Stakeholders Roundtable August 11thCollaboration

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Mission:Strengthen the PHX economy by

reaching 50/50 in entrepreneurship

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The major constraint limiting the growth, expansion, and wealth creation of small firms—especially women- and minority-

owned businesses—is inadequate capital. Studies indicate that women entrepreneurs have less access to financial capital or make

less use of it than male entrepreneurs.- SBA, 2013

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Collaboration

...collaboration is the process of shared creation: two or more individuals with complementary skills interacting to create a shared understanding that none had previously possessed or could have come to on their own. Collaboration creates a shared meaning about a process, a product, or an event. In this sense, there is nothing routine about it. Something is there that wasn’t there before.

- Michael Schrage, Shared Minds#PhXX

A good thing you learned about money and a bad thing?Where did the messages come from? How much are you living them out?How are you pulling this into your business? – What’s the messages you have about banking/ financing and your business

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Small Groups

Women account for 30 percent of small companies but receive only 4.4 percent of the total dollars in conventional small-business loans. 

Put another way, women receive $1 for every $23 loaned. Minority business owners pay, on average, 32 percent higher interest rates than what their white counterparts.

-Senate Small Business & Entrepreneurship Committee, 2014

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On average, men start their businesses with nearly twice as much capital as women ($135,000 vs. $75,000). This disparity is slightly larger among firms with high-growth potential ($320,000 vs. $150,000), and much larger in the Top 25 firms ($1.3 million vs. $210,000). 

Source: NWBC, 2012

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7% of the 2,005 founders who received VC funding in 2016 in the US are women. 

- Bloomberg, 2016

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Best Practices

• Know your market and customer. Conduct market research.• View Women-Led SME's as a distinct group. They don't want

different products, they want to be served differently.• Build Internal Capacity. Complete buy in for gender awareness.• Adapt your credit processes, lending methodologies and delivery

models. Adapting credit processes and adding a mix of delivery channels can also help to meet women’s needs.• Offer women a comprehensive mix of financial and non-financial products and

services• Track your data by gender and market your wins.

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Trends

• There has been a notable shift and increase in alternative sources of capital, such as peer-to-peer lending and hybrid models.• Women specific funds and resources. • Rewards-based crowdfunding platforms are giving

women unprecedented access to capital. • Lending institutions and investors are increasingly

acknowledging that women entrepreneurs have the ideas, drive and passion to build enterprises that disrupt markets and show great return on investment. Source: NWBC, 2016• Diversity in resources is key to supporting wbo growth.

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Last Meeting

• Lack of understating on banks and alternative resources• Negative perceptions of equity and debit• Education on funding and proper business skills to prepare for

funding• Women business owners not identifying with or having value for the

terms commonly used to describe training and education on the topic.• Different partners are better positioned to address the challenge at

different points in the cycle. By working together, we can develop a better understanding of who can address what to leverage our efforts.

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Other variables….