In today’s society, women are becoming even more successful and are reaching the very peak of success in all fields. So what qualifies as a woman owned small business? Read the following to find out.
Well first of all, women have to overcome more obstacles than anyone else, due to the fact that there is still stereotypical prejudice in this day and age. Not only that, but they have to face obstacles such as lack of funding and support, having an equal work balance, equal pay and maintaining their ventures.
Women are still seen as housewives, are underpaid in most countries and depending on their circumstances, have to balance their business with other things in life such as being a single mum.
However, there are companies that specifically support women in business by giving them advice, which you can read more about. In order to beat your competitors and stand out, you need to consider having business formation resources, business planning resources, financial resources, certification resources and popular resources.
Just like a man wishes to start a business, a woman has every right to do so. The steps are the same; you need finance to get your business started, you need consistent productivity, you need useful tools and you need connections. In conclusion, you still need to register a small owned business and follow the very same steps needed.
Around 849 women start business daily in the U.S. It has increased significantly over the years and the percentage gas skyrocketed up to 114% for the last 20 years. This goes to show that there is a huge success and demand for funding women’s businesses. Getting a business loan can get a great start up for a woman who wants her business to pick up. The government can help fund loans and there are scholarships, projects and programs available for women who want to start up small businesses.
In order to get a business loan, you do need to propose your idea to the investor. If the investor is interested, they will lend you the money as a loan, which you would then need to pay back to them. However, the benefit is that it can be paid back in small payments, which isn’t so daunting for a first time business owner. There are up to 6 types of business loans; small business association, business term loans, business lines of credit, invoice factoring or financing, equipment financing and merchant cash advance. For women entrepreneurs specifically, there are business loans designed for women in business from companies such as The Tory Burch Foundation, Fintech company Kabbage, Accion business and Grameen America.
Before you do consider getting a loan for your business, you need to weigh out the pros and cons. Will the business loan that you will receive give you a massive debt if you don’t make enough profit? Do you really need a business loan, or are you just using it as an additional advantage? Which part of your business needs improving?
So what qualifies as a woman owned small business?
In the U.S, there are lawful requirements by the government when it comes to women owning a small business. At least 51% of the business must be owned specifically by women who are citizens in the U.S. This also includes management, long term decisions for the business and how the business operates.
The CEO of the business is also required to be a woman on a full time basis, without having any other jobs on the side.
Yet in other countries, things are still at a grassroots level. For example, in Israel, Avi Benezra, a serial entrepreneur and investor in people says: “We’d love to see more opportunities for women in business also here in Israel. I have seen in France and the U.S. how successful these incentives can be and think there is huge potential in other parts of the world for this”.
In order to be qualified, it is also required to go through a certification process such as National Women Business Owners Corporation and US Women’s Chamber of Commerce. If the government funds loans or projects for women owned businesses, the tax liabilities are reduced and in some states tax incentives can be implemented.
The takeaway for all of this is that it is becoming easier for a woman to achieve her goals and to become an ambitious entrepreneur that they have always dreamt of. They do have to go through a lot of obstacles and requirements in order to qualify, but once you pass the certifications, have a structured plan and have proposed your business idea to your investors, it is worth it in the long run. There are now unlimited resources to help women in order sectors of business, as well as guidance and different platforms to help develop an idea.