How Community Investment Empowers Women Entrepreneurs More Than Traditional Financing

Historically, We’re Network Builders

Stephanie Berwick, founder of Pastazerts, raised over $25k in growth capital on the Honeycomb Credit platform.

In 1739, Eliza Lucas Pinckney took over her family’s three plantations in South Carolina, making her the owner of the first legal woman-owned business in the United States.

She was 16 years old.

Since then women entrepreneurs have been a force across our country - from small towns to big cities. And part of our force has been our ability to connect within our communities. Women entrepreneurs know how to build community-backed businesses.

Despite our aptitude and success, financial institutions have long seen women entrepreneurs as a liability. In fact, it wasn’t until 1988 and the passage of the Women’s Business Ownership Act that women were able to take out a loan in their own name without a male cosigner. But even still, traditional financing options, like bank loans and venture capital, often come with high rejection rates, strict requirements, or equity trade-offs that can limit a woman entrepreneur’s control over her business.

Fortunately, there is a powerful alternative - and it’s growing in recognition - community investment. By using local networks and loyal customers, women entrepreneurs can access fair, flexible funding without sacrificing ownership or independence. Here’s how:

The Challenges of Traditional Financing for Women Entrepreneurs

Often, when women entrepreneurs look for business funding, we’re met with a shut door, a snarky comment, or metaphorical pat on the head. Even when we have great business ideas and show proof of concept, we get less funding than male entrepreneurs do. Here’s a snapshot of what women entrepreneurs face:

• Higher loan denial rates

• Strict collateral requirements

• Bias in venture capital

• Equity trade-offs

With these challenges, it’s clear why many women entrepreneurs aren’t keen on using traditional funding. We’re looking for alternative financing solutions that work with us, instead of against us.

The Power of Community-Backed Business Growth

Community investment flips the traditional funding model by putting power into the hands of local supporters, customers, and business advocates. Through investment crowdfunding and community-backed loans, women entrepreneurs can get capital in a way that is both financially and emotionally rewarding. Here’s why it works:

How Investment Crowdfunding Builds Customer Loyalty and Brand Advocacy

When a woman entrepreneur raises funds through community investment, we’re building on the networks we’ve already worked hard to create. People invest in you because they want you to grow, and their investment gives them an even greater desire to see you win. They feel they have a personal stake in your business’ success - because they do. So, in addition to getting capital, you build brand loyalty. This leads to:

• Increased word-of-mouth marketing

• Higher customer retention rates

• A strong network of repeat buyers

  
  

Why It’s Easier for Women Entrepreneurs to Secure Funding Through Their Networks

Women entrepreneurs often thrive in community-driven environments. Research shows that women have stronger social networks and higher levels of trust among peers. Our networks put us in a good spot to use investment crowdfunding. Platforms like Honeycomb Credit allow women entrepreneurs to tap into their personal and professional circles, turning social capital into financial backing.

The Benefits of Non-Equity, Community-Driven Financing

Unlike venture capital, which typically requires equity in exchange for funding, community investment allows women entrepreneurs to retain full ownership of their businesses. Community-backed loans and revenue-sharing models offer flexible repayment terms, reducing financial strain and increasing long-term sustainability.

Community Investment Helps Women Entrepreneurs Thrive

When Stephanie Berwick launched Pastazerts, she knew her unique chocolate ravioli had the potential to disrupt the premium dessert market—but scaling a business requires capital. Through a community investment campaign, Pastazerts raised $25,612, surpassing her funding goal. 

Stephanie was able to start her first large-scale production run, helping her fulfill a major purchase order and expand their retail presence. Her success will help her push for nationwide growth. With a clear path forward, Stephanie and Pastazerts are proving that women entrepreneurs can thrive when their communities invest in their vision.

Final Thoughts

Women entrepreneurs are rewriting the rules of business funding with investment crowdfunding. When we lean on our community, we get access to capital and strengthen the bond between us. Now is the time to explore funding options that prioritize fairness, flexibility, and sustainability. If you’re a woman entrepreneur looking to grow your business, Honeycomb Credit can help.