Women Business Ownership Takes Off | Commercial Pulse 10.1.24 скачать в хорошем качестве

Women Business Ownership Takes Off | Commercial Pulse 10.1.24

In this update we share a few key insights from the latest Commercial Pulse Report. This report offers a comprehensive look at the current state of the economy from a small business perspective, and summarizes macroeconomic indicators along with some unique insights on small business, put together by our commercial data science team. Let’s start with inflation—good news here! Inflation dropped to 2.5% in August, the lowest since early 2021, which is helping businesses manage costs better. However, small business optimism has taken a hit, dropping to 91.2, well below the historical average. This points to continued uncertainty in the market. Despite some headwinds, the U.S. economy added 142,000 jobs in August, and unemployment remains relatively low at 4.2%. The labor market is softening, but many small businesses still struggle to find qualified talent. A continuing theme among small business owners Now, let’s talk about women business owners. The latest report includes some very interesting stats and highlights that women are increasingly becoming a driving force in the small business sector. Women-owned businesses have been growing rapidly, with more women than men starting new ventures in recent years. The growth in self-employed females is apparent in the recency of newly established business. Women owned small-businesses that are 2 years old or younger is nearly double that of Men owned businesses and is 6 points higher than men in firms 3-5 years old. Men and Women run businesses share similar credit risk profiles in most categories but given the increase in newer businesses led by women, there is a slight skew to medium vs low-medium risk classifications due to lower time in business. However, access to traditional credit remains a challenge for many of these businesses, with women more likely to rely on credit cards compared to their male counterparts. This can limit their access to higher credit lines, which is crucial for growth. Businesses operated by women are much more concentrated in the Services industry while men are much more concentrated in the Construction Industry." Looking closer at lending, average loan and line amounts tend to be higher in the industries underrepresented by gender. Women-led companies consistently have fewer charge-offs, but may appear riskier due to lower tenure. It's interesting to note that while women-owned businesses are growing, women business owners consistently receive lower traditional credit funding amounts. Taking a look at new originations over a 12 month period, on average, almost 28% of new credit originations for female owned businesses were greater than $20,000 however just over 30% of originations for businesses operated by men were over the same amount. Male owned business, on average, receive more funding through traditional credit instruments. The percentage of funding over $20,000 has decreased for both men and women led companies over the past year compared to the prior year. As we move into the last quarter of the year, we’ll be watching how these trends evolve, particularly as the Federal Reserve has cut interest rates to support growth. If you want more detailed insights, be sure to check out the full report! and sign up to be notified each time the Commercial Pulse is published. SUBSCRIBE Commercial Insights Hub: https://bit.ly/exp-comm-hub-li Commercial Pulse Report: https://bit.ly/3Y5RfbX