When the large financial services company she worked at merged with another, Lia Hirtz lost her job running its office, which included doing their special events. “It was difficult times,” she said. By 2012, Hirtz and her family—husband and two sons—decided to start World Empanadas, using family recipes.
Hirtz sought out startup capital, but traditional banks turned her down. Not enough revenue, deemed the banks. Even when women-owned businesses have lower credit risk, they face persistent funding gaps and funding source mismatches, according to 2017 Small Business Credit Survey: Report on Women-Owned Firms commissioned by The Federal Reserve Banks.
When World Empanadas applied for a loan again after receiving interim financial support from friends, banks still turned them down. However, this time, one banker referred them to another organization, which referred them to OFN member Opportunity Fund.
Read the full Forbes article.