Women and Business
By: Kathy Spitzer, Esq.
Small businesses contribute greatly to the American economy by serving as an essential mechanism by which many Americans access the American Dream. By creating opportunities for women, minorities, and immigrants, small business helps millions enter the economic and social mainstream. By providing new ideas, small firms also act as agents of change.
A. Small firms are about the prospects for the future, not the repetition of the past. They embrace change and competition. Yet the innovativeness of small firms and their ability to explore new technologies is surprising since often they are resource poor, have small research and development budgets and limited manpower. Community networks can help small firms overcome their limited resources. They often rely on regional knowledge for important inputs into the innovation process. Through this process of accessing and sharing knowledge with other firms in their geographic area, small businesses help the circulation and building of these regional networks. The networks then also serve as word of mouth advertising. If they respect each other, they refer each other.
Approximately 50 years ago women made up less than 26 percent of the workforce (and they were mostly secretaries, nurses, and teachers). But regulatory events such as the Civil Rights Act in 1978, the Equal Credit Opportunity Act in 1975, and the Affirmative Action Act in 1978, opened up business ownership to women. At that same time, the role of women in society began to change. As more women successfully created, managed, and grew companies, their achievements became noticed by the media and government. Women's business groups such as the National Association of Women Business Owners (NAWBO) and the National Foundation for Women Business Owners (NFWBO) were founded. Since the 1970s, women's share of small business has increased dramatically. New technology and increased access have had a profound effect on women owned businesses. Women are now, more than ever, able to contribute to a growing economy without sacrificing as many family priorities.
The flexibility of setting one's own hours, combined with the passion of doing something for love as well as profit, has proven an appealing recipe for women. For a lot of woman choosing a business means figuring out what you care about – what you’d like to do. Women tend to want to do what makes them happy, rather than just what makes them money. And doing what you love leads to its own successes.
A. The number of female owned businesses (a business where women own 51 percent or more of the company) has grown 20 percent between 1997 and 2002. This is larger than the growth of male owned businesses – up only 16 percent. The Census Bureau conducted a survey in 2002 of 1.9 million business owners. The report identified 6.5 million businesses that were female-owned and 2.7 million firms where ownership was divided between men and women.
How do these women get started? The number and types of funding options available for women is as great as it has ever been, especially in Nevada. Nevada Microenterprise Initiative distributes Small Business Association (SBA) loans of $500 to $25,000 for typical business purposes. Southern Nevada CDC hosts the SBA's Office of Women's Business Ownership which assists individuals with opening a business through classes and seminars. The SBA 7a Loan Guarantee Program allows approved business owners to go to banks with a guarantee from the SBA behind them.
One big advantage to start ups right now is the sheer volume of information available to entrepreneurs. Technology has made data gathering simple and quick.
This includes data on loans and loan help available to women. But proving that a company is woman owned can be a daunting process, not only when it comes to loans. Be sure your business truly is female owned before you try to take advantage of any special treatment. The voice of small business is increasingly becoming a female one, with female entrepreneurs generating billions. If you have a passion, go for it! There is lots of support out there. For more information please visit www.successdna.com and www.corporatedirect.com .
Kathy Spitzer is a corporate asset protection and real estate attorney who assists clients from around the world in determining the right business entities and structures to protect their real estate holdings, business entities and personal assets.
