A new report from Dun & Bradstreet and Pepperdine Graziadio Business School shows that, while small businesses overall have been more successful in obtaining bank loans, only 18 percent of women-owned small businesses responded they were able to get financed. This is versus the 55% of survey respondents who indicated they had obtained financing in the previous quarter. The survey, called “Private Access Capital Index” reveals views of a healthy economy, but presents many challenges that women-owned small businesses face.
The report shows that lack of financing affects women owned businesses, as over 50 percent surveyed responded that it’s both hindering their growth and affecting their ability to hire. Additionally, 24 percent of female respondents noted that increasing Federal interest rates could also affect their growth and 28 percent face challenges with customer payment, while only 23 percent of other small or mid-sized businesses have that challenge.
All surveyed businesses show less interest in demand for capital, with the Private Capital Demand Index decreasing by 12 percent since last quarter. Dr. Craig R. Everett, director of the Pepperdine Private Capital Markets Project, attributed this to small businesses trying to grow through customer growth and positive cash flow, rather than relying on credit.
“Given the current climate of bringing awareness to the equality issues women have faced, it’s not surprising to see that women-owned small businesses are facing challenges beyond what their male-owned counterparts are reporting,” stated Nalanda Matia, lead economist at Dun & Bradstreet. “It’s important to shine a light on these results as it can help affect change and provide additional resources to support the 12.3 million women-owned businesses in the U.S.”
