Many women in the business field face more difficulty than their male counterparts. The rate of turning away female entrepreneurs applying for small business loans by the banks has also increased alarmingly. However, fortunately, the government has specific policies and grants to give loans and assist in flourishing women-owned businesses nationwide.
A Guide to Starting a Female-Owned Business
Select the business entity
First, think about what kind of business you would like to start. You cannot jump into a new business headfirst without thought and run it successfully.
Know your interests and the pros and cons of your interest in that business specialty.
Plan how you will proceed in starting your business
You must know what kind of business you are going to run. Research it before filing for its registration by the local or federal government. Get a brand or logo for your business identity.
Make an expense and costs data sheet for starting a business. How will you manage the funding? Do you need a government grant or some other type of loan?
- Obtain tax identification numbers by filing Form SS-4 with the IRS
- Register with the central contractor registration database using your business information, tax identification number, and DUNS number.
- Join women’s business organizations such as the National Association of Women’s Business.
Financial Assistance is Female-Owned
Understanding grants
Small business owners want to turn to grants because they think grants are free money and will not pay them back. But these small business grants come with conditions. First, you must find a grant you are eligible for as a small business owner. Then, you must comply with the application guidelines and wait for their approval until you are entitled to the grant. After approval, you must still genuinely report on the use of money afterward.
Here are a few options for private grants available for a woman-owned business.
- The Eileen Fisher Women-Owned Business Grant Program
- FedEx Opportunity Knocks Small Business Grant Contest
- Idea Café Small Business Grant
- Innovate HER: Innovating for Women Business Challenge
- Small Business Innovation Research
- Small Business Technology Transfer Program
- Zions Bank – Smart Women Grants
Loan options for a woman-owned business
Pilot loan programs assist prospective debtors in developing loan applications and obtaining loans. A Women’s Business Development Center or a Small Business Development Company are examples of such programs.
Women-Owned Business Opportunities
When more than 51 percent of a business’s ownership is by a woman, exceptional facilities and assistance programs are available for such companies. Not all women business owners try to pursue these options, but many do. Local governments, states, and the federal government have special programs for women-owned businesses.
If you are a female entrepreneur, you can register your business as a women’s business enterprise (WBE), opening several opportunities for you.
WBE certification process requirements
- More than 51% of ownership is by women.
- The business has been in the market for at least six months.
- The owner must be a US citizen. If ownership is with a woman who has not received US citizenship yet, she must be a legal resident in the US.
- The proof is compulsory to show that the role of capital from the female business owner is genuine and in ratio to her ownership interest in the business.
- The female business owner must direct the management and business decisions.
Conclusion
Female entrepreneurs are making a great impression on the small business landscape countrywide. The government has specific policies and grants to give loans and assist in flourishing women-owned businesses nationwide. Women must develop a brilliant plan and commitment to start and run a successful woman-owned business.
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