The Gender Cap

THE Women have made great strides in the business world. The number of women-owned businesses surged by nearly 60% between 1997 and 2013, according to a recent study by American Express OPEN. But women business leaders still face a key obstacle – in GENDER the form of financing. This infographic shows a number of ways in which women-owned businesses remain CAP at a distinct disadvantage when it comes to accessing capital. Yet it also shows recent progess being made in areas such as venture capital and crowdfunding. MORE WOMEN BUSINESS LEADERS The number of women-owned firms in the U.S. has WOMEN-OWNED FIRMS ACCOUNTED FOR EXPANDED RAPIDLY IN RECENT DECADES, 26.0% of all US businesses in '97, 29.4% in '13 growing at 1 ½ times 1997 26.0% the national average from '97 to '13. 2013 29.4% Number of women-owned 41% growth among US NUMBER OF WOMEN-OWNED FIRMS firms increased by 59% businesses overall grew from 5.4M in '97 to 8.6M in '13 8.6M 59 41 5.4M VERSUS PERCENT PERCENT 1997 2013 YET WOMEN -OWNED BUSINESSES CONTINUE TO LAG WHEN IT COMES TO ACQUIRING THE CAPITAL THEY NEED TO GROW LESS ACCESS Small business lender Biz2Credit reports that applications to debt financing and approvals are up among women business owners, yet still lag their male counterparts. O women owners O male owners Less likely to apply for loans 13.0% LOAN APPLICATIONS FROM 12.0% 9.9% 8.0% women-owned firms nearly doubled in '13, 2007 2010 to 2,985 from 1,501 in '12 Didn't apply for loan out of fear of denial 21.1% LOAN APPROVAL RATE 16.9% 17.8% 15.3% for women-owned firms rose to 31% in '13 from 26% in '12, but still below 39% for male-owned firms 2007 2010 LESS CAPITAL AT STARTUP... and problem persists as business matures Average startup capital invested in 2004 Average additional capital injected into those startups in 2010 WOMEN OWNERS $73,500 WOMEN OWNERS $38,217 MALE OWNERS $130,166 MALE OWNERS $73,249 STILL, THERE ARE CLEAR SIGNS OF PROGRESS IN KEY SOURCES FOR FINANCING GROWTH WOMEN-FOUNDED COMPANIES WOMEN ARE MAKING represented 13% of U.S. VC deals through the first half inroads in venture capital of '13, up from 4% in '04 2004 4% 1H 2013 13% WOMEN REPRESENTED 22% of angel investors in '12, up from 12% in '11 WOMEN ARE MAJOR PLAYERS 22% 12% VERSUS in crowdfunding FundRazr reports that INDIEGOGO REPORTS THAT ABOUT MORE WOMEN THAN MEN STARTED 47% of campaigns that reach campaigns in '13 their funding goals on its platform are run by women. 58 42 VERSUS PERCENT PERCENT SOURCES American Express OPEN, Biz2Credit.com, Center for Venture Research, FundRazr, Kauffman Foundation, Pitchbook wwW.FREEENTERPRISE.COM