How do men- and women-owned businesses differ in the way they go about financing their companies?
QUINN: Thirty-nine percent of women who own fast-growth firms have a commercial-bank loan (compared to 52 percent of men who own fast-growth firms). Thirty-six percent of women business owners use personal credit cards to finance their business, paying higher interest rates. This has already come down significantly from 52 percent of women business owners in 1992. [Source: Center for Women’s Business Research, “Women-Owned Businesses in 2002: Trends in the U.S. and 50 States.”] PBN: Why do you suppose there is a difference? QUINN: Historically, access to capital for women through lending has been limited. It has only been since 1974, with the passing of the Equal Credit Opportunity Act, that the borrowing rights of women have been protected by law. Pre-ECOA, women were denied credit based on gender and marital status. We have simply had less time with a legally level “playing field” when it comes to borrowing money. PBN: Are women-owned businesses treated differently by banks, lenders
