2nd Annual Gender-GEDI Report Reveals Most Womenabling Economies

Yesterday, Dell hosted the fifth gathering of the Dell Women’s Entrepreneur Network (#DWEN) in its hometown, Austin Texas. In addition to sharing their own stories of struggle and success, these women of accomplishment also saw Dell release their second annual Gender Global Entrepreneurship and Development Index report (also known by the moniker #Gender-GEDI). The Index analyzes the conditions favorable for high-growth potential women entrepreneurs – including laws, programs, and individual characteristics. This year saw the analysis expand from 17 to 30 countries, which collectively account for 66% of the world’s female population and 75% of global GDP. The analysis finds that:Woman hiking to Everest basecamp

  • The most womenabling economies in the world are the United States, Australia and Sweden, with scores of 83, 80 and 73, respectively. They are followed by France and Germany (tied at 67), Chile (55), the United Kingdom (54) and Poland (51);
  • With the top tier economies receiving scores of 51 to 83 on a 0-100 scale, there is room for improvement. Indeed, the other 22 countries received scores under 50, including four countries (Uganda, Egypt, Bangladesh and Pakistan) receiving Gender-GEDI scores under 20;
  • Among the 17 countries included in both the 2013 and 2014 Gender GEDI Index reports, four increased their ranking and four declined. Japan improved the most, up three places from 12th to 9th. Brazil jumped two places, from 14th to 12th. The biggest decline was seen in Malaysia, which dropped four spots, from 9th to 13th; and
  • When comparing the rankings of countries included in the Gender-GEDI analysis with those also included in the non-gendered GEDI rankings, ten countries rank better for high-potential women’s entrepreneurship than for general entrepreneurial conditions. In alphabetical order, they are: Bangladesh, Brazil, China, Germany, Ghana, Mexico, Panama, Russia, South Africa, and Thailand.

Read more about the report’s highlights in the study news release, and click HERE to learn more about the Gender-GEDI and how it is constructed. And for you fellow statistical mavens, click HERE to download and read the 46-page executive report. A more complete report, including background tables and more country-level detail, will be available soon – and when it is, you’ll be able to find it on Womenable’s Reference Library web page.

NWBC Publishes 2013 Annual Report

The National Women’s Business Council, a bipartisan women’s enterprise advisory body in the US established by the Women’s Business Ownership Act of 1988, has published their 2013 annual report to the President, US Congress, and the US Small Business Administration.
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The colorful 40-page report contains nine policy/program recommendations grouped within four pillars (Guess which one is our favorite!):

  1. Access to Capital
  2. Access to Markets
  3. Job Creation and Growth
  4. Data

Among the recommendations are two, in our view, worth calling out and commenting upon:

  • Implement an annual Survey of Business Owners model-based program.” The SBO is the Census Bureau’s quinquennial business census, which provides we womenablers with a mother-lode of invaluable statistics on the number and growth of women-owned firms. However, being quinquennial means that the data are only published every five years, and business moves much faster than that. Of course, Womenable and American Express OPEN have published an annual State of Women-Owned Businesses reports that provide estimates in between SBO reports (see a listing of these reports HERE), but more frequent government-published data would be extraordinarily useful. However, such an expansion of SBO is also very unlikely, given the expense required and the current state of the US budget. And yet, to paraphrase Robert Browning,

    “Ah, but a woman’s reach should exceed her grasp,
    Or what’s a heaven for?”

  • Increase the number of women-owned or -led firms participating in incubators and accelerators and consider establishing an accelerator and incubator program focused on women-owned or -led firms.” Womenable has long pointed out the need for paying much more attention to issues of growth and development of existing women-owned enterprises. This is another timely recommendation, but the NWBC missed an important opportunity to call out a key partnership in this endeavor: the Nation’s 100+ women’s business centers. Rather than trying to make existing incubators and business accelerators more female-friendly (good luck with that), we should expand the remit of and financial support for WBCs to offer growth-focused programming. Indeed, most of them already do – but they are doing so outside the “marching orders” provided to them by the SBA and Congress, which essentially puts WBCs in velvet handcuffs and says that all government funds can only go toward serving nascent firms and socially and economically disadvantaged populations.

The Council has done a good job of keeping the momentum going over a period – over the past three or more years, really – of staff and leadership turnover. There’s a new Chair in place, but no Executive Director at the moment. Despite that, they’ve published a report that’s well worth reading, and using for womenabling advocacy efforts in the United States and beyond. Keep up the good work, NWBC!

Reflections on Building a Sustainable Women’s Enterprise Ecosystem

In November, I attended and spoke at the Institute for Small Business and Entrepreneurship‘s pre-conference women’s enterprise policy day. My 25-minute presentation was entitled, “Building a Women’s Enterprise Movement That Will Stand the Test of Time: Lessons From the U.S.‘” It aimed to reflect on the recent silver anniversary of the passage of the Women’s Business Ownership Act of 1988, to share lessons learned from the U.S. experience, and to offer observations of the common elements that bolster and strengthen a healthy and vibrant women’s enterprise ecosystem – which could be adapted for a variety of political systems and development contexts.

Here, then, is a Slideshare Slidecast of the presentation, which you can watch and listen to as you munch on your lunch. Or, fellow womenablers, feel free to download it and play it at your next women’s business organization member gathering or networking event to fuel further discussion about what ideas you might take forward in your own community. Go forth and multiply!

On the Importance of Roadmaps

“Alice came to a fork in the road. ‘Which road do I take?’ she asked.

‘Where do you want to go?’ responded the Cheshire Cat.

‘I don’t know,’ Alice answered.

‘Then,’ said the Cat, ‘it doesn’t matter.”

Lewis Carroll, Alice in Wonderland (1865)

road to futureOf course, when it comes to navigation, the road taken usually does matter – as it does in women’s enterprise development. That’s why the focus of this Womenable WED Brief is on roadmaps for women’s entrepreneurship. The occasion is the recent release of a report, A Roadmap for Promoting Women’s Economic Empowerment, from the United Nations Foundation and ExxonMobil. While the report has a development focus and some specific areas of emphasis (farming and youth), it does contain some good recommendations for women’s entrepreneurship writ large, such as the fact that access to capital alone will not advance the growth of women-owned firms, and that access to education alone (especially of the “primary level” variety) will likewise not lead to an increase in the number of women-owned wealth- and job-creating firms. Check out the report and other related information (such as some interesting videos) at womeneconroadmap.org.

As valuable as this roadmap report is, there are three other roadmaps for women’s enterprise development of note: the US-focused 2010 report from Quantum Leaps: A Roadmap to 2020: Fueling the Growth of Women’s Enterprise Development; the 2003 Canadian Prime Minister’s Task Force Report on Women Entrepreneurs; and the 2003 UK government’s Strategic Framework for Women’s Enterprise. All are available for your reference at Womenable’s Virtual Reference Shelf.

WOSBs Getting Their Contracting Groove On?

How are women business owners doing in the federal procurement marketplace? According to a new report, authored by Womenable for the American Express OPEN for Government Contracts program, the answer is “increasingly well.” Even though, on average, women business owners who are active federal contractors have been seeking contracts for less time than their male counterparts, they are every bit as successful in terms of overall revenue and employment, and are rapidly catching up in terms of federal contract award value.

pot_o_goldOne reason for their growing success may be the increased traction of the Women-Owned Small Business (WOSB) Procurement Program, established in 2011. Two years ago, just over one-third (37%) of women business owners who had self-certified as a woman-owned small business (WOSB) found that designation to be useful in seeking contracting opportunities. Now, a 67% majority of WOSBs find the designation useful, including 28% who find it very or extremely useful.

Other key findings from the report include:

  • In each of the three American Express OPEN for Government Contracts surveys, women-owned firms have been found to invest less time and money researching opportunities and submitting proposals for federal contracts. In 2012, women-owned firms spent $112,112 pursuing federal contracts, compared to the $137,040 investment made by men-owned firms;
  • The average investment made by small businesses in seeking federal contracts has, however, risen dramatically over the past three years, with a greater than average increase seen among women-owned firms (up 59% compared to a 49% increase among all small contractors);
  • While women invest less time and money seeking federal contracts, their prime and sub-contracting bidding activity and success rates match the average for all active small firm contractors; and
  • On average, it takes a small business new to the federal procurement marketplace about two years (24 months) and 4.7 unsuccessful bids before winning that all-important first contract. It took women business owners less time and effort (20 months and 4.3 unsuccessful bids) to land their first contract compared to their male counterparts (25 months and 5.0 unsuccessful bids).

So, while selling goods and services to federal agencies may not be the “pot of gold at the end of the rainbow,” for many small businesses – including an increasing number owned by women – federal procurement is an important avenue to business growth.

You may download and read the report, “Women-Owned Small Businesses in Federal Procurement: Building Momentum, Reaping Rewards,” at the highlighted link. This report is the second in a series of four reports. The first, “Trends in Federal Contracting for Small Businesses,” may also be downloaded and read. The other two reports, the next focused on trends in federal contracting among minority business owners and the final, taking a look at how small business owners are utilizing subcontracting and teaming to achieve procurement success, are forthcoming.

A Sterling Milestone

Marking the Silver Anniversary of the Women’s Business Ownership Act of 1988

This month marks a sterling anniversary – the 25th anniversary of the signing of the Women’s Business Ownership Act of 1988. The law, also affectionately known as H.R. (House Resolution) 5050, was signed into law on October 25, 1988. It ushered in a true renaissance of growth and progress for women’s enterprise development. Womenablers often refer to the WBO Act of 1988 as the ‘big bang” of women’s entrepreneurship.

NAWBO leader Susan Hager testifies at the HR5050 hearings

NAWBO leader Susan Hager testifies at the HR5050 hearings (photo by Olive Rosen)

There were four main tenets of the law:

  1. Capital: The law extended the gender equality of access to credit provided in the Equal Credit Opportunity Act of 1974 to include business credit. Just think, prior to 1988 women business owners could not get business credit in their own name!
  2. Capitol: The Act also established the National Women’s Business Council, which provides the women’s business community with a seat at the table in the US Capitol and in federal policy circles. The NWBC is comprised of individual women business owners and representatives of women’s business organizations, and must submit an annual report to the President, the U.S. Congress and the U.S. Small Business Administration each year. Read past annual reports HERE to learn what recommendations the NWBC has made to federal policymakers.
  3. Counseling: The law also launched a “demonstration project” of entrepreneurial education and counseling focused on female clients. From four initial pilot programs in 1989 has grown over 100 women’s business centers today, providing technical assistance, education, coaching and counseling, group and peer-to-peer mentoring, and ongoing support to both would-be and existing women (and men) business owners. Many former clients come back and teach and mentor. Do you have a skill or a story to share with budding entrepreneurs? Find a women’s business center near you and volunteer!
  4. Counting: Finally, the law directed the U.S. Census Bureau to include ALL women-owned businesses in their next quinquennial census. Up until that time, the census did not include all industries or all legal forms of business organization. Upon the publication of the 1992 Census in 1995, when C corporations were included for the first time, the number of women-owned firms increased by just 9%, but employment jumped by 111% and revenues generated by women-owned firms skyrocketed by 145%. Women-owned firms were finally on the map!

Take a moment and think about how much easier it is for women starting businesses now than it was for our foremothers prior to 1988 – when there were no women’s business centers, no complete accounting of the number and economic clout of women-owned businesses, no National Women’s Business Council, and no ability to access business credit without a male co-signer.

Some folks are already taking note of the impending anniversary. Click on the following links to read a blogpost from CAMEO (the California Association for Micro Enterprise Opportunity), an op-ed piece from Connecticut WDBC director (and NWBC council member) Fran Pastore, and an article from WIPP co-founder Barbara Kasoff. And check out what we had to say five years ago at the 20th anniversary during a panel discussion at an academic conference!

And stay tuned – women’s enterprise leaders are talking now about gathering en masse next Spring to celebrate the accomplishments of the past 25 years and talk more seriously about what the movement – and women business owners – need going forward.

In the meantime, we’d like to start a social media conversation about the past 25 years of women’s entrepreneurship. Tweet and post your thoughts about the progress we’ve made, and the work that’s yet to be done. Use the hashtag #WBOAct@25. What are your thoughts, reflections, calls to action? Ready, set, go!

Measuring the BEE for WOBs in LAC

Taking on those who might attribute gender gaps in business performance to differences in entrepreneurial drive, commitment or motivation, there is a growing body of analysis focused on how the business-enabling environment (BEE) affects the development of women-owned businesses (WOBs). We womenablers are well aware that a woman entrepreneur can be as committed and motivated as all get-out, but her enterprise will not grow as strongly as one owned by her male peers if (for example) she cannot own property in her own name – thereby depriving her of the collateral needed to fuel the growth of her business via access to capital.
WEVS_cover

Property ownership and capital access are among the 49 input variables in five key categories (security & stability, business climate, finance, capacity and social services) that are codified and analyzed in a new regional assessment of women’s entrepreneurship in Latin America and the Caribbean (LAC). The WEVentureScope, from the Inter-American Development Bank’s Multilateral Investment Fund (MIF), was announced in a launch event last week. Featuring speakers from the MIF, the Economist Intelligence Unit, which conducted the analysis (and which brought us the Women’s Economic Opportunity Index), and a panel of experts, the event announced the availability of a summary report as well as a marvelously interactive web site (www.weventurescope.com) which allows users to change the weighting of different factors and see how it affects a country’s overall score.

At present, the WEVentureScope analyzes and ranks 20 countries in the region – ensuring coverage across the region but focusing on countries with a higher level of data availability. In this inaugural effort, these five countries lead the list:

  • Chile (scoring 64.8 out of a possible 100):
  • Peru (62.4);
  • Columbia (61.8);
  • Mexico (60.2): and
  • Uruguay (60.0).

During the announcement event (which you can watch at your leisure by clicking on the link to the archived event below – the event starts at 1:45:00 and runs just under 2 hours), the point was made that, even among these top-ranked countries, there is much room for improvement, given that the top score is just two-thirds of the way to a perfect score of 100. Speakers also mentioned the challenge of comparative data, and the hope that a report such as this will spur more governments to start keeping the sort of sex-disaggregated data and statistics that could add new countries to this effort in future years.

Women’s Entrepreneurial VentureScope Launch Event

Visit the web site to learn more, read the news release, download the report, and play with the weighting of different environmental factors.

This effort is an important step forward in understanding the barriers to entry and growth of women-owned firms in the region, and to informing policy and programmatic action to support their improved success. ¡Viva las mujeres empresarias!