Minority women entrepreneurs rise in number

Women in the US have always faced barriers while starting business ventures especially those in minority. In spite of this, according to a report by Forbes, these women have shown immense growth in the last fifteen years. The website further reports that where non-minority women owned businesses grew by 32% from 1997 to 2013, minority women-owned businesses grew by 156%.

However, Dr. Sharon Freeman, president of the All American Small Business Exporters Association (AASBEA) points out, “There are two sides of the coin… On the positive side there are fewer barriers to being able to start a business… On the other side, there are fewer employment opportunities, which necessitates going into business.” She adds that most of their ventures don’t have more than one or two employees: “What you’re really looking at here is essentially self-employment.”

Freeman feels that networking has played a huge role in their growth.  Since women with better connections from their home-countries have an easier access to import and export goods and can have a vast communal capital network; they succeed more than the non-minority women. To further accelerate this growth, the President of AASBEA believes the women need role-models.

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Another barrier the women face is lack of collateral when trying to approach banks. “Even when a loan is backed and guaranteed by the Small Business Administration (SBA), you still have to have enough collateral so the bank is willing to take the risk on you,” says Freeman. As a solution, she suggests that women could advertise their knowledge and business experience as a “soft asset” along with their hard assets.

Along with this, women owing small businesses also need specialized knowledge in the field, specific to the profession and the geographical region.

ORIGINAL SOURCE: Forbes

http://www.forbes.com/sites/northwesternmutual/2013/07/15/minority-women-entrepreneurs-are-leading-the-way-for-small-business-growth/