Women May Want to Look to 401k Small Business Financing to Start Their Franchise.
Are you a woman thinking of starting a business? Hesitant to enter a sector of the economy traditionally seen as male dominated? Actually, be inspired by your fellow female entrepreneurs, for between 1997 and 2007, the number of women-owned businesses grew by 44% (versus 22 percent for men), twice as fast as male-owned businesses! According to the research, women are investing highly in education and healthcare businesses. Franchise opportunities like Curves a health and fitness company and Kumon a franchised educational program offering children tutoring and enrichment, are predominantly owned and operated by women! According to Amy Millman, the executive director of the National Women’s Business Council, more and more women are being encouraged to found their own Internet start-ups and other technology companies instead of trying to break through the male-dominated executive management in technology firms.
Considering how to finance your franchise? According to the Economics and Statistics Administration, there are “substantial differences in the financing utilized by women-owned versus men-owned businesses. Women start with less capital than men and are less likely to take on additional debt to expand their businesses.” The Center for Women’s Business Research also cites that men are twice as likely as women to own a business that brings in $1 million in revenues (6 percent versus 3 percent). One reason for this might be that women are less likely to be approved for traditional bank loans and have difficulty attracting the funding needed to grow their business. Alternative forms of financing such as 401k small business financing or rollover as business startup (robs) can help you start your own small business and do what you love while using money you may already have! The freedom to use your 401k to start a business without taking on additional debt might increase the likelihood your business will succeed. That is something that you can take all the way to your 401k!