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Women opening small businesses at faster rate than men

The number of small businesses owned by women grew 22 percent between 2007 and 2015. The number of small businesses owned by men grew six percent over the same period of time. (MGN Online)

A new report by the Federal Reserve Banks of New York and Kansas City found women are opening small businesses at a faster rate than men.

They defined small businesses as a company with 500 or less employees.

The number of small businesses owned by women grew 22 percent between 2007 and 2015. The number of small businesses owned by men grew six percent over the same period of time.

The same report found that while women are opening more small businesses than men, they are facing more hurdles to succeed.

Women were less likely to get approved for loans than men. 47 percent of women-run first that applied for financing received it. This compared to 61 percent of men-run firms that applied for loans and received it.

The report found that in order to make up for the lack of access to credit, women are relying more heavily on credit cards and small business grants to succeed.

Women-run small businesses were smaller in size than men-run firms. 60 percent of small businesses run by women have only one to four employees while only three percent have 50 employees or more.


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