PALM BEACH Woman ? Global Venture Capital: When United ...

Rapid globalization of the World market place is providing alternative borrowing opportunities for women-owned businesses outside the conventional lending arena and across national borders.

Women around the world, including in the United States and other developed countries, face serious difficulties in accessing capital to start or expand a business. Almost 70% of the world population living on less than one dollar a day is female. This problem has created a necessity for substitute lending methods such as micro loans.

The concept started in the poorest Third World countries, principally Bangladesh, and spread quickly to Eastern Europe and Central and South America. The United Nations considers the movement a critical one in terms of empowering women and combating world poverty.

Micro loans have helped millions of women internationally, and now venture capitalists in the United States are starting micro loan groups to provide business loans and other financial services to small businesses. Low-income women are finding empowerment.

According to a study by ACCION, an international microfinance and micro lending organization, there are an estimated 13.1 million micro-entrepreneurs in this country. Most of the industry?s 600 to 700 micro-lenders are nonprofit community development organizations that depend heavily on federal, state and local grants as well as donations from private philanthropies, including religious, minority and women?s groups.

It is a sound investment for these non-profits as studies indicate that micro-enterprise returns $4 for every $1 of public money. Furthermore, not one micro finance organization had to be bailed out despite the recent financial crisis.

Giving women access to financial services enhances their decision-making capacity, increases their autonomy and forces them to make certain decisions, relating among other things to their income-generating activities. This is true, for instance, when women use loans to expand micro-enterprises.

Numerous local savings banks and credit institutions from Europe to Asia to Africa have joined forces to supply micro finance to women. Vast numbers of foundations, associations and NGOs have played, and continue to play, a vital role in the development of micro-credit, with millions of small producers and traders depending on their activities. The organizations themselves have become very professional and now offer high-quality financial mediation services.

In the United States, business development programs that offer micro-loans to small companies are lending more than ever since the recession and have fielded an unprecedented number of requests from entrepreneurs who can?t get loans from traditional banks.

Various firms and organizations provide micro-loans for small businesses, some of which are owned and operated by women or minorities. One of the largest organizations, ACCION USA, has branch offices nationwide and makes loans ranging from $500 to $25,000.

The number of loans offered by established micro-lenders surged with the recession and dropped only slightly in the last fiscal year, according to the U.S. Small Business Administration.

This is a testament to the power of globalization where business owners are not bound to their domestic restraints if the country in which they are operating is in financial dejection. As the old English proverb goes, ?where there?s a will, there?s a way.?

?ByEmine Dilek

International Business Columnist, producer/host Women?s Voice Radio, Co-Editor of WVoN

You can reach Emine Dilek at EmineDilek@womensvoice.us. To listen to Women?s Voice Radio, go to www.Blogtalkradio.com/womens-voice

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Source: http://palmbeachwoman.com/2011/10/global-venture-capital-when-united-states-banks-are-not-lending/

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