POLICY AND PROGRESS 

Supporting the Growth of Women’s Business 

Enterprise 

A Report Prepared for the National Women’s Business Council 

May, 2004

The National Women’s Business Council 

409 Third Street, SW, Suite 210 

Washington, DC 20024 

202-205-3850
i

TABLE OF CONTENTS 

Acknowledgements ii 

Introduction 1 

The Foundations of Women’s Business Enterprise 2 

Modern Policy Development 5 

 The 1940s and 1950s 6 

 The 1960s 8 

 

 The 1970s 9 

 The 1980s 12 

The 1990s 16

 2000 and Beyond 18 

Private Sector Policy Impacts 20 

International Impact of U.S. Progress 21 

Successes and Continuing Challenges 23 

Recommended Future Directions 29 

How Special Are We? Implications for the Future 31 

Appendix A: Bibliography 33 

Appendix B: Web Resources 36 

Policy & Progress Timeline Inside Back Cover 
ii

ACKNOWLEDGEMENTS 

Our thanks to all those who helped make this report possible – especially the women and 

men who worked so hard over the years to develop, pursue, and implement the policies 

that have created today’s positive environment for women entrepreneurs and prospective 

entrepreneurs. 

We would like to offer a special thank-you to the following individuals who were directly 

involved in developing the material included in this report. 

Susan Phillips Bari, President, Women’s Business Enterprise National Council (WBENC) 

Rona Feit 

Marsha Firestone, Ph.D., President, Women Presidents’ Organization 

Wilma Goldstein, Director, Office of Women’s Business Ownership (OWBO), SBA 

Dr. Sharon G. Hadary, Executive Director, Center for Women’s Business Research 

Susan Hager, CEO, Hager Sharp Public Relations 

Barbara Kasoff, Chief Operating Officer, Women Impacting Public Policy (WIPP) 

Virginia Littlejohn, President and CEO, Project Tsunami 

Terry Neese, President, Women Impacting Public Policy (WIPP) 

Hedy Ratner, President, Women’s Business Development Center 

Olive Rosen, Photography by Olive 

Andrea Silbert, CEO, Center for women’s Business Enterprise 

Ann Sullivan, Federal Legislative Consultant, WIPP 

Sheryl Swed, Assistant Administrator, Office of Federal Contract Assistance for Women 

Business Owners, SBA 

Hon. Linda Tarr-Whelan, Managing Partner, Tarr-Whelan and Associates, Inc. 
1

POLICY AND PROGRESS 

Supporting the Growth of Women’s Business Enterprise 

Introduction 

The past 25 years have seen a number of valuable studies on women business 

owners and their enterprises. We have a clear picture of their growth trends, 

percentages by economic sector, needs, progress and contribution to the U.S. and 

world economy. There has not, however, been a definitive accounting of the legal 

and policy changes that have had an impact on the growth of women’s business 

enterprises. 

Women’s entrepreneurship policies and programs have developed without the 

existence of an underlying strategic framework. In order to continue moving 

forward, we believe that a cohesive history of where we have come from and what 

we have accomplished is critical. This report serves to benchmark the progress that 

has been made from a policy standpoint, including key programs, legislation and 

necessary precursors to entry, and policies that have had an impact on the growth 

and development of women-owned firms. 

Questions studied include: 

• What impact have the changing federal policies and programs had on 

women’s business enterprises? 

• What has been the impact of broad societal changes on women’s business 

ownership? 

• What impact has the growing contribution of women’s businesses to the 

economy as a whole had on federal policies and programs? 

• What policy barriers still remain, and what should the policy focus of the 

NWBC and women’s business organizations be in the 21st century? 

It is our hope that this report will serve to enlighten future policy and 

programmatic action in the United States, and inform policy discussions in other 

countries as well. 
2

The Foundations of Women’s Business Enterprise

Although it is only in the past 45 years that government policies specific to womenowned businesses have been enacted, the roots of these policy changes reach back 

as far as colonial times when, despite the legal limitations on their activities, women 

engaged in trade, market farming, cloth and clothing production and shop-keeping. 

For the average colonial woman, however, business ownership was not possible. 

Under coverture law, based on the idea that women needed the protection and 

economic support of their husbands, when women married they essentially ceased 

to exist as legal entities. They became feme covert rather than feme sole, and had no 

rights to own or control property, enter into contracts, inherit property, sue or be 

sued. 

There were exceptions to coverture. Feme Sole Trader Laws enacted in the early 

Eighteenth Century allowed women who were neglected, abandoned, or widowed 

the right to petition to transact business as single women with the full protection of 

the law. 

Whenever any husband...shall neglect or refuse to provide for his wife, or shall desert her, she shall 

have all the rights and privileges secured to a feme sole trader...That creditors, purchasers and others 

may, with certainty and safety, transact business with a married woman...she may present her 

petition to the court of common pleas...setting forth, under affidavit, the facts which authorize her to 

act...and if...the court be satisfied of the justice and propriety of the application, such court 

may...make a decree...that she shall be authorized to act, have the power and transact 

business....And such certificate shall be conclusive evidence of her authority, until revoked by such 

court for any failure on her part to perform the duties...made incumbent upon her. 

 - A Feme Sole Trader Law, 17151

In 1718, a law was passed in Pennsylvania extending independent trader status to 

“wives of mariners and others, whose circumstances as well as vocations oblige 

them to go to sea.” 

 

The feme sole traders and wives of mariners were exceptions. Little real progress 

could be made in improving the environment for women entrepreneurs until 

women achieved full status as legally independent economic actors. Beginning in 

Mississippi in 1839, some states began to make statutory changes in coverture laws, 

granting increased legal rights to married women. But it was not until the passage 

of the Equal Credit Opportunity Act in 1974 that the last vestiges of coverture 

disappeared. There are still today eight community property states that retain some 

of the legal disadvantages once common to the married state. 

 

1 Angel Kwolek-Folland, Incorporating Women: A History of Women and Business in the United States, (New York: 

Palgrave, 2002), 12. 
3

The Revolutionary period brought a burst of activism and political involvement on 

the part of women. The “Daughters of Liberty” was established in 1767 as the 

women’s counterpart to the “Sons of Liberty,” the patriot organization that defied 

the British. The “Daughters” not only boycotted the importation of British textiles, 

they demonstrated the potential for independence through manufacturing by 

providing “homespun” fabrics as substitutes for imported goods. 

In Edenten, North Carolina, in 1774, a group of 51 women signed the “Edenten 

Proclamation,” in support of the Non-importation Association Agreements passed 

in the Continental Congress. The resolution had far-reaching impact; for the first 

time, women had publicly claimed for themselves the right – unprecedented - to 

participate in politics. Their boycott had a galvanizing effect on public opinion and 

was a factor in the repeal of duties on many imports. Though they were ridiculed in 

the British press, their efforts paid off at home and initiated a trend dangerous to 

the status quo – women now believed they deserved a voice in political affairs. 

In 1777, Katherine Mary Goddard, the only printer in Baltimore, printed the 

original Declaration of Independence. 

Three Major Eras of Progress 

 

The post-Revolutionary period was one of slow progress and broad variance in 

women’s entrepreneurial options. Ethnic, class and racial differences along with a 

decentralized economy meant vast differences in women’s economic lives. But the 

Revolution had reinforced women’s economic importance as household managers, 

and allowed them more opportunities to enter the marketplace. With the rise of the 

market economy, female artisans now produced goods for women consumers, 

opening up the businesses of millinery, dressmaking and related fields. In 1809 the 

first patent given to a woman was issued: a Connecticut woman, Mary Dixon Kies, 

was granted a patent for a process for weaving straw and thread for millinery 

making. In 1885, Sarah E. Goode became the first African-American woman to 

receive a patent, for a bed that folded up into a cabinet. 

The Nineteenth and Twentieth Centuries saw three key eras of change for women 

in business: the Industrial Revolution; the rise of modern Corporate America; and 

the period from 1963 onward - the Age of the Entrepreneurial Woman. 

 1830-1880 The Industrial Revolution 

The period of the Industrial Revolution brought important changes in the laws 

affecting women in business. States began codifying the rights of women, allowing 

them to own property, gain at least some access to capital and negotiate contracts. 
4

The abolition of primogeniture meant women could inherit property, and widows 

were accorded rights to their husbands’ estates. Every state passed either married 

women’s property acts or community property laws. 

At the same time, there were new disadvantages for women in business. With the 

formalization of financial markets, family assets were less important because 

corporations were able to borrow from banks. Women faced a new and longenduring barrier – lack of access to capital and credit. Not surprisingly, Victorian 

era bankers were largely uninterested in lending to women. 

Societal pressures were strong. Ladies did not engage in commerce. On the Western 

frontier, however, women were less concerned about being “ladies.” Economic 

opportunities for women entrepreneurs abounded, and women established a 

variety of successful businesses in the boomtowns and mining camps of the West. 2

Even today, the Western pioneer spirit seems to prevail; in 2002, the top five states 

for growth and expansion of women-owned businesses were all in the West: Idaho, 

Wyoming, Utah, Nevada and Arizona. 3

 Turn of the 20th Century: Growth of Corporate America 

By the end of the Victorian era, women were beginning to rebel. A strong women’s 

rights movement was building, and by the turn of the century the growth of female 

literacy and increasing educational opportunities were creating a class of welleducated, highly aware and activist American women. 

As women fought for suffrage in the last quarter of the 19th century, women 

advocates of economic equality were speaking out as well. Charlotte Perkins 

Gilman, better known for her short story “The Yellow Wallpaper,” was one of the 

strong proponents of economic equality writing for women at that time. In her 

book, Women and Economics, published in 1898, she proposed a radical revision of 

gender roles that would de-sexualize the basis of economic institutions. Gilman saw 

gender differences as social constructs upon which economic structures of the time 

were based; consequently, radical changes in social constructs could completely 

reform the economy.4 

Ironically, one of the more popular “how-to” books for women was Irene Hart’s 

1895 publication, How to Make Money Although a Woman.

 

2 Ibid., pp. 79-80 

3 Center for Women’s Business Research, Location, Location, Location, September, 2003. 

4 Charlotte Perkins Gilman, Women and Economics, (New York: Dover, 1998) iv-v. (Originally published in 

1898 by Small, Maynard and Company, Boston).
5

Improvements were sporadic in the years between the two World Wars. But the 

changes in the gender composition of the workplace generated by worker shortages 

during World War II started a slow but steady trend. At the same time, there was a 

growing awareness of the contributions of small business in general to the 

American economy. In 1953 the U.S. Small Business Administration was 

established, and five years later it was made permanent. 

 1963-2000 and beyond: The Age of the Entrepreneurial Woman 

Over the past 40 years, women-owned businesses have moved into the mainstream, 

the public eye and the awareness of lawmakers. They have become a major factor in 

the growth of the economy and jobs. Between 1972 and 1997, women-owned 

businesses grew from less than 5% of all businesses in the U.S. to 38%.5 Between 

1987 and 1996 alone, the number of women-owned businesses grew 78%, while the 

number of U.S. firms over-all grew 47%. In 1997, one out of every four U.S. workers 

was employed by a woman-owned business.6

As of 2004, there are an estimated 10.6 million privately-held businesses in which a 

woman or women owns 50% or more of the company. Among them, 6.7 million are 

majority women-owned. These 10.6 million women- and equally-owned businesses 

employ 19.1 million people and generate $2.5 trillion in sales. Between 1997 and 

2004, women-owned firms with 50% or greater ownership grew at close to twice the 

rate of all privately-held firms – 17% vs. 9%. Estimated employment in these firms 

grew at twice the rate (24% vs. 12%) and estimated revenues increased by 39%, 

compared to 34% among all privately-held firms.7

In this light, it is not surprising that the women-owned business sector today is 

receiving so much attention. But despite the many favorable policy changes that 

have marked these years, challenges for women entrepreneurs still remain. 

Modern Policy Development 

Although the foundations were laid over centuries, the majority of the policy 

changes relating directly to women-owned businesses have been clustered in the 

last forty-five years. A decade-by-decade look at the “Age Of The Entrepreneurial 

Woman” (1963 – 2000 and beyond) provides a clear picture of the modern progress, 

trends, and setbacks that have occurred for the women-owned business sector of 

the economy. 

 

5 In 1997 the Census Bureau changed the definition of “woman-owned” from 50% to 51%. By this definition, 

the number of women-owned businesses in 1997 was 28%. 

6 Center for Women’s Business Research, A Compendium of National Statistics on Women-Owned Businesses in 

the U.S., 2001. 7 Center for Women’s Business Research, Biennial Update on Women-Owned Businesses, 2004. 
6

Such an overview must also include the vital social changes that began in the two 

decades prior to this period. The era of dramatic policy change for women 

entrepreneurs began in the 1960s with the emergence of feminism and a strong 

woman’s voice. But the workplace changes of the 1940s and the recognition of small 

business as an engine of the economy in the 1950s were a foundation for this change 

and cannot be ignored. 

 

The 1940s and 1950s: The Era of Change 

Women had been in the workforce in their service-oriented jobs and businesses 

since the earliest colonial days. But the big news in the 1940s was the way women 

moved into the workforce to replace the men serving in the Armed Forces. They 

weren’t just “Rosie the Riveter”; they were truck drivers, farmers, pilots, 

construction workers, chemists and store managers. They took over family 

businesses in construction and transportation, retail and wholesale, media and 

marketing, and they ran those businesses well. Women’s activities in those war 

years were just a hint of what was soon to come. 

Those who have studied the impact of World War II on women report that results 

were mixed. Barbara K. Mistick, in her paper “The Feminization of 

Entrepreneurship: A Case for a Women’s Model in Fostering Economic 

Development,” states that “The ideological shift that drew women into the work 

force during World War II as full participants in the economic vitality of the 

country also provided a major shift away from the social structure that suggested 

women belong at home while men go to work.” However, a 1945 Gallup poll found 

that only 16 percent of men and 20 percent of women believed women should work 

outside the home.8 

While the war opened new opportunities for women in paid employment, the 

postwar period brought a national craving for domesticity and pressure for women 

 

8 Angel Kwolek-Folland, op. cit., 153 

Important Federal Policy Actions 

 1953 Small Business Act created U.S. Small Business Administration 

(SBA) 

 1958 Small Business Act made SBA a permanent independent agency 

 1958 Small Business Investment Act
7

to stay at home.9 This focus on domesticity not only discouraged women’s 

participation in the workforce, it limited encouragement for women to move out of 

the traditional service-based businesses thought of as “women’s businesses,” such 

as beauty shops, dressmaking, child care and secretarial services. A Business and 

Professional Women’s (BPW) survey in 1954 showed that among their members, 

women-owned firms remained concentrated in retailing, personal service, real 

estate, education, hotels and restaurants, and that owners typically derived incomes 

of between $2,000 and $5,000 per year from their businesses. At the same time, the 

professional women members of BPW averaged between $4,000 and $10,000 per 

year.10

The 1950s became the era of the “happy homemaker” as families separated by war 

settled into domestic life in a booming economy. 

It must be remembered that the web of policy changes that has helped women 

entrepreneurs has been intertwined with a series of policies that set the stage for the 

general “entrepreneurial revolution” of the last 40 years. Women business owners 

benefited from the whole series of government policies that contributed to the 

creation of the American entrepreneurial economy. The 2002 report, American 

Formula for Growth: Federal Policy and the Entrepreneurial Economy, 1958 – 199811 lists 

five areas as the key to growth: 

 Creating financial markets to fund entrepreneurial growth companies (ECGs); 

 Providing R&D and intellectual property protection for technologies that 

underlie ECGs; 

 Investing in technically talented people and enabling them to move to ECGs; 

 Opening new markets and easing entry for ECGs; 

 Establishing a robust and dependable infrastructure. 

The establishment and expansion of the SBA and its programs was the cornerstone 

of the small business policies that enabled this growth. The SBA was established in 

1953, over the objections of some small business organizations who thought the 

government should stay out of business, and the lobbying of the representatives of 

big business, who insisted it was unfair of government to give preferential 

treatment to smaller businesses.12 

 

9 Ibid., 152-153 

10 Note: Since the survey did not use a random sample, these numbers cannot be directly compared to 

government labor statistics. Survey respondents were self-selected, older and better educated than the 

general female labor population. It is the comparative income levels that are interesting; the majority of 

women-owned businesses were still clustered in the personal services area. 

11 National Commission on Entrepreneurship, American Formula for Growth: Federal Policy and the 

Entrepreneurial Economy, 1958 – 1998, Washington, DC: 2002. 

12 Mansel G. Blackford, A History of Small Business in America, (Chapel Hill: University of North Carolina 

Press, 2003) 135.
8

In spite of objections, the SBA was made permanent in 1958, and in that same year, 

Congress passed the Small Business Investment Act, which authorized government 

contributions to the financing of private sector Small Business Investment 

Companies (SBIC’s).13

The SBA and its programs provided a foundation on which women entrepreneurs 

could build their own structure of equal opportunity and access. The 8(a) program, 

SDB certification, SCORE, HUB zone Empowerment Contracting and the myriad 

other SBA programs of training and assistance to entrepreneurs and prospective 

entrepreneurs are important resources for all small business owners. 

The 1960s: Seeking Equal Rights 

Important Federal Policy Actions of the 1960s 

 1961 Commission on the Status of Women established 

 1961 Kennedy Exec Order 10925, non-discrimination standards in federal 

contracting (did not include women) 

 1964 Civil Rights Act

 1965 Executive Order 11246 added women and veterans to the nondiscrimination standards for federal contracting 

 1968 Consumer Credit Protection Act, which included the Truth in Lending 

Act 

If the 1950s were a reaction against the War period, the 1960s were an even stronger 

reaction against the 1950s. The happy homemaker was not satisfied. Women 

declared their equality and demanded equal treatment. The legal status of women 

would change more in the period between 1963 and 1990 than it had in the previous 

200 years.14

The prosperity of the postwar period was a major factor in preparing women for an 

activist role in society. Educational opportunities for women had increased during 

the war, and in the postwar period increased even further. More women could 

afford higher education. More were entering the professions. More women felt free 

to join the counterculture that flourished in the Sixties. The women involved in the 

Civil Rights movement insisted on equal rights for women as well as minorities. 

 

13 http://www.sba.gov/INV/act/sbicact.pdf

14 Joan Hoff, Law, Gender and Injustice: A Legal History Of U.S. Women (New York: New York University Press, 

1991) 229-230 
9

The year 1961 was marked by two important shifts in policy. President Kennedy 

was persuaded to establish a Commission on the Status of Women, an indicator of 

the increasing awareness of women as a force. More important, however, was 

Kennedy’s Executive Order 10925, which, though it did not mention women 

specifically, opened a door for change by setting non-discrimination standards for 

federal contracting. Women and veterans were added in 1965, in Executive Order 

11246, concerning Equal Employment Opportunity. 

The 1964 Civil Rights Act, particularly Title VII, which barred employment 

discrimination on the basis of race, color, religion, sex, national origin, or handicap, 

was a milestone for minorities and women. 15 By allowing more women to enter 

non-traditional fields as employees, it allowed women to obtain the expertise 

necessary to start their own businesses in non-traditional fields. 

An equally important step for women entrepreneurs was the passage in 1968 of the 

Consumer Credit Protection Act, which prohibits discrimination based on sex or 

marital status in the extending of credit, and includes the provisions of the Truth in 

Lending Act, requiring clear disclosure of key terms and all costs of loans.16 The 

1968 Act was the first of a series of actions designed to protect consumers and 

provide fair and equal access to credit. The most important credit legislation for 

women entrepreneurs - The Equal Credit Opportunity Act - was to follow in the 

1970s. 

The 1970s: Gaining Visibility 

Important Federal Policy Actions of the 1970s 

 1972 Title IX of Equal Employment Opportunity Act

 1972 Survey on women owned businesses included in the Economic Census 

 1972 Equal Rights Amendment passed (never ratified) 

 1974 Equal Credit Opportunity Act

 1977 Economic Census added gender 

 1978 Affirmative Action Act 

 1978 P.L. 95-507, 8(a) program and Preferential Procurement Goals

 1978 President’s Interagency Task Force on Women’s Business Ownership 

 1979 Carter Executive Order 12138; established the Interagency Committee on 

Women’s Business Enterprise and the Office of Women’s Business 

Ownership at SBA 

 

15 See text and summary of Title VII at http://www.eeoc.gov/vii/html. 16 http://www.fdic.gov/regulations/laws/rules/6500-200.html
10

The 1970s were an era of activism and progress for women business owners as well 

as women in general. Women entrepreneurs made gains in their legal status, they 

were recognized as “real” and worth counting, and they began organizing in order 

to push for even more progress. 

In the early 1970s, 12 Washington DC area women business owners began meeting 

informally to discuss the issues they and other women business owners faced. They 

began talking to members of Congress and federal agencies, promoting the policy 

changes that would lead to equality of opportunity for women-owned businesses. 

In 1975 the growing group of women organized formally as the National 

Association of Women Business Owners (NAWBO), an organization that was to 

become the power behind some of the most important policies of the 1980s and 

1990s to benefit women-owned businesses. 

Policies such as Title IX of the Equal Employment Opportunity Act17, passed in 

1972, mandating equal treatment of women by educational institutions receiving 

federal funds, marked the rapid changes in the status of women during this period. 

For women entrepreneurs the gains were equally dramatic. 

A census of women-owned businesses was first done as a special project in 1972 

and became a part of the Economic Census in 1977. 

The 1974 Equal Credit Opportunity Act18 effectively removed the last vestiges of 

coverture and is often cited as one of the most important factors in the growth of 

women-owned business. Married women were now guaranteed the right to credit 

in their own names - a tremendous improvement in access to credit for women 

business owners. In 1972, only 4.6 percent of small businesses were owned by 

women. Ten years later that percentage had risen to 23.9 percent.19 

In 1977, with the addition of gender to the Business Census, women-owned 

businesses were finally recognized as a segment of the economy worth tracking – 

 

17 http://www.eeoc.gov/abouteeoc/35th/thelaw/eeo_1972.html 18 http://www.fdic.gov/regulations/laws/rules/6500-1200.html 19 Center for Women’s Business Research, Breaking the Boundaries: The Progress and Achievement of WomenOwned Enterprises, 1995. 

“....Our multiple strategy was to demonstrate to the media, to lawmakers, to 

federal government agency chiefs, to the White House staff and to the 

business community that women business owners were indeed viable. We 

were a new and growing constituency.” 

 - Susan Hager, First President of NAWBO
11

the first official recognition that women’s businesses mattered.20 Now the dramatic 

growth of women’s business ownership could be tracked; and eventually those 

census statistics could be used to gain the attention and respect of the policymakers. 

In 1978, focus on Affirmative Action was generated by the Bakke case (Regents of 

the University of California v Bakke, 438 US 265), approving affirmative action in 

higher education admissions. The key decisions on Affirmative Action, however, 

were made earlier with Title VII of the Civil Rights Act in 1964, and Executive 

Order 11246 in 1965, covering federal employment and contracting. But 

enforcement of the affirmative provisions became stronger in the 1970s and led to 

further advances for women business owners. 

P.L. 95-507, enacted in 1978, made major revisions to the Small Business Act. In 

addition to establishing the 8(a) Program, it set up Preferential Procurement Goals 

(affirmative action) for participation by small businesses, small disadvantaged 

firms, 8(a) and small women-owned concerns in Federal contracting programs. 21

As the decade came to a close, spurred by the recommendations that came out of 

the 1978 President’s Interagency Task Force on Women’s Business Ownership22, 

President Carter signed Executive Order 1213823, which created the National 

Women’s Business Enterprise Policy and established the Interagency Committee on 

Women’s Business Enterprise and the Office of Women’s Business Ownership 

(OWBO) at the SBA. 

OWBO was initially an advocacy office; it was the 1988 Women’s Business 

Ownership Act that made it a program office and expanded its responsibilities. But 

although it had a limited direct impact in the beginning, it was a recognized office 

and had at least some federal funding – a precedent for future efforts on behalf of 

women business owners. 

 

 

20 Note: The data on C-Corporations majority owned by women was not included until provided for by Title 

V of the 1988 Women’s Business Ownership Act. Until that time only sole proprietorships were included. 

21 http://www.sba.gov/gopher/Government-Contracting/law95.txt

22 President’s Task Force on Women Business Owners, The Bottom Line, 1979. 

23 http://www.usdoj.gov/crt/cor/byagency/sbaeo12138.htm
12

The 1980s: Establishing Programs 

Important Federal Policy Actions of the 1980s 

Once the Business Census began counting women-owned businesses, they became 

“real.” Hard numbers were difficult to ignore, but some tried. Numerous articles 

from the 1970s and 1980s called women-owned businesses “invisible.” Even after 

the establishment of OWBO and the first Women’s Business Centers, there was little 

media coverage of what was going on in the woman-owned sector of small 

business. 

In the 1980s, there was an effort to narrow the 

application of Title IX (equal access to 

education) which, though not specific in 

wording, had been interpreted to include all 

operations of an educational institution 

receiving any federal funding. In 1984, in 

Grove City College v. Bell, the U. S. Supreme 

Court ruled that Title IX banned sex 

discrimination only in the specific programs 

within an educational institution that directly 

received Federal funding. The 1987 Civil 

Rights Restoration Act24, spearheaded in the 

House by Rep. Claudine Schneider (R-RI) and 

Rep. Patricia Schroeder (D-CO), guaranteed a 

broad interpretation of Title IX – to include 

employment and contracting. 

 

24 http://www.civilrights.org/library/permanent_collection/resources/1987crra.html 

Important Federal Policy Actions of the 1980s 

 1986 White House Conference (Policy foundations of HR 5050) 

 1987 Civil Rights Restoration Act

 1988 Women’s Business Ownership Act, HR 5050 

o Amended Equal Credit Opportunity Act to include business loans 

o Established National Women’s Business Council 

o Women’s Business Center pilot program 

o Business census directed to report on C corporations 51% owned by

women 

NAWBO leader Susan Hager speaks out.

 -Photo courtesy of Olive Rosen
13

Despite the growing body of data on the importance of women entrepreneurs, it 

took a concerted campaign by a small group of women from NAWBO to bring 

national attention to the importance of women-owned businesses and their vital role 

in the economy. (See sidebar story) The result of their White House Conference on 

Small Business project in 1986 became the core of the 1988 “Women’s Business 

Ownership Act,”25 symbolically numbered HR5050 and introduced by Rep. John 

LaFalce (D-NY). 

NAWBO essentially crafted the bill, which covered four vital policy priorities: 

 Access to credit – the bill amended the Equal Credit Opportunity Act of 1974 to 

include business loans. It also required financial institutions to inform applicants 

of their right to a written explanation for a loan denial, and to refrain from 

inquiring into an applicant’s marital status. 

 Training support - A three-year pilot program to provide training and technical 

assistance for women business owners led to establishment of the Women’s 

Business Centers. 

 Official Advocacy - The National Women’s Business Council (NWBC) was 

created as a bi-partisan Federal advisory council to serve as an independent 

source of advice and policy recommendations to the President, Congress and the 

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

business owners. 

 Expansion of the census data collected and reported on women-owned 

businesses to include corporations 51% owned by women. 

Women entrepreneurs were now being recognized as important contributors to the 

strength of the U.S. economy. 

 

25 http://thomas.loc.gov/cgi-bin/bdquery/z?d100:HR05050:|TOM:/bss/d100query.html| 

“You know a group has come of age when its legislation sails into Congress 

with strong bipartisan support in the midst of an election year. By that 

standard, the women business owners of America have arrived.” 

 - Inc, December 1988
14

 1986 – NAWBO AT THE TABLE 

“Power is the ability to take one’s place in what ever discourse is essential to action, and to have one’s part 

matter.” -Carolyn Heilbrun, Writing a Woman’s Life

In 1986, women business owners were essentially invisible. The federal business census included 

only sole proprietorships, and NAWBO was a 2500 member organization – too small to be taken 

seriously. But the women of NAWBO did not become successful business owners by sitting back 

and waiting; they decided that the only way to establish their credibility was to take a leap onto 

the national stage, using the 1986 White House Conference on Small Business as their platform. 

A small group of women developed and orchestrated a strategy that included research, policy 

development, political and policy training, candidate selection, and public relations. Virginia 

Littlejohn, Chair of the effort, says today, “We were very clear about our mission. We wanted to 

put women entrepreneurs on the map as power players, and to get the small business community 

to take us seriously. We succeeded.” 

The U.S. Chamber of Commerce had 250,000 members in 1986, the NFIB 500,000. NAWBO, with 

only 2500 members, captured over 200 of the 2000 conference delegate positions – more than either 

of these two powerful associations. It was time for the power to shift. 

The Game Plan 

The plan and implementation were orchestrated down to the last detail. The first step was 

researching and developing a series of policy positions designed to drive positive change, 

including international trade policies, a modern statistical framework to track the growth of the 

services sector, and the impact of technology on entrepreneurship. Virginia Littlejohn, 1984-1985 

NAWBO President, wrote Framework for the Future26, a strategic policy publication to position 

women as forward-looking and visionary. 

The resulting innovative policy positions formed the basis for training prospective delegates in the 

how-to of winning delegate slots. Women were trained in the strategies of winning elections – how 

to create a slate of candidates and who should be on it, what to wear in order to stand out in the 

sea of men, where to stand when making a presentation on policy, and the importance of repeating 

your name so that people remembered it when it came time to vote. 

Women in all 25 NAWBO chapters were trained, and a written curriculum was developed for the 

later states. State events were monitored closely. By the time the final states chose their delegates, 

their plan was so successful that they had to hold back to avoid winning all of the positions in the 

state delegations; they needed a few good men as well. 

In addition to the campaign for the elected positions, members were trained in how to win those 

slots appointed by elected officials. Once delegates were chosen they were coached in how to be 

elected to head their delegations. In the end, with chapters in only 25 states, NAWBO members 

 

26 This document is no longer available. 
15

chaired or co-chaired fifteen state delegations. In other words, 60% of their chapters led their state 

delegations – 30% of the 50 states were NAWBO-led. 

Top women lawyers were recruited to provide expertise on issues such as insurance reform and 

pensions. A PR firm, Hager Sharp, provided media relations on a volunteer basis, generating onsite state by state broadcast and print interviews as well as national coverage in the New York 

Times, Wall Street Journal, Inc, Business Week, ABC, NBC and many others. Susan Hager, first 

National President of NAWBO and CEO of Hager-Sharp, recalls the results: “Our numbers, our 

issues, our black tie event and the amount and quality of the press coverage made NAWBO the 

most visible player at that White House Conference.” 

NAWBO had dominated the White House Conference. Out of the hundreds of policies proposed, 

26 of NAWBO’s 27 policy positions were included. 

Celebrating Success 

The highlight of the Conference – and the most sought-after 

invitation - was the black tie dinner at the State Department 

for state chairs and international visitors. It was hosted by 

NAWBO. Women entrepreneurs not only had a seat at the 

table; they controlled the invitations. 

Their success energized the membership of NAWBO, as well. 

They recognized their power. They were in the vanguard of 

an important movement destined to have enormous political, 

social impact in the U.S. – and ultimately, around the world. 

A new era had begun for women entrepreneurs. 

NAWBO is an organizational member of the National Women’s 

Business Council. 

 Gillian Rudd at the 1986 White House Conference 

 -Photo Courtesy of Olive Rosen 
16

The 1990s: Expanding Networks 

Important Federal Policy Actions of the 1990s 

 1994 Federal Acquisition Streamlining Act – 5% procurement goals 

 1994 Small Business Reauthorization Act (P.L. 103-403) changed structure 

of NWBC to its current form 

 1996 Women’s Pre-Qualification Loan Program

 1996 and 1998 Women’s Economic Summits 

 1997 Small Business Reauthorization Act made WBC program permanent 

 1998 Small Business Reauthorization Act (P.L. 105-135) expanded NWBC 

membership numbers 

 1999 Women’s Business Centers Sustainability Act

In the 1990s, the business focus of Congress was on job creation, providing womenowned businesses the opportunity to show their strength. In 1992, a research study 

published by the National Foundation for Women Business Owners27 showed that 

women-owned businesses provided more jobs than the Fortune 500. Not only the 

members of Congress, but the financial institutions suddenly took notice of the 

huge economic contributions of women’s enterprises and the market they provided. 

In the early 1990s, access to capital was the greatest problem faced by women 

business owners. In 1992, 52% of women business owners financed their businesses 

using credit cards because of lack of access to bank financing.28 Women business 

owners participating in the 1992 Symposium on Access to Capital, convened by the 

National Women’s Business Council, named lack of access to bank loans and credit 

to finance their businesses as the number one problem they faced. 

The 1992 Symposium on Access to Capital initiated an emphasis on business 

financing, and a long series of discussions that continued and grew through the 

 

27 Now the Center for Women’s Business Research. 

28 Center for Women’s Business Research, Capital, Credit and Financing: Comparing Women and Men Business 

Owners’ Sources and Uses of Capital, 1996.

"Our 1992 report, 'Women-Owned Businesses: The New Economic Force,' was 

important because for the first time we had hard data demonstrating the economic 

significance of women-owned firms. It highlighted not only the number of businesses, 

but the fact that these businesses employed substantial numbers of people and 

generated significant revenues. As a result, policy makers, financial institutions, and 

corporations recognized women-owned businesses as a significant component of this 

nation's economic well-being." 

- Dr. Sharon G. Hadary, Executive Director, Center for Women's Business Research
17

1990s. The NWBC brought together women business owners and other 

stakeholders – including banks and venture capitalists – to devise solutions to the 

very real problems of funding new businesses and business expansion. 

Since that time, access to capital has improved dramatically. According to a study 

by the Center for Women’s Business Research, by 1996 the number of women 

business owners who used credit cards as a source of capital had dropped to 23 

percent. 29 Women were now concerned about capital for expansion and equity 

financing. Banks were beginning to court women business owners – they 

recognized that they were neglecting a huge market. But venture capital and 

growth capital were still scarce. Women began looking at alternative means of 

providing capital. 

The Federal Acquisition Streamlining Act of 199430, designed to overhaul the 

cumbersome and complex procurement system of the federal government, also 

established a goal of 5% for contracts to women-owned small businesses for each 

federal agency. Also in 1994, The Small Business Reauthorization Act, Public Law 

103-40331 changed the structure of the NWBC to its current form, including both 

women business owners and women’s business organizations in its membership. In 

1998 the Council was enlarged from nine Council members to 15, including the 

Chair, under the provisions of Public Law 105-13532. 

Despite the redefinition of “woman-owned” in the 1997 Economic Census, raising 

the qualifying number from 50 percent to 51 percent woman-owned, womenowned firms still showed a steady growth. According to a 1996 survey by the 

Center for Women’s Business Research, in all 50 metropolitan areas, women-owned 

firms outpaced the economy in general.33 

In 1996 the NWBC sponsored the first Women’s Economic Summit, a concept that 

led to a regular series of regional women’s economic summits as well as 

international meetings facilitating the exchange of best practices across borders. 

The NWBC’s 1998 Women’s Economic Summit identified four key strategies to 

accelerate the growth of women-owned business: improved access to capital, 

improved access to markets, improved access to training and a women-led agenda. 

Marsha Firestone, Executive Director of the 1998 Summit, explains, 

 

29 Center for Women’s Business Research, Capital, Credit and Financing: Comparing Women and Men Business 

Owners' Sources and Uses of Capital, 1996. 

30 http://www.sba.gov/test/wbc/docs/procure/bigsba.html 31 http://thomas.loc.gov/cgi-bin/query/z?c103:S.2060.ENR 32 http://thomas.loc.gov/cgi-bin/query/z?c105:S.1139.ENR 33 Center for Women’s Business Research, 1996 Facts on Women-Owned Businesses: Trends in the Top 50 

Metropolitan Areas, 1996. 
18

“Multiple issues are reflected in the women-led agenda, policy issues not directly 

related to growth but vital in accelerating growth of women-owned business.” 

2000 And Beyond: Sustaining Momentum 

 

Federal Policy Actions 2000 and Beyond 

 2000 SBA Reauthorization Act redefines procurement goals for Women 

Owned Businesses 

 2000 SBA established Office of Federal Contract Assistance for Women 

Business Owners (CAWBO) to implement the procurement provisions of the 

Reauthorization Act 

 2002 Federal Executive Policy on contract bundling 

 2002 – 2004 National and regional women’s business economic summits 

 2003 Women’s Small Business Improvement Act (pending)

As the first decade of the 21st Century moves through its fourth year, the theme of 

this decade centers on sustaining the momentum that has been built over the past 

40 years. Women entrepreneurs are in a good position today, but the policy 

changes that provide for true equality of opportunity are still being established, 

and several recent gains are in jeopardy. 

Modern technology has created one of the biggest improvements we see today. Email and Internet access has enabled broad and ongoing communication among 

women business owners and their organizations, and has greatly improved access 

to the information and assistance available to women business owners. A national 

women’s business economic summit sponsored by the U.S. Department of Labor 

and the SBA, “Women’s Entrepreneurship in the 21st Century,” held in 2002, has led 

to seven regional summits that have brought public policy leaders together with 

women business owners. Women’s Business Summits have continued to increase 

awareness of the resources available to women business owners and prospective 

business owners, and the Internet has made those resources truly accessible.34

In 2000, the SBA Reauthorization Act, P.L. 106-554, redefined procurement goals for 

minority and women-owned businesses and established the Women-Owned Small 

Business (WOSB) Federal Contract Assistance Program, which allows agencies to 

“restrict competition” in contracting with industries in which WOSBs are underrepresented. Previous attempts to increase the percentage of contracts awarded to 

women-owned businesses have met with limited success, but this time SBA’s Office 

 

34 National Women’s Business Council, Women's Entrepreneurship in the 21st Century: A Summary of Data from 

National and Regional Summits, 2003.
19

of Federal Contract Assistance for Women Business Owners (CAWBO), with a 

mission of “increasing the number of Women-Owned Small Businesses that 

successfully compete in the federal marketplace,”35 was charged with working with 

the agencies to increase their WOSB contracting. 

Efforts are under way in Congress to deal with other problem areas, including 

contract bundling36 and long-term funding for the successful WOSB programs of 

the SBA. Contract bundling allows federal agencies to combine several small 

contracts into one large one, which often means that small businesses cannot 

compete directly but must seek subcontracts. The Office of Federal Procurement 

Policy (OFPP) and the SBA published proposed rules in January that would make it 

harder for agencies to bundle contracts.37 Senator Olympia Snowe (R-ME) is among 

those who believe these regulations do not go far enough, and discussions on the 

question continue. Numerous comments are posted on the web site for the 

proposed rules: http://www.acqnet.gov/far/ProposedRules/2002-029c.pdf

In 2003, Senator Snowe came to the rescue of the Women’s Business Center 

program with S. 1375, “The Women’s Business Centers Preservation Act of 2003.” 

Co-sponsored with Senator John Kerry (D-MA), it was designed to establish 

sustainment grants for existing WBCs. The bill was eventually expanded into the 

“50th Anniversary Reauthorization Act,” incorporating Senator Snowe’s bill, the 

“Women’s Small Business Improvement Act of 2003," (S. 1154) introduced earlier in 

the year to strengthen the SBA’s Office of Women’s Business Ownership, the 

Women’s Business Centers Program, the National Women’s Business Council and 

the Interagency Committee on Women’s Business Enterprise. The bill also makes 

the Women’s Business Centers a permanent program while offering opportunities 

for new centers and renewal grants for existing centers on a competitive basis.38

As of the publication of this report, Senator Snowe’s bill is still pending. Tightening 

of the contract bundling provisions is also pending, with new SBA rules under 

consideration, as well as discussion in Congress of further restrictions. The 

reauthorization of the National Women’s Business Council is also still pending. 

Progress in this decade will clearly require maintaining momentum and remaining 

persistent in pursuing the issues that remain – in particular, fairness in both 

government and private sector contracting, and maintenance of funding for the 

vital and successful programs already in place. 

 

35 See CAWBO Fact Sheet, www.sba.gov/GC/cawbofactsheet.doc

36 http://www.whitehouse.gov/omb/procurement/contract_bundling_oct2002.pdf

37 http://www.acqnet.gov/far/ProposedRules/2002-029c.pdf 38 This legislation is still pending. 
20

Private Sector Policy Impacts 

Concurrent with public policy actions have been important private sector 

initiatives. With the growing awareness and appreciation of the vital role played by 

women-owned businesses in the U.S. economy, membership organizations and 

organizations providing access to credit, training and education, research, and 

advocacy have come into existence and have flourished through the last several 

decades. 

The dramatic improvement in access to capital for women business owners is due 

to the changes in bank lending policies that came in response to the statistics on 

women’s business enterprises released in 1992, that identified a huge neglected 

market for financial institutions. At the same time, women are making some 

inroads through corporate supplier diversity programs. The framework of vocal 

organizations, the research of Center for Women’s Business Research, the new more 

focused organizations promotion women’s businesses – all have contributed to the 

improving environment for women. 

A good example of private sector policy change is the Wells Fargo Women’s Loan 

Program. Established in 1995, it has served over 337,000 women business owners. 

The current goal is $20 billion in loans to women over 10 years. Many other national 

and community banks have now developed specific programs for loans to women. 

At the same time, organizations representing and supporting women entrepreneurs 

have grown dramatically. Once the basic barriers for women entrepreneurs were 

lowered, specialized organizations arose to fill very specific needs. Organizations 

that represent women entrepreneurs and their concerns today include the National 

Association of Women Business Owners (NAWBO), Center for Women’s Business 

Research, Women’s Business Enterprise National Council (WBENC), Women 

Impacting Public Policy (WIPP) and the Association of Women’s Business Centers 

(AWBC). 

For information on these and other women’s business organizations, see the 

NWBC’s May 2004 Best Practices Report. 

WIPP – A STRONG VOICE FOR 21ST CENTURY WOMEN ENTREPRENEURS 

Terry Neese and Barbara Kasoff had a vision. In the mid-nineties, as women’s business enterprises 

were growing dramatically, Terry was lobbying on behalf of the National Association of Women 

Business Owners (NAWBO). Terry served as National President of NAWBO, and Barbara as Vice 

President of Public Policy. Together, they worked closely with women business owners, 

cultivating and developing an interest in public policy as well as conveying an understanding of 

how this interest could impact their businesses. That budding interest, together with a developing 
21

awareness on the Hill of women business owners as an emerging force, began a lifelong 

commitment to education and advocacy and resulted in the emergence of Women Impacting 

Public Policy. Terry and Barbara knew that numbers count – and, with nine million women 

entrepreneurs out there, it seemed to be a good time to leverage this power. 

Numbers mean a lot on the Hill – and certainly are the key to a seat at the table. There were 

several women’s business organizations around – but not only was each independent, each had 

their own agenda. How could women business owners influence public policy long term if they 

had no clear, combined voice? 

Terry and Barbara began by contacting all the organizations, as well as women entrepreneurs in 

every state and delivered their message: A single, strong voice for women business owners was 

needed – a voice that could speak for all women business owners. Women entrepreneurs needed to 

position themselves so that they help draft legislation – rather than battle to change legislation. 

And so began Women Impacting Public Policy (WIPP), a coalition of women’s business 

organizations and individual women business owners. The stated mission is to educate and 

advocate on business issues. Terry and Barbara set out to find the issue areas the organizations 

had in common, so that they could then use the combined strength of all the organizations to 

tackle the Hill. “Then,” Terry said, “we began the process on the Hill to reeducate the Senate and 

Congressional offices, to let them know that where policy on business issues is concerned, we are 

one.” 

Their biggest surprise in this whole process was how fast the organization grew. Twenty-nine 

groups have joined the coalition, altogether, and WIPP now represents over half a million women. 

And the members of Congress are listening. 

Today, when the White House plans outreach activities, WIPP has a seat at the table. When WIPP 

speaks, members of Congress listen. And Terry Neese and Barbara Kasoff are leading a powerful 

and growing force. WIPP and organizations like it will play important roles in shaping future 

policy. 

WIPP is an organizational member of the NWBC. 

International Impact of U.S. Progress

The United States has become the role model for the world in encouraging and 

supporting women’s entrepreneurship. While the urge to run one’s own business is 

far from unique to this country, the U.S. – and American women - have led the way 

in modern policy development and organized government programs to help the 

women’s business sector. 

Globalization of the economy has generated a growing interest in programs to 

encourage women’s entrepreneurship throughout the world, in both developed and 

developing countries. Women began sharing “best practices” across borders in a 

formal manner in the 1990s, and that sharing is leading to progress for women in 

countries across the globe. 
22

Some key examples of International programs include: 

 Organization for Economic Cooperation and Development (OECD) 

With membership from just 29 countries, the OECD has long been an influential 

organization, producing publications and research promoting growth and good 

government. In the 1990s, they took a first look at women’s role in the economy. 

In 1997 they held the first Women Entrepreneurs in Small and Medium Sized 

Enterprises (SMEs) Conference in Paris. Representatives from 40 countries 

attended, including a large U.S. delegation. The OECD began to pay attention. 

At the same time, the Global Enterprise Monitor (GEM) Report identified 

Women’s Business Enterprises as one of the four key growth strategies for 

economies of the world. The 2000 OECD Women Entrepreneurs’ Conference, 

Realising the Benefits of Globalization and the Knowledge-based Economy, 

continued the exchange of best practices, and women started to talk about 

venture capital and procurement. At that conference, a multi-country banking 

alliance was developed. 

Today the Local and Economic and Employment Development (LEED) program 

of the OECD recognizes women’s entrepreneurship as a key element of growth. 

OECD will hold a third Women Entrepreneurs in SMEs conference in June of 

2004 in Istanbul, Turkey. 

 Canada and the U.K. 

In October, 2003, the Prime Minister of Canada’s Task Force on Women 

Entrepreneurs issued an extensive report on their study of women 

entrepreneurs, other stakeholders and resources for women entrepreneurs 

across Canada. In preparing this report they met with leaders from the U.S. and 

the U.K. to learn about their experiences in terms of the issues and challenges 

“The Chinese have a saying, ‘women hold up half the sky.’ We can hold up 

our half better if we own the ground we stand on.”

-Rona Feit, Horizon speech to the OECD, 1997

"Governments can either fuel entrepreneurs or stop them in their tracks. When you 

consider that these entrepreneurs create jobs and wealth for their communities, develop 

innovations that make people’s lives better and contribute to national economic growth, 

you understand the importance of developing policies that make the ground fertile for 

entrepreneurship to thrive.” 

-Karl Schramm, President and CEO, Kauffman Foundation
23

facing women entrepreneurs. They began with the same set of premises that 

were originally established here in the U.S.: 

 Women entrepreneurs are the fastest growing sector in our economy. 

 Women entrepreneurs face unique challenges and barriers to success. 

 Facilitating the growth of women’s entrepreneurship is integral to our small 

business strategy.39

Their recommendations closely mirrored those that we have established in the 

U.S. and worked toward over the past 25 years. 

In the U.K., The Department of Trade and Industry (DTI) Small Business Service 

(SBS) in 2003 published A Strategic Framework for Women’s Enterprise, including a 

set of policy objectives and recommended actions designed to “...create an 

environment and culture that encourages more women to start and grow 

businesses, and where every woman with the desire to start or grow a business 

has access to appropriate help and support.”40 The development of the Strategic 

Framework drew heavily on the experience of American women-owned 

business, and the barriers identified, the policy objectives and the recommended 

actions closely reflect the barriers, actions and policies we have seen here in the 

U.S. 

Successes And Continuing Challenges 

We can cite numerous success stories in the past 40 years of dramatic change for 

women entrepreneurs. At the same time, there is still an important role for the 

programs designed to support women-owned business - issues to be resolved, and 

barriers to progress that persist. 

The Infrastructure of Support for Women Business Owners 

The triumvirate of the Office of Women’s Business Ownership (OWBO), the 

nation’s Women’s Business Centers (WBCs) and the National Women’s Business 

Council (NWBC) has been described as a “three-legged stool” that provides solid 

 

39 Canadian Government, Prime Minister’s Task Force on Women Entrepreneurs, “Report and 

Recommendations,” 2003. 

40 DTI Small Business Service (UK), A Strategic Framework for Women’s Enterprise, 2003. 

“Women owned businesses are a good investment...the Canadian 

Government should continue to invest in women and we in turn will build 

businesses that thrive, contribute jobs and build communities.” 

 - Catherine Devlin, Women Presidents’ Organization, May, 2003
24

support for women-owned businesses. That supporting structure has evolved into 

one of the great successes of the past decades, and is critical to maintaining the 

momentum achieved over the past forty-five years. 

The Office of Women’s Business Ownership began as a small advocacy office 

established by the 1979 Executive Order on Women’s Business Enterprise Policy. 

The 1988 Women Owned Business Act gave OWBO program responsibility for the 

Women’s Business Ownership Demonstration Program, which established the first 

of the Women’s Business Centers. Today, OWBO administers a Women’s Business 

Center Program that includes close to 100 community-based centers and an Online 

Women’s Business Center41 as well as programs providing technical, financial and 

management information and training, business counseling and assistance in 

accessing credit, capital and marketing opportunities. 

The Women’s Business Centers themselves, funded by Federal grants and state 

and local government and private matching funds, today help thousands of women 

to start and build their own businesses successfully. From the small demonstration 

project of the late 1980s, the program has grown into a major force. Additionally, 

the relatively new Association of Women’s Business Centers has emerged as an 

important advocacy organization. 

In 1997 the Small Business Reauthorization Act made the WBC program a 

permanent part of the SBA’s entrepreneurial development efforts, changed the 

funding structure, and extended the grant cycle from three to five years to enable 

centers to develop more long-term stability. In 1999, the Association of Women’s 

Business Centers joined OWBO in pursuing the establishment of “sustainability 

grants” which would allow centers to apply for a second round of funding. The 

Women’s Business Centers Sustainability Act of 1999 established a four year pilot 

program to award grants on a competitive basis to allow center sustainability. The 

WBCs serve a diverse population of women across the country, and are providing 

valuable support for women who otherwise would not have the skills and/or 

knowledge to develop successful businesses. 

 

41 www.sba/onlinewbc.gov 

“When I was first at the SBA in 1990, the Office of Women’s Business 

Ownership was new and four Women’s Business Centers had been started 

under a pilot program to assist women-owned businesses. Today there are 

close to 100 Women’s Business Centers, and I can’t imagine what we would do 

without them - because there are 424 new businesses started by women every 

day, and a lot of those women succeed because of the guidance and mentoring 

they get through the Centers.” 

 -Wilma Goldstein, Director, OWBO
25

The National Women’s Business Council has evolved and grown over the years as 

well. The Council was established as an advisory group of women business owners 

tasked with identifying the barriers to success for women-owned businesses and 

reporting annually to the President and Congress on their findings. By the early 

1990s the Council had begun bringing together women business owners, policy 

makers, bankers, representatives of women’s business organizations and other 

stakeholders to discuss possible solutions to the challenges facing women business 

owners, and to recommend these solutions to the President and Congress. 

In 1994 the Small Business Reauthorization Act42 changed the structure of the 

NWBC to its current form to include both women business owners and 

representatives of women’s business organizations. In 1998, Public Law 105-13543

expanded the Council’s membership to 15, including the Chair. Today, the Council 

focuses on four priorities in achieving its mission: 

 Conducting research on issues of importance to women business owners and 

their organizations; 

 Communicating these findings widely; 

 Connecting the women's business community to one another and to public 

policy makers; and 

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

for women business owners and their enterprises.

As the “third leg of the stool,” today’s NWBC plays a vital supporting role in expanding 

opportunities for women business owners and prospective women business owners. 

THE WOMEN’S BUSINESS DEVELOPMENT CENTER IN CHICAGO – A MODEL FOR 

SUCCESS 

The oldest, and one of the largest and most successful Women’s Business Centers in the U.S.: not 

bad for a center started on the basis of a good idea by two long-time feminists who were convinced 

that “true empowerment for women will come only through economic empowerment.” Hedy 

Ratner and her partner Carol Dougal believed that business ownership was the route to selfsufficiency for women supporting themselves and their families. Through small business 

ownership, women could use the confidence the women’s movement had given them, and give 

back to the community by doing business in a more humanitarian way. Over the long term, they 

could improve the political structure through political action and candidacy. 

In 1986 they were ready; they put together a business plan and looked for support. They were 

turned down by the corporations and foundations, but Illinois Governor Jim Thompson felt that 

 

42 http://thomas.loc.gov/cgi-bin/query/z?c103:S.2060.ENR 43 http://thomas.loc.gov/cgi-bin/query/z?c105:S.1139.ENR 
26

the Small Business Development Centers were not doing enough for women and minorities; he 

provided funding for a specialized development center for Hispanics, one for African-Americans, 

and one for women. 

Their first large grant was a block grant from the city; later the center was chosen as one of the four 

WBCs to be included in the pilot project established by the 1988 Women’s Business Ownership 

Act. Not only did the center succeed, it became a model that, with Hedy’s help, was successfully 

replicated in six other states. She provided the curriculum, helped them choose their boards, and 

provided counseling and evaluation, helping each center to work with existing organizations in 

their area to design a program to fit their needs. 

Once the Women’s Business Development Center was well-established, they began seeking funds 

from corporations and foundations – this time successfully. Their funding went from an initial 

$150,000 to $2.5 million today. 

“Don’t think for a minute that this was easy,” Hedy warns. “It was hard. We had to fight for 

funding every step of the way. “ Government funding along the way came from the city, the 

SBDC, a PTAC grant from SBA, and an SBA microlending program. The remainder has been raised 

from private sector foundations, corporations, and the Center’s annual Entrepreneurial Woman’s 

Conference. 

After 18 successful years serving women in the Chicago area, the Women’s Business Development 

Center continues to grow. Today they offer a bilingual program to assist Latinas with business 

development, and train and counsel hundreds of women through their Child Care Business 

Initiative. They have helped women-owned businesses win over $250 million in government and 

private sector contracts, have facilitated over $35 million in loans, and have taught more than 

40,000 women entrepreneurs business skills through one-on-one counseling and training 

workshops. Through their Teach and Venture program they provide resources and equity venture 

capital to women’s high-growth businesses. 

It should surprise no one that they expect 2,300 women to attend their 18th annual Entrepreneurial 

Woman’s Conference. 

Congratulations to Hedy Ratner, Carol Dougal, and the board and staff of the Women’s Business 

Development Center, for showing what determined women can do. 

Hedy Ratner served on the National Women’s Business Council from 1994-1997. 
27

Barriers to Progress 

The successes outlined above do not mean the job is complete. Despite tremendous 

gains, key barriers remain: 

 Cultural barriers and assumptions 

The majority of the cultural barriers faced by women business owners have been 

lowered or removed over the years. Educational barriers, lack of experience, and 

cultural expectations have been transformed for most women. There remain 

some pockets of negative attitudes on a regional and/or ethnic basis, and 

socialization of girls still biases against certain types of careers and businesses, 

but for the most part, the culture of the U.S. today is favorable to women’s 

business ownership. 

 Structural barriers: Equality, non-discrimination, financial independence, access 

to credit 

Legal and policy changes have wiped out most of the structural barriers that 

once inhibited women entrepreneurs. Although there remain lingering traces of 

discrimination in practice, these are not supported by law, and mechanisms are 

in place for prevention and amelioration. Sadly, one of the few areas that 

remains a serious challenge is that of government procurement; despite goalsetting and monitoring, the situation is slow to improve and must continue to be 

listed as a barrier of practice if not structure. 

 Barriers of practice: Access to capital, government procurement, markets 

Access issues still exist – change in standard practices is slow to come. Access to 

capital has improved dramatically both for start-ups and growth. Alternative 

sources of capital for women are increasing, and there are a few venture capital 

funds focused on women-owned businesses. Organizations such as Springboard 

Enterprises44 provide training and visibility to women seeking equity capital. 

Access to markets – particularly both government and private sector 

procurement – lags far behind. Despite the 5% federal contract goal for womenowned businesses, and the attempts to press agencies to reach that goal, federal 

contracting with women-owned firms stood at 2.9% in 2002 – up from 2.1% in 

1997.45 Women fare slightly better in gaining contracts with large private sector 

 

44 http://www.springboardenterprises.org/ 45 http://www.fpdc.gov/fpdc/FPR2002a.pdf 
28

corporations, but the women-owned business share still sat at 4% in 2003, 

having risen from 3% four years earlier.46 

 

 Recognition: Being counted 

Thanks to the increased availability of data on the participation in and 

contributions to the economy of women-owned businesses, there is recognition 

today of the important part they play in the health of the U.S. economy. This has 

not always translated into action; constant and increased visibility for womenowned businesses, their successes, and the efforts on their behalf must remain a 

priority. 

 Implications of federal budget cutting 

There is a strong emphasis today on cost-cutting in government, eliminating or 

paring down wasteful programs and building efficiency and effectiveness into 

all government activities. Each year budgets for programs seem to shrink, and 

the prospect for long-term government funding is not good. 

This prospect is being dealt with already in programs for women business 

owners. Numerous public-private partnerships have been developed over the 

past few years, and private sector groups already play a strong role in funding, 

support and training activities. 

 

46 Center for Women’s Business Research, Access to Markets: Perspectives from Large Corporations and Women's 

Business Enterprises, 2003. 

“America grows...through entrepreneurship and the creation of small business and 

providing capital in the private sector for the expansion of jobs and the purchase of 

equipment.” 

 - President George W. Bush, remarks to women business leaders, March 26, 2001
29

Recommended Future Directions 

Women-owned businesses are flourishing today, and we can point to numerous 

successful programs designed to assist women in starting and building their 

enterprises. But there remain areas of need to be addressed by the federal 

government and the private sector. Following are some of the directions we are 

recommending for the future: 

 Tools for success 

Today’s women entrepreneurs include women from all walks of life: executives 

and managers, highly qualified professionals, immigrants, inner city women 

with bold ideas, women moving from public assistance into financial 

independence. Any and all of these women can be successful with the right 

opportunities, access to the training and expertise they need, access to start-up 

and growth capital and access to markets. Many new entrepreneurs need 

assistance with basic financial literacy, mentors who can guide them through the 

pitfalls faced in a new business and a support network of like-minded women. 

Ensuring that the tools they need are available and accessible is an ongoing need 

for government, private sector and public-private partnerships. 

 

 Public-private partnerships 

Future directions include expanded use of the Women’s Business Center model, 

which utilizes matching grants, as well as other innovative types of publicprivate partnerships. Private industry has been more willing to support 

programs for women’s and minority businesses because of the benefits to them 

in access to government contracts and fulfillment of equal opportunity goals. 

“One of the most important pieces of infrastructure for the future is the triumvirate 

of the National Women’s Business Council, the Office of Women’s Business 

Ownership, and the Women’s Business Centers - the result of the private and public 

sectors coming together to support a fledgling business sector which has now taken 

off.” 

- Andrea Silbert, Founder, Center for Women and Enterprise
30

 Increased visibility – role models and research 

In 1999, Robert Hisrich and Candida Brush wrote in a paper titled “WomenOwned Businesses: Why Do They Matter?”47 that the percentage of articles 

about women business owners declined from 1980 to 1995 from 44 percent to 14 

percent. They attribute this “invisibility” to the fact that men and women are 

similar in approaches and practices to business ownership. Little truly 

comparative literature exists; it is up to the advocates for women business 

owners – as well as the successful women entrepreneurs - to see that the facts 

concerning the value and needs of women business owners are placed before 

the public. This includes not only comparative research but also highlighting 

individual women business owners of achievement. 

 Best practices sharing across borders 

Sharing of best practices across borders is already under way through such 

vehicles as the OECD and other international women’s entrepreneurship 

conferences, women’s trade missions such as those sponsored by the U.S. 

Department of Commerce, and online conferences and forums. The growth of a 

global economy has made these efforts even more important, and U.S. women 

entrepreneurs and their organizations must focus even more attention abroad. 

 Need for development of gender disaggregated business data and analysis 

The Center for Women’s Business Research has played a vital role in gathering 

and sharing quantitative information that demonstrates just how rapid and 

economically important the growth of women’s business ownership has been. 

This and other survey research will continue to provide a foundation for 

advocacy efforts, for continuing to open up financial markets, and creating 

general public visibility. So, too, regular statistical information from the U.S. 

Census Bureau is critically important to continually quantify the number and 

economic impact of women-owned businesses. 

However, additional research is needed on the impact of government programs 

on women-owned businesses – what is the payoff? It is hard to judge the return 

on investment (ROI) using conventional models. There needs to be a different 

analysis of ROI - investment in the economic growth of the country through 

women’s business ownership. It is only through development of this model that 

 47 Candida Brush and Robert Hisrich, “Women-owned Businesses: Why Do They Matter,” Are Small 

Firms Important? Their Role And Impact, Acs, Zoltan J., Ed., (Norwell, MA: Kluwer Academic 

Publishers, 1999) 111-125 
31

accurate longitudinal studies of women’s business enterprises and programs can 

be developed. 

How special are we? Implications for the future of women’s enterprise 

development 

Any major societal or cultural change 

requires ongoing vigilance and 

reinforcement if it is to be maintained. 

The natural human disinclination to 

change continues to exert itself in both 

cultural behaviors and efforts at policy 

reversals long after the positive change 

has taken place. The pressure of a 

rapidly growing women’s business 

sector has created momentum for 

positive change, but as this sector 

becomes a greater and greater 

proportion of the small business 

economy, can the momentum be 

maintained? 

There is already disagreement in some quarters about the need for assistance to a 

sub-group that not only is a majority of our society, but represents a large 

percentage of the small business economy. The answer must be made clear: because

the majority of small businesses are started by women, federal policy should be 

mindful of the unique needs and challenges of women business owners. All small 

businesses have a steep learning curve and a high failure rate – it would be shortsighted to risk slowing economic growth by combining and “de-specializing” forms 

of business assistance. The contribution of women-owned businesses to the U.S. 

economy and the job market is well worth protecting and encouraging. 

Because the women-owned business sector is relatively young, it is more vulnerable 

to regression. With every positive change in society, there is a group who perceive 

it as negative – remember that the SBA itself was established over the protests not 

only of big business, but of two of the larger small business organizations in the 

U.S.48, and that in 1984 the Supreme Court tried to narrow the application of Title IX 

of the Civil Rights Act. One of the most important tasks for the women’s business 

community and its organizations is maintaining continuing vigilance and visibility; 

we cannot afford now to sit back and enjoy our gains. Like running a business, 

leading a major societal change requires long-term effort. 

 

48 Mansel G. Blackford, op. cit., 134-135. 

Susan Chaires, Gillian Rudd, Congresswoman Connie 

Morella, Laura Henderson, and Congressman John 

LaFalce at the signing of the 1988 Women’s Business 

Ownership Act. 

– Photo courtesy of Olive Rosen
32

There is a continuing role for the advocacy organizations in reminding elected 

leaders and the public of the vital importance of women-owned small business to 

our economy. Women business owners themselves must not forget their role as 

mentors and role models to fledgling businesses and budding entrepreneurs. As 

George Santayana once said, “Those who cannot remember the past are condemned 

to repeat it.” We must keep in mind where we have been and how we came to be 

where we are today. 

The role of all small business in the economy continues to climb dramatically as the 

importance of technology changes the face of business. Women have an enormous 

market in front of them – one that is too important to risk losing. 
33

Appendix A: Bibliography 

Acs, Zoltan J., Ed., Are Small Firms Important? Their Role And Impact; Norwell, MA: Kluwer 

Academic Publishers, 1999. 

Anglund, Sandra M., Small Business Policy And The American Creed; New York: Praeger, 

2000. 

Anonymous, “Tax Relief for Women Business owners,” Women In Business, 

September/October 2002. 

Blackford, Mansel, A History Of Small Business In America; Chapel Hill: University of North 

Carolina Press, 2003. 

Bonnano, Phyllis, “Women: The Emerging Economic Force,” Economic Reform Today, 

Center for International Private Enterprise (CIPE), Number 3, 1999. 

Bush, George W., Remarks to Women Business Leaders, Weekly Compilation Of Presidential 

Documents, Washington, March 26, 2001. 

Canadian Government, Report and Recommendations, Prime Minister’s Task Force on Women 

Entrepreneurs, 2003. 

Center for Women’s Business Research, Access to Markets: Perspectives From Large 

Corporations and Women’s Business Enterprises, February, 2003. 

Center for Women’s Business Research, Biennial Update on Women-Owned Businesses, 2004. 

Center for Women’s Business Research, Breaking the Boundaries: The Progress and 

Achievement of Women-Owned Enterprises, 1995. 

Center for Women’s Business Research, Completing the Picture: Equally-Owned Firms in 

2002, 2003. 

Center for Women’s Business Research, Capital, Credit and Financing: Comparing Women and 

Men Business Owners’ Sources and Uses of Capital, 1996. 

Center for Women’s Business Research, A Compendium of National Statistics on WomenOwned Businesses in the U.S., 2001. 

Center for Women’s Business Research, Facts on Women-Owned Businesses: Trends in the Top 

50 Metropolitan Areas, 1996 

Center for Women’s Business Research, Location, Location, Location; September, 2003. 
34

Center for Women’s Business Research, Removing the Boundaries: The Continued Progress and 

Achievement of Women-Owned Enterprises, November, 2001. 

Center for Women’s Business Research, Seizing the Opportunities: A Report on the Forces 

Propelling the Growth of Women-Owned Enterprises, 2003. 

Center for Women’s Business Research, Women-Owned Businesses in 2002: Trends in the U.S. 

and 50 States, December, 2001. 

Center for Women’s Policy Alternatives, Women’s Voices 2000, 2000. 

Department of Trade and Industry (DTI) Small Business Service, (UK), A Strategic 

Framework for Women’s Enterprise, 2003.

Drachman, Virginia G., Enterprising Women: 250 Years Of American Business; Chapel Hill: 

University of North Carolina Press, 2002. 

Executive Office of the President, Office of Management and Budget, OFFP; Contract 

Bundling: A Strategy for Increasing Contracting Opportunities for Small Business, 2002. 

Finegan, Jay, “Sisterhood is Powerful,” Inc. Magazine, December, 1988. 

Gilman, Charlotte Perkins, Women And Economics, New York: Dover, 1998. (Originally 

published in 1898 by Small, Maynard and Company, Boston) 

Global Enterprise Monitor (GEM) Consortium, GEM Global Reports, 1999-2002. Reports 

available at http://www.gemconsortium.org. 

Gumpert, David, “Do We Really Need SBA?” Working Woman, October, 1985. 

Gutner, Toddi, “Finally, Credit where Credit is Due,” Business Week, June 26, 2000. 

Hart, David M. (ed.), The Emergence of Entrepreneurship Policy: Governance, Start-ups and 

Growth in the U.S. Knowledge Economy; Cambridge: Cambridge University Press, 2003. 

Hoff, Joan, Law, Gender And Injustice: A Legal History Of U.S. Women; New York: New York 

University Press, 1991. 

Interagency Committee on Women’s Business Enterprise 1995 Report, Expanding Business 

Opportunities for Women, 1996. 

Kamberg, Mary-Lane, “Business Owners: Are You Getting Your Share of Investment 

Capital?” Women In Business, Kansas City, September/October 2002. 
35

Kolbert, Elizabeth, “What Will Dubya Do?,” Working Woman, March, 2001. 

Kwolek-Folland, Angel, Incorporating Women: A History Of Women And Business In The 

United States; New York: Palgrave, 2002. 

Mistick, Barbara, “The Feminization of Entrepreneurship: A case for a Women’s Model in 

Fostering Economic development,” National Center for Women in Business, Seton Hill 

College, 1998. Full text at http://www.usasbe.org/knowledge/proceedings/1998/21-

Mistick.PDF

Moloney, Sheila A., “The Lady in Red Tape,” Policy Review, Heritage Foundation, 

September/October 1996. 

National Commission on Entrepreneurship (2002). American Formula for Growth: Federal 

Policy and the Entrepreneurial Economy, 1958 – 1998. 

National Commission on Entrepreneurship, Entrepreneurial Growth Companies: A Working 

definition of Entrepreneurship, 2000. 

National Commission on Entrepreneurship, Five Myths About Entrepreneurship: 

Understanding How Small Businesses Start and Grow, 2001. 

(http://www.renderx.com/~renderx/myths/en/part1.html) 

National Governors’ Association Center for Best Practices, A Governor’s Guide to 

Strengthening State Entrepreneurial Policy, 2004. 

National Women’s Business Council, Enterprising Women: The Legacy and the Future, 2003. 

National Women’s Business Council, Resource Guide: State Economic Networks for Women 

Business Owners, 2003. 

National Women’s Business Council and Interagency Committee on Women’s Business 

Enterprise, United States Case Study: Successful Public and Private Sector Initiatives Fostering 

the Growth of Women’s Business Ownership, 2000. 

Nelton, Sharon, “Women in Business: Showing Their Staying Power,” Nation’s Business, 

Washington, May, 1992. 

President’s Task Force on Women Business Owners, The Bottom Line, 1979. 

Weeks, Julie R., “States of Change,” Profiles, (UK) Spring/Summer 2003. 

Women’s Economic Summit 1998, The Master Plan, 1998. 
36

Appendix B: Web Resources 

http://www.awbc.biz

Association of Women’s Business Centers 

http://www.census.gov/prod/www/abs/economic.html

Census information 

http://www.census.gov/epcd/mwb97/us/us.html 

Census information, minority and women-owned business 

www.womensbusinessresearch.org

Center for Women’s Business Research 

http://www.smartagreements.com/bltopics/Bltopi69.html 

Community property states, information 

http://www.summercore.com/cp4/MDCondon.html 

Daughters of Liberty, description 

www.nawbo.org 

The National Association of Women Business Owners 

www.nwbc.gov 

The National Women’s Business Council 

http://www.OECD.org

Organization for Economic Cooperation and Development 

http://www.arnet.gov/Library/OFPP/PolicyLetters/ 

Procurement policy documents 

http://www.e-magnify.com/

Seton Hill University Education Center for Women in Business 

http://www.redstone.army.mil/sadbu/data/keysmall.doc

Small business acts, descriptions 

http://www.smartagreements.com/bltopics/Bltopi41.html

Truth in Lending Act , briefing 
37

www.WIPP.org 

Women Impacting Public Policy 

http://www.womenpresidentsorg.com/

Women Presidents’ Organization 

http://www.womenbiz.gov 

Womenbiz.gov: The gateway for women-owned businesses selling to the federal 

government 

www.WBENC.org 

Women’s Business Enterprise National Council 

www.sba/onlinewbc.gov

Women’s Business Centers site 

http://www.fayettenam.com/history/

Women’s history, American 

http://www.galegroup.com/free_resources/whm/index.htm

Women’s history, American 

http://college.hmco.com/history/readerscomp/women/html/wh_000106_entries.htm

Women’s history, American 

http://www.wic.org/misc/history.htm

Women’s International Center, “Women’s History in America.” 

http://www.womenspolicy.org/

Women’s Policy, Inc; a source of information on women’s issues in Congress 

Executive Orders and Policy Letters 

Executive Orders referenced in this document may be read in their entirety in the archives 

of the Federal Register, http://www.archives.gov/federal_register/index.html. 
38

The National Women's Business Council is a bi-partisan Federal advisory 

council created to serve as an independent source of advice and policy 

recommendations to the President, Congress, and the U.S. Small Business 

Administration on economic issues of importance to women business owners. 

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 Policy and Progress report was researched and written by SiloSmashers, a 

woman-owned, 8(a) Native American firm specializing in business transformation, 

project management, organizational change, communications and marketing 

services for both the government and commercial markets. The Communications 

Team has extensive experience in government communications and change 

management, and was responsible for development of the federal “E-Gov” brand. 

In 2003 SiloSmashers was named to the Washington Technology Fast 50, the "50 

hottest up-and-coming small businesses and 8(a) companies in the government IT 

arena.” 

The Timeline for Policy and Progress was designed by West +Associates, a womanowned marketing and design firm located in McLean, Virginia.