“I own 51% of my company, but the bank only wants to talk to my husband.” That statement from our recent focus group with women entrepreneurs tells us loud and clear that women still face crippling gender bias when navigating the banking industry - even in the year 2024. United WE is dedicated to unlocking womens’ economic and civic leadership so digging into the barriers experienced by women entrepreneurs is a top priority for us.
We’re no strangers to this topic, as we have examined the experience of women entrepreneurs in town halls, roundtable discussions and audio vignettes. Recently, United WE brought together a small group of women entrepreneurs for a focus group so that we could dig more deeply into how the banking industry itself has been a barrier when women entrepreneurs started their businesses. Our focus group included women entrepreneurs from all walks of life and a variety of industries - from telecommunications, fashion, and early childhood education to architecture and hospitality. However the thread woven between all of these entrepreneurs was the fact that each of them, at some point, had struggled with banking institutions.
As we discussed particular issues they faced with the banking industry, several key areas rose to the top for these women:
Gender and racial bias in banking
Lack of a relationship with a banker
Digital banking versus in person banking
Securing start up capital
Accessing credit (such credit cards or a line of credit)
Discomfort with finance/banking
“Bank managers need to be more relatable and cognizant of the different industries,” we heard from another participant. “I simply didn’t have access to capital,” said another. “On top of that, my company often doesn’t get paid for work until 3-6 months later [after the work is completed]. I actually had to put up my house as collateral.” One first-time business owner said she needed direction and guidance from a banker but felt like she was getting the runaround regarding who to talk to and where to go. “Sometimes you just don’t know what you don’t know. It would be nice to have someone guiding you through the process.”
As a result of this focus group, United WE will be developing a toolkit for women entrepreneurs to use as they start their business up and as they navigate the first five years of their entrepreneurial journey. Be the first to see this toolkit by following us on social media and signing up for our newsletter.
It’s our hope that focus groups like these lead to sustainable, long-term changes that unlock opportunity for all women.