There are many similarities between men and women small business owners and many resources available that are gender neutral. What, then, drove the development of resources that target just women?
First, the government recognized that women faced discrimination in their pursuit of capital for developing and expanding business created programs to counter the effects of that discrimination. Second, women were becoming the dominant consumer group in the US -- making the majority of purchases in many product categories. Further, women who had years of experience in the workplace saw opportunities for new products and services that met their needs for convenience, child care, education and healthcare. They developed these opportunities -- ones that the market had failed to meet -- into new businesses at a tremendous rate. The number of women-owned firms increased 57.5% from 1982 to 1987 (1) and 78% from 1987 to 1996 (2). In total, women now own over 8 million US business or 30% of all US firms. (3)
Third, women come to business and business ownership with unique personal perspectives. Women with children sought flexibility that the corporate workplace wouldn't provide. In addition, many women weren't indoctrinated in the male corporate value system that encouraged men to wait for ascension to higher authority and responsibility. Women appear to be less willing then men to wait for advancement. The National Federation of Women's Business Owners recently surveyed men and women business owners about why they'd left their previous jobs and founded companies of their own. They found that women were more likely to experience the following specific facets of the "class ceiling". (4)
|
Statement |
Women |
Men |
|
"your contributions were not being recognized or valued" |
44% |
17% |
|
"you were not taken seriously by your employer or supervisor" |
33% |
18% |
Outside of government programs there's little capital available specifically for women, but this is starting to change. This year, Patty Abramson launched the Women's Capital Growth Fund, a venture capital fund that plans to invest in women-owned firms seeking expansion capital. The Women's Investment Network was launched in Philadelphia in 1996 to help support the expansion in women owned businesses. The 1998 Women's Economic Summit, a cooperative effort of the National Women's Business Center and the Dingman Center for Entrepreneurship will be held in October. The summit's Finance Initiative will examine accessibility to credit and capital to grow women's businesses. Summit organizers hope to develop new ways to overcome traditional obstacles to financing women's firms -- the general challenge for banks of funding service ventures and the lack of interest by banks in supplying smaller amounts of investment capital.
A number of women's organizations provide good opportunities for networking. The National Association of Women's Business Owners, Wiredwomen.com, Women's Connection Online, and the Women's Business Owner's Network are just some of the real-world and online networking venues available to business women.
There are a number of programs that train men and women in entrepreneurship at colleges, universities and nonprofit organizations around the country. More and more programs targeting women. Two university examples are George Washington University, which is creating a Center for Women's Entrepreneurship this fall and Seton Hill, which has pioneered "Entrepreneurship Camps" for young women. Another example is The Women's Network for Entreprenurial Training Mentoring Program (WNET) which matches experienced and inexperienced women owners in year-long mentor and protege relationships. The WNET program also offers mentoring and support in a group setting through its "Roundtable" program.
(1) Center for Policy Alternatives: Women Entrepreneurs: The New Economic Champions
(2) & (3) Online Women's Business Center
(4) The National Federation of Women's Business Owners: Fact of the Week, July 27, 1998