04/19/17

Women Making Strides in Small Business Despite Gender Gap in Funding

For decades now, it’s been a game of catch-up for women in business—and they’ve gained a lot of ground. Since 2007, the number of women-owned firms has grown five times faster than the national average, according to the 2016 State of Women-Owned Business Report. In fact, women are now three times as likely to start their own businesses as men, and that number is on the rise.

Lendio recently released an infographic showing the growth of women entrepreneurs through the years. The data reveals the economic impact of women in small business over the last decade by revenue, employment and post-recession growth. According to the numbers, women are making big strides in small business:

Growth of Women in Small Business

While these numbers show that females are reaching new heights in the small business world, other statistics reveal that the glass ceiling hasn’t shattered. Several studies show a gender gap between male- and female-owned businesses when it comes to small business financing, with women trailing men in revenues and earnings, credit scores and average loan size.  

Disparities in Male- and Female-Owned Small Businesses

As the Lendio infographic demonstrates, women entrepreneurs are making an impact on the U.S. economy. In order to further that growth and narrow the existing gender gap, several organizations have rallied around women in small business, forming programs, initiatives and legislation in support of female small business owners.

Last month, Women Impacting Public Policy released its 2017 Economic Blueprint, calling on Congress to prioritize policies that help women entrepreneurs succeed. The Blueprint calls for significant changes and improvements in access to capital for women, including offering tax incentives to angel investors and recalculating the way credit scores and employment history are evaluated for women seeking funding.

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About the author

Melanie King
A storyteller since first grade, Melanie King has shaped a career around writing engaging narratives—though her illustrations haven’t improved much since age 6. As a reporter and editor, Melanie has written about everything from retail and tourism trends to economic development for regional newspapers, trade publications, and national magazines. As Lendio’s Director of Public Relations, she specializes in reporting fintech industry news and its impact on American small businesses. Melanie has a B.A. in Journalism from Brigham Young University. She is also a backpacker, runner, and mom of four.

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