WOMEN IN SMALL BUSINESS ROUNDTABLE – BALTIMORE, MD
WASHINGTON, D.C., June 28, 2019 – As part of its ‘Women in Small Business Roundtable Series,’ the National Women’s Business Council (NWBC) held a roundtable in Baltimore, Maryland, on June 25, 2019, to better understand the specific challenges and opportunities for women’s entrepreneurship in Science, Technology, Engineering and Mathematics (S.T.E.M).
The Baltimore roundtable convened local women business owners in S.T.E.M. to share their perspective on the educational pipeline and barriers to accessing capital. The conversation also included educators, investors, organizational representatives, and government officials.
NWBC Council Member Shelonda Stokes welcomed attendees and set the stage for the discussion noting, “As advocates for the nation’s estimated 12.3 million women-owned businesses, NWBC strives to encourage women to start and grow their businesses in S.T.E.M., an industry with proven high-growth potential.”
NWBC Chair Liz Sara prompted the local women entrepreneurs to share the trials and tribulations of starting and growing their businesses All participants recognized the difficulties of establishing credibility as the subject matter expert in a room full of men. One participant transformed a regional software engineering firm into a global software company and noted that access to equity capital was her toughest charge along the way.
The need for mentorship was a prominent theme around the table. Some found counsel within their client base, while others forged connections with personal role models in their industry. Representatives from a local state university noted that tech entrepreneurs had trouble finding properly tailored advice, so the university is hoping to utilize alumni in specialized fields for better guidance. A non-profit organization focused on computer science education stressed a need for relevant curriculums that cater to the interests of young girls and expressed that early, consistent exposure is key when attracting females to these underrepresented fields.
Council Member Monica Stynchula wrapped up the roundtable discussion and reiterated the Council’s commitment to employ the feedback received as a springboard for the Council’s policy recommendations to Congress, the President, and the Administrator of the Small Business Administration. The Council appreciates the participation from diverse business owners and stakeholders from the Baltimore area.
Throughout these past few weeks, I have had the opportunity to represent the National Women’s Business Council (NWBC) at the Kauffman Foundation’s Annual ESHIP Summit in Kansas City, MS, and at the Diana International Impact Day at Babson College in Wellesley, MA. Both convenings provided unparalleled dialogue between entrepreneurs, researchers, educators, investors, and policymakers.
At the Diana Impact Day, I had the great opportunity to moderate the Conference’s Session A: Connecting Research and Practice, with a specific focus on addressing financing for women entrepreneurs. The session was divided into two panels – the first on pipeline issues and the second on implicit bias. Each panel featured an entrepreneurial research expert, an investor, and a woman entrepreneur. Following each panel discussion, I invited conference attendees to discuss some of the perspectives presented, best practices to address any funding challenges identified, and some of their commitments to action.
Despite the significant gains that women entrepreneurs and business owners have made throughout the 30 years of NWBC’s existence, the dialogue between the panelists and the attendees highlighted the significant challenges and barriers that persist for women entrepreneurs seeking to start and grow their businesses. Most conference attendees were aware of the alarmingly low percentage of venture capital funds that are awarded to women entrepreneurs: just 2.7%. That’s just 2.7% of the total $130 billion in venture capital funding awarded in 2018!
At the conclusion of the Session, I provided a policy wrap-up for the conference attendees, where I summarized the recurring themes presented in the panel and roundtable discussions. They were: Access, Education, and Challenging the Institutional Bias in Funding.
Overwhelmingly, I heard from the speakers that acquiring venture capital is about access – access to a network of support and access to a network of potential funders and investors. If it’s all about access, it’s easy to understand why that may present more difficult challenges for diverse entrepreneurs who may be in more rural areas for example, or entrepreneurs who may also be first generation Americans.
I also heard that financing women entrepreneurs is about education, both for the entrepreneurs and the investors. It’s about educating women entrepreneurs how to pitch their already-investable ideas to investors. And as entrepreneur Carla Walker-Miller, founder and CEO of Walker-Miller Energy Services, said “it’s about [teaching women entrepreneurs] to eat the NO’s for breakfast.”
Dr. Alicia Robb, Founder and CEO of Next Wave Impact, pointed out that overcoming some of the challenges to funding women entrepreneurs is also about education and awareness related to alternative forms of capital – finding the right kind of capital for the right kind of entrepreneur. As she pointed out, alternative forms of capital may provide more suitable options for some entrepreneurs. This is also supported by NWBC Kiva and Kickstarter case studies, which revealed promising results for women entrepreneurs seeking to fund their business ventures through crowdfunding platforms.
Both Chip Hazard, General Partner at Flybridge Capital Partners & Investment Partner at XFactor Ventures, and Angela Lee, Founder of 37 Angels & CIO and Associate Dean at Columbia Business School, acknowledged the need for the investor community to recognize some of the institutional bias present in traditional funding structures. Overcoming some of these challenges requires venture capitalists and investors to recognize some of their own internal implicit associations with diverse entrepreneurs and unique or different business ideas. The vast majority of investors continue to be men, some of whom may find it difficult to understand or relate to a product that they won’t personally be able to use. A recent story I read about an entrepreneur seeking capital for her smart breast pump comes to mind. In that case, she found great success in funding her venture through Kickstarter.
At the conclusion of the Session, I reiterated the Council’s commitment to listen and engage with diverse members of the the larger entrepreneurial ecosystem, and to continue to elevate their voices to policymakers. I am particularly encouraged by the Council’s new slate of recently installed members, who are especially committed to elevating the often unheard or overlooked voices of women entrepreneurs in rural areas and in STEM fields.
I also invited conference attendees to join in on NWBC’s roundtables around the country, to continue to share their research findings with us, and to stay engaged with us by providing comments and feedback on our public meetings and Annual Report to Congress and the President. It is critical to the work of the Council, as advisors to the President, Congress and the Small Business Administration, that we continue to hear from you.
NWBC Chair Liz Sara Commemorates Black History Month.
Whether it is eating turkey and stuffing on Thanksgiving, standing in enormous lines for the deals of Black Friday, or spending hours in front of the computer screen on Cyber Monday, the next few days will be bustling with consumer spending. This year, Small Business Saturday on November 24, 2018 is wedged between Black Friday and Cyber Monday. Created in 2010, Small Business Saturday recognizes the importance of entrepreneurs and small businesses in the community and encourages consumers to shop local.
Over the past eight years, the network of support for small businesses has grown tremendously. Every year, local Chambers of Commerce, business associations, and other small business champions join in on an effort to promote and encourage people to shop local on Small Business Saturday. The National Women’s Business Council (NWBC), the federal government’s only independent voice for women entrepreneurs, understands the importance of this day and has been committed to advocating for women-owned businesses for the past three decades. According to The State of Women-Owned Businesses Report, this year there are an estimated 12.3 million women owned firms in the U.S. accounting for 40% of all businesses. That means 4 out of every 10 businesses in the United States are now women-owned. Consumers should shop local women-owned firms on Small Business Saturday to ensure continued economic growth for women entrepreneurs.
After almost eight years of celebrating Small Business Saturday, consumers have invested about 85 billion dollars in small businesses, and these firms comprise 4.8 trillion dollars of the nation’s Gross Domestic Product according to the Small Business Economic Impact Study (AMEX). The study also found that when a consumer shops at a local business, an average of 67 cents per dollar stays within the local economy unlike an average of 43 cents for large corporations. Small businesses also employ many residents from the local community, thus increasing their community’s overall economic growth through higher profits and lower unemployment. Consumers’ local impact during the busy holiday shopping season can be a game changer. Further, every dollar spent at small businesses creates an additional 50 cents in local business activity as a result of employee spending and businesses purchasing local goods and services.
Although Small Business Saturday only occurs once a year, it is important to shop local all year round. Women across the country continue to break barriers and blaze trails in all industries, and NWBC encourages you to support the women pioneers in your business community. Shopping in your local community will increase revenue, create jobs, and ensure that the smaller ventures have a chance to compete in the larger market. On Small Business Saturday in 2017, the sales and foot traffic for local small businesses decreased. For this upcoming Small Business Saturday on November 24, 2018 consider all the positive benefits to your community.
The National Women’s Business Council (NWBC) is celebrating the anniversary of the passage of HR5050, the Women’s Business Ownership Act. The passage of this legislation, and its resulting impact on women business owners, would not have been possible without some incredible, tenacious women that I am fortunate to have worked with. This week in particular has me reminiscing on the 1986 White House Conference on Small Business and how that set the stage for H.R. 5050. For me, on August 16, 1986 the Conference opened a door I didn’t realize was closed. The biggest lesson we learned was that organizing, educating, and cultivating partnerships is paramount.
HR 5050 was historic – it only took 103 days from introduction to passage. On October 25, 1988, President Ronald Reagan signed H.R. 5050, making it the law of the land. This unprecedented piece of legislation gave women business owners in the United States critical resources to build their enterprises and succeed in their respective fields.
To so many women around the country, including myself, H.R. 5050 was not just another piece of legislation. It was the basis on which women gain success in business. So many women start with nothing more than a great idea. It takes an incredible amount of hard work and perseverance to turn an idea into a thriving business. The group of women who strategized, working day and night to advocate for this legislation, made their mark on history, and gave women a path to follow. When you empower a woman to succeed, the nation succeeds – and the incredible women who advocated for H.R. 5050 did just that.
Throughout my career I have had the opportunity to scale my business,Terry Neese Personnel Services, was lucky enough to have been appointed to numerous councils and Boards including NWBC and NAWBO, and founded the Institute for Economic Empowerment of Women (IEEW). Thirty years after the passage of H.R. 5050, I can still tell you that what the 1986 White House Conference on Small Business taught us holds true. Women entrepreneurs don’t want a handout. Like all entrepreneurs, women want a level playing field because they can play and win on any field, at any time. Understanding the barriers to opportunity, whether that is access to capital or access to information and finding strong partners in each other is crucial to success. Thanks to H.R. 5050, women in business have excelled, continually reaching new heights, not only in the United States, but also around the world.
Serial entrepreneur Dr. Terry Neese, is a lifelong Oklahoman and has spent over thirty (30) years finding careers for men and women. She is the founder of Terry Neese Personnel Services (TNPS), National Grassroots Network, Women Impacting Public Policy and the Institute for Economic Empowerment of Women (IEEW). Terry’s daughter, Kim Neese, is now the President/Owner of TNPS.
A member of the U.S. Afghan Women’s Council, past national president of the National Association of Women Business Owners (NAWBO), and founder of Terry Neese Personnel Services, Dr. Neese is known as a small business expert and was recognized by Fortune magazine as one of the “Power 30”—the most influential small businesspersons in Washington, D.C. She has been featured throughout several media outlets including MSNBC, FOX News, CNN, SBTV, the Wall Street Journal, the Washington Examiner and the Washington Times.
In celebration of National Women in Small Business Month, the NWBC recognizes their partner, the U.S. Census Bureau, in advocating for women-owned businesses. In 2012, the Survey of Business Owners (SBO) found that there were nearly 10 million women-owned business in the United States, that generated over $1.4 trillion in sales and employed over eight million people.
At the NWBC, we know that we cannot count what we do not measure. Sound policy initiatives and recommendations that improve the economic climate for women-owned firms are founded in reliable data and impactful research that drives actionable change. To do this, the NWBC relies on the U.S. Census Bureau’s SBO and Annual Survey of Entrepreneur (ASE) data to portray the state of women’s entrepreneurship and the impact that they have on the U.S. economy.
On September 20, 2018, the National Women’s Business Council (NWBC), in collaboration with the U.S. Census Bureau’s Center for Administrative Records Research and Application (CARRA), held the first ever federal government’s Demographics of the Entrepreneur & Self-employed Research Symposium. This day-long event convened nearly 100 researchers and experts from across the country to explore topics related to entrepreneurship through the lens of gender, age, race, and ethnicity.
“Since the business census began counting women owned businesses in 1977, the U.S. Census Bureau has been a partner to NWBC. It was when the Census Bureau began counting women businesses that lawmakers began referring to women businesses as the sleeping giant of the U.S. economy” said NWBC Chair Liz Sara during her opening remarks. “We look forward to continuing our partnership with the US Census to ensure that the tremendous economic impact of women-owned businesses does not go unknown or unrecognized,” she continued. This was reiterated as 16 presenters discussed groundbreaking research and data related to topics such as the gig economy, millennial entrepreneurship, and motivation for starting a business. A key concept throughout the presentations was the importance of current and reliable data to highlight key trends and statistics on business owners and self-employed individuals throughout the United States.
During the workshop, the U.S. Census Bureau discussed various changes that will be implemented to the economic census and data landscape and their goal of providing users with up-to-date data on business ownership. Specifically, they highlighted the forthcoming Annual Business Survey (ABS) and the proposed development of the Non-employer Statistics by Demographics Data (NESD). The new ABS will be a vital tool for generating policy recommendations for – and analyzing the impact of – employer firms by gender, race, ethnicity, and veteran status. However, employer firms are only one side of the story.
It remains critical to the continued success and advancement of women entrepreneurs and business owners that we continue to count all women-owned firms. As of 2012, nearly 90 percent or 8.8 million women-owned firms had no employees. These firms have contributed combined revenues exceeding $229 billion annually to the U.S. economy. NWBC supports U.S. Census Bureau business data collection efforts, because a trustworthy measurement of non-employer firms allows the NWBC to develop a holistic picture of women entrepreneurs for policy makers and key stakeholders.
NWBC supports the U.S. Census Bureau’s development of NSED, which will ensure that the economic contributions of women-owned firms without employees will not be overlooked. The NSED would provide the necessary data to account for all women-owned businesses in the U.S., the progress made, and the barriers that remain in their establishment and growth. Together, we – the National Women’s Business Council and the U.S. Census Bureau, must ensure that women-owned businesses continue to be counted.
For the National Women’s Business Council, the month of March is particularly special. March, which is also Women’s History Month, serves as a time to commemorate the landscape achievements of women leaders, innovators, and entrepreneurs across the country, and the globe. March 8th officially marks International Women’s Day 2018 – which annually serves as an international moment to celebrate the social, economic, cultural, and political achievements of women who have shifted the global landscape and have fostered growth in a myriad of ways. Today, we reflect on the areas of opportunity for women to reach their full potential, but also reset the baseline for how we can support women business owners and leaders through our own efforts across the globe.
In November 2017, the United States and the Republic of India held the eighth annual Global Entrepreneurship Summit (GES) in Hyperabad, India themed Women First, Prosperity for All, with a specific focus on supporting women entrepreneurs and advancing global economic growth and opportunity. The 2017 Summit theme and concentration on women was the opportunity to convene innovators and change-makers in programming to cultivate partnerships, pitch their business ideas to potential investors, such as the GIST Catalyst Pitch Competition, and learn about the various avenues to transform their businesses – and eventually transform their communities, countries, and the world. It’s important to note that this year was the first time that women were the majority of participants at GES. Of the over 1,200 entrepreneurs in attendance, about 52.5 percent of entrepreneurs were women, attending from 127 different countries. Overall, it was the opportunity for individuals from a multitude of backgrounds across the global community to listen and learn from one another.
At the Council, we have also followed that goal of global connectedness through our own efforts here in the United States. Over the past years, in ties with the U.S. Department of State’s International Visitor Leadership Program, the Council has met with delegations of women entrepreneurs and economic leaders from countries all over the world to discuss the state of women’s entrepreneurship; share our research findings and data such as our “Entrepreneurial Ecosystem Model” – a tool to evaluate regional supports for women’s entrepreneurship; and serve as a resource for the broader community of women business leaders. Following up on GES on December 4th, 2017, Council Member Rose Wang was honored to represent the Council at a briefing hosted at the State Department’s Foreign Press Center to a reporting tour of 18 foreign journalists coming from the Global Entrepreneurship Summit (GES). These critical engagement opportunities have also taught us the importance of collaboration and reminded us the impact women entrepreneurs have made all across the globe.
As the Council celebrates 29 years and looks ahead to our 30th this coming October, we remain committed to conducting critical research that identify the areas for growth and opportunity for women business owners. We will continue to construct and elevate policies that will vitally address access to capital and market disparities that women encounter at all phases of their business journeys. We look at this year as a dynamic opportunity to learn from the global and domestic communities to increase our understanding and shape the ways we work to progress entrepreneurial development and economic opportunity for current and aspiring women entrepreneurs. Throughout Women’s History Month, themed #Capital4HerBiz, we will be continuing to unveil our research related to women’s access to capital so check out our first report, in conjunction with the Library of Congress’ Federal Research Division titled, Understanding the Landscape: Access to Capital for Women Entrepreneurs, which is a deep-dive into the landscape of access to capital for women entrepreneurs.
To learn more about our upcoming research and activities, be sure to check out our website at www.nwbc.gov and follow us on our Facebook, Twitter, Instagram, and LinkedIn. You can join the conversation online as well using the hashtags #WomensHistoryMonth #InternationalWomensDay #Capital4HerBiz.
Author: Shannon Trudge, Program and Operations Manager for the National Women’s Business Council
I was exposed very early on to finance through my grandmother, who was the first female entrepreneur that I knew. Because I was good in math, she would often let me count the money from her business and by the time I was in 8th grade, I was helping her with her bookkeeping. This experience gave me an early interest in money and finance, and as I got older and eventually became exposed to Wall Street, I was all in!
This year’s National Black History Month theme, African Americans in Times of War, is the opportunity to commemorate the centennial to the end of World War I (1918) and how African-Americans have marked a widespread impact in American culture and society. Women entrepreneurs, especially black women entrepreneurs, have been a key population contributing to the socioeconomic growth and vitality of this country since its foundation. According to the 2012 U.S. Census Bureau’s Survey of Business Owners and Self-Employed Persons (SBO), there are more than 1.5 million black women-owned businesses, a near 67% increase from 2007. Black women entrepreneurs are one of the fastest subgroup of entrepreneurs of this time with an average net of 259 firms being created each day between 1997 and 2017 – the most number of firms created per day out of all subgroups of women-owned firms. According to the 2017 American Express OPEN Report, between 1997-2017, the number of women-owned businesses grew 114%, whereas firms owned by women of color expanded at 467%, four times that rate.