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Jobs & The Promise Of Women Entrepreneurs

This article is more than 7 years old.

Those that follow the business press continue to be underwhelmed with the U.S. economic recovery. The most recent job report from the Bureau of Labor Statistics left a lot to be desired.

I no longer pay any attention to the ‘unemployment rate’ because it is a misleading indicator. Unemployment is calculated based only on people actively trying to find employment and not those that have ‘given up’ or have been classified as ‘not in the labor force.’ Let’s look at that.

Not all of the 324,851,109 million people in America work—but many more of them could than do.

  • Of the approximately 324 million, 254 million of them make up the ‘civilian non-institutional population’—those over 16 and not enlisted in the military.
  • Of these 254 million people, only 62.9% (159.9 million) participate in the workforce.
  • BLS when quoting statistics references this ‘current labor force’ of 159.9 million people—the potential ‘employables.’

So taking the September 2016 ‘new non-farm payroll’ numbers we see an increase of 156,000 jobs in the month. That’s an increase of .9% of the employment level in the current labor force. We’ve got to do better.

Can female entrepreneurs be the stimulus we need for jobs?

People—and investors—are ready to put their money where more exponential returns, are possible.

Female entrepreneurs seem to be bucking some of the stagnant growth trends, starting up a greater number of businesses. According to the National Women’s Business Council in 2012, women-owned businesses increased 26.8% from 2007. If women can master the issue of scale, a lot of people stand to win big.

In honor of National Women’s Small Business month, here’s a closer look at some of the organizations that continue to make women’s issues in entrepreneurship and capital a focus.

Advocacy groups focused on women’s business owners

If you are a female entrepreneur, you should know the associations that keep trying to read your tea leaves or tell your story. Many of the studies I reference are done with multiple partners who are combining research with networking, conferences and programs to help female business owners access capital.

  • The National Women’s Business Council – This group, comprised of women business owners, works directly with the U.S. Small Business Administration, Congress and the President to represent economic issues of importance to women business owners. Their annual report from the end of last year, 10 Million Strong - The Tipping Point for Women’s Entrepreneurship, contains a great ‘state of women’s business’ picture for the women starting 1,200 businesses a day. These compendiums of programs and activities, could point you quickly to national initiatives that could improve your access to capital and resources.
  • National Association of Women Business Owners – NAWBO has 60 chapters and over 5,000 members who are represented at a policy level in Washington. NAWBO earlier this month sent an open letter to both Presidential Candidates regarding the interests of women business owners. Of note, they have withheld endorsing either candidate because the group is evenly split and convinced they can work well with either candidate. (It’s frankly shocking, and heartening in this climate, to hear a group of people ready to make progress whatever the outcome of the election.)
  • Women’s Business Enterprise National Council – WBENC is a non-profit whose claim to fame is being the largest third-party certifier of businesses owned, controlled, and operated by women in the United States. This group not only advocates for women, but critically ensures that the businesses that use their women’s business status to access capital and contracts are who they say they are. (In full disclosure, I run a certified WBENC business, and can attest to their rigor having gone through my renewal audit with the Georgia Women’s Business Council recently.)
  • The Global Entrepreneurship and Development Institute – The Gender Global Entrepreneurship and Development Index was initially done in conjunction with the Dell Womens Entrepreneurs Network (DWEN) and was covered here in Forbes. While we await the 2016 Female Entrepreneurship Index, I reviewed data from the last several years for highlights, including the first study from 2013. What is extremely interesting, and useful, is the depth of data in target countries around all the things that positively impact a female entrepreneurs success. Among these are:
    • Access to advanced banking programs, including alternative finance
    • Female investors (who often emphasize female entrepreneurs in their portfolios)
    • High or growing proportions of female science graduates
    • Healthy labor force gender ratios
    • Examples of female leaders in business
    • Access to childcare (it’s real…if you’re in your prime years for entrepreneurship you’re also in your prime years for motherhood)

Financial institutions are putting their research where their money goes

Several capital groups have created programs that study women business owners or partner with them in the field. These organizations directly invest in women’s business and make women entrepreneurs a specific focus.

If you are an entrepreneur who is less interested in advocacy and more interested in immediate access to capital, take a look at these groups.

  • Bank of America – Has begun a study of women entrepreneurs with their Women Business Owner’s Spotlight Study, presumably to begin building more capital relationships with them.
  • Goldman Sachs – They have created specialized research, resources and an international focus on women entrepreneurs as a part of their 10,000 Women citizenship initiative.
  • Women’s Association of Venture & Equity Inc – This group’s bank sponsors are BNY Mellon Wealth Management, Landmark Partners and Triago.
  • The Women’s Venture Capital Fund – This fund is devoted entirely to women entrepreneurs. Take a look at their portfolio and see if you are in a segment they focus on, or an area that complements their existing portfolio.
  • Balboa Capital – Balboa Capital is aggressively focused on small business funding, including initiatives that directly target women entrepreneurs. They are currently running a survey to learn more about women business owners.
  • Intel Capital Diversity Fund – Intel, like many of the largest corporations are creating incubation and investment groups.

The next generation of women business owners is ready to get started

A few weeks ago I spoke to a group of students at Georgia Tech’s Institute for Leadership and Entrepreneurship. I was blown away by the number of female students in the crowd—nearly half the group—but not surprised when during Q&A I was asked for advice specifically for female entrepreneurs.

I usually say, ‘Forget that you’re a woman, and focus on being a great entrepreneur.’ I may need some new material.

Given the constant emphasis on women in business and data that suggests they make great “business starters” and that their influence drives better financial performance, maybe they shouldn’t forget it. They should leverage the growing interest and energy around women-owned business for immediate advantage.

Are you ready to change the face of business? If so, the people I referenced above are ready to help you—and they have the funding and resources to give you amazing leverage.

Act now. These jobs reports are literally killing us.

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