Survey: Women business owners rely less on long-term financing

6/30/2011

A recent PNC Bank survey revealed that the majority of women business owners are satisfied with their company's performance, and one out of every two expects their sales to increase over the next six months.

Despite their confidence, the poll also indicates that women are reluctant to accept a business loan from a bank in order to fund their companies, instead relying on business credit cards and personal savings.

"While women business owners often describe themselves as being debt-averse, those who rely strictly on savings and credit cards leave few options to weather downturns without cashing in personal assets or taking a hit to their personal credit history," said Beth Marcello, director of women's business development at PNC.

The study found that 59 percent of women use business credit cards to fund their companies, while 44 percent reported that they on personal savings accounts.

Marcello explained to Business Journal Daily that bank employees who lend to businesses are well-versed in how the needs of women-owned businesses differ from those run by males. Bankers are required to take classes on the topic and receive certification.

The PNC study was conducted from March 30 through May 11, and polled 1,300 women owners or senior management employees of 543 small and mid-sized businesses.