A new two-part study by the National Women’s Business Council examining the economic impact of both women-owned and women-led firm reveals that the contributions of women business owners have long gone understated. For the first time, these reports include data on women-led firms, where a woman owns a percentage of the business at least equal to any other owner and where a woman or women managed day-to-day operations.
According to the studies, there were over 1 million women-led businesses generating in excess of $300 billion in revenues in 2002, or about 3% of the U.S. GDP. These firms employed 2.5 million employees and paid nearly $56 billion in payroll. Combined, women-owned and women-led (WOWL) firms totaled over 7.5 million in 2002, employed 9.6 million people and generated nearly $1.2 trillion in revenues, or about 12% of the U.S. GDP.
Both reports may be found on the NWBC's web site, www.nwbc.gov. Researchers interested in further study of the special tabulations data should contact Allison Gilmore at allison.gilmore@nwbc.gov or 202-205-6827.
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In honor of the upcoming holidays, there will be no December issue of Engage! Stay tuned for more news and information from the National Women’s Business Council in January.
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On October 30, the U.S. House of Representatives passed by a vote of 334-80 legislation designed to improve contracting opportunities for small businesses. The Small Business Contracting Improvements Act (H.R. 3867) seeks to enhance existing contracting programs which have been perceived as falling short of their potential due to lack of oversight and funding.
Rep. Nydia Velazquez (D-NY), Chairwoman of the House Small Business Committee, has placed particular emphasis on implementing the women’s procurement program, updating the economic criteria for the 8(a) contracting program that assists businesses owned by socially or economically disadvantaged individuals, and strengthening requirements for enterprises operating in historically underutilized business zones (HUB Zones). Click here for additional information.
On November 7, the Senate Committee on Small Business and Entrepreneurship passed its own version of legislation addressing federal contracting issues. In a unanimous Committee vote, lawmakers emphasized the need to improve oversight of unbundling contracts for small firms, to increase enforcement of protections for subcontractors, and to expand opportunities for minority, women and service-disabled entrepreneurs. At an undetermined future date, The Small Business Contracting Revitalization Act (S. 2300) will be presented on the Senate floor for a full chamber vote. For more information on the contents of this legislation, please click here.
Should the Senate’s version of contracting legislation pass a floor vote, the differences between the two contracting bills would need to be resolved in conference before a combined contracting bill could pass the full Congress. The Council will continue to track the legislation and will provide future updates in Engage!
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Council members Ceil McCloy and Barbara Kasoff, as well as Executive Director Margaret Barton, participated in a workshop for women and minority business owners hosted by the Overseas Private Investment Corporation (OPIC) in San Francisco this month. The last in a series, the Expanding Horizons workshop was designed to address the unique challenges that minority- and women-owned businesses face in their efforts to gain entry to the global marketplace. Barton spoke at the event, which was cosponsored by NWBC and the Minority Business Development Agency. Click here for more information on the series of past OPIC conferences.
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The Small Business & Entrepreneurship Council released its annual rankings of the public policy climates for small business and entrepreneurship in the United States this month. The Small Business Survival Index 2007, which covers issues such as taxes, regulatory costs, government spending, health care and energy costs, can be used in evaluating whether states have political and economic environments supportive of entrepreneurship and small business growth.
According to the 2007 Index, the most entrepreneur-friendly states are South Dakota, Nevada, Wyoming, Washington, and Florida. The least friendly states for entrepreneurs, according to the index, are Maine, Rhode Island, California, New Jersey and the District of Columbia. The entire report is available here.
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The Ewing Marion Kauffman Foundation and the U.S. Commerce Department’s International Trade Administration recently announced a new online resource focused on leveraging America’s entrepreneurial leadership to advance economic growth in the United States and around the world. The site, www.entrepreneurship.gov, will serve as an online destination for entrepreneurship research, educational content, policy papers and entrepreneurship events worldwide.
This new public-private partnership will attempt to leverage America’s entrepreneurial leadership to advance economic growth in the United States and around the world, as well as to connect and inform the global community of entrepreneurs. The first phase of the Web site is scheduled for launch later this year. For a preview and to sign up for the site launch announcement, visit www.entrepreneurship.gov.
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The Board of Governors of the Federal Reserve System recently submitted its Report to Congress on the Availability of Credit to Small Businesses. This report, produced every five years by law, details the state of small business lending to small businesses, including the demand for and availability of credit, the range of credit options available, the types of credit products used by small businesses, and the risks of lending to small businesses.
The 2007 Report indicates that financing to small businesses has generally increased along with economic activity. In addition, the report states that larger small businesses were more likely to use traditional credit types, such as credit lines, mortgages for business purposes, and equipment loans. Alternatives to traditional credit, such as credit cards, trade credit, and owner loans, are also discussed in the report.
Federal Reserve Governor Frederic S. Mishkin testified on the availability of credit to small businesses at a recent hearing of the House Small Business Committee. Click here to read his testimony or here to view the hearing online.
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