Why grow the women's economy through acquisitions?

"Despite owning nearly half of all small businesses in the U.S., women often encounter barriers to financing. I've seen from my experience at the SBA and now First Women's Bank, that one of the biggest drivers of the gender lending gap isn't just rejection, it's that many women don't come forward for financing at all. Whether due to lack of awareness, confidence, or systemic hurdles, "access" captures both those who are denied and those who never apply."

"Also driving the gender lending gap is the type of capital women seek. Women often seek startup capital that is difficult to obtain, rather than growth and acquisition capital. Especially pronounced is the lack of acquisition financing in the women's economy. Women are starting businesses at twice the national average, yet based on my experience, the number of women engaged in financing business acquisitions versus startups is relatively low."

"That matters because when women choose to bootstrap startups and grow organically rather than acquiring an existing business, they are choosing the long road to success. Business acquisitions can be a powerful shortcut to scale. Starting from scratch means building infrastructure, cash flow, and customer relationships, one step at a time. Acquiring an established business gives you all that on day one, plus brand equity and proven operations. It's a way to bypass early-stage risk and accelerate growth by leveraging what's already working."

Women business owners face persistent barriers to financing despite owning nearly half of U.S. small businesses. Many women never apply for loans due to lack of awareness, confidence, or systemic hurdles, expanding the meaning of access to include both denials and non-applicants. Women disproportionately seek startup capital, which is harder for banks to underwrite, rather than growth or acquisition capital. Business acquisitions provide immediate infrastructure, cash flow, customers, brand equity, and proven operations, enabling faster scale and lower early-stage risk. Banks can underwrite acquisitions using past performance, and SBA 7(a) loans combined with equity raises are viable acquisition financing options.

Read at Fast Company