A new grant program aims to help close the funding and support gap for women-owned small businesses.
This is the first time H&R Block’s small business unit, Block Advisors, has offered this funding. Raising capital remains an obstacle for many Black businesswomen trying to start up or expand an enterprise.
The much-needed funding could be very useful. According to a news release, the most recent data from Block Advisors’ Small Business Resilience Series survey reveals that “31% started their business within five months of considering it, 9% more than non-women.” However, “they were more likely to make less money and be declined for a loan than their counterparts—and the disparities were even greater for small business owners of color.”
Industry observers are questioning how long the crisis can continue if Black women owners continue to face obstacles to access financing, including bank loans, venture capital, and investor-backed aid, among other capital stacks.
“Over the past five years, women-owned businesses have grown at nearly double the rate of men-owned businesses,” said Jamil Khan, chief strategy and small business officer at H&R Block.
She added, “Despite being one of the fastest-growing segments of the small business space, women-owned small businesses continue to experience a funding and support gap compared to their male counterparts. Announcing the grant program to kick off National Small Business Month will hopefully illuminate this disparity.”
See more details about the program here.
Source: Black Enterprise
