Women entrepreneurs too timid

Johannesburg: According to a number of financial institutions, women who see an opportunity to start their own businesses seem wary of approaching banks to raise capital. Financiers who spoke to Fin24.com said they continue to see a low level of applications from women entrepreneurs.

A number of venture capital firms also say that, less than 15 percent of applications come from women. The general view is that women tend to be too conservative about going into business for themselves. Colette Symanowitz, local Entrepreneur and Founder of online MBA community MBAConnect said, anecdotal evidence seems to underscore this. "A lot of men they want to build big businesses from the outset, whereas women tend to go into businesses which are complementary to their lifestyle," she said. This would involve women building up skills and experience in a particular industry, and then opting to go on their own when they felt comfortable.

According to Symanowitz, women are generally more in favour of boot-strapping their small business with own and limited funding. Elizabeth Malumo, who heads up FNB's Women in Business agrees. She says that women are far too cautious when it comes to seeking financing for small businesses. "Women are intimidated about coming to a bank for financing," said Malumo. "They would rather save and build up their own capital for their business."

Asked what were the main factors holding women back, Malumo said there is a false perception that banks have closed financing taps for small firms. "Banks see women as a really good credit risk, because very often they are starting businesses for survival and are careful about how they manage their finances," Malumo said.