Finance For Women In Business and Black Owned Businesses – Secret Exposed

July 2, 2008

Sourcing finance for women in business and black owned businesses can be one of the greatest challenges facing entrepreneurs starting a business or growing an existing one. Recent research confirmed that in spite of numerous lobbying of financial institutions, this problem is far from abating and in my capacity as a consultant and a coach supporting aspiring women entrepreneurs and black owned businesses in particular, it is clear to me that more work needs to be done to change the current status quo.

Last month, I ran a business seminar during which the subject of available business finance for black and women owned businesses was covered. I invited a well known bank to participate in this seminar and was extremely surprised when I discovered that most of the attendees from black owned businesses do not feel they have had a positive experience with banks.

Although most of them have been managing their accounts with banks for over two years, when it comes down to borrowing money from the banks to expand their businesses their applications for loans were very often rejected. In most cases alternative financing options were provided which often turn out to be very unattractive.

Why is this trend so endemic in the market and I understand that the same holds true in the USA. What should be done to improve access to finance for women and black owned businesses who often find themselves in this predicament?

You may have been in this position yourself and may have thought about solutions to combat this challenge. If you have, I welcome your views on this subject.

The question I now ask myself as I ponder over this issue is this- Is the alternative support provided by the government enterprise agencies helping to improve the statistics of women in business and black owned businesses unable to access finance. My gut feeling is that the support given is not making a big enough impact. There are still a significant proportion of rejected loan applications from women and black owned businesses for government finance schemes and for good reasons. Aspiring women and black entrepreneurs are also having a raw deal in the market and are often bewildered by their experiences.

How can women entrepreneurs and black entrepreneurs be supported to raise their game and increase their success rate with sourcing finance for business start up and growth? Much can be done but there has to be willingness on all sides to effect the desired changes. My take on this is there should be a solid training in finance solutions for start up business and existing businesses. Such solutions should incorporate robust strategies that boost success rate in securing finance, drawing from the lessons learnt from the winners in the market. Moreover such training should reflect the cultural differences in different communities and groups. Why is this not available at present? Well your guess is as good as mine.

I have now put together a system that will support women in business and black owned businesses to learn be successful in raising finance. This unique system is a blend of education, research and link up to loan providers of different types.

Much will depend on your specific needs.

Click on http://www.sheilaelliott.com/business-development/business-finance/