Wednesday, March 26, 1997 | 11:59 a.m.
In Las Vegas it seems the number of businesses owned by women is growing faster than the jackpot on a progressive slot machine -- a fact that has not gone unnoticed by loan officers at Wells Fargo Bank.
"The market for women-owned businesses certainly is heating up in Las Vegas and throughout the West," said Lucille Reid, executive vice president of Wells Fargo's Business Direct Division.
The bank recently earmarked $10 billion for women entrepreneurs under its national Women's Lending Program, which was established in partnership with the National Association of Women Business Owners in the fall of 1995.
The Women's Lending Program was launched with a $1 billion lending commitment to women entrepreneurs over a three-year period. However, response from women in small businesses was so strong that Wells Fargo lent the $1 billion in a year.
Sharon Hadary, executive director of the National Foundation for Women Business Owners, said the growth rate among women-owned businesses in Las Vegas is phenomenal.
"There are 32,400 women-owned businesses in Las Vegas. This is double the amount only nine years ago. In terms of sheer numbers, this is very exciting," said Hadary, who added that the growth rate among women-owned businesses in Las Vegas is higher than the national average of 78 percent.
Suzanne Taylor, president of the National Association of Women Business Owners, the sister organization to NFWBO, pointed out that there are 47,000 women-owned businesses in Nevada, a 130 percent jump in nine years.
She also said sales from women-owned businesses in the Silver State have increased 252 percent since 1987.
"I think the growth we're seeing in Nevada certainly is mirrored by the growth of women-owned businesses," Taylor said.
Hadary noted there are nearly 8 million women-owned businesses in the United States, employing more than 18.5 million people and generating more than $2.28 trillion in sales.
Many local businesses owned by women -- like most new businesses -- are very small, with fewer than 10 employees.
Reid suggested that the reason why there are so many women-owned businesses in Las Vegas and throughout the West is because there are more opportunities because of the growth of the Western economy.
"To paraphrase an old saying, it seems that a lot of women are heeding the advice: 'Go West, young woman,' " Reid said.
Hadary of the NFWBO suggested that the desire to control their own fate also is a contributing factor in the decision by many women to start their own businesses.
She also noted that statistics show that women business owners are more likely to gather information and seek advice before making a business decision, and so they tend to be more pragmatic about business decisions.
"The economic policy makers among the financial and lending institutions are recognizing that women business owners are business professionals," Hadary said. "They are serious, and they are a good risk."
Still, other officials note that women business owners still are less likely than their male counterparts to obtain financing even though women-owned businesses are the fastest growing segment of the business economy.
"Because a woman may have gone through a divorce or because she may have inherited a family business, she may not be viewed by the bank as a powerhouse," said Taylor, who added that many women in recent years have turned to credit cards, friends or family members for business start-up funds.
Taylor said as more established banks indicate they want to enter the women's business market, she and other officials are working with these banks to try to find lending avenues for women without a long credit history who are trying to start businesses.
Taylor also credited Wells Fargo for being the first bank to "step up to the plate" by earmarking $10 billion for women entrepreneurs through its Womens Lending Program.
To qualify for a loan under the program, women business owners must have a good business credit record and have been in business for two years.
archive
