When we posted about what we at Wall&Main believe in and why we got into crowdfunding, one of the issues showing up in our research was a disproportionate lack of traditional funding for businesses owned by women, veterans, and racial minorities. As part of determining just how unreasonable these discrepancies really are, we decided to dig a little deeper into the issue, starting with funding for women. What we found was fairly telling: as a segment,
- The number of businesses started by women is growing 50% faster than the national average
- The businesses they start are most commonly in major centers of commerce like New York and Los Angeles
- They tend to concentrate in long-term growth industries like health care and educational services
- Women are receiving disproportionately small portions of the funding available through traditional means like loans or venture funding.
That’s a big story. A high-growth group of startup entrepreneurs and business owners to be disproportionately more likely to be involved in growth industries and disproportionately less likely to secure funding seems like a fantastic opportunity or at least an unsustainable market inefficiency. At any rate, we put together an infographic with what we unearthed. Here it is, please feel free to share it and make comments at the bottom of the post.