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Women leading small businesses are finding it harder to access funding compared to men, a new Westpac study has revealed.
New research from Westpac reflected significant gender inequality within the loan market, with female business leaders believing it was harder to get funding as a woman.
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The survey revealed that 70 per cent of female small-business leaders said men were able to get funding much easier than women.
Westpac said the “alarming statistic” came after it reached the milestone of $274 million in business loans that supported 726 women in starting or growing a business.
Westpac managing director Tamara Bryden said the bank would pour efforts into “getting women back in business.”
“We know that for many women starting a business, access to funding is a determining factor in getting their business off the ground. This is why we made a $500 million commitment to back more women in business,” she said.
“Since we announced the commitment in March last year, I am proud that we’ve injected over $274 million of capital to support female entrepreneurs, helping more than 726 women start or grow their business.”
Westpac said the $500 million commitment to back more women in business was announced last year to encourage more women to launch or grow their own business.
The research revealed uncertainty around financial stress was a major concern for 20 per cent of female business leaders starting their own business.
Westpac noted “good news on progress” with an analysis of ABS data that revealed the number of women managing their own business had increased by 20 per cent since 2014.
The analysis also found the average annual growth rate for women in business was more than double that of men over this period.
However, despite the increase, the ABS data revealed that only 35 per cent of Australian small businesses were owned by women.
Bryden said female-led businesses had contributed to local communities with 38 per cent having created jobs, 30 per cent having sponsored local events, and 24 per cent invested in social causes.
Women in business also had positive social impacts as 91 per cent said social responsibility was important to their business, while 88 per cent said they always emphasised sustainability.
An attractive feature of owning a business for women was the ability to work part-time, with 55 per cent of female business owners opting not to work full-time hours, compared to 24 per cent of males.
The Westpac research also revealed that female small-business leaders sought autonomy, with 48 per cent having cited the flexibility of work hours as a motivating factor for starting their own business and 40 per cent driven by the desire to be their own boss.
Bryden said she was excited to see transformation in the business loan environment to bolster more women.
“We want to back aspiring female business owners to achieve their goals, as this not only supports their ambitions but also contributes to economic growth and innovation,” she said.
“I can’t wait to see more customers turn their business dreams into a reality with the support of our loans.”
You can find out more about how Westpac is supporting women in business, including broking, in the Women in Finance podcast. Tune in to the episode with Sarah Willsallen, to find out how the bank is creating better equilibrium in diversity, equity and inclusion here:
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