Women today have come very far in terms of gaining more financial freedom and starting more businesses than in the last 30 years. Women are now leading the way of new businesses each year compared to men.
Until the late 1980’s women need a man to be a co-signor on a loan; it’s true. Over the last 10 years women now make up almost 50% of the small businesses in the United States and account for over 30% of business loans and short-term loans. The average sized loans for women business owners is below twenty five thousand dollars because their businesses tend to bring in revenues below three hundred and fifty thousand yearly.
This gender gap in lending can be attributed to a variety of factors. Factors include differing economic circumstances, labor market experiences, attitudes toward lending and differing treatment by lenders and financial institutions.
Women face more challenges every day in their business compared to men but still women owned businesses are on the rise. The problem still is most women owned business have harder time getting approved for loans.