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Business Loans for Women

The Small Business Administration states that business loans for

women are on the rise, and will continue to be needed on an

increasing basis in coming years. Business loans for women are

more popular than ever due to a variety of factors.

1. Women are taking the initiative needed to become business

owners and are opening new businesses. According to the most

recent data on businesses, available from the U.S. Department of

Commerce, Bureau of the Census, there were 5.4 million

women-owned businesses in the United States in 1997. The Bureau

of the Census also stated that the number of women-owned firms

grew almost three times as fast as all firms between 1992 and

1997. They have reported that the number of women-owned firms

increased by 16 percent in this five-year period, compared to a

six percent increase for United States firms in general. The

1997 Economic Census states that women-owned firms made up 26

percent of the nation's 20.8 million nonfarm businesses,

employed seven percent of the 103 million workers, and generated

four percent of the $18.6 trillion in receipts. The National

Foundation for Women Business Owners states that the current

estimated growth rate in the number of women-owned firms is

nearly twice that of all firms, and this increase is a trend

that is expected to increase even more in coming years. The

anticipated increase in women-owned firms, therefore, brings

about a tremendous need for business loans for women.

2. The past decade has shown a boom in the home-based business

arena. The increase in home-based businesses popping up

nationwide is due very much to the idea that many mothers are

starting businesses in order to choose a work-at-home lifestyle

to bring income into the home, and at the same time, raise their

children at home rather than placing them in daycare. While

these home-based business are operated in a nontraditional work

environment, in perhaps a nontraditional style of operation,

they are nonetheless the same as other businesses in the style

of carrying inventory, making purchases for the business,

marketing the business, and creating a web presence. Business

loans for women are crucial for small businesses such as these.

Many have proven to be just as successful or even more

successful than traditional businesses and businesses owned by

men.

3. Women often purchase existing businesses. Nearly no

explanation is needed to stress the need for business loans for

women in this area. Purchasing a business requires money, most

often obtained through business loans for women or through

another type of loan. Because more and more women are leaving

the work place and carefully weighing all factors of owning a

business, purchasing an existing business is a wonderful option

for those that don't want the risk involved in actually starting

a business. By purchasing an existing business, it allows the

potential new owner the opportunity to carefully examine the

existing business regarding many things, including its

profitability, gross sales, and market position. A business that

rates high in all three areas is a good business investment for

a new potential business owner, especially a women with past

business experience. Business loans for women can offer a new,

potential business owner the opportunity needed to operate a

successful business.

4. With more women in business for themselves, business loans

for women are needed to offer women capital crucial for a

business to succeed. Regardless of whether the business is

home-based or more traditional in nature, and whether it's a

start-up business or was a purchased, existing business, capital

is needed for a business to succeed, and to start, business

loans for women are of great assistance. Business loans for

women offer women a way of starting a new business with capital.

Business loans for women can also assist women in increasing

sales for an existing business, as well as marketing the

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business or expanding a business.

5. Women tend to choose to operate businesses in the services or

retail trade industries. According to the U.S. Census Bureau,

more than seven out of every 10 women-owned businesses and firms

are operated in the services or retail trade industries.

Considering the nature of these two types of businesses, one can

easily see why the need for business loans for women is on the

rise. In order for a woman to successfully operate a retail

trade business, for example, inventory is needed. While drop

shipping can sometimes be an option, especially for an at-home

retail business operated through an online store, more

realistically speaking, inventory needs to be purchased.

Business loans for women offer women the option of purchasing

inventory to be sold in a retail business. Likewise, a

service-related business normally operates with the use of

equipment, and is often specialized equipment for that specific

type of business. The availability of business loans for women

offers women the opportunity to purchase equipment and supplies

needed to operate and succeed in running a service-related

business.

Business loans for women are increasingly important for female

business owners. However, careful consideration should be taken

before securing a business loan to make sure that the loan is

truly needed for the business to expand and succeed, and to make

sure that the loan payments will easily fit into the business'

budget.

About the author:

Rebecca Game is the founder of Digital Women ®, an online

community for women in business. A 30 year entrepreneur and

dedicated to helping other women. Visit her site: Loans for

Women

http://loans.digital-women.com