ActionPapers

ECONOMIC SUFFICIENCY: CERTIFYING WOMEN-OWNED BUSINESSES

“Wisconsin should take the lead with Lawton in charge of promoting the state as friendly to women starting a business here. The effect will be more than to continue the trend of women’s businesses growing at a fast pace. Promotion of the state as hospitable to women starting businesses can increase the pace of recovery in the Wisconsin economy.”

- Oshkosh Northwestern editorial June 16, 2004

WHY: Increasing opportunities for women to start and grow businesses will fuel economic growth in Wisconsin in multiple ways.

• The number of privately held, majority women-owned Wisconsin firms (now at about 111,700) jumped 25% between 1997 and 2004 _ nearly triple the growth of all companies, although we’re ranked #26 nationally.
• Majority woman-owned firms account for nearly 30% of all businesses, generate $24 billion in sales and employ about 215,000.
• Employment at majority women-owned companies grew 46.8% and sales by 55.4% in that same seven-year period.¹
• 1 in 5 woman-owned firms are owned by a woman or women of color. Between 1997 and 2004, the number of their firms grew nationally at a rate of 55%, their sales by 74% and employment by 62%.
• Designation as a certified business enterprise owned by a woman may allow you to advance your business in strategic procurement venues. Certification is a business development program, and may be used as a marketing tool for businesses.

WHAT: There currently is no process for women-owned businesses to become certified with the State of Wisconsin. The goal is to create a designation for womenowned businesses similar to the existing process for minority-owned businesses.

• The administration proposes to advance legislation to establish a process to certify womenowned businesses in Wisconsin.
• The proposed legislation would be similar to the federal government’s disadvantaged business enterprise programs – a model that would include both minority and women-owned businesses, one similar to certification programs already used by the federal government, WISDOT and some local units of government.
• Adopting the federal model would standardize and streamline processes that already exist.
• The state would develop a web-based certification process with a single online portal for minority and women-owned businesses, regardless of which agency they may want to do business with. This, with other changes in Department of Commerce practices, would shorten the approval process from months to a few days.
• The Department of Administration will solicit feedback on draft legislation from relevant minority and women-owned business stakeholders.

HOW: Build the list of stakeholders and statewide support to ensure rapid passage and implementation of legislation to certify women-owned businesses.

• Regional Solution Networks (RSNs) partner with area organizations like National Association of Women Business Owners, Business and Professional Women, TEMPO, Professional Dimensions, and Wisconsin Women Business Initiative Corporation to build area lists of women-owned businesses. These lists will be compiled to facilitate communication to and from state agencies as they proceed toward final legislation. Information collected should include:
  owner name, business name, address, e-mail, phone, fax, type of industry, number of employees, sales volume, growth rates, and generation of jobs.
• RSNs work with identified stakeholders and the local Chambers of Commerce to build a data “picture” of the participation/role of women-owned businesses in their regional economy – growth, development and impact.
• RSNs each garner support of a legislator from their area to sponsor the legislation to certify WBEs.
• Use the data “picture” to engage local media in covering issues of women business enterprises (WBEs) and the merits of WBE certification.
• RSNs build broad network to communicate with area legislators to champion certification of WBEs.
• RSNs start area conversations to develop strategies to create greater access to capital for women through microloans, venture capital and angel investors. Women of color and rural women face the greatest challenges. And although WBEs are nearly a third of all businesses, female entrepreneurs historically have received a disproportionately low share of available venture capital, as little as 4 to 9 percent. Microloans to women and minorities have a high success rate, but are becoming increasingly rare with changes in the SBA budget.

RESOURCES:
National Association of Women Business Owners: http://www.nawbo.org
Wisconsin Women Business Initiative Corporation: http://www.wwbic.com
Business and Professional Women: http://www.bpw-wi.com
TEMPO: http://www.tempointernational.org
Professional Dimensions: http://www.professionaldimensions.org
Kauffman Center for Entrepreneurial Leadership:
http://www.kauffman.org/foundation.cfm

¹ Center for Women’s Business Research April 28, 2004: http://www.nfwbo.org