Get Funded

Revealed: Why women micro business owners receive less funding than men

Carly Hacon | 25 April 2018 | 6 years ago

Since July 2016, ACF has handled 833 applications, but only 16 per cent were from female applicants.
According to data from small business and startup funding specialists, Access Commercial Finance (ACF), female-led startups receive less funding than male micro business owners, despite putting together stronger proposals.

Despite women being more successful at applying for startup and small business funding, men received 4, 051, 052 in comparison to 332, 437 for women.

Consultant at Access Commercial Finance, Matt Haycox, said: This data shows us that women are on average either better at putting together a funding proposal for their small businesses, or they just have more fundable businesses.

either way, it’s potentially good news for women-owned businesses and startups.

Arguably, this is because female applicants typically ask less often and for a smaller amount. Figures have show that on average women micro business ownersask for 18, 00 less than men.

In the instances where the full amount applied for was awarded, women received on average 22, 162 each 28, 476 less than men, who received 50, 638 each.

Haycox added: But given the low application rate and low funding request amount for women, men are still getting most of the cash due to the sheer volume of applications.”

Since July 2016, ACF has handled 833 applications, with the majority, 84 per cent, coming from male applicants.

The research also showed that although women only covered 16 per cent of the applications, their success rate was 5 per cent higher than male applicants.

As the female application success rate was at 18 per cent in comparison the males at 11 per cent.

Female entrepreneurs and small business owners are 80 per cent likely to ask providers for help but are 18 per cent more likely to receive funding if they apply for it.

Haycox hopes that in the future women will apply for more business loans and be encouraged the findings.

we hope our data gives any woman considering applying for business funding the confidence to do so.

The below infographic from Access Commercial Finance has broken down the gender funding gap

__________________________________________________________________________________

 

Beyond the bank loan: Four startup funding options for 2018

With small business owners increasingly disillusioned with traditional bank borrowing, here are four startup funding options available to entrepreneurs in 2018.

__________________________________________________________________________________

Topic

Get Funded

Related Topics

A Guide to Government Grants for Small Businesses
2 June 2023

A Guide to Government Grants for Small Businesses

Read More →
What is Structured Finance?
4 April 2023

What is Structured Finance?

Read More →
How to Get a Business Loan
22 November 2022

How to Get a Business Loan

Read More →
What Are Bridging Loans?
16 November 2022

What Are Bridging Loans?

Read More →
How to Finance a Property Development
7 November 2022

How to Finance a Property Development

Read More →
Everything you need to know about bridging loans for business owners
29 August 2019

Everything you need to know about bridging loans for business owners

Read More →

If you enjoy reading our articles,
why not sign up for our newsletter?

We commit to just delivering high-quality material that is specially crafted for our audience.

Join Our Newsletter