Women-owned businesses are flourishing in Singapore for the past few years. Even though women-owned businesses are generating incredible revenue, they are considered to be small businesses, as most of them have fewer employees.
While all small businesses are aware of the challenges of accessing different business funding options, for women-owned small businesses, the challenges are compounded. Undoubtedly, women-owned small business owners are one of the key revenue generators and play a key role in overall economic success.
However, without broader access to capital growth and startup, small business owners cannot reach their potential. Many initiatives including sponsored funding and grants are established to bridge the funding gaps.
Here are 3 of the most effective ways, women-owned businesses can avail the required funds to grow the business:
Small Business Loan
Women-owned businesses can avail business loans through traditional banking institutions, online lenders and peer-to-peer lenders.
Loan From Traditional Banks
This can be time-consuming and also requires collateral. Although it is considered to be one of the most inexpensive types of funding, there is no guarantee that the funding process will pay off. As per a study, women business owners have to make multiple attempts to secure lines of credit or bank loans.
Peer-to-peer Lending Platforms
This acts as a bridge between the banks and investors and the applicants. Although they are easy and fast to obtain, they are associated with a higher interest rate.
As online lenders use the latest technology to expand their business funding options, they are one of the most popular among women-owned businesses. Online lenders consider various factors such as bank transactions, cash flows, and online sales, thus making the funding options more accessible.
Private small business gift
As compared to a line of credits, loans and business credit cards, the small business grants are essentially free funding options. Thus the overall competition for them is fierce. Small business grants can be allocated to a specific purpose thus they are a great supplement for female business owners.
- The Cartier Women’s Initiative Award is perfect for women entrepreneurs who have just started their business.
- The Amber Grant Foundation rewards $1000 to different women entrepreneurs every month.
- The Eileen Fisher Women-Owned Business Grant Program is for those who are in the market for more than three years
Federally sponsored funding
Small business administration provides funds to business owners in the form of small business loans and grants. The Women’s Business Center is a perfect funding source for women business owners.
Women business owners play a crucial role in the Singapore ecosystem. While the business funding landscape is getting better with more private grants, business loans, and federally sponsored financing, they are yet being underserved. Organizations need to rally around the women owning a small business to bridge the gap between female business owners and their male counterparts.