBA, 2013
#PhXX
9. Collaboration
...collaboration is the process of shared creation: two or more
individuals with complementary skills interacting to create a shared
understanding that none had previously possessed or could have
come to on their own. Collaboration creates a shared meaning
about a process, a product, or an event. In this sense, there is
nothing routine about it. Something is there that wasn’t there
before.
- Michael Schrage, Shared Minds
#PhXX
10. A good thing you learned about money and a bad
thing?
Where did the messages come from?
How much are you living them out?
How are you pulling this into your business? –
What’s the
messages you have about banking/ financing and
your business
#PhXX
Small Groups
11. Women account for 30 percent of small companies
but receive only 4.4 percent of the total dollars in
conventional small-business loans.
Put another way, women receive $1 for every $23
loaned. Minority business owners pay, on average, 32
percent higher interest rates than what their white
counterparts.
-Senate Small Business & Entrepreneurship Committee, 2014
#PhXX
12. On average, men start their businesses with
nearly twice as much capital as women
($135,000 vs. $75,000). This disparity is
slightly larger among firms with high-
growth potential ($320,000 vs. $150,000),
and much larger in the Top 25 firms ($1.3
million vs. $210,000).
Source: NWBC, 2012
#PhXX
13. 7% of the 2,005 founders who received VC
funding in 2016 in the US are women.
- Bloomberg, 2016
#PhXX
14. Best Practices
• Know your market and customer. Conduct market research.
• View Women-Led SME's as a distinct group. They don't want different
products, they want to be served differently.
• Build Internal Capacity. Complete buy in for gender awareness.
• Adapt your credit processes, lending methodologies and delivery
models. Adapting credit processes and adding a mix of delivery
channels can also help to meet women’s needs.
• Offer women a comprehensive mix of financial and non-financial products
and services
• Track your data by gender and market your wins.
#PhXX
15. Trends
• There has been a notable shift and increase in alternative sources
of capital, such as peer-to-peer lending and hybrid models.
• Women specific funds and resources.
• Rewards-based crowdfunding platforms are giving women
unprecedented access to capital.
• Lending institutions and investors are increasingly
acknowledging that women entrepreneurs have the ideas, drive
and passion to build enterprises that disrupt markets and show
great return on investment. Source: NWBC, 2016
• Diversity in resources is key to supporting wbo growth.
#PhXX
16. Last Meeting
• Lack of understating on banks and alternative resources
• Negative perceptions of equity and debit
• Education on funding and proper business skills to prepare for
funding
• Women business owners not identifying with or having value for
the terms commonly used to describe training and education on
the topic.
• Different partners are better positioned to address the challenge
at different points in the cycle. By working together, we can
develop a better understanding of who can address what to
leverage our efforts. #PhXX