Some of the region's best-known agencies helping women start businesses could be "going down the pan" after the end of a UK fund leaving a shortfall of millions.
The Phoenix Development Fund - helping disadvantaged and under-represented groups start businesses - ends today.
Remaining money will be moved to regional development agencies, which will take over the role of supporting women's enterprise.
Organisations are unsure of replacement funding which it is rumoured could be slashed.
Marla Nelson, assistant director of the Coventry-based Women's Business Development Agency, said women's enterprise support in the West Midlands could be at risk.
"The WBDA has no funding secured after today, and we face financial crisis unless new money is found," she said. "The RDAs have not received the remaining Phoenix Development Funds from the Small Business Service, which amounts to several million pounds. This is contributing to the hold up in effective levels of funding for women's enterprise support from RDAs."
The WBDA had £500,000 from the Phoenix Fund over five years and uses the money to run support projects.
The Government's Small Business Service is expected to make an official announcement tomorrow.
A spokesman from the Department of Trade and Industry, which runs the Small Business Service, said resources were tight.
"The DTI is reviewing all its budgets, including Phoenix funding," he said. "Funds have been made available to RDAs via the single pot to support enterprise in disadvantaged communities, including women's enterprise. It is RDA responsibility to decide what priorities are. Each of the RDAs has been asked to include support for the development of women's enterprise when drawing up their regional strategies."
A spokeswoman for Advantage West Midlands confirmed a search for alternatives.
"We are disappointed the Government has ended the Phoenix Fund, but we were always under the impression it was temporary," she said. "We want women's enterprise organisations to continue their good work and hope to announce a finance alternative within a few days."
Gill Edwards, operations manager at Shropshire-based Women in Rural Enterprise, said change was likely to increase competition and application times.
"It means one less funding stream for women's enterprise," she said. "Funding is already difficult and this will only put increasing pressure on limited providers."
Ms Edwards said the Government was sending confusing messages.
"This year Harper Adams University College - where we are based - received the Queen's Anniversary Prize for our work helping women set up rural businesses. This is an award sanctioned at the highest level and approved by government, yet at the same time we are unable to get Government funding."
Ms Nelson agreed Government should review funding.
"We have supported the Government's women's enterprise strategy since its launch in 2003. We share the Government's view investment must be a priority.
"As the Chancellor has said 'the key factor in increasing the UK's business start-up rate is getting more women to start their own businesses'.
"A significant number of organisations providing women friendly business support are facing closure and cuts across the country.
"Direct intervention is needed so funding is urgently released to the RDAs." ..SUPL: