Breaking the Glass Ceiling: Why Women Shouldn’t Fear Business Loans

3 min readMar 1, 2023

Entrepreneurship can be challenging, particularly for women who face numerous obstacles in starting and running their own businesses.
One significant hurdle many women face is the fear of taking loans to finance their businesses. However, this fear is often unfounded and can limit the potential of women-owned businesses.

In this article, we will explore why women can be loan adverse, and they should not be scared of taking loans for their businesses.

Cultural and societal norms play a significant role in shaping women’s attitudes towards loans. In many societies, women are expected to prioritize their families and household responsibilities over career and business pursuits. As a result, many women may feel guilty or ashamed of seeking external financing for their businesses, which goes against traditional gender roles and expectations.

Additionally, women may have limited access to information and resources about financing options and may not have the same networks and connections as men to obtain loans. This lack of access can make it challenging for women to navigate the complex world of financing and find the best loan options for their businesses.

However, loans can provide the necessary funding for business growth. Starting and expanding a business often requires a significant amount of capital, and while some entrepreneurs may be able to bootstrap their way to success, most will require external funding. Loans can provide the necessary funds to invest in equipment, hire staff, expand facilities, and promote products or services. By taking a loan, women entrepreneurs can take their businesses to the next level, increasing revenue and profits, and reaching new customers.

Fear of failure is another reason why women may be loan adverse. Women may be hesitant to take on debt as they fear they will not be able to repay the loan or that their business will fail, leading to financial ruin. This fear can be particularly acute for women who have experienced financial setbacks in the past.

However, loans can help build credit history. A solid credit history is essential for any business, as it helps to establish trust and credibility with lenders, investors, and suppliers. Taking out a loan and repaying it on time can help to build a positive credit history, which can lead to better loan terms in the future. Moreover, having a good credit history can also help women-owned businesses secure other forms of financing, such as lines of credit, credit cards, and venture capital.

Women may also be loan adverse due to the potential impact of loans on personal and family finances. Women may be more risk-averse than men, and taking on debt can feel like a significant burden and responsibility. Women may also be concerned about how loans will impact their personal and family finances. They may have to put up personal assets as collateral or be unable to make loan payments if their business experiences a downturn.

Finally, loans can help women entrepreneurs to overcome gender bias in financing. Unfortunately, women-owned businesses often face discrimination when it comes to accessing capital. Studies have shown that women are less likely to receive loans, and when they do, they often receive lower amounts and pay higher interest rates than their male counterparts. By taking a loan (like BizNurture’s Fempreneur Loan) and demonstrating their creditworthiness and ability to repay, women entrepreneurs can challenge these biases and gain access to the capital they need to succeed.

In conclusion, women should not be scared of taking loans for their businesses. Loans can provide the necessary funding for growth, help build a credit history, challenge gender bias in financing, and provide a sense of empowerment and control. However, it is essential to approach loans with caution and to do the necessary research to ensure that the terms and conditions are favourable. With the right mindset and preparation, women-owned businesses can thrive and reach new heights. Addressing the cultural, societal, and personal factors that contribute to loan aversion among women entrepreneurs is crucial in promoting gender equity and an inclusive economy.




BizNurture provides solutions that alleviate the funding problem by providing funds at reasonable rates to businesses that have difficulties accessing tradition