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Women Business Owners and Capital


Source of Capital used to start or acquire business

  • More than half (55.5%) of women-owned businesses used personal or family savings to start or acquire their business, compared to 60.3% of all businesses.
  • Only 6% used personal or family assets other than savings (7.7% of all firms) and just 4% used a personal or family home equity loan (5.6% of all firms.)
  • One in ten (10.9%) of women-owned businesses used a personal or business credit card, compared to 10.4% of all businesses.
  • Just a tiny fraction (.4%) used a business loan from the federal, state, or local government (.7% of all firms) or a government guaranteed business loan from a bank (.5% of women-owned firms, .7% of all firms.)

Employer and Non-employer Firms
 

  • Nearly two-thirds (65.3%) of women-owned businesses that have full-time paid employees (“employer firms”) used personal or family savings to start or acquire their business, compared to just over half (53.4%) of women-owned businesses that do not have any full-time paid employees (“non-employer firms.)
  • Employer firms are also more likely to have used personal or family assets other than savings (10.3%) than are non-employer firms (5.2%) or personal or family home equity loans (9.9% of employer firms and 2.8% of non-employer firms.)
  • Additionally, a higher 13.7% of employer firms used a personal or business credit card, compared to 10.3% of non-employer.
  • Just a small fraction (1.4%) of employer firms used a business loan from the federal, state, or local government, but even fewer (.2%) of non-employer firms used this source. This is very similar to the difference between employer firms (1.7%) and non-employer firms (.2%) that used a government guaranteed business loan from a bank or financial institution.
  • A little less than 1 in 20 (16.8%) of employer firms used a business loan from a bank or institution (just 3.1% of non-employer firms) and 5.1% of employer firms and 1.2% of non-employer firms used a business loan or investment from family or friends.
  • Almost no (.3%) employer firms used investment by venture capitalist(s), but it’s still more than the .1% used by non-employer firms. A similar .2% of employer firms and .3% of non-employer firms used grants.
  • Finally, just 1 in 10 (10.8%) employer firms report that they did not need any capital to start or acquire their business, compared to a full 34.3% of non-employer firms.