Enterprising 

Women:

THE LEGACY AND THE FUTURE

Enterprising 

Women:

THE LEGACY AND THE FUTURE

THE NATIONAL WOMEN’S BUSINESS COUNCIL

NOVEMBER, 2003
TABLE OF CONTENTS

Executive Summary 

The Progress of Women as Entrepreneurs 

Things That Have Not Changed for Women Entrepreneurs 

Socialization Issues 

Balancing Business and Family 

Networking and Mentoring 

An Important Advancement 

Important Issues for Women Business Owners Today 

Access to Capital 

Government Contracts and Support 

Certification Programs 

Access To Contracts 

Mentoring and Subcontracting Incentives 

Women in International Trade 

Issues for Women of Color 

Recommendations 


FOREWORD

This report summarizes a series of discussion groups with women business owners in Lexington,

Massachusetts; New York, New York; and Atlanta, Georgia. These discussion groups were held

in conjunction with the exhibit, Enterprising Women: 250 Years of American Business 1

, developed by

the Radcliffe Institute at Harvard University.

The Enterprising Women exhibit documents the rich legacy of women in business over the last

two and a half centuries—from pioneers such as Katherine Goddard, who published the first

signed copy of the Declaration of Independence to modern-day icons such as Katherine Graham

and Oprah Winfrey. The exhibit tells a compelling story of the challenges and successes of

women as business leaders and provides a historical context for many of the issues still faced by

women business owners.

As the exhibit has traveled to the first three of six locations around the country, the National

Women’s Business Council (NWBC) conducted a series of roundtable discussions with women

business owners and others involved in supporting women’s business development. Our purpose

has been to hear women’s reflections on the history of women as entrepreneurs in America and

to talk with them about the issues they face as business owners today. The discussions were meant

to add detail to issues that have previously been identified as important and to obtain policy 

recommendations for the National Women’s Business Council and other government entities.

None of the comments generated during these sessions should be considered representative 

of women business owners across the U.S. or even within the locations visited. The issues they

raise, however, point to important questions for further examination about the challenges

women face as they continue to pursue success as entrepreneurs.

A C KNOWLEDGEMENTS

The National Women’s Business Council would like to extend our gratitude to the many 

individuals who worked to ensure the success of this project. In particular, we would like to 

recognize the Radcliffe Institute, the creators and organizers of the Enterprising Women 

exhibit; officials, curators and staff of the National Heritage Museum (Lexington,

Massachusetts), the New York Historical Society and the Atlanta History Center; and the 

Small Business Administration (SBA) District Offices in Boston, New York City and Atlanta.

Additional thanks go to the Boston, Manhattan and Atlanta Chambers of Commerce; the

Georgia Hispanic Chamber of Commerce; the U.S. PanAsian American Chamber of

Commerce; Center for Women and Enterprise; and the National Association of Women

Business Owners (NAWBO).

1 More information on the Enterprising Women exhibit is found at the project’s Web site—www.enterprisingwomenexhibit.org
EXECUTIVE SUMMARY

Between February and August of 2003, 28 women 

business owners from Lexington, Massachusetts;

New York, New York; and Atlanta, Georgia participated

in a series of roundtable discussion sessions. The sessions

were held by the National Women’s Business Council in 

conjunction with the exhibit, Enterprising Women: 250

Years of American Business, which documents the history 

of women as business owners in the United States. Some participants were recommended by

national and regional organizations that work with women business owners, and others were

selected randomly from on-line business cards generated from the Small Business

Administration’s web site and the National Association of Women Business Owners’ web site.

Each of the three discussion sessions included a series of general discussion questions as well as

questions on specific topics unique to each meeting. Participants in the discussions were asked 

to reflect on the history of women as business leaders and to talk about the issues they face as

business owners today. In reflecting on the exhibit, discussion participants noted the great

achievements of women business owners throughout American history and how the landscape

has changed over the past 250 years. Social and legal advancements for women, for example,

have made it possible for the number of businesses owned by women to skyrocket and the types

of businesses that women own to diversify into almost any field imaginable.

In discussing the things that have remained constant for women as business owners through 

the years, participants noted the consistent challenge in balancing business ownership with the

family life that is so important to women. Participants also noted their belief that women 

continue to be socialized differently than men—that many women, for example, are not taught

to be aggressive and competitive. Finally, participants noted that the way in which women are

able to utilize their personal networks and mentor relationships has been a constant factor in

women business owners’ success.

Discussion participants also reflected on the issues that were most pressing for them as business

owners today. Much of the commentary focused on issues that all small businesses face rather

than issues that are unique to women. Participants were particularly concerned, for example,

with the high and rising costs of health insurance, payroll taxes and other costs associated with

doing business, and doing business in the current economy.


Participants in each session also raised the issue of government contracting opportunities for

women. In general, participants felt that there are too few contracting opportunities overall,

and they were particularly concerned about the low target for Federal contracting with women

business owners. Participants also overwhelmingly felt that the process for achieving business 

certifications—such as woman- or minority-owned business certifications—was too cumbersome

and not always beneficial.

Much of the discussion in Lexington focused specifically on access to capital. While access to

capital has clearly improved since the days when women had to rely on their male family 

members to secure funding on their behalf, participants noted that there is still disparity

between women and men in access to venture capital and angel financing.

In New York, the discussion focused largely on international trade. While participants mostly

described challenges that are general for both women and men—such as understanding the 

cultures and the business norms in other countries—they did note the importance of understanding the barriers that are faced by women native to other countries and recognizing that

such barriers will affect the way that American business women are treated in those countries.

The discussion group in Atlanta included only women of color. In general, participants in this

session did not feel that being a minority affected them as business owners, and they did not

perceive significant discrimination in the business community. Many did, however, voice 

concerns over the negative stigma that may be associated with the SBA 8(a) certification program.

Throughout the discussions participants made recommendations for action by Federal agencies

and policy makers. Specifically, participants noted that there is a great need for more venture

and angel financing programs organized by and for women. They also noted that the definitions

used to qualify small businesses for special lending programs should be examined and revised so

that businesses which should be eligible do not fall outside the scope of such programs.

There was also a very strong recommendation throughout the discussions that Congress should

consider raising the five percent goal for Federal purchasing from women business owners to a

proportion that is more in line with the proportion of businesses that are owned by women.

Participants also noted that there should be greater emphasis on Federal agencies achieving that

goal. In addition, participants agreed that the process for obtaining government certifications,

such as woman-owned business and 8(a) certifications, should be streamlined and that there

should be a centralized source for locating government contracting opportunities—especially

those opportunities set aside for women and minorities.

Finally, discussion participants noted that there is a need for better coordination among the 

multiple technical assistance resources that are available to women business owners.


THE PROGRESS OF WOMEN AS ENTREPRENEURS

Each roundtable session started with a discussion of the exhibit—focusing on what seemed most

striking about the exhibit’s portrayal of the history of women as business owners. In general,

participants were surprised by how far back in history women had played leadership roles in

business, and they were impressed by the incredible perseverance of women during times when

it seemed almost impossible for women to accomplish what they did.

Participants noted the foresight of shopkeeper Elizabeth Murray who, in the 1700s, protected

her earnings through prenuptial agreements and mentored other young women to be financially

independent; the resolve of Madam C.J. Walker, an African American woman who in the early

1900s built a successful business around hair care products designed specifically for African

American women; the perseverance of Cathy Hughes, founder of Radio One, who was turned

down by 32 male loan officers before she found a female loan officer to loan her the capital to

buy her first radio station; and the thoughtfulness of Ruth Handler, whose development of the

“Nearly Me” breast prosthesis is an important example of the types of contributions that women

business leaders have made.

Participants noted that during the time period documented by the exhibit, particularly in the

second half of the 20th century, legal and social advancements have reduced a number of barriers

to women entering business. There is also a greater respect for women in business, especially in

the small business world. Women have helped lead the development of small business in this

country, and men now show respect for women’s business knowledge.

Participants also noted, however, that progress has been very slow. While there have been many

inspiring stories along the way, there hasn’t been a real movement or a critical mass of women

business owners until relatively recently. Most woman-owned businesses are still small businesses,

with few large national or international companies as role models. In addition, while women

have gained great respect as small business owners, there still seems to be a glass ceiling in the

corporate world. The difference in pay scales between women and men was also discussed, with

participants noting that while there are more opportunities for achievement, women often have

lower standards for what they think they can earn and their pay is still lower.

Finally, it was noted that the fact that there is an exhibit featuring women in business is a 

testament to the fact that women in business remains a remarkable notion—that the concept

still isn’t completely integrated into the way most people think about business. Having special

status means that things haven’t changed enough.



!COMMITTED WOMEN DID WHATEVER THEY HAD TO DO TO RUN THEIR BUSINESSES. 

AND THIS HASN’T CHANGED. THAT WOMEN ARE ABLE TO FOCUS AND PERSEVERE WHILE DOING 

EVERYTHING ELSE IN THEIR LIVES IS REALLY STUNNING." Participant in Lexington, Massachusetts

!IF A FEMALE PRINTER PRINTED THE DECLARATION OF INDEPENDENCE, WHY HAS THE GROWTH OF WOMEN IN 

BUSINESS BEEN SO SLOW FOR 200 YEARS?" Participant in Lexington, Massachusetts
THINGS THAT HAVE NOT CHANGED FOR WOMEN ENTREPRENEURS

In discussing things that have not really changed for women in business, participants in each

session mentioned the ways in which women continue to be socialized differently than men,

the unique challenges for women who balance business and family, and the ways that women use

networking and mentoring to succeed. Participants also noted continuing disparities in access 

to capital, which is discussed separately in a later section.

SOCIALIZATION ISSUES Roundtable participants described how women are still 

socialized differently than men—that even today most women are not taught to be risk takers,

to be competitive, or to be aggressive—and that this dynamic can prevent women from reaching

their full potential as business owners.

Several noted that as caretakers of the home, women are taught to value security and therefore

tend to take fewer financial risks than men take. For example, many participants felt that 

women are less likely than men to be comfortable taking out a second mortgage on their home

to finance a business venture. Participants also perceived that many women are not comfortable

being aggressive and competitive. They felt that, while most people accept aggressive, competitive

behaviors in men, many still perceive women negatively if they are exhibit these behaviors to

succeed. Participants in several of the sessions noted that Hetty Green was an unfortunate

example of this problem. A financier, and the most financially successful woman of her time,

Green is remembered as the “Witch of Wall Street” for her assertive behavior and willingness to

step beyond the boundaries of “women’s proper realm.”

Several of the roundtable participants also noted how they had personally been discouraged by

their families to pursue an education in business. One woman told how her father had disinherited

!WOMEN BY NATURE ARE TAUGHT TO HAVE A LEVEL 

PLAYING FIELD AND MEN ARE TAUGHT TO BE VERY COMPETITIVE. 

FOR EXAMPLE, IF GIRLS ARE PLAYING WITH DOLLS, THEY WANT

EVERYBODY TO HAVE A DOLL. BUT IN BUSINESS, WE HAVE TO 

LEARN HOW TO BE COMPETITIVE. WE NEED TO LEARN HOW TO BE

AGGRESSIVE AND ASSERTIVE AND UNDERSTAND THAT IN ORDER TO

REALLY RISE ABOVE, WE NEED TO COLLECT ALL THE DOLLS.

Participant in Atlanta, Georgia

"




!I THINK A LOT OF TIMES BOYS—AT LEAST IN MY CULTURE—ARE TRAINED

TO JUST GO TRY THINGS AND NOT WORRY ABOUT THE CONSEQUENCES AS MUCH.

WHEREAS GIRLS ARE ALWAYS TRAINED TO THINK OF EVERYBODY ELSE.

Participant in Atlanta, Georgia

"

!I LOVED WHAT WE SAW ABOUT HOW THEY USED THEIR

PERSONAL NETWORKS...TO BREAK ALL KIND OF BARRIERS.

THAT MAKES ME FEEL VERY PROUD TO BE A WOMAN.

Participant in New York, New York

"

her when she went to business school, and another conveyed how her parents thought that

going to college would be a waste of her time.

This socialization dynamic was especially apparent in the Atlanta discussion, where several 

first-generation immigrant women noted that women in their cultures are raised to focus on 

the well-being of everyone else rather than being independent-minded.

B A L A N CING BUSINESS AND FAMILY While most roundtable participants felt that

being a woman does not affect the way that they run their businesses, they also agreed that it

does affect the way they balance their lives. Participants noted that while the exhibit did not

focus on balancing career with family and caregiving, carrying most of the responsibility for the

family has been a consistent challenge for women business owners throughout history. It was also

noted that balancing a business and a family is more challenging for women than it is for men

because women have different expectations of themselves regarding their role in their families,

and children tend to have different expectations of their mothers than they do of their fathers.

NETWORKING AND MENTORING Another important theme from the roundtable 

discussions was the importance of personal networks and mentors to women business leaders.

Participants agreed that these were the primary strategies used by women throughout history

and that they have not changed.

Participants noted that while most of the women featured in the exhibit didn’t go to business

school—and many didn’t even go to school—they used their personal networks and made them

work for them. Participants agreed that using personal networks to build and expand businesses

remains a critical strategy for success.

Roundtable participants also discussed the value of mentoring to women in business—that it 

is the lessons that you learn from other women entrepreneurs about running a business that are

most important. Participants noted that Elizabeth Murray, one of the earliest women featured in

the exhibit, was in part known for her focus on mentoring other young women by bringing them

into her business. Madam C.J. Walker developed a whole corporate structure around training

African-American women to sell her hair care products. Another participant noted how Cathy

Hughes is still very active in mentoring other young women to help them achieve their own dreams.


AN IMPORTANT ADVANCEMENT

One important advance that was mentioned in each of the sessions is the changing nature of 

the types of businesses that women now pursue.

Several participants mentioned that, particularly for earlier examples of women entrepreneurs in

the exhibit, most business products or services offered focused on the needs of other women—

that developing a clientele of other women seemed to be the easiest avenue for women to start

businesses. Participants cited women’s contributions to industries such as fashion, beauty 

products, and women’s health. One fairly recent example of this focus on women’s products is

the “Nearly Me” breast prosthesis developed by Ruth Handler. Participants were impressed by

how Handler was able to build on her experience and resources from Mattel—where she 

developed the Barbie doll—to develop and market something that is so important to women.

Although the focus on products and services for other women continues, today women are also

successful in almost every industry—from telecommunications to building and manufacturing 

to information technology.

This has changed similarly for women entrepreneurs of color. Several participants discussed 

how both Madam C.J. Walker and Maria de Lourdes Sobrino built businesses around products

specifically targeted to their own ethnic group—Walker by developing a business around hair

care products for African American women and Sobrino by targeting the Mexican American

population of Southern California with gelatin, a popular dessert in Mexico. Today minority

business owners also serve broader clienteles that extend beyond their own ethnic groups.

IMPORTANT ISSUES FOR WOMEN BUSINESS OWNERS TODAY

When asked about the most pressing issues women business owners generally face, most 

roundtable participants described issues faced by all small businesses rather than issues unique 

to women business owners.

Many of the sessions’ participants were primarily concerned with the costs of doing business—

both as an obstacle to staying in business and as a primary factor in freeing up capital to grow

their businesses. Specifically, participants noted that health insurance costs are already prohibitive

for small businesses and that they keep going up. Participants also expressed concerns over the

high rates of payroll taxes, which create barriers for small businesses to hire more people and

grow their businesses. Workers’ compensation and insurance costs were also mentioned as 

escalating costs that are increasingly becoming barriers to success.

While the cost of doing business was seen as a constant and increasing problem, participants also

agreed that the current state of the economy was a critical issue—forcing many small business

!WHEN I STARTED MY BUSINESSES I DIDN’T THINK ABOUT IF IT WAS FOR WOMEN

OR MEN. MY PURPOSE WAS TO MAKE MONEY. I WASN’T THINKING ABOUT WHAT KIND OF

BUSINESS IS GOOD FOR WOMEN OR MEN."

Participant from Atlanta, Georgia


owners to rethink being in business. One participant, however, noted that many of the successful

women featured in the exhibit also went through tough economic times and that there are 

lessons to be learned about perseverance based on their experiences.

Access to capital, international business, and issues for women of color were specific discussion

topics in the three roundtable sessions. Government contracting also was raised as an important

issue in each of the sessions.

A CCESS TO CAPITAL The roundtable session in Lexington focused primarily on the issue

of access to capital, and each of the other sessions included some discussion of this issue. For

participants in Lexington and in New York, capital for starting and expanding their businesses

was the most pressing issue that they faced.

In reflecting on the exhibit, participants observed that this is an area in which there has been a

great deal of progress for women. For example, participants noted that most of the early 

examples of entrepreneurs in the exhibit were not businesses that women started—rather they

were businesses that women took over or inherited from their husbands, brothers, and fathers

because women could not finance or purchase businesses on their own. Today, however, women

have the means both to independently start businesses and to buy and sell businesses, and male

family members are less likely to play a role.
While access to capital has clearly improved, significant disparities remain, and women still are

not on equal footing with men when it comes to getting business funding. Participants noted

that, even after they had managed to overcome the hurdle of getting start-up funding for their

businesses, they still had difficulty accessing the capital required to take their businesses to the

next level—to advertise, hire staff, and expand their operations.

In thinking about the barriers to business financing, participants cited several areas of concern—

biases and expectations of lending program officials and representatives, availability of venture

capital for woman-owned businesses, and lack of technical knowledge on the part of women

business owners in certain male-dominated industries.

Generally speaking, participants seemed to view the overall culture of the banking industry as 

a challenge for women. Several roundtable participants noted that they thought that large banks

gave lip service to supporting women business owners but were still reluctant to actually take

risks on women who wanted to start businesses. Working with banks to get working capital—

even with a track record of success—has also proven difficult for some participants. Throughout

the sessions, participants observed that the relationship with the lending officer is a critical 

factor—it is important not only to know your lending officers but also that your lending officer

get to know and understand your business.

Participants also expressed concerns with the expectations of some lending programs. To get a

loan guarantee from the Small Business Administration, for example, several participants noted

that they had been required to have a lien

placed on their homes as collateral. Further,

Elizabeth Murray ran 

a dry goods shop and a

sewing school in Boston

during the mid-1700s.

While most women

shopkeepers of her 

time took over their

husbands’ businesses,

Murray was determined

to raise the capital to

start her own business.

Murray had to rely on

her brother, however, 

to secure the required

capital for her venture—

her brother sold three

of her slaves on her

behalf and arranged for

her to access credit

under his name. 

Cathy Hughes, a 

contemporary 

entrepreneur, found

that access to capital

was no less a battle for

her. While trying to get

a loan to purchase her

first radio station,

Hughes was turned

down by 32 male loan

officers before she

finally was granted a

loan from the first

female loan officer she

encountered. 

65 PERCENT OF WOMEN BUSINESS OWNERS USE

THEIR BUSINESS EARNINGS TO FINANCE GROWTH.

(Center for Women’s Business Research, 1998)


most lending programs require that a business owner sign a personal guarantee—essentially 

giving a lender access to any of your assets should you default on a loan. While such requirements

are not different for women and men, participants viewed men as more comfortable placing

their homes and their assets at risk in this way.

While there are many lending programs designed specifically to spur the growth of small 

businesses, the definition of “small business” is often so broad that really small businesses,

including many woman-owned businesses, often fall outside the scope of such lending programs.

Participants suggested that “small” for most lenders is not the same as “small” to many business

owners, and that there may be a need to reexamine this definition.

Venture capital is another area where there still seem to be differences between women and men

with women only receiving three percent of the venture capital in this country. Because many

woman-owned businesses are not large enough to return large profits quickly, venture capital has

become an area with a “cement ceiling” for many women entrepreneurs.

Finally, business experience—and especially experience in the company’s industry—is also critical

to securing capital. While it is important that business owners, men and women alike, have

sound administrative skills for running and growing a successful business, technical expertise

may be equally important to securing funding. Lack of technical experience was cited as a 

perceived barrier to funding by several women whose businesses are in non-traditional fields for

women. One participant who owns a machine shop, for example, is seen by investors as a higher

risk than men in the same business because she doesn’t have knowledge of all technical aspects

of the products. While she maintains that she knows the business side better than many of her

male peers, that expertise is not viewed as sufficient to potential investors.

2 According to VentureOne, the actual percentage in 2000 was 5%.



!WOMAN-OWNED BUSINESSES RECEIVE ONLY 3 PERCENT 

OF ALL THE VENTURE CAPITAL MONEY IN THE UNITED STATES2

—

IT REALLY IS THE LAST OF THE OLD BOYS’ NETWORK.

Participant in Lexington, Massachusetts

"


GOVERNMENT CONTRACTS AND SUPPORT There was a great deal of discussion in

each of the sessions regarding the role of the Federal government in advancing small and

woman-owned businesses. Participants raised concerns about certification programs, access to

contracts, and government mentoring and tax incentive programs.

Certification Programs Roundtable participants noted that the

process for certifying as a woman-owned business is cumbersome and that

there is little guidance for getting through it.

Many also said that once they had gotten

their certifications, they felt that they

were at the beginning of a maze 

which no one seems to be responsible

for explaining. There was an 

overwhelming recommendation 

from participants in each of the 

sessions that certification processes 

were badly in need of streamlining.

However, participants also noted the importance 

of certification programs in certain arenas, like

Federal contracting, where small business, minorityowned business, or woman-owned business certification could be an important benefit.

This benefit was perceived by some participants as a trade-off, however, particularly in the arena

of private industry, where certification under special programs may have a negative connotation.

Access to Contracts A primary area of concern for many participants is the lack of 

contracting opportunities with the Federal government and what they viewed as a disregard for

the five percent goal for Federal purchasing from woman-owned business.

Participants who had attempted to do business with the government expressed their feelings 

that there was too much competition for too few contracts in the Federal marketplace, that the

Federal proposal process was too cumbersome, that an established relationship with Federal 

contracting officers was necessary, and that the profit margins on Federal contracts were too low.

Several participants also mentioned that Federal agencies take too long to reimburse, leaving

small business owners to fund payrolls and hold receivables for excessive periods of time,

endangering their limited cash flows.

ONLY 2.9 PERCENT OF FEDERAL 

PROCUREMENT DOLLARS ARE 

CURRENTLY BEING SPENT TO 

PROCURE GOODS AND SERVICES

FROM WOMEN-OWNED SMALL 

BUSINESSES.

(Federal Procurement 

Data Center, 2003)


!I THINK WE HAVE A WONDERFUL ADVANTAGE [INTERNATIONALLY]...WE’RE

SO GOOD AT NETWORKING...AS WOMEN, THE WHOLE WAY WE COMMUNICATE

WITH EACH OTHER AND NETWORK IS JUST PERFECT IN THIS EXPANDING

WORLD...WE HAVE A LOT OF PLUSES..." Participant in New York, New York

Discussion participants also noted that there is no central source for finding out what’s available

in terms of government projects3

—at the city, state, and Federal levels—and that in this economy,

government contracts can be really important. Participants agreed that a central source for 

locating government opportunities would be helpful—especially for opportunities that have been

set aside for women and minority-owned businesses.

There was also a fair amount of discussion regarding the five percent goal for Federal government

purchasing from woman-owned businesses. Participants noted that the five percent goal is out 

of balance because women own nearly one-third of businesses in the country.4 Participants also

felt that even with the existing five percent goal, it is hard to break into Federal government

contracting because doing business with woman-owned firms has not been a priority for many

agencies—and agencies have not yet been given a real push to achieve the goals for contracting

with woman- and minority-owned businesses.

Participants felt strongly that Congress should consider raising the five percent goal to reflect

the proportion of businesses that are actually owned by women today. And, noting that the 

current goal seems to have only the weight of a suggestion, participants also suggested that there

be some incentive for agencies and prime contractors to actually achieve the goal as well as 

consequences for those that don’t.

Participants did note, however, that doing business with Federal and state government agencies

had really propelled the development of some small businesses, none of which were represented

in the discussions. Participants were critical of government agencies that keep going back to the

same small business once they had worked with them rather than creating opportunities for

additional small businesses to become vendors.

Mentoring and Subcontracting Incentives Discussion participants also noted

that there are Federal programs and tax incentives for large companies to subcontract with and

mentor smaller companies, but that there are no similar incentives for small companies to help

each other in these ways. This reinforces woman-owned businesses’ view of each other as 

competitors rather than creating an incentive for them to do business together. For example, in

most Federal government mentor-protégé programs, if a large corporation partners with a 

small- or minority-owned business, the larger firm receives tax incentives as well as additional

points in the evaluation of their proposal. A small, woman-owned business that acts in a similar

mentoring position does not have the same incentives for doing so. Since “small” as a business

size standard can mean a business that employs up to 500 people, a larger small business owner

could be an effective mentor to a smaller small business, provided she had some incentive, and

less sense of competition, for doing so. It follows logically that a similar lack of incentives exists

for small businesses, regardless of their size, to subcontract with other small businesses.

3 Opportunities at the Federal level are listed at www.fedbizopps.gov

4 The actual percentage of businesses majority-owned by women was 28% in 2002, according to the Center for Women’s Business Research.
Best known for the fashion empire she created in New York in the late 1800s, Ellen Demurest later broke 

new ground by establishing an international tea trading business. While retailing had become acceptable

work for women at that time, trading in foreign goods was a new frontier. 

Today, however, women clearly have access to international markets. Meg Whitman, for example is 

responsible for building eBay from a small website devoted to trading collectibles to a worldwide vehicle 

for buying and selling almost anything. Under her leadership, eBay has grown to include almost 50 million

registered users around the globe.

W O MEN IN INTERNATIONAL TRADE The New York roundtable

discussion focused primarily on the opportunities and challenges for 

women doing business in international markets. Most of the participants’

comments, however, were not unique to woman-owned businesses. Rather,

comments tended to focus more broadly on challenges that are perceived by

participants as being similar for women and men doing business internationally.

The primary challenge to international trade noted by roundtable participants was the

need to understand—as well as train staff on—the social norms in each individual country.

This includes learning culturally sensitive speaking terms, different ways of showing respect,

and different norms of professionalism. Several participants—who were either considering or

currently involved in international trade—were contemplating whether international trade was,

in fact, worth the complex effort of having to learn so much about how business was conducted

in each country they were targeting.

Participants also noted several types of logistical challenges that affected their decisions to

engage in international trade. The most important seemed to be confusion and concerns related

to getting paid—issues related to negotiating the right contract provisions, protecting themselves

in the currency conversion process, international tax structures, and enforcing payment terms.

Participants also noted that while e-mail and the Internet have made it easier to generate initial

interest, developing sound, profitable client relationships typically happens over time and

requires “face time” that can be prohibitively resource-intense in terms of both time and money

considering geographic barriers. One participant—a woman who had started an import 

business—explained that the uncertainties and complexities of dealing with brokers, with 

airlines, and with customs offices led her to abandon that business.

While most participants agreed that the initial challenges of the international marketplace 

were the same for women and men, they also felt that as international business evolves, women

are more likely than men to be victimized. This seems a likely result of dealing with firms and

governments in countries whose culture assumes that women are not equal to men, should not

be in business to begin with, and are therefore fair game for fraudulent or dishonest business

practices. To demand respect and consideration where none exists is perceived as heading for

trouble in a distant place with legal structures that support the cultural attitudes of that area—

as opposed to those we may take for granted within our own borders.


Madam C.J. Walker, 

an African American

woman, built a business

around hair care 

products designed

specifically for African

American women in the

early 1900s. Mentored

by another African

American woman with 

a hair care products

business, Walker relied

on the African American

community and press to

promote her products.

Walker also founded a

school to train African

American women to use

and sell her products.

Maria de Lourdes

Sobrino is a 

contemporary and

native of Mexico who

also built a business

by targeting her own

ethnic group—the

Mexican population 

in southern California.

After two failed 

businesses, Sobrino

turned to what she knew

best—Mexican foods—

and built a dessert 

business based on her

mother’s recipe for 

gelatin, a popular

dessert in Mexico that

had been unavailable 

in the U.S. 

ISSUES FOR WOMEN OF COLOR Throughout the Atlanta discussion session, participants

were asked about how being women of color affected them as business owners. For the most

part, participants agreed that they are more affected by the fact that they are women than by the

fact that they are women of color.

None of the participants stated that being a woman of color had affected their motivation for

starting a business, and only one—who was Latina—noted that her target market is primarily her

own ethnic group. Participants also did not feel that being a woman of color affected the way

that they do business—either externally with partners and clients or internally with their staffs.

Several participants felt, however, that many of the programs designed to assist minority business

owners actually end up inadvertently hurting them. As stated previously in our discussion of the

advantages and disadvantages of certification programs, these programs are perceived by some,

particularly private sector players, as entitlement programs that promote firms that lack the skill

and expertise to succeed on their own. Private sector firms, and even prime contractors in the

Federal and local government arenas, may feel pressured to engage these firms in order to

demonstrate their commitment to equal opportunity but often do so under the assumption that

they are forced to work with inferior firms. And, as with other small businesses, woman-owned

or otherwise, existing Federal incentives for large firms to team with minority-owned firms do

not apply to large minority-owned firms that wish to support each other in similar fashion. The

Atlanta area boasts a large number of minority-owned firms, some that are very large successful

companies, and none are required under current Federal law to do business with other minorityowned firms because of their minority owner status. This acts as a disincentive for these firms to

offer their support to emerging minority firms who may benefit significantly from their mentoring.

Meanwhile, most Atlanta participants agreed that special designations, especially the 8(a) program,

had created a negative image that held minority business owners back.

Participants also noted the power of not being limited by, or even acknowledging discrimination,

referring to the women described in the early years of the exhibit—especially the women of

color—who faced a range of blatant discrimination barriers and overcame enormous obstacles to

achieve success.

!I NEVER FELT LIKE I WAS A MINORITY. BUT THEN WHEN I GOT 

MY 8(A) STATUS I REALIZED HOW BAD THAT IMAGE IS FOR BUSINESS 

OWNERS. IT BECAME A REAL DISADVANTAGE.

Pa

"

rticipant in Atlanta, Georgia 
1 IN 5 WOMEN-OWNED FIRMS

IS OWNED BY A WOMAN OF COLOR.

(Center for Women’s Business Research, 2002) 




RECOMMENDATIONS

Participants in the discussion groups provided several specific recommendations and messages

for Federal agencies and policy makers:

A CCESS TO CAPITAL While access to capital has improved significantly for women, there

are still disparities between women and men in access to funding to

start and expand businesses. Specifically, there is an urgent need for

more venture capital and angel financing programs organized by and

for women.

Participants also noted the opportunity to examine the definitions

that qualify small businesses for special lending programs. The 

definition of small business, for example, is so broad that really 

small businesses, such as many woman-owned businesses, often 

fall outside of the scope of many lending programs.

FEDERAL ROLE IN SUPPORTING SMALL

BUSINESS Discussion participants were especially

vocal about the five percent goal set for Federal purchasing

from woman-owned businesses. Participants felt strongly

that Congress should consider raising the goal to be more

reflective of the proportion of businesses that are actually owned by women. And, noting that

the current requirement seems to have the weight of a suggestion, participants also suggested that

there be some push for agencies to actually achieve the target. Participants also agreed that a

central source for locating government opportunities—especially for those set aside for women

and minority-owned businesses—would be helpful.

There was an overwhelming recommendation from each of the sessions that the processes for

obtaining such certifications—such as a woman-owned business certification or an 8(a) certification

—were in need of streamlining. Finally, participants highlighted the opportunity to consider

changes to the incentive structure and tax credits to afford small companies the benefits that

larger companies already receive for mentoring and subcontracting with other small companies.

TECHNICAL ASSISTANCE AND ROLE MODELS Throughout the series of discussions,

participants noted the need for better coordinated and more targeted technical assistance for

women business owners. Participants noted the need for specific technical assistance in such

things as developing business plans, structuring a company to grow in this economy, negotiating

contracts, marketing, and taking advantage of international markets. While participants


described a range of experiences with the Small Business Administration’s district offices, with

Small Business Development Centers, with Senior Corps of Retired Executive programs, with the

National Association of Women Business Owners, Women’s Business Centers, and others, most

noted the lack of a centralized source for learning about and accessing all of the different 

training and technical assistance programs that are already available to women. Participants 

suggested the need for more practical conferences that offer networking opportunities and

hands-on skills building workshops.

Participants also noted the need for more role models, remarking that we seem to have lost a lot

of the history that is portrayed in the exhibit—with most women today not even knowing the

stories. Participants suggested that there is a need for more documenting of women’s stories and

more analysis of the lessons that women have already learned so that women today can benefit

from the experiences of those women who came before them.

OPPORTUNITIES FOR ADDITIONAL RESEARCH AND SUPPORT ACTIVITIES

The three roundtable discussions point to several opportunities for additional research and

opportunities to support women business owners:

! There is a clear need for future research to address why women are still 

not getting the level of venture and angel capital that men get and what

the public and private sectors could each do to improve women’s access 

to such funding.

! A well-documented body of knowledge on international business and its

ramifications has been in existence for some time and continues to evolve.

An information clearinghouse on this topic would allow women business

owners to access such information to support their decisions about 

whether or not to enter international markets.

! Finally, a number of participants in the Atlanta session expressed their

concern that small, minority-owned, or woman-owned businesses that

have government certifications may suffer from negative stereotypes,

particularly in the private sector arena. Research to determine whether

such negative perceptions exist and, if so, to what extent, is likely to 

generate useful information for supporting decisions on how such 

businesses should position themselves in public and private sector markets.

If the stigma exists, determining specific, common objections and how

they can be successfully circumvented, by industry, would be very valuable

information.
THE NATIONAL WOMEN’S BUSINESS COUNCIL

The National Women’s Business Council is a bi-partisan Federal government council created 

to serve as an independent source of advice and counsel to the President, Congress, and the 

U.S. Small Business Administration on economic issues of importance to women business 

owners. Members of the Council are prominent women business owners and leaders of women’s

business organizations. The Council’s mission is to promote bold initiatives, policies and 

programs designed to support women’s business enterprises at all stages of development in the

public and private sector marketplaces—from start-up to success to significance.

The National Women’s Business Council achieves this mission by:

! Conducting research on issues of importance to women business owners

and their organizations;

! Communicating these findings widely;

! Connecting the women’s business community to public policy makers; and

! Providing a platform for change in order to expand and improve 

opportunities for women business owners and their enterprises.

For more information about the Council, its mission and activities, contact:

National Women’s Business Council, 409 3rd Street, SW, Suite 210, Washington, DC 20024;

phone: 202-205-3850; fax: 202-205-6825, e-mail: info@nwbc.gov

This report was prepared for the National Women’s Business Council by Synthesis Professional Services under contract. The

opinions and recommendations of the authors of this study do not necessarily reflect official policies of the NWBC, the U.S.

Small Business Administration, or any other agency of the U.S. government.

Synthesis Professional Services is a woman-owned consulting firm located in Rockville, MD. Synthesis helps government

clients to create successful outreach programs—such as public education campaigns, conferences, and Internet database 

development—as well as the critical underpinnings of these initiatives—including research and evaluation, strategic planning,

and process redesign. For additional information about Synthesis, contact Synthesis Professional Services, 12339 Carroll

Avenue, Rockville, Maryland 20857; phone: 301-598-4770; fax: 301-598-4772; email: rgigliotti@synthesisps .com