According to the 2019 State of Women-Owned Firms Report, the number of women-owned enterprises increased by 21% from 2014 to 2019, reaching over 13 million, with revenue up 21% to $1.9 trillion.
Even though more than 40% of firms in the United States by 2019 are owned by women. Despite this, male entrepreneurs earned nearly all of the venture capital funding for new startups in 2020.
It’s a fact that women entrepreneurs face disproportionate challenges when it comes to obtaining business loans when compared to their male colleagues. Fortunately, several private and government financial opportunities dedicated to women-owned businesses exist.
If you're a woman who operates a small business or has a business idea, looking for and applying for these awards may be worthwhile.
In this guide, we have selected some crucial grants for women and its related concepts. Let’s take a look on what we’ll cover ahead:
- Significance of Grants
- Working of Grants
- Top 10 Grants for Women-Owned Businesses
- Right Way to Select Women-Business Grant
- Other Financing Opportunities & Resources for Women
- Frequently Asked Questions (FAQs) Associated with Women-Grants
- Crucial Tips on Grant Application
- How Deskera Can Assist You?
Let’s Start!
Significance of Grants
Even the most inventive and well-thought-out business concepts will fail to materialize without sufficient financial backing. A lack of funding can kill a startup or hinder a second-stage company from growing.
Unfortunately, evidence suggests that women entrepreneurs may have a harder time qualifying for typical small business loans. And even if they do, the loans may be less substantial than those offered to men:
According to Biz2Credit's 2020 Women-Owned Business Study, women entrepreneurs obtain 33% less funding than their non-women-owned business competitors.
Fortunately, grants can help women entrepreneur with this scenario. Grants are similar to gifts rather than standard loans that must be repaid-with interest.
If you qualify, you will receive the funds without having to repay them. Without a doubt, grant money would be a terrific option for women who struggle to qualify for regular funding and want to compete on an equal footing in the entrepreneurial world.
Working of Grants
Grants is plainly superior to loans because they are practically free money. Of course, it isn't as simple as requesting something and receiving it.
With a long wait period, the application procedure can be tedious and time-consuming. Moreover, you should also meet specific conditions to be qualified.
Awards come in a variety of forms, including state, federal, and private organizations, non-profit, and charity foundation grants.
The grantor (the agency that distributes the grant funding) will determine the grantee's qualifications and requirements (the person or organization receiving the money).
Many experts suggest that women-owned enterprises start looking for incentives at the state level. State grant standards may be less stringent, and more possibilities may be available than with federal funds. Moreover, each state will have its own website with a part dedicated to business grants for women and minorities.
Many states also offer grants to women-owned firms in historically male-dominated industries, such as construction. You can explore and start by looking at your state's website to see what possibilities are available for your assistance.
Top 10 Grants for Women-Owned Businesses
Following we have listed some top grants that women must consider. Check out:
1. The Amber Grant of Women
The Amber Funding is perhaps the most well-known grant program for female entrepreneurs, and with an excellent purpose.
Furthermore, the Amber Grant accepts submissions all year round. It is different from many other awards that only accept applications for a period of the year.
This is generally because it gives out new awards every month, while most grants are given out once a year. Due to these these two main factors, the Amber Grant is more approachable than most.
Further, the Amber Grant does not require an extensive application or many applicant conditions. Any female entrepreneur (who isn't a nonprofit) is eligible to apply.
Next, you only have to give more information about your company and what you plan to do with the funds. Easy as pie. (Also, make sure that you take sufficient time for answering it.) Nevertheless, it is still simpler than other programs.
The Amber Grant is now the only one on our list that charges an application fee. To apply, you must pay $15. That charge is certainly worth $15 because it helps keep the grant fund going. It's still something that you must keep in mind.
You should also be aware that Amber Grants aren't the most generous grants available. Grant awardees will get $10,000 in 2021 (increased from $2,000 in previous years). One of the finalists will get an additional $25,000 grant at the conclusion of the year. However, for the majority of recipients, the $10,000 is a one-time payment. Marketing Grants and Business Category Grants were recently added to the organization's offerings.
Remember that the Amber Grant isn't the largest, and it isn't completely free. The Amber Grant is our favorite small-business grants funding for women since it has few requirements and one of the most straightforward applications we've seen.
2. Women Founders Network Fast Pitch Competition
The Women Founders Network is a non-profit that assists female entrepreneurs with funding and coaching. WFN is a fantastic grant opportunity if you have an innovative business that you wish to expand and grow.
Female entrepreneurs are applicable to apply for the chance to pitch investors to win monetary funds. Further, finalists will still have exposure to a financial mentor, a prospective investor link, pitch coach, and suggestions on their businesses.
Each year, the organization's Fast Pitch contest chooses five finalists to receive a free funding and professional services. The judges select the top five female founders after two rounds of voting. They then participate in a "Shark Tank"-style competition for over $30,000 in prize money and over $50,000 in professional services.
3. Cartier Women’s Initiative
The Cartier Women's Initiative Awards are one of the most prestigious and well-known awards for women-owned enterprises, but they face fierce competition.
Furthermore, the Cartier Women's Initiative is dedicated to you as a businesswoman and leader.
Cartier offers two types of grants for women-owned businesses: the Cartier Women's Initiative Regional Awards, which award $100,000 to seven laureates (one from each of seven worldwide regions) and $30,000 to 14 finalists (second and third-place enterprises from each zone).
Furthermore, the winner of Cartier's Science & Technology Pioneer Award will get a $100,000 award, with two runners-up receiving $30,000 grants.
In addition to the grant money, you will receive peer learning, leadership training, strategic coaching, and other services to help you advance your entrepreneurial abilities.
It is obvious that the Cartier Women's Initiative clearly has a lot to offer. However, it also expects a lot of you. Your company must be "early stage," with at least one year of sales, and you cannot have secured more than $2 million in equity-based funding (like venture capital).
In addition, you must submit an application that comprises a resume, pitch deck, video, and other materials. You must also agree to spend four hours per week on grant-related activities if you are chosen.
4. Tory Burch Foundation
Like the Cartier Women's Institute, the Tory Burch Foundation seeks to assist you become a stronger businesswoman by providing money and longer-term learning opportunities.
The Fellows Program at the Tory Burch Foundation, on the other hand, emphasizes formal education.
For example, the $5,000 award must be utilized solely for the purpose of business education (such as courses, conferences, and workshops). Similarly, its learning options favor workshops over peer learning.
What is one benefit of the Tory Burch Foundation? – Well, it's the opportunity to make a case to potential investors.
Furthermore, the program and funding will be awarded to up to 50 women. And only ten of those 50 will have the opportunity to present their firm to investors.
Simply said, you won't be able to fund a project or normal business expenses through the Tory Burch Foundation. However, if you wish to improve your own business expertise, it can assist you in doing so.
5. 37 Angels
Angel financing isn't quite a grant because the investors that finance you will have a stake in your business. Angel investing, on the other hand, might be a viable choice for women-owned businesses in need of guidance and industry experience, as well as the finances to do so.
The New York City-based angel investment organization 37 Angels attempts to close the gender gap in angel financing. Furthermore, the funding is offered to both women and men-led businesses (albeit the portfolio of the group prefers female founders).
All you need to do is to fill out a fast online application to apply for funding. And, if picked as a finalist, then you'll propose your concept to a group of investors in New York.
You should hear back within four weeks of pitch, and most angel investors obtain $50,000 to $100,000 in early capital as well as expert assistance in building their business.
6. Girlboss Foundation
The Girlboss Foundation was founded in 2014 to support female entrepreneurs who are pursuing creative interests. Women working in the areas of art, fashion, music, and design are eligible for these semi-annual scholarships.
Furthermore, Girlboss provides emerging female entrepreneurs with the skills and connections they need to launch their own business.
Every two years, Girlboss awards grants to creative people who are just starting a business. Every six months, one grant applicant receives $15,000 in conjunction to internet media exposure for a creative project to be completed within the next year.
Note that the Girlboss Foundation only distributes grants to individuals; an individual managing a business can receive a grant, but a firm as a whole cannot.
Girlboss also runs the Girlboss Professional Network, a professional marketplace for women. Also, it hosts the annual Girlboss Rally, at which grant recipients are given two complimentary tickets.
7. Boston Women’s Fund
You must be a 501(c)(3) group to be qualified for a grant from the Boston Women's Fund. However, if you already have one, this multi-year award is a fantastic chance.
The Boston Women's Fund gives a long-term award, unlike other programmes that only give you a big sum of money. That implies you can collect $10,000 over the course of five years, totaling $50,000. (Runners-up will get a one-time $15,000 prize.) As a result, this award is ideal for funding the long-term activities that NGOs are known for.
Remember that the Boston Women's Fund has some special requirements for applicants and grant recipients. The Fund grants the money to NGOs led by women and girls, as one would anticipate for a women's grant.
More than just leadership concerns the Fund; it also chooses to work with women and girls (specifically those from marginalized groups).
To apply, you must provide extensive information about your charitable organization, proposed program, and budget. To put it another way, it's a substantial time investment that could pay off in the coming years.
8. Women Who Tech
Women Who Tech is the biggest platform of female-led businesses, investors, and allies aiming to promote technology sector diversity and funding. Throughout the year, the group distributes equity-free funds to women-led tech firms on a continuous basis.
There is a distinct topic for each grant period. The theme for the first award period in 2021 is Emerging Technologies, and candidates should focus on technological innovations to alleviate systemic global problems.
The first-place award for the Women Who Tech Emerging Tech grant is $15,000, with a second-place incentive of $5,000.
9. Asian Women Giving Circle
Although we admire the Asian Women Giving Circle grant, it is extremely specialized.
As the name suggests, the grant is given to Asian American women's organizations (or individual artists who can get a nonprofit sponsor). It has to be a New York-based 501(c)(3) nonprofit.
They must also pitch a concept that uses the arts to communicate a social justice message to Asian American women and girls. As previously said, this is a somewhat specialized market.
If that characterizes you and your aspirations, you might be eligible for one of the eight grants offered each year. Simply set aside some time for your application, as it is somewhat extensive.
10. Halstead Grant
Halstead Grants are awards presented to new metal jewelry designers each year. You might be interested in applying for the Halstead Grant if you make silver jewelry.
While this prize isn't specifically for women, we are placing it on our list because the jewelry business is overwhelmingly female-dominated, and the majority (but not all) of former recipients have been women.
Furthermore, the Halstead grant includes $7,500 in starting funds and $1,000 in Halstead products. You must present a jewelry collection as part of your application.
On the other hand, semifinalists (up to five in total) may receive smaller cash prizes of $250 or $500, as well as expert company development advice.
An entry for the Halstead Grant is available online. You will be asked 15 business-related questions to complete the application. To be eligible for the current year's award, you must submit your application along with design portfolio photographs by August 1st.
Right Way to Select Women-Business Grant
Government and corporate grants are the two main forms of grants accessible to small business owners. Although, requirements for business grants are typically easier to meet. But, due to more flexible selection criteria, you may encounter more competition from other applicants.
With government funds, the application process can be time-consuming. As a result, the candidate pool may be smaller, which may increase your chances of winning the cash prize.
Furthermore, it's critical to go over all of the eligibility requirements before applying for an award. You don't want to spend your energy (or the time of the selection committee) registering for grants that you don't qualify for. Instead, you should spend your time looking for grants that you are eligible for.
Other Financing Opportunities & Resources for Women
Check the following information about grants for women in business, as well as other funding options and ideas that are listed below:
SBA Resources
Even if it does not give funding, the Small Business Administration (SBA) provides support and services to women-owned businesses.
If you're a woman and a veteran, the Women Veteran Entrepreneurial Training Program, for example, can assist you acquire free professional training.
All you have to do is to find out what local business resources your local SBA Women's Business Center (WBC). Then, you can connect with them. These resources could include local women-in-business incentives specific to your community or state.
Business Crowdfunding
To generate money for your woman-owned business, you can use a variety of business crowdfunding platforms.
In most cases, you'll have to offer a monetary incentive or potentially stock in your company in return for investment. Kiva, for example, allows you to raise $10,000 for your organization with no conditions attached.
Federal Contracts For Women-Owned Businesses
In industries where women are underrepresented, the government sets aside a share of federal contracts for women-owned small businesses (WOSB).
Manufacturing, construction, HVAC, Forestry, and a variety of other businesses, such as nail salons, beauty salons, family planning centers, and the creation of women's fashion, are just a few examples.
Several federal contracts are even restricted to women-owned small enterprises that are economically disadvantaged (EDWOSB). If you own a business in a male-dominated sector, which is pretty much every industry, you must check out this training.
Frequently Asked Questions (FAQs) Associated with Women-Grants
Following we have discussed some important frequently asked questions that are linked with women-grants. Let’s learn:
Que 1: What are grants for women's businesses?
Ans: Women's business grants are monetary awards provided to enterprises owned by women.
Que 2: Where can I apply for grants for women-owned businesses?
Ans: Many organizations provide financial assistance to women-owned enterprises. Applying to the organizations recommended in this post is a perfect place to start. Also, make sure that you contact your local city or state government may also provide more opportunities.
Que 3: Where can single mothers get loans to set up a business?
Ans: A number of resources are available to help single mothers. For instance, SingleMom.com gives information on educational financial help as well as small business grants and loans for women.
In nearly every state, the SBA also runs Women's Business Centers where you can get training, counselling, and other services to help you establish and expand your business.
Que 4: What are the options for women seeking a grant to establish a business?
Ans: You must apply for and be awarded a grant to start a business. A business plan, financial estimations, personal essays, and other information will typically be included in your application.
Que 5: Do women with negative credit qualify for small business grants?
Ans: There are no small business awards for women with bad credit score. However alternative lenders do work with people who have bad credit. If your credit score is less than 500, look into online loans like Fundbox and Kabbage.
Que 6: Do women-owned firms qualify for tax breaks?
Ans: Women-owned businesses are not eligible for tax advantages. In our guide learn about how much small business pay in taxes and pass through tax deductions.
Que 7: What are the requirements for women to receive a small business grant?
Ans: Grants for small businesses are quite competitive. The chances of receiving a grant are slim.
Having a good company idea or strategy, telling a fascinating personal narrative, beginning a business geared at the development of your community, or offering some other unique viewpoint of yourself and business can all help you win a business grant.
Que 8: Who should I contact if I need financial assistance to start a small business?
Ans: You can get in touch with a financial advisor, a community bank, or even a friend or family member with business knowledge can all be of assistance.
Furthermore, make sure to look into all of your financing alternatives, including microloans, SBA loans, and regular loans, to determine what will work best for your needs and budget.
Que 9: Are there any small business grants available for Minority women?
Ans: The Minority Company Development Agency can assist minorities in starting small businesses by offering funds and educational materials.
Furthermore, the SBA also provides start-up funds to socio - economically disadvantaged minority business entrepreneurs who hold 50% of their company.
Crucial Tips on Grant Application
Following we have listed some pro-tips when it comes to grant application. Let’s learn these following tips:
Prepare a Business Plan
Almost all of the grants we discuss here demand some sort of business plan, especially if you're applying for a new business.
However, if you're not sure where to begin, write down your company's goals, how you intend to make money, how you intend to expand, and what monetary resources you intend to use.
Avoid Applying for Grants that Aren't Right for You
Take the time to figure out which grants you'd be a good fit for and focus your efforts on making those applications outstanding. Moreover, if you have a hunch your company isn't a good fit for a grant, you'll waste a lot of time on an application that will be rejected. And, it will be a complete waste of time and energy.
Consider of Employing a Grant Writer
You could still be able to apply if you're busy and don't think you'll be able to spend the time and energy needed for the grant application procedure. One method to get around this is to hire grant writers. They'll handle the full grant application procedure for a fee and/or a share of the grant money.
How Deskera Can Assist You?
As a business, you must be diligent with employee leave management. Deskera People allows you to conveniently manage leave, attendance, payroll, and other expenses. Generating payslips for your employees is now easy as the platform also digitizes and automates HR processes.
Final Takeaways
This comprehensive guide has now come to an end. Having a lot of data on hand might be overwhelming. As a result, we've compiled a summary of key topics from this tutorial for your future reference:
- Grant money might be a terrific option for women who struggle to qualify for regular funding and want to compete on an equal footing in the entrepreneurial world.
- Awards come in a variety of forms, including federal, state, and private organizations, non-profit, and charity foundation grants.
- The Amber Funding is perhaps the most well-known grant program for female entrepreneurs, and with an excellent purpose.
- The Amber Grant is now the only one on our list that charges an application fee. To apply, you must pay $15. That charge is certainly worth $15 because it helps keep the grant fund going. It's still something that you must keep in mind.
- The Women Founders Network is a non-profit that assists female entrepreneurs with funding and coaching. WFN is a fantastic grant opportunity if you have an innovative firm that you wish to grow.
- The Cartier Women's Initiative is dedicated to you as a businesswoman and leader. Cartier offers two types of grants for women-owned businesses: the Cartier Women's Initiative Regional Awards, which award $100,000 to seven laureates (one from each of seven worldwide regions) and $30,000 to 14 finalists (second and third-place enterprises from each zone).
- Tory Burch Foundation seeks to assist you become a stronger businesswoman by providing money and longer-term learning opportunities. The Fellows Program at the Tory Burch Foundation, on the other hand, emphasizes formal education.
- Angel financing isn't quite a grant because the investors that finance you will have a stake in your business. Angel investing, on the other hand, might be a viable choice for women-owned businesses in need of guidance and industry experience, as well as the finances to do so.
- Girlboss provides emerging female entrepreneurs with the skills and connections they need to launch their own businesses. Every two years, Girlboss awards grants to creative people who are just starting out in business.
- The Boston Women's Fund gives a long-term award, unlike other programmes that only give you a big sum of money. That implies you can collect $10,000 over the course of five years, totaling $50,000. (Runners-up will get a one-time $15,000 prize.)
- Women Who Tech is the biggest platform of female-led businesses, investors, and allies aiming to promote technology sector diversity and funding. Throughout the year, the group distributes equity-free funds to women-led tech firms on a continuous basis.
- Although we admire the Asian Women Giving Circle grant, it is extremely specialized. As the name suggests, the grant is given to Asian American women's organizations (or individual artists who can get a nonprofit sponsor). It has to be a New York-based 501(c)(3) nonprofit.
- The Halstead grant includes $7,500 in starting funds and $1,000 in Halstead products. You must present a jewelry collection as part of your application. On the other hand, semifinalists (up to five in total) may receive smaller cash prizes of $250 or $500, as well as expert company development advice.
- It's critical to go over all of the eligibility requirements before applying for an award. You don't want to spend your energy (or the time of the selection committee) registering for grants that you don't qualify for. Instead, you should spend your time looking for grants that you are eligible for.
- Even if it does not give funding, the SBA provides support and services to women-owned businesses. If you're a woman and a veteran, the Women Veteran Entrepreneurial Training Program, for example, can assist you acquire free professional training.
- To generate money for your woman-owned business, you can use a variety of business crowdfunding platforms. In most cases, you'll have to offer a monetary incentive or potentially stock in your company in return for investment.
- Several federal contracts are even restricted to women-owned small enterprises that are economically disadvantaged (EDWOSB). If you own a business in a male-dominated sector, which is pretty much every industry, you must check out this training.
- A number of resources are available to help single mothers. For instance, SingleMom.com gives information on educational financial help as well as small business grants and loans for women.
- You must apply for and be awarded a grant to start a business. A business plan, financial estimations, personal essays, and other information will typically be included in your application.
- Women-owned businesses are not eligible for tax advantages.
- Having a good company idea or strategy, telling a fascinating personal narrative, beginning a business geared at the development of your community, or offering some other unique viewpoint of yourself and business can all help you win a business grant.
- Make sure to look into all of your financing alternatives, including microloans, SBA loans, and regular loans, to determine what will work best for your needs and budget.
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