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Startups are booming in the U.S, and across the globe, and that surge is being led by women entrepreneurs.

According to a 2022 study from the World Economic Forum, women started 49% of new businesses in the U.S. in 2021, up from 28% in 2019.

By the end of 2022, up to $1.9 trillion worth of revenue was produced by women-owned businesses, which includes 42% of small businesses owned by women.

In 2023, women in the U.S. opened more than 1,200 new enterprises each day.

Despite the immense value, perspective, and innovation that women entrepreneurs bring to the business fabric of the world, they have historically faced higher barriers to overcome than male entrepreneurs.

Some major challenges faced by women entrepreneurs are establishing strong first impressions, balancing their personal and professional lives, and perhaps most importantly, having access to capital from lenders, grants and the government.

Fortunately for local women entrepreneurs, there are various opportunities for funding available from business associations, financial institutions and state and federal grants.

There are federal resources such as the Small Business Administration’s (SBA) Office of Women’s Business Ownership (OWBO), which helps women entrepreneurs through programs coordinated by district offices that include business training, counseling, federal contracts and access to credit and capital.

The SBA also administers the 8 (a) Business Development program, which helps small, disadvantaged businesses compete in the marketplace.

In the Central Valley, business associations such as the Fresno Area Hispanic Foundation (FAHF) have specific programs to assist women entrepreneurs.

The FAFH runs its Latinapreneur (Spanish) and Womanpreneur (English) programs to focus on assisting minority women owners on building their marketing, financial wellness and other business fundamentals.

FAHF offers Community Development Financial Institutions (CDFI) loans, which are loans with fair terms with community development as a focus.

“It’s hard for women entrepreneurs to go directly to a bank to get a loan to start a business or to grow a business,” said Yery Olivares, FAHF chief operating officer.

Olivares pointed out common reasons why some women have trouble getting loans, including bank focus on credit ratings. Another driving factor is the requirement of collateral for a loan, which many women do not have.

Many small business owners are also looking for smaller loans in the range of $5,000 to $10,000 to $25,000 which many banks pass on, as they prefer to write loans near the $500,000 range.

Not just available to women business owners, the FAHF also has its Accessible Consumer Loans designed for a number of financial needs including refinancing, covering unexpected expenses and even funds for purchasing a car.

Olivares said that many of their clients might not have a higher education or be versed on starting or building credit, and one of the foundation’s goals is to provide tools and resources to make clients realize the importance of established credit.

“Women are CEOs of their household, and we need to make sure as women that we understand the needs of women entrepreneurs and that we facilitate products to help women entrepreneurs,” Olivares said.

While access to funding is a major benefit for local entrepreneurs, access to resources and assistance in obtaining funding could be just as important.

At the Vision View Business Formation Center, a business hub and incubator in Fresno, local businesses start and expand with support such as leased space, business development services and startup resources.

A businesswoman herself, Lynisha Senegal, founder and executive director of Vision View, said that in a corporate world dominated by men, many women could face difficulty in attracting investment.

A big hurdle for women in obtaining funds from lenders is the U.S. legal structure and credit.

“A lot of minority businesses just don’t meet the credit scores threshold to qualify for funds,” Senegal said.

Just this year, Senegal said she applied for state funding, and this was the first year she was asked to submit a credit score, which is typically more common for a bank loan, but not for a grant application.

She said that many minority business owners, and women business owners, just don’t have the relationships with lenders and bank needed, and many grant programs require upfront capital or matching dollars, which many minority business owners just don’t have.

Senegal said that partnering with local organizations such as Access Plus Capital, which provides smaller loans for businesses, could be all a business needs to start up or even expand rather than locking into predatory loans.

She said that many women, especially Black women, are exiting the corporate world and starting their own businesses at a faster pace. She expects that to continue.

If a woman is considering applying for a business loan, Senegal does offer some advice.

“Go out and pitch your service to friends and family and see if they believe in your vision. If you can sell to 10 friends and family, then I’d say it’s something worth taking to the next level,” Senegal said.