Closing the gender gap – New scholarship supports female small business owners

National Small Business Week is here, recognizing the importance of America’s entrepreneurs and small business owners. Small businesses are the inspiration of our economy. They support our local communities, boost our economy and drive innovation.

It is estimated that girls are certainly one of the fastest growing segments of recent small business owners 13 million women-owned businesses within the USA employs almost 10 million people.

Despite this growth, there continues to be an enormous lack of economic support for ladies entrepreneurs. One of the most important challenges women face is their access to finance. A recent one Study by Biz2Credit highlighted significant differences between women- and men-owned businesses when it got here to financing.

• Women-owned businesses receive less funding than their male counterparts. The funding rate for firms run by women was 40% lower in 2021 than the funding rate for firms run by men.
• The average loan size for women-owned businesses was $49,712, while men-owned businesses received a median of $83,198.
• Earnings for women-owned businesses averaged $88,895, lower than in 2020 and $47,152 lower than the typical for male-owned businesses ($136,147) in 2021
• The average credit rating (580) for a female business owner fell from 588 last yr and was 14 points lower than the typical rating for a male business owner (594) within the study.
• Women are more likely than men to receive loans with shorter terms and better rates of interest than men.

Jamil Khan, Chief Strategy and Small Business Officer at H&R Block, emphasizes the importance of making a level playing field for entrepreneurs. “Women small business owners are important players in their communities. We owe it to them to close funding and support gaps so they can focus on achieving their goals and making a difference.”

To close this gap, Block Advisor from H&R Block creates the Finance your future Small business support program. The program will provide five women-owned small businesses with a complete of $100,000 in funding. A small business owner receives a $50,000 grant package and one yr of access to Block Advisors small business services. Four honorable mention winners will receive a $12,500 scholarship and the service package. Additionally, winners will receive one yr of access to small business services resembling tax preparation and accounting from Block Advisors.

Submissions will probably be accepted at BlockAdvisors.com/FundHerFutureGrant by May 26, 2024. To apply, applicants have to be over 18 years of age and the owner of a U.S.-based business that’s at the very least 51% female-owned. Additional admission requirements may be found on the scholarship website. Companies that promote inclusion and might reveal social impact are particularly encouraged to use. After submissions close on May 26, 2024, a gaggle of finalists will probably be chosen to take part in interviews in mid-June. Five winners will probably be notified by the top of June.

“With immediate access to capital, resources and trusted expertise, we are confident that women entrepreneurs will see significant growth in their small businesses and impact the vibrancy of their community for years to come,” Khan said.