National Small Business Week is here, which recognizes the importance of America’s entrepreneurs and small business owners. Small businesses are the foundation of our economy. They support our local communities, boost our national economy and drive innovation.
Women are one of the fastest-growing segments of new small business owners, with an estimated 13 million women-owned businesses in the U.S. employing nearly 10 million people.
Despite this growth, there is still a massive lack of financial support for women entrepreneurs. One of the biggest challenges facing women is their access to funding. A recent study by Biz2Credit highlighted significant disparities between women-owned and men-owned businesses when it came to funding.
- Women-owned businesses are funded at a lower rate than their male counterparts. The funding rate for women-owned companies was 40% lower than the funding rate for men-owned companies in 2021.
- The average loan size for women-owned companies amounted to $49,712, while men-owned companies received an average of $83,198.
- Women-owned business earnings averaged $88,895, lower than in 2020, and $47,152 less than the average for male-owned firms ($136,147) in 2021
- The average credit score (580) for a female business owner decreased from 588 last year, and was 14 points lower than the average score of a male business owner (594) in the study.
- Women are more likely than men to receive shorter term loans and higher interest rates than men.
Jamil Khan, Chief Strategy and Small Business Officer at H&R Block, states the importance leveling the playing field for men and women entrepreneurs. “Women small business owners are integral players in their communities. We owe it to them to close funding and support gaps so they can focus on realizing their goals and making an impact.”
In an attempt to close this gap, Block Advisors by H&R Block created the Fund Her Future small business grant program. The program will award five women-owned small businesses a combined total of $100,000 in funding. One small business owner will receive a first-prize grant package of $50,000 and a year of access to small business services from Block Advisors. Four honorable mention winners will receive a $12,500 grant and the services package. In addition, the winners will gain access to a year of small business services, such as tax preparation and bookkeeping, from Block Advisors.
Submissions will be accepted at BlockAdvisors.com/FundHerFutureGrant through May 26, 2024. To apply, applicants must be over 18 years old and an owner of a United States-based business that is at least 51% women-owned. Other eligibility requirements can be found on the grant website. Businesses that promote inclusivity and can demonstrate community impact are especially encouraged to apply. Following submissions closing on May 26, 2024, a group of finalists will be selected to participate in interviews in mid-June. Five winners will be notified by the end of June.
“With immediate access to capital, resources, and trusted expertise, we’re confident women entrepreneurs will see significant growth for their small business, influencing the momentum of their community for years to come,” said Khan.
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