Why Are Women Business Owners So Reluctant to Raise Their Debt Ceilings? (Raise The Roof)

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By Rieva Lesonsky (Contributing Writer, Small Business Trends) Just 41 percent of the women entrepreneurs surveyed plan to make capital investments in the next six months. Nor are they eager to take on new outside financing. Instead, PNC found, most women business owners are funding their businesses with credit cards and personal savings. Nearly 60 percent use a business credit card and 44 percent are using personal or family savings to finance business growth.

We all know it’s tough to get financing these days, but I think these statistics reflect ongoing issues among women business owners just as much as they reflect the state of small business lending. Many women entrepreneurs are reluctant to take on outside financing -— whether because they want to keep their businesses manageable, don’t want to owe anyone anything, or don’t believe they could succeed at getting financing from banks, angels or VCs.

And while bootstrapping your business is sometimes a smart idea (and sometimes it’s your only option), as your company matures failing to seek outside financing can hamstring your business and keep it from becoming a real player in your industry.

» Read the full article at Small Business Trends.

Photo credit: Robert Occhialini