In recent years, Black women have opened 42% of new women-owned businesses, but many of them cannot secure financing because they live and operate in underbanked or unbanked areas. According to Stanford University’s Institute for Economic Policy Research (SIEPR), Black-owned startups are far less likely to apply for loans because they fear denial. In addition, Black entrepreneurs are less inclined to reveal when their loan applications are approved, preventing peers from learning information that could help or encourage them to apply for business loans. Women-founded startups face additional challenges, as they represent only 2% of venture capital investments in the U.S. and Europe in 2023.
Grameen America addresses both issues, offering financial training, microloans and peer support services to women entrepreneurs living in communities that lack access to financial resources. Ahead, we share some of Grameen America’s history, the role the organization plays in the lives of successful female entrepreneurs and how it contributes to economic opportunity for all women. We also share how its partnership with Southern Communities Initiative (SCI) is helping expand access to capital for more women entrepreneurs.
Enabling Financial Mobility
Grameen America is the fastest-growing nonprofit microfinance organization in the U.S. It was founded in Queens, New York, in 2008 to support the mission of Nobel Peace Prize-winning Professor Muhammad Yunus to create economic and social development from below. The organization is dedicated to empowering female entrepreneurs by providing access to capital to support the growth of their small businesses.
Women entrepreneurs are the fastest-growing group of new business owners, but they face many obstacles to accessing capital. Grameen America enables women from communities without resources to launch and scale their businesses while simultaneously establishing and building credit.
To date, the organization has helped over 220,000 women entrepreneurs secure over $5 billion in investments. Their work focuses on six key areas to help women entrepreneurs succeed:
- Microloans
- Peer support
- Credit-building
- Education
- Savings
- Health
Success Stories From Grameen America’s Women Entrepreneurs
Grameen America provides women entrepreneurs with programming and services tailored to their financial needs. It also connects them to a network of women in which they can share ideas and tips on how to build and scale their small businesses.
“Grameen America is there to meet everyone’s business goals. If you have a business or if you have an idea and need extra capital, Grameen America is a perfect place to start because they give you the tools and network to succeed,” said Ava, an entrepreneur and owner of an Afro-centric business in Harlem, New York, NY.
Ava’s interest in making accessories began as a hobby. However, she saw a gap in the marketplace for affordable handmade fashion accessories, so she decided to turn it into a business. She began working with Grameen America in 2019, and she eventually secured a business loan to grow her brand and improved her credit score.
Bertha, a small-business owner, joined Grameen America in 2023 after being denied a business loan. She owns a car parts shop in Houston, TX, that offers fair prices to used car owners. Her experience with Grameen America has helped her grow professionally and personally.
“Owning a business has helped me feel more independent, patient and financially secure,” she said. “I’ve grown personally and professionally. I feel like I’m contributing to my family but know I can lean on them when there are difficulties.”
With microloans from Grameen America, Bertha has been able to update the technology she uses to run her business and adopt enterprise software solutions that increase her efficiency and productivity.
There are many more examples of Grameen America’s impact on the lives of women entrepreneurs, all of whom highlight the importance of creating economic opportunities for women with entrepreneurial spirit in communities lacking financial resources.
Grameen America and SCI Partner to Expand Access to Capital
To help reach its goals, Grameen America partners with SCI, a consortium of companies with a single mission: to accelerate wealth creation and economic growth in six Southern U.S. communities. Co-led by Robert F. Smith, SCI provides the capital, mentorship and upskilling necessary to empower more women entrepreneurs.
Grameen America and SCI help expand access to capital. Grameen America has provided over $7 million in loans to over 1,600 Black women entrepreneurs since launching its physical presence in one of SCI’s southern cities, Atlanta, GA, in June 2023.
Through these types of efforts, SCI and Grameen America are making a direct, tangible impact on the ground in the communities they serve, breaking down barriers to financial empowerment.
Learn more about how SCI and Grameen America are helping create economic opportunity for women by following Smith on LinkedIn.
