Basically, women entrepreneurs receive fewer and smaller loans than their male counterparts. And the problem? Since women ask for less, they get less. This notion is consistent with research that shows that women ask for smaller raises and do so with lower frequency than men do in the workplace. So, for the most part, women simply don’t ask for more money in business or in the workplace.
While there are many ways in which women entrepreneurs face disadvantages in seeking start–up loans given the low loan approval rate, could it also be that some women intentionally apply for small loans because that is all the capital they need?Could it be that women can do more with less?
Well, according to Babson College and Baruch College, female entrepreneurs in the US reported needing only half as much as their male counterparts to start new businesses. Women are nearly twice as likely as men to rely on personal savings and family members to fund their new businesses according to the entrepreneurshi...
Faulu Microfinance Bank, a subsidiary of Old Mutual Group, is one of Kenya’s fastest growing banks with a network of over 80 outlets. The bank offers a variety of financial solutions specifically targeted towards entrepreneurs; the loans are flexible, affordable, convenient and accessible for working capital, assets acquisitions, business expansions, imports or exports. The turnaround time on these loan applications is quite impressive. Unlike some of the funding entities in South Africa that take at least 6 – 12 months to process loan applications, Faulu Microfinance Bank has a 12 hour processing duration including interest discount rates of up to 25% for early repayment. How incredible!
In Ghana, Stanbic Bank, the Agricultural Development Bank and Universal Merchant Bank have also adopted different strategies to cater for small businesses. Stanbic for instance introduced the new SME quick loan to overcome the usual challenges that SMEs face when dealing with commercial banks.