{"id":40221,"date":"2024-03-02T16:10:54","date_gmt":"2024-03-02T21:10:54","guid":{"rendered":"https:\/\/test.greenmoney.com\/2025\/?p=40221"},"modified":"2024-03-05T23:52:10","modified_gmt":"2024-03-06T04:52:10","slug":"unlocking-opportunity-for-female-entrepreneurs-through-non-traditional-financing","status":"publish","type":"post","link":"https:\/\/test.greenmoney.com\/2025\/unlocking-opportunity-for-female-entrepreneurs-through-non-traditional-financing\/","title":{"rendered":"Unlocking Opportunity for Female Entrepreneurs Through Non-Traditional Financing"},"content":{"rendered":"
>> Back to March 2024 Issue<\/a><\/div>\n
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Pictured above: Gladis Avila, owner of Venbisustore LLC (center) with Gleidys Arias, Program Manager (left) and Kersy Azocar, President and CEO (right) of Greenline Access Capital.<\/em><\/h5>\n<\/div>\n
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\"Stella<\/a>Female business owners face specific and unique challenges. Kersy Azocar, President and CEO of Greenline Access Capital shares her personal experience with applying for a business loan and the barriers that she encountered:<\/span><\/p>\n

\u201cWhen I applied for my first loan, prior to reviewing any of my information or asking any questions, the banking specialist immediately mentioned that I may need my husband to cosign the loan. When I told the specialist that I was in the financial industry and that I did not need my husband\u2019s help to qualify for financing, he would not budge. I did not apply at that bank \u2013 they did not deserve my business. Implicit Bias and Barriers in financing such as this are a common reality for women all over the world.\u201d<\/span><\/i><\/p>\n

For many years, women have had a more difficult time accessing capital and typically have had a higher cost of capital. Because traditional services have failed to reach many of them, women business owners need alternative channels to access capital, offering more support and opportunities.<\/span><\/p>\n

A recent, post-pandemic study by the <\/span>U.S. Department of Commerce<\/span><\/a> demonstrated what we already know: that female-led businesses play an important role in the economy as shown in the chart below. There are over 1.2 million women-owned business, a third of which hire five or more employees.\u00a0<\/span><\/p>\n

\"Percentage<\/a>
Source: US Dept of Commerce \/ US Census Bureau<\/figcaption><\/figure>\n

Women-Owned Businesses Meet Community Needs<\/span><\/h2>\n

Even with widespread pandemic-induced layoffs, women started businesses at a higher rate than men. Increased flexibility in schedules especially for women with school-aged children motivated more women to start their own businesses. They often brought that flexibility to their employees through work-from-home opportunities and creative hybrid work schedules.\u00a0<\/span><\/p>\n

A <\/span>Gusto News<\/span><\/a> study found that women were more likely to open businesses with a community focus and these were often in the personal services, healthcare, education and non-profit fields, proving that when they thrive, the whole community benefits.<\/span><\/p>\n

Unique Challenges Faced by Female Entrepreneurs<\/span><\/h2>\n

In the U.S., <\/span>research<\/span><\/a> has shown that women face greater capital constraints than men. Compared to men, female entrepreneurs \u2013especially those from low-to-moderate income communities \u2013 often do not have a long track record of business ownership, have little to no pre-existing wealth, lack home equity and collateral, and often have poor credit history. Due to these factors, female entrepreneurs are often disqualified from traditional financing. This means that for many, self-financing or costly forms of capital with higher interest rates are their only option.<\/span><\/p>\n

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