RECAP: WOMEN IN SMALL BUSINESS ROUNDTABLE – AUSTIN, TX
WASHINTON, D.C., July 30, 2019 – As part of its ‘Women in Small Business Roundtable Series,’ the National Women’s Business Council (NWBC) held a roundtable in Austin, Texas, on July 25, 2019, to better understand the specific challenges and opportunities for women’s entrepreneurship by delving into the topic of access to capital, with a specific focus on issues related to credit access and venture capital. Austin has become the start-up and entrepreneurship capital of Texas and is the second-best city in the country in terms of economic clout for women in business according to the 2018 AMEX State of Women-Owned Businesses Report.
The event began with NWBC Chair Liz Sara welcoming the roundtable participants and attendees, including investors, lenders, and various business sectors from technology to aerospace to health. NWBC Council Member Rebecca Contreras, a local of Austin, then prompted the women entrepreneurs to share their experiences seeking funding to start and grow their businesses. Contreras noted that “women only receive 4.4% of small business commercial loans, despite the fact that women pay back their micro loans at a 97% rate of return” and asked the lenders in the room to shed light on this phenomenon. All the participants recognized the difficulties of raising traditional forms of capital. Some recounted being questioned by lenders differently than their male counterparts. One participant shared that while “men can get an investment on an idea, women need to go in with their product already built and show some sales first.”
The importance of mentorship and a support network, often found in other women’s business organizations, was prominent themes around the table. A high-growth business owner and advocate for female entrepreneurs recommended that other female founders assemble their own industry specific advisory committee to assist them in connecting with other founders in their industry. “Don’t be afraid to inconvenience people,” she said. Another business owner, who was initially turned away by a traditional lender, found support from her local chamber of commerce. After building a network within her chamber community, she was able to return to that same lender and acquire capital. She is now nationally recognized for her cupcakes.
NWBC Council Member Vanessa Dawson, CEO of the Vinetta Project, a capital platform that sources, funds, and supports promising female founders, shifted the discussion toward angel investing and venture capital. She noted the Pitchbook statistic that female founders received only 2.2% or $2.88 billion of the total $130 billion in VC funding in 2018.
She asked the roundtable participants to share some of their successes pitching their business ideas as well as some of their pitfalls. One woman founder shared that despite having orders from a high-end retail company, she was initially unsuccessful in acquiring venture capital.
NWBC Chair Sara 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 in the Austin area.
For more information about upcoming events, please visit the NWBC website.