By Eastern's Business Banking and Equity Alliance for Business Team, Oct. 17, 2024

In honor of National Women’s Small Business Month, we shine a light on uplifting women business owners.

Summary: 

It’s a common misconception that all businesses want to scale. Many businesses clearly do, but it’s important to make sure to listen to the needs of the specific entrepreneur to identify what’s most relevant. This is why, in celebration of National Women’s Small Business Month, Eastern Bank Team Leader for Equity Alliance for Business Abby Nguyen-Burke and longtime community collaborator, the Center for Women & Enterprise’s (CWE) President & CEO Gabrielle "Gaby" King Morse, came together to share their insights on what’s needed to uplift women and help their businesses thrive.
 

What challenges do women small-business owners face? Are there any misconceptions that aren’t often recognized? 

Gaby: Entrepreneurship is inherently challenging and navigating it as a woman adds layers of complexity. The barriers women face are often driven by misconceptions of what constitutes a ‘successful business’ or what women business owners need to thrive. Women entrepreneurs face the same challenges all entrepreneurs face, and then there is often (but not always) added complexity of being the primary caregiver for children or aging parents and loved ones. Layer on top of that the salary wage gap, which makes entrepreneurship attractive to women at rates much higher than men – 2X for white women and 4X the rate for women of color (according to Source: American Progress, May 10, 2019, https://www.marketingscoop.com/small-business/male-vs-female-business-statistics/, and https://hbr.org/2021/05/black-women-are-more-likely-to-start-a-business-than-white-men). I would like to see a world where women choose to start businesses because they have numerous economic options, not because they are forced out of traditional career paths due to systemic inequities. 

I would also say there is a misconception that all businesses want to scale. Many women-owned businesses do want to grow, but not all. To best support women entrepreneurs, it is critical to make sure we listen to her and understand what she actually wants for herself and her business. For those women entrepreneurs who want to scale – like all other entrepreneurs – they need support in the hard and soft skills, but that content is best shared in an environment where the entrepreneur knows that her needs, her background, and her notion of what she wants to build are fully acknowledged in the process. 

Securing funding can be challenging for women-owned businesses. What tips can you give women entrepreneurs seeking to overcome initial financial hurdles? 

Abby: Start by building a strong foundation. Do the homework to understand your business financials, projections and budget. Focus on generating revenue and prove your business concept before looking to scale. Have a clear plan for how capital will be used once received. This is why the initial homework is so important, and find trusted support through organizations like CWE. 

It’s also critical to surround yourself with a strong network of advisors, including a banker, accountant and attorney. They will help you make informed decisions. Additionally, there are programs designed for minority-owned businesses, such as the Federal Home Loan Bank of Boston’s Jobs for New England program, which offers below market rate financing for small business loans. 

Gaby: I would also add that, due to systemic issues, it is harder for women to find a supportive environment to be vulnerable and ask the questions they have. This is why it’s so important to find a banking establishment and banker who take the time to develop a relationship and understand your goals for your business, creating a setting where you feel comfortable. Trust and information are key. 

There are many types of funding for entrepreneurs – from VC and equity investing to loans, crowdfunding, grants, friends, family and personal savings. When supporting women entrepreneurs of color, it is important to understand that she may have less access to generational wealth or funding from friends and family, giving her fewer options. The larger funding opportunities available and equity investing tend to be much harder for women to secure, even when solving for levels of education and professional experience. Additionally, financial products and their implications can be complex, and sometimes devastating, to a small business owner. So, once again, it is critical for women entrepreneurs to build a trusted relationship with someone who knows finance inside and out. 

As mentioned, a strong network is essential for business growth. Can you speak more about the power of collaboration? And share ideas on how women entrepreneurs can tap into their networks? 

Abby: Community is so important, and it bears repeating that building strong relationships with local lenders, attorneys and accountants is critical. Beyond that, I recommend getting involved in the local community. Seek out other entrepreneurs who have been in business for five or six years. Ideally, someone in your industry who has experienced setbacks, failure and success. More so than anyone else, she will have valuable advice on how to navigate challenges and available resources in your community. 

Gaby: I want to double click on that Abby! Women are amazing at helping women and when we bring women entrepreneurs together, business happens! Here is a nice example from our work at CWE. We were able to make an introduction between two women-owned cleaning businesses who were interested in pursuing the same contract, yet each faced a challenge: one business had capacity but didn’t have the revenue needed for the project; the other had the revenue but not the capacity. Rather than submit two competitive proposals, they submitted a joint bid that secured the contract and are now sharing the work. By collaborating, each was able to access a growth opportunity that otherwise would have been out of reach. This not only maximized their resources but also built a stronger, more resilient business model. And it speaks to how organizations like CWE do not finance women-owned businesses, but over and over again I see them help women business owners connect to financial institutions, network with other women entrepreneurs, and access content and experts as their business needs evolve. Additionally, organizations like CWE can help you navigate the business landscape and provide technical assistance and certification programs that increase the visibility and competitiveness of your company. 

What other resources, opportunities or support systems should women business owners be aware of? 

Abby: Similarly, at Eastern Bank, our Equity Alliance for Business program is designed for entrepreneurs from underrepresented communities. Many of these business owners may not qualify for access to capital with traditional underwriting standards, so our specialized credit program is tailored to meet their diverse needs. In addition to financing, we also offer banking and community services, entrepreneurial insights and tools, and a diverse team of bankers who work closely with clients to truly understand what they need. 

Any final thoughts for women entrepreneurs? 

Gaby: There are many programs, people and organizations committed to addressing the challenges entrepreneurs face to ensure equitable access to resources and opportunities. What is important is to realize when supporting a women entrepreneur is that she may want different things from her businesses than what we expect. So, we need to listen. Ask, “What can we do for you? What does success look like for you? What do you need?” By listening to and understanding her needs, we can create a more inclusive and supportive entrepreneurial ecosystem. 

Abby: Women business owners have unique experiences that enable them to identify and solve challenges that are often ignored in other areas. My suggestion is when other people who don’t have that same experience say, “Well, no one needs that,” don’t be discouraged. Find your network of advocates who recognize your vision, have the right experience and can help you pave the way. Remember, you don’t have to do this on your own. Surround yourself with supporters who believe in your potential and can provide the guidance and resources you need to succeed.