FOR IMMEDIATE RELEASE
Contact: Rhylee Jones, Public Affairs Specialist
National Women’s Business Council (NWBC)
Phone: 202-735-4342 Email: rhylee.jones@sba.gov
NWBC’s 2024 Annual Report Charts Bold Vision for Women Entrepreneurs
Washington, D.C., [December 23, 2024] — The National Women’s Business Council (NWBC) proudly announces the release of its 2024 Annual Report. This year’s comprehensive report explores women entrepreneurs’ unique challenges while highlighting transformative pathways for growth in today’s dynamic economy. Focused on turning barriers into bridges, the report provides actionable insights and policy recommendations designed to drive the next wave of women-led business innovation and success.
“This year marks a milestone in our journey,” said Sima Ladjevardian, NWBC Chair. “From celebrating historic achievements to forging strategic partnerships, the Council’s work exemplifies our unwavering commitment to empowering women entrepreneurs and advancing equitable opportunities for all.”
The report is the culmination of a year of extensive research and collaboration focusing on three pillars: Access to Opportunity, Access to Capital, and Inclusive Entrepreneurial Ecosystems.
Access to Opportunity
NWBC calls for innovative outreach strategies and process improvements to expand women entrepreneurs’ participation in federal programs. Recommendations include:
- Employ microtargeted outreach strategies to connect underserved women entrepreneurs with federal resources.
- Simplify federal contracting processes to reduce barriers for women-owned businesses.
- Establish secure data-sharing protocols to maximize certification benefits and ensure inclusivity.
Access to Capital
Addressing long-standing financial inequities, the report advocates for:
- Expanding forgiveness for SBA-backed loans and implementing equitable decision-making tools.
- Leveraging public-private partnerships to reduce lending risk and amplify financial inclusion.
Inclusive Entrepreneurial Ecosystems
Recognizing the importance of holistic support systems, NWBC emphasizes:
- Support for affordable childcare solutions for working parents, particularly women entrepreneurs.
- Integrating entrepreneurial curricula into all levels of education and workforce training programs.
- Improving data collection to measure the economic and social impacts of women-led businesses.
“The 2024 recommendations provide a blueprint for fostering opportunity, unlocking capital, and building inclusive systems that empower women entrepreneurs to reach their fullest potential,” added Ladjevardian. “These actions are critical investments in equity and the future prosperity of our nation.”
Data and research remain at the heart of NWBC’s mission to advocate for women entrepreneurs. Accordingly, data and original research are important sources of intelligence that inform NWBC’s policy recommendations. Over the past year, the Council has:
- Analyzed Trends: Commissioned a study by the U.S. Census Bureau on the evolution of women-owned businesses by owners’ ages.
- Explored STEM and Rural Gaps: Conducted econometric analyses, interviews, and surveys to examine challenges for women in STEM and rural/Tribal communities.
- Prepared for Future Insights: Launched research into expanding women’s participation in federal contracting and sustaining the post-pandemic surge of Black and Latina business startups.
“Empowering women entrepreneurs unlocks economic potential and drives innovation,” said Tené Dolphin, NWBC Executive Director. “This report reflects our commitment to creating a more inclusive entrepreneurial landscape through collective action and bold policy recommendations.”
The full 2024 Annual Report is available for download at www.nwbc.gov/report/2024-annual-report/.
In addition to releasing the 2024 Annual Report, NWBC will also hold a public meeting on January 7th to dig deep into elements within the report. Bringing together leading voices in women’s business ownership, policymakers, and other stakeholders, this gathering will be a daylong event filled with dynamic speakers and powerful discussions on issues impacting women in business. To register for this event, please click here.
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About the National Women’s Business Council
The National Women’s Business Council (NWBC) is a non-partisan federal advisory committee created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. To learn more, please visit: www.nwbc.gov.
FOR IMMEDIATE RELEASE
Contact: Rhylee Jones, Public Affairs Specialist
National Women’s Business Council (NWBC)
Phone: 202-735-4342 Email: rhylee.jones@sba.gov
Breaking Barriers at Every Age: National Women’s Business Council Report Reveals Key Insights on the Evolving Landscape of Women-Owned Businesses
Washington, D.C. (December 9, 2024) — The National Women’s Business Council (NWBC) has released a comprehensive new research report titled “The Metamorphosis of a Woman Business Owner: A Focus on Age.” Conducted in partnership with the U.S. Census Bureau and led by Dr. Adji Fatou Diagne from its Center for Economic Studies, this research explores the evolving dynamics of women-owned businesses through the lens of age. This report offers critical insights into how age impacts the types of businesses women own, the industries they enter, and the motivations behind their entrepreneurial journeys.
“Our research illuminates how women’s entrepreneurial journeys evolve over time, and this study exemplifies our commitment to evidence-based policymaking,” said Sima Ladjevardian, NWBC Chair. “Promoting and developing data about women-owned businesses has been one of the Council’s core duties since its inception.” Council Chair Ladjevardian further shares, “Data and original research are vital sources of intelligence that inform NWBC’s policy recommendations, driving us to regularly commission studies that address gaps, unanswered questions, and emerging opportunities with results presented to policymakers, academics, and stakeholders to ensure women business owners receive the support they need at every stage of their careers.”
Key findings from the report reveal shifts in women’s business ownership patterns, particularly as they age. Some notable findings include:
- Increase in Younger Women Entrepreneurs: The percentage of women business owners under 45 increased by 10.5 percentage points from 2012 to 2020. The largest growth was among women aged 25 to 34, reflecting a growing trend of younger women entering entrepreneurship.
- Industry Choices by Age: Age influences the industries in which women business owners are concentrated. Older women, especially those over 55, dominate capital-intensive sectors like mining, manufacturing, and wholesale trade. Conversely, younger women under 35 are more represented in labor-intensive sectors, such as arts, entertainment, and food services.
- Income as Motivation: Among women business owners, 68% rely on their business as a primary source of income, but this varies by age. The report found that 56.5% of owners aged 65 and older use their business as their primary income source, while only 48% of those under 25 do.
- Motivations and Challenges: Reasons for starting a business also vary significantly by age. Young women, especially those under 35, frequently cited the desire to “be their own boss” and achieve “flexible hours.” However, older women, especially those 35 to 44, were more likely to prioritize work-family balance.
- Racial and Ethnic Variations: Hispanic and Black women under 35 led growth rates in business ownership between 2012 and 2020, while older groups, especially among Black and American Indian women, showed modest declines in ownership. These trends offer a nuanced look at intersectional factors shaping women’s business ownership in the U.S.
“This report underscores that women are making significant strides in entrepreneurship at all ages,” said Executive Director Tene Dolphin. “By providing insights into age-specific needs and challenges, we hope to inform better policy decisions and support frameworks that empower women business owners across generations.”
NWBC encourages stakeholders, from policymakers to business support organizations, to leverage this data in tailoring resources and support systems that address the distinct needs of women entrepreneurs at every age. This research is available on NWBC’s website and serves as an invaluable resource for fostering an inclusive entrepreneurial ecosystem.
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About the National Women’s Business Council
The National Women’s Business Council (NWBC) is a non-partisan federal advisory committee created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. To learn more, please visit: www.nwbc.gov.
FOR IMMEDIATE RELEASE
Contact: Rhylee Jones, Public Affairs Specialist
National Women’s Business Council (NWBC)
Phone: 202-735-4342
Email: rhylee.jones@sba.gov
the
National Women’s Business Council (NWBC) Unveils Latest Research Report on Women’s STEM Entrepreneurship
Washington, D.C., (November 25, 2024) – The National Women’s Business Council (NWBC) proudly releases its latest research report, Engineering Change: A Blueprint for Strengthening Women’s STEM Entrepreneurship, which provides a comprehensive examination of women’s entrepreneurial engagement in high-growth, high-yield STEM industries. Conducted by KEEE, LLC, the research aims to identify critical factors influencing women-led STEM businesses and offers insight into both systemic challenges and unique opportunities for growth.
“Women’s entrepreneurship in STEM is essential not only for economic growth but for building a more inclusive and innovative future,” said Sima Ladjevardian, Chair of the NWBC. “This report highlights where we need to focus our efforts to support women entrepreneurs in STEM fields, helping them overcome barriers and fully realize their potential.”
Engineering Change builds upon the findings of an earlier NWBC report, An Illuminating Moment: Lighting a Pathway for Women STEM Entrepreneurs, with new, data-driven perspectives on women-owned businesses from 2012 to 2020. KEEE, LLC analyzed U.S. Census Bureau data to assess the landscape of women’s STEM entrepreneurship, revealing several pivotal trends:
Concentration in Key Sectors: Women-owned STEM firms are highly concentrated in professional and healthcare sectors, demonstrating a positive correlation with the number of female patentees, levels of venture capital funding directed toward women-founded businesses, and an expanding labor force. Notably:
- A 1% increase in women patentees correlates with a 0.56% rise in female STEM entrepreneurs.
- A 1% rise in venture capital funding for women-founded firms produces a 0.29% increase in these entrepreneurs.
- A 1% labor force expansion is linked to a 37% increase in women STEM entrepreneurs.
Interest Rate Sensitivity: Higher interest rates tend to modestly reduce female STEM entrepreneurship; a 1% rate increase leads to a 0.08% decrease, a reflection of the lower capital requirements typical of non-employer firms, which are less affected by borrowing costs.
Income and Career Choice Dynamics: Interestingly, as per-capita income rises, women’s STEM entrepreneurship declines— a 1% increase in income leads to a nearly 3% drop in women STEM entrepreneurs. The report suggests that higher incomes may shift women’s focus toward family or conventional employment over entrepreneurship, with good job prospects potentially reducing the incentive to launch businesses.
STEM Education and Business Ownership Disconnect: Paradoxically, an increase in female STEM graduates correlates with a decline in female STEM entrepreneurship across diverse sectors. A 1% rise in STEM graduates leads to a 9.9% decrease in business ownership among women, indicating that many highly educated women may prefer careers in academia or established industries over entrepreneurship.
COVID-19 Impact: The pandemic catalyzed growth in female STEM entrepreneurship, driven by new healthcare sector opportunities, increased support through community funding, direct cash payments to families, and economic necessity.
Ethnic and Racial Disparities: The report highlights substantial disparities among women of different racial and ethnic backgrounds. For instance, a 1% increase in STEM graduates results in significant declines in firm ownership for Black (31% decline), AIAN (240% decline), Asian (45% decline), and Latina women (32.6% decline). However, Black, Hispanic, and Asian women-owned STEM firms show more positive responses to increased patentee numbers and venture capital funding than their white and non-Hispanic counterparts.
While this analysis reveals complex dynamics between women’s STEM education and entrepreneurship, it underscores an urgent need to address structural barriers in high-growth fields. As Ladjevardian states, “Engineering Change brings to light the factors impacting women’s participation and success in STEM entrepreneurship. This research arms policymakers and stakeholders with critical data to design programs that foster inclusivity and opportunity for women across all racial and ethnic backgrounds in STEM.”
This research emphasizes the value of supporting women’s STEM entrepreneurship and calls for enhanced mentorship, role models, and equitable access to venture capital. It advocates for reforms that align educational outcomes with entrepreneurial opportunity, ensuring women have the resources and support to succeed in high-growth sectors.
To download the full report from our website, please click here. For more information about this report, please contact Erin Hustings at erin.hustings@sba.gov.
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About the National Women’s Business Council
The National Women’s Business Council (NWBC) is a non-partisan federal advisory committee created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. To learn more, please visit: www.nwbc.gov.
By Jordan Chapman
As we look back on a successful Women’s History Month, wrap up National Inventor’s Month, and begin celebrating National Small Business Week, we are proud to shed light on our recently released research on women’s entrepreneurship in high-yield and high growth industries. Led by women-owned consulting firm Kapur Energy Environment Economics, LLC, this project was initiated in 2023 and the final results will be released in October of 2024. The preliminary findings of this research are compiled in an extensive 195-page report entitled, “An Illuminating Moment: Lighting a Pathway for Women STEM Entrepreneurs,” which includes a literature review, data and policy analysis, and preliminary recommendations to support women innovators.
We already knew that women’s participation in STEM, particularly through entrepreneurship, is essential for progress. A woman led the team that pioneered the COVID-19 vaccine at Harvard University, a woman invented Kevlar, a woman first identified the greenhouse effect, a woman created technology that now serves as the basis for Wi-Fi and Bluetooth, a woman wrote the first computer program, a woman built the Brooklyn Bridge, a woman discovered the composition of the Earth’s inner core, a woman discovered what the Earth’s ocean floor looks like, a woman pioneered new methods for treating cataracts and on top of it all, a woman invented chocolate chip cookies. In other words, we know the names we must share to uplift women’s contributions in STEM, and thanks to this research, we now know the numbers too.
At NWBC, we raise awareness of the obstacles women face, but equally strive to emphasize the potential opportunities that lie ahead as well. With that in mind, below are some of the major highlights of the preliminary findings.
| On the one hand… | But on the bright side… |
| There are 733,880 fewer female-owned STEM firms than male-owned firms. | When you break this disparity down by employer vs. non-employer firms, the gap is much narrower (less than 200,000 firms) for non-employer firms, which make up the majority of STEM firms as a whole. Women business owners are also more likely to own non-employer firms across industries. |
| According to the Institute for Women’s Policy Research, if current rates of patenting do not significantly increase, the gender patenting gap will not close until 2092 at the earliest. The global STEM gender gap was also recently illustrated in research conducted by LinkedIn, which suggested the STEM skills gap would take 45 years to close, while the STEM employment gap would take 90 years to close. | STEM firms owned by Black/African American, Hispanic, and Native American women outnumber their male-owned counterparts. Women of color are clearly making outstanding strides in gender equity in STEM entrepreneurship, which matches what we are seeing when it comes to the recent surge in new business starts. |
| Women are underrepresented in STEM education and the workforce. As referenced in this report and expounded upon in NWBC’s 2023 Annual Report, women make up nearly half of the workforce but only 27 percent of the STEM workforce and receive the majority of the bachelor’s degrees, but less than 25 percent of those in engineering, computer science, and physics. | When looking at business owners under the age of 45, STEM businesses owned by women outnumber those owned by men. It will take generations to bridge disparities in STEM education and workforce participation for women, but in entrepreneurship, the signs of progress are superb. |
| Veteran male-owned businesses in STEM outnumber their female-owned counterparts by a factor of eight. | According to the U.S. Department of Labor, women only make up 10 percent of all veterans, indicating that they may actually be overrepresented as STEM business owners. |
| There is only one state where the proportion of women-owned STEM firms is close to or greater than that of their male-owned counterparts: Maine. | Women-owned firms make up 39.1 percent of all firms in the U.S, as shared in NWBC’s 2023 Annual Report. For many states, the proportion of women-owned STEM firms is higher than this 39.1 percent. Put another way, although the proportion of women STEM entrepreneurs may not be equal to that of men, in many states, the proportion of women STEM entrepreneurs is higher than the average proportion of women entrepreneurs across all industries. While as a country, we have a lot of work to do to close the gap in women’s STEM entrepreneurship, many states have obviously cracked the code. |
The economic and societal benefits of increasing women’s STEM participation also deserve repeating. Researchers have previously found that if women, people of color, and people from low-income families invented at the same rate as other groups that do not face comparable discrimination and structural barriers, U.S. innovation would quadruple. A study commissioned by the U.S. Patenting and Trademark Office (USPTO) also found that commercialized patents could increase by 24%, and gross domestic product (GDP) per capita could go up by 2.7% if the gender gap in patenting were closed. Recently published research from USPTO has also found that “women’s participation in patenting… is growing and associated with more diverse teams and patents with higher economic value.” Women-owned firms generate over twice as much per dollar invested as their male-owned counterparts and if the gender gap in entrepreneurship closed, global GDP would increase by 3-6 percent. When it comes to domestic gains, an additional $7.9 trillion in revenue would be added to the U.S. economy if the average revenue gap between women- and men-owned businesses is closed.
As a leading voice in women’s entrepreneurship, we have a few ideas for what could bring clearer skies and gender parity in STEM entrepreneurship, including supporting women’s STEM entrepreneurial education, investment, and outreach, leveraging ongoing efforts encompassed in the Investing in America agenda to connect women to 21st century opportunities, bolstering workforce entry and re-entry initiatives to get and keep women in the STEM pipeline, improving the incubator and accelerator system, and maintaining a viable pathway to commercialization and intellectual property for women entrepreneurs. You can read more about those in our 2023 Annual Report, connect to the conversations we are having today by learning more about our Access to Opportunity roundtable and uncover new potential gamechangers in the preliminary findings research report. But if necessity is the mother of invention, then we all have a part to play in ensuring women entrepreneurs have the access to the capital, opportunities, and resources they need, so we can all bask in the warm glow of their lightbulb moments.
Contact:
Jordan Chapman
202-941-6001
Jordan.Chapman@sba.gov
WASHINGTON, D.C. – (December 21, 2023) – The National Women’s Business Council (NWBC) is excited to share its 2023 Annual Report. NWBC serves as an independent source of advice and counsel to Congress, the White House, and the Administrator of the U.S. Small Business Administration (SBA) on issues of importance to women entrepreneurs. In fulfillment of this mission, NWBC has delivered the report to these audiences and is pleased to make it available to the public.
“The Council has worked tirelessly over the past fiscal year to develop policy recommendations designed to better support women in business,” shared Tené Dolphin, Executive Director of NWBC. “Whether it is increasing access to capital and opportunity, amplifying women’s participation in innovation, or building a more inclusive entrepreneurial ecosystem, the Council is dedicated to advancing entrepreneurship for women across the country. We are delighted to share the 2023 Annual Report, a snapshot of this work.”
“NWBC uplifts America’s over 13 million women entrepreneurs by engaging in research, developing policy recommendations, leading dialogues, and connecting with stakeholders from all over the entrepreneurial landscape,” noted NWBC Chair Sima Ladjevardian. “It has been an honor to further progress for women in business this past year, and we cannot wait to build on these successes in the next year, starting with our January 2024 Public Meeting.”
To explore NWBC’s 2023 Annual Report and view reports from previous years, visit the Annual Reports page on www.nwbc.gov.
In order to delve more deeply into the contents of the 2023 Annual Report and lay the groundwork for collaboration for 2024, the Council will hold a hybrid public meeting from 12:00 PM to 2:00 PM ET on January 23, 2024, at SBA Headquarters (409 3rd St SW, Washington, DC 20416). This meeting will also be live streamed via Zoom. Members of the public are invited to join the meeting to learn about the Council’s ongoing endeavors, understand how the Council moves in alignment with other women’s business organizations, and share their firsthand experiences when it comes to entrepreneurship.
Some of the key topics covered in the 2023 Annual Report that will likely be discussed during the January 2024 Public Meeting include:
- During the past year, NWBC commissioned two research projects: one focused on women’s entrepreneurship in high-yield and high-growth industries and the other focused on women’s entrepreneurship in rural, tribal, and other historically underserved communities, including urban underserved communities. Insights from these projects will undoubtedly inform future policy recommendations.
- This year, the Council focused a selection of recommendations on creating equitable access to diverse sources of business financing and increasing federal contracting opportunities and awards for women-owned small businesses.
- In 2023, the Council developed recommendations driven by a desire to foster equitable opportunity for women entrepreneurs in high-growth industries, bolster initiatives around apprenticeships, grants and the STEM pipeline, and promote and protect women’s STEM innovation.
- The Council aimed various policy recommendations at bridging service gaps in underserved communities, positioning more women-owned small businesses to compete, and strengthening coordination between grassroots and federal efforts throughout the past year.
- The Council highlights numerous entrepreneurial development resources each year and partners with key resource partners to enhance existing frameworks and design more just ones to accelerate economic opportunity for women.
To register for NWBC’s January 2024 Public Meeting, visit the Public Meetings page on www.nwbc.gov.
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About the National Women’s Business Council
The National Women’s Business Council (NWBC) is a non-partisan federal advisory committee created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. To learn more, please visit: www.NWBC.gov.
WASHINGTON, D.C. – (February 3, 2022) – The National Women’s Business Council (NWBC) is pleased to share the Annual Report for Fiscal Year 2021. The report captures the state of women’s entrepreneurship in America today, recent events at NWBC, the Council’s policy recommendations, and more!
We are currently working on restoring past newsletters on our website. To make sure you are connected to all the latest news from NWBC, be sure to subscribe to the newsletter.
FOR IMMEDIATE RELEASE
Contact:
Temren Wroge
202-738-3523
Temren.Wroge@sba.gov
WASHINGTON, D.C., December 21, 2018 – The National Women’s Business Council (NWBC) has submitted its 2018 Annual Report to the President, the Senate Committee on Small Business and Entrepreneurship, the House Committee on Small Business, and the Administrator of the Small Business Administration. This Report commemorates NWBC’s 30th anniversary year and provides the findings, conclusions, and policy recommendations of the Council. NWBC Chair Liz Sara also provides her vision for guiding the Council into a new era, where it will build on past and current achievements and ensure its advocacy loses neither momentum nor impact. This year, there are an estimated 12.3 million women-owned firms accounting for 40% of all businesses in the United States. In the 2018 Annual Report, NWBC reaffirms its commitment to providing a platform to expand and improve opportunities for women business owners and their enterprises. Please click here to read the 2018 Annual Report.
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About National Women’s Business Council
The National Women’s Business Council (NWBC) is a nonpartisan federal advisory council established to serve as an independent source of advice and policy recommendations to the President, the Congress, and the Administrator of the U.S. Small Business Administration on issues related to women’s business enterprise. The Council is comprised of eight small business owners from across the country, six representatives of national women’s business organizations, and one Chairperson, Liz Sara, who was recently appointed by President Donald J. Trump in August 2018. To learn more about NWBC, visit www.nwbc.gov.
FOR IMMEDIATE RELEASE
Contact:
Temren Wroge
202-738-3523
Temren.Wroge@sba.gov
WASHINGTON, D.C., May 8, 2019 – The National Women’s Business Council (NWBC) has released the ‘Rural Women Entrepreneurs: Challenges and Opportunities’ report which offers a profile of rural women entrepreneurs and will serve as the springboard for the work and policy considerations of the Council.
“By understanding the exclusive challenges facing women entrepreneurs in rural communities, NWBC is in a better position to advocate for programs and policies that will help to reduce or eliminate those hurdles,” says Liz Sara, NWBC Chair. “Since entrepreneurship is central to rural job creation and economic growth, NWBC has made rural entrepreneurship a priority for this year”.
Please click here to read the full report.
FOR IMMEDIATE RELEASE
Contact:
Temren Wroge
202-738-3523
Temren.Wroge@sba.gov
NWBC Focuses Its Efforts on: Access to Capital, Barriers for Women in STEM-Related Fields, and Challenges for Women’s Entrepreneurship in Rural Areas
WASHINGTON, D.C., December 20, 2019 – The National Women’s Business Council (NWBC) has submitted its 2019 Annual Report to the President, the Senate Committee on Small Business and Entrepreneurship, the House Committee on Small Business, and the Administrator of the Small Business Administration.
This report recaps NWBC’s 31st year and provides the findings, conclusions, and policy recommendations of the Council. NWBC Chair Liz Sara, now in her second year at the helm, has concentrated its mission to strengthen women in business on three major areas: improving access to capital for female founders, encouraging more women to start and grow companies in STEM-related fields, and removing obstacles for women business owners in rural areas.
The NWBC also launched a Women in Small Business Roundtable series across the country, which convened over 300 women business owners and stakeholders from New York, NY to Nampa, ID; from St. Petersburg, FL to Los Angeles, CA. The goal was to gain a deeper insight into the challenges and overall landscape in which women founders and small business owners currently operate.
“As the report findings and policy recommendations demonstrate, while we have made significant legislative and economic strides in advancing a new generation of women entrepreneurs, much work still lies ahead,” said Sara. “That is why the work of the Council continues to be vital. In 2020, we will continue our efforts with a laser focus on our three overarching issues areas of primary importance.”
The following are some of the policy recommendations found in the report:
For improving access to capital:
One policy recommendation is to Incentivize New Investments via a Federal Angel Investment Tax Credit: The Council recommends that Congress amend the Internal Revenue Code to allow for a Federal Angel Investment Tax Credit. This would constitute a credit of up to 50% of a qualified debt or equity investment which can be claimed over the first three (3) years of an investment—up to twenty-five percent (25%) in the first tax year, fifteen percent (15%) in the second tax year, and ten percent (10%) in the third tax year—with a lifetime limit of $50,000 and applicable to each firm in which an “angel” invests.
Another recommendation is to Provide a First Employee Tax Credit to Assist Small Businesses Hiring Their First Employee: The Council also supports a First Employee Tax Credit to assist small businesses, particularly those operating in service industries, to hire their first employee. The credit should equal 25% of the W-2 wages reported, which can be claimed annually, up to $10,000 in a single tax year, with a lifetime limit of $40,000. Given that many businesses do not turn a profit in the first few years of operation, the first employee tax credit should be creditable against the business’ payroll tax liability. However, there should be no earnings cap for this credit. The credit should be designed to also help individuals living in urban areas where the cost of living is higher, as well as new market entrants in the STEM fields.
For encouraging more women in STEM-related fields:
Further engage HBCU’s Conducting R&D in SBIR Programming and Expand Outreach with Key Agencies: In light of SBA’s plans, NWBC urges the agency to work toward increasing program participation among those conducting technological innovation research at HBCUs and Minority Serving Institutions (MSIs). More specifically, the Council urges the agency to include the eleven (11) HBCUs, identified by the agency’s Office of Entrepreneurial Development (OED) as conducting R&D, in the SBA SBIR Road Tour, as well as develop and/or expand its outreach and coordination efforts with other federal agencies such as the National Aeronautics and Space Administration (NASA) and the National Science Foundation (NSF), to name just a few.
For removing obstacles for women in rural areas:
NWBC Supports the Development of a Playbook of Rural Case Studies: The SBA and USDA should develop an online playbook of case studies on rural entrepreneurship. Universities, local chambers of commerce, non-profits, corporations, and other relevant stakeholders are uniquely positioned to contribute informative case studies and valuable success stories, which may be showcased. Additionally, empirical data and best practices could be used to inform the creation of innovative trainings and resource programs for these particularly underserved areas. Due to the vast separation from urban hubs and the inadequate access to federal resources that strengthen them, rural communities are compelled to identify the most cost-efficient, creative solutions to economic hardships.
To access the 2019 NWBC Annual Report, click here: