The Small Business Administration states that business loans for
women are on the rise, and will continue to be needed on an
increasing basis in coming years. Business loans for women are
more popular than ever due to a variety of factors.
1. Women are taking the initiative needed to become business
owners and are opening new businesses. According to the most
recent data on businesses, available from the U.S. Department of
Commerce, Bureau of the Census, there were 5.4 million
women-owned businesses in the United States in 1997. The Bureau
of the Census also stated that the number of women-owned firms
grew almost three times as fast as all firms between 1992 and
1997. They have reported that the number of women-owned firms
increased by 16 percent in this five-year period, compared to a
six percent increase for United States firms in general. The
1997 Economic Census states that women-owned firms made up 26
percent of the nation's 20.8 million nonfarm businesses,
employed seven percent of the 103 million workers, and generated
four percent of the $18.6 trillion in receipts. The National
Foundation for Women Business Owners states that the current
estimated growth rate in the number of women-owned firms is
nearly twice that of all firms, and this increase is a trend
that is expected to increase even more in coming years. The
anticipated increase in women-owned firms, therefore, brings
about a tremendous need for business loans for women.
2. The past decade has shown a boom in the home-based business
arena. The increase in home-based businesses popping up
nationwide is due very much to the idea that many mothers are
starting businesses in order to choose a work-at-home lifestyle
to bring income into the home, and at the same time, raise their
children at home rather than placing them in daycare. While
these home-based business are operated in a nontraditional work
environment, in perhaps a nontraditional style of operation,
they are nonetheless the same as other businesses in the style
of carrying inventory, making purchases for the business,
marketing the business, and creating a web presence. Business
loans for women are crucial for small businesses such as these.
Many have proven to be just as successful or even more
successful than traditional businesses and businesses owned by
men.
3. Women often purchase existing businesses. Nearly no
explanation is needed to stress the need for business loans for
women in this area. Purchasing a business requires money, most
often obtained through business loans for women or through
another type of loan. Because more and more women are leaving
the work place and carefully weighing all factors of owning a
business, purchasing an existing business is a wonderful option
for those that don't want the risk involved in actually starting
a business. By purchasing an existing business, it allows the
potential new owner the opportunity to carefully examine the
existing business regarding many things, including its
profitability, gross sales, and market position. A business that
rates high in all three areas is a good business investment for
a new potential business owner, especially a women with past
business experience. Business loans for women can offer a new,
potential business owner the opportunity needed to operate a
successful business.
4. With more women in business for themselves, business loans
for women are needed to offer women capital crucial for a
business to succeed. Regardless of whether the business is
home-based or more traditional in nature, and whether it's a
start-up business or was a purchased, existing business, capital
is needed for a business to succeed, and to start, business
loans for women are of great assistance. Business loans for
women offer women a way of starting a new business with capital.
Business loans for women can also assist women in increasing
sales for an existing business, as well as marketing the
business or expanding a business.
5. Women tend to choose to operate businesses in the services or
retail trade industries. According to the U.S. Census Bureau,
more than seven out of every 10 women-owned businesses and firms
are operated in the services or retail trade industries.
Considering the nature of these two types of businesses, one can
easily see why the need for business loans for women is on the
rise. In order for a woman to successfully operate a retail
trade business, for example, inventory is needed. While drop
shipping can sometimes be an option, especially for an at-home
retail business operated through an online store, more
realistically speaking, inventory needs to be purchased.
Business loans for women offer women the option of purchasing
inventory to be sold in a retail business. Likewise, a
service-related business normally operates with the use of
equipment, and is often specialized equipment for that specific
type of business. The availability of business loans for women
offers women the opportunity to purchase equipment and supplies
needed to operate and succeed in running a service-related
business.
Business loans for women are increasingly important for female
business owners. However, careful consideration should be taken
before securing a business loan to make sure that the loan is
truly needed for the business to expand and succeed, and to make
sure that the loan payments will easily fit into the business'
budget.
About the author:
Rebecca Game is the founder of Digital Women ®, an online
community for women in business. A 30 year entrepreneur and
dedicated to helping other women. Visit her site:
Loans for
Women
http://loans.digital-women.com
