Breaking the Piggy Bank: Personal Funding and Women Entrepreneurship
August 24, 2021
by Jenna Gallie and Frédérick Dufour from Leading Lenders
Why is personal funding so common as a funding option for women entrepreneurs? Is the idea of accessing financing so difficult in the eyes of women entrepreneurs?
Actually, did you know that the use of personal funding is pretty common for most entrepreneurs, regardless of gender. In fact, according to the most recent Canadian census in 2016, more than 80% of all entrepreneurs use personal funds when starting a new business.
Curiosity strikes as to why this number is so high in general. Of course, there can be many contributing factors that ultimately drive an entrepreneur to make this decision. The million-dollar question is: Are there opportunities to cut this percentage down? Being in the year 2021, the way in which one applies for start-up funding has drastically changed.
We now have:
It's not uncommon to hear how difficult it is for women entrepreneurs to access business financing. Women entrepreneurs tend to start their business from the ground up. It may be a hobby at first, but it can grow to a much larger scale requiring more personal funds to keep afloat.
Using personal funds certainly is important, but accessing business financing can also help bring a business to the next level and lenders can play a part in breaking down the barriers related to business financing and addressing misconceptions that many applicants may have about its difficulty:
Here are some questions to spark-up the conversation:
Share your insight with us at info@leadinglenders.ca on ways women entrepreneurs can be more informed about accessing business financing and how lenders can be involved in that conversation. Watch out for the Leading Lenders social channels as you might just see your recommendation on our feed.
Actually, did you know that the use of personal funding is pretty common for most entrepreneurs, regardless of gender. In fact, according to the most recent Canadian census in 2016, more than 80% of all entrepreneurs use personal funds when starting a new business.
Curiosity strikes as to why this number is so high in general. Of course, there can be many contributing factors that ultimately drive an entrepreneur to make this decision. The million-dollar question is: Are there opportunities to cut this percentage down? Being in the year 2021, the way in which one applies for start-up funding has drastically changed.
We now have:
- Jump start campaigns
- Venture capital
- Loans from family members or friends
- Market share purchases
- The list goes on
It's not uncommon to hear how difficult it is for women entrepreneurs to access business financing. Women entrepreneurs tend to start their business from the ground up. It may be a hobby at first, but it can grow to a much larger scale requiring more personal funds to keep afloat.
Using personal funds certainly is important, but accessing business financing can also help bring a business to the next level and lenders can play a part in breaking down the barriers related to business financing and addressing misconceptions that many applicants may have about its difficulty:
Here are some questions to spark-up the conversation:
- How can women entrepreneurs and lenders work together to increase the chances of accessing capital?
- Why is this barrier at the forefront of many entrepreneurial journeys?
- How can we change it?
Share your insight with us at info@leadinglenders.ca on ways women entrepreneurs can be more informed about accessing business financing and how lenders can be involved in that conversation. Watch out for the Leading Lenders social channels as you might just see your recommendation on our feed.
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