G e t ting to Success: 

Helping Women Business Owners 

Gain Access To Capital 

A Study of Best Practices in Access to Capital 

Training Programs for Women Business Owners 

T h e N a t i o n a l W o m e n ’ s B u s i n e s s C o u n c i l 

S e p t e m b e r , 2 0 0 2 
 

 

 

 

TABLE OF CO NTENTS
 

3 Execu tive Summary 

5 I n t ro d u c t i o n 

7 B a c k g round & Ra tionale 

8 Stu dy Meth ods 

1 0 P ro gram D escriptions 

2 1 Success S tories 

2 5 Best Practices 

2 8 Conclusi on & Reco mmendations 

2 9 Appe ndix A 

Study Programs In form a t i o n 
E X E CU T IV E SU M MA RY 

This report provides a snapshot of nine programs from around the country that offer training 

and opportunities for women entrepreneurs to obtain funding and access to capital for their 

businesses. These programs represent a number of geographic areas, diverse selection criteria, 

a variety of services, and a range of program sizes and client types. The services offered through 

these programs are a potentially important resource for women-owned businesses. According 

to the 1997 Economic Census, 38% of all U.S. businesses were owned by women in 1997 1 and 

the number and proportion of women-owned businesses has continued to outpace businesses 

owned by men. In spite of this documented lead, the proportion of women business owners 

who apply for private capital and credit, while increasing, continues to lag far behind that of 

male business owners. 

This study was undertaken to explore a select sample of programs that provide training and 

access to capital for women-owned businesses. Information about program duration, staff size 

and experience, success factors, and training courses offered was collected through literature 

review and key informant interviews. This information was analyzed to identify trends that 

may serve as a set of guidelines or best practices to inform similar programs about critical factors 

that are successful in helping women business owners obtain funding. 

1

Women Owned Business,1997 Economic Census, U.S.Department of Commerce, 2001. 

3 
The study procedures included a preliminary search of programs using web-based inquiries.
 

A number of factors including size, program age, and services offered were used to develop the
 

final list of nine programs, which included:
 

� ACCION New York 

� The Coleman Foundation 

� Dingman Center for Entrepreneurship 

� The Ewing Marion Kauffman Foundation 

� The Institute for Social and Economic Development 

� Minnesota Women’s Business Center 

� The Wachovia Corporation 

� Women’s Business Center of Northern Virginia 

� Women’s Growth Capital Fund.2 

Information from these programs was generated through further review and analysis of 

program materials as well as interviews with key program staff. The data were summarized 

and synthesized to identify cross-cutting trends and to determine a set of best practices. 

Attributes of best practices identified among this set of successful programs included: 

� Realistic expectations 

� Customer focus and feedback 

� Community linkages and involvement 

� Staff commitment 

� Staff experience and background. 

2

This Report is not an endorsement by the NWBC of any of the programs discussed herein. 

4 
I N T R O D U C T I O N 

It is becoming increasingly clear that the impact of women-owned businesses reflects impressive 

growth, in terms of not only the number of new start-ups, but also of relative growth and 

expansion of enterprises that reflect a broad diversity of products and services. The nature of 

these developments highlights the impressive strides made by women business owners. 

�	 As of 2002, there are an estimated 6.2 million majority-owned, privatelyheld women-owned firms in the U.S., employing 9.2 million people and 

generating $1.15 trillion in sales. 

�	 Between 1997 and 2002, the number of women-owned firms was 

estimated to have increased by 14% nationwide — twice the rate of all 

firms; employment increased by 30% — 1-1/2 times the U.S. rate; and 

sales grew by 40% — the same rate as all firms in the U.S. 

�	 Women-owned firms continue to diversify into all industries. 

Construction, manufacturing and transportation have seen the largest 

recent increases, although services and retail still make up the largest share 

of women-owned firms.3 

Although the proportion of successful, emerging women-owned businesses is clearly increasing, 

women-owned businesses continue to apply for and to receive a relatively low proportion of 

funds from the financial industry. NFO WorldGroup, a worldwide leader in market research, 

recently released a study 4 that concluded that women who run businesses believe banks are less 

willing to lend them money and therefore turn to personal credit for funding. “Twice as many 

women than men have reported difficulty in obtaining credit in the past six months,” according 

to Maria Erickson, Executive Vice President, NFO Financial Services. “As a result, an alarming 

one-third of these women are turning to credit cards or personal loans as a solution for meeting 

their credit needs more easily, and in some cases, less expensively. The results of this study indicate that many successful women small business owners do not feel confident that the banking 

industry is interested in supporting their needs.” 

This finding, which supports data generated in a similar survey conducted in 2000, indicates 

little change in the way women business owners fund their businesses. The previous survey 

determined that fewer than one in five (18.4%) women business owners had working capital 

lines of credit in 1997 and that women business owners still accounted for only one in five of 

SBA 7(a) loan holders in 2000. 5 By contrast, male business owners continued to attract the vast 

3

Center for Women’s Business Research,Key Facts,as cited on the web site www.nfwbo.org 

4Women Still Lack Access to Capital, NFO WorldGroup Press Release, as cited on the web site www.wahmpeneur.org, 

April 15, 2002. 

5

Women in Business 2001,published by the Small Business Administration, Office of Advocacy, October 2001. 

5 
majority of equity investment dollars, being perceived as having the right experience, better 

business plans, and an established force in the ve n t u re capital industry. In spite of the exc e p t i on a lly 

high business growth experienced over the past decade, women-owned businesses have not fared 

nearly as well as have male-owned businesses in terms of procuring capital and working assets. 

A recent study by the Center for Women’s Business Research6 illustrates the current reality of 

women-owned businesses. Using national databases to track business growth and productivity, 

the study generated the following results. These findings clearly support the fact that, while 

women-owned businesses may continue to be under-represented in terms of financial assistance, 

this condition has not hampered their rate of growth: 

�	 Women-owned firms continue to grow at a faster rate than all U.S. firms. 

�	 The number of women-owned firms with 100 or more employees 

increased by 43.9% during the period of 1997 to 2000 — three times as 

fast as all women-owned firms and achieving almost twice the growth of 

all firms with more than 100 employees. 

�	 The number of women-owned firms with $1 million or more in revenues 

has grown by 31.6% in the 1997 to 2000 period and the number of 

women-owned firms with revenues exceeding $10 million has grown by 

36.8% during the same period. 

�	 Start-ups by women are also on the rise with one-third of all womenowned businesses being less than four years old. The sectors represented in 

the past three years predominantly comprise firms in the health services, 

retail trade-general merchandise, finance/insurance, and business sectors. 

�	 Women-owned firms continue to be as financially strong and creditworthy 

as the average U.S. firm. On three separate and distinct measures — 

bill payment, financial stress, and overall creditworthiness — there is no 

significant difference between the scores registered by women-owned 

businesses and those of average U.S. firms. 

Having achieved such stellar outcomes in spite of their lack of participation in traditional 

funding programs, one can only imagine what may be possible for women business owners who 

do apply for and receive their portion of the equity investment dollars currently being funneled 

to their male counterparts. 

6

Removing the Boundaries:The continued progress and achievement of women-owned enterprises. 

Center for Women’s Business Research, November 2001. 

6 
 

 

B AC K G R O U N D & R A T I O N A L E 

The trends cited above indicate that women-owned businesses continue to show high levels of 

growth and expansion in the U.S. in almost every business sector and federal region. However, 

while women-owned businesses, and their owners, continue to demonstrate success, the studies 

cited demonstrate that women entrepreneurs, especially those in start-up companies, continue to 

assume they are not eligible for business loans and lines of credit. 

Having observed these documented trends, the National Women’s Business Council (NWBC) 

decided to seek information on a selected number of programs around the country that help 

train current and potential women business owners on how to obtain business funding. Noting 

that, in spite of demonstrated rapid growth and comparable creditworthiness, women-owned 

businesses continue to receive significantly less funding than their male counterparts, the 

NWBC sought to examine selected training programs and document activities that are helping 

women business owners gain access to capital. These successful activities would be distilled into 

a set of best practices designed to guide organizations seeking to establish or improve their 

e f f o rts to help wom e n - owned business owners access the funds they need to grow their businesses. 

7 
S T UD Y M E T H O DS 

The focus of this study was to identify programs that offer women business owners training and 

other support for obtaining access to capital. When considering which programs to examine, the 

primary criterion for inclusion in the study was the intent to provide women-business owners 

the tools they need to obtain access to capital. In many cases, the programs considered provided 

a range of services for entrepreneurs that went beyond training for successful access to capital. 

The primary study objectives were: 

�	 To identify existing programs that focus on helping women entrepreneurs 

gain access to capital 

�	 To determine the best practices of the programs based on program 


success parameters
 

�	 To synthesize this information into a set of recommendations for 


successful program development.
 

To achieve these study objectives, Synthesis Professional Services (Synthesis) conducted a search 

and review of existing programs, consisting primarily of web-based inquiries. These activities 

resulted in identification of hundreds of programs that offer a variety of services ranging from 

providing clearinghouse information and resource identification to entrepreneurial training and 

networking opportunities. 

8 
Based on an initial review of program activities, Synthesis identified a preliminary set of 

programs for further review. A number of programmatic variables were considered and a set of 

critical primary variables was selected as the criteria for identifying nine programs that served as 

the focus for the study. These nine programs cut across the primary variables determined to 

provide the best snapshot of current Access to Capital programs for study purposes, including: 

� Program age 

� Funding source(s) 

� Range of services offered 

� Number of clients served 

� Primary financial sector. 

The use of the Internet allowed for an efficient and relatively comprehensive search strategy. 

Initially, it was thought that using the web as the primary method for identification and selection may result in a bias toward those programs with web pages. However, while reviewing the 

sheer number and diversity of programs resulting from the searches it became clear that these 

results were representative of existing programs. 

The nine programs selected for inclusion in the study include: 

� ACCION New York 

� The Coleman Foundation 

� Dingman Center for Entrepreneurship 

� The Ewing Marion Kauffman Foundation 

� The Institute for Social and Economic Development 

� Minnesota Women’s Business Center 

� The Wachovia Corporation 

� Women’s Business Center of Northern Virginia 

� Women’s Growth Capital Fund. 

A matrix listing each program, its website address, and a short description of program services is 

included in Appendix A. 

After selecting the nine programs according to the established criteria, Synthesis conducted a 

thorough review of each program using available online materials supplemented by key informant interviews. The information collected covered a range of topics including organizational 

descriptive variables, types of media used to disseminate program information, services provided, 

sources of funding, and client activities and outcomes. 

9 
P R O GR AM D ES CR I P T IO NS 

In this section, we provide a brief description of each of the nine programs selected for this 

study. Particularly when discussing larger programs that feature diverse offerings, we focus on 

activities designed to support women business owners with training on access to capital.The 

depth and breadth of the services offered by these programs vary considerably. Several programs, 

such as the Kauffman Foundation and the Women’s Growth Capital Fund, provide services 

on a nationwide basis, while others work with entrepreneurs within a specific large geographic 

region, such as the Coleman Foundation and the Wachovia Corporation. Some programs are 

state-based, like the Institute for Economic Development and the Dingman Center for 

Entrepreneurship, while others, including the Women’s Center of Virginia and the Minnesota 

Women’s Business Center, exist to serve selected local communities. 

Three of the nine programs selected, Women’s Business Center of Northern Virginia, Institute 

for Social and Economic Development, and ACCION New York, offer services that target 

low-income populations. Other programs such as the Dingman Center of Entrepreneurship 

are available to all interested parties. Some programs, such as the Kauffman Foundation, 

disseminate training and other support using the Internet, while others, like the Coleman 

Foundation, only fund grass roots efforts by other organizations that deliver these services. One 

program in the study, the Women’s Growth Capital Fund, is extremely selective, but provides 

actual funding and director-level support to the women-owned firms who meet their criteria. 

Despite these differences in size, scope, and focus, most programs are very similar in their 

philosophy, enthusiasm, and commitment to helping the women-owned business community. 

While the information requested in our review process covered specific data about numbers of 

applicants/clients, numbers of loans, and loan amounts, many programs do not collect these data 

and were not able to provide this information.Therefore, quantitative data are reported wherever 

possible, although they were not consistently available across all study sites. 

10 
ACCION New York Program 

ACCION International is a worldwide organization, active in the U.S., Latin America, the 

Caribbean, and Africa, whose mission is to give people the tools they need to escape poverty. 

The organization and its lending partners provide micro loans, other business loans, and 

business training to men and women starting and growing their own businesses. A hallmark of 

its programs is their ability to foster a consistent mission, philosophy, and set of service offerings 

carefully tailored to the specific needs of the target populations served in a particular area. 

Founded in 1991, ACCION New York, a partner program of ACCION International, has 

grown to become one of the largest micro lending programs in the country. During the decade 

since its inception, this Program has facilitated more than 3,840 loans totaling $16.8 million to 

clients described as 45% female, 75% Spanish-speaking, and 55% low-income. The Program 

practices “stepped” lending of loans ranging from $500 to $25,000, starting clients off with 

small loans and graduating to larger amounts as their businesses grow. In recognition of its 

achievements and its innovative approach to providing capital to New York City entrepreneurs, 

ACCION New York was awarded the Presidential Award for Excellence in Microenterprise 

Development in 1996. 

The program staff is comprised of twelve directors and loan officers with backgrounds in 

community development, finance, and marketing. The program is marketed through a number 

of efforts, including publicity by Volunteers in Service to American (VISTA) volunteers working 

in the community, a local newsletter, and information posted on community information boards. 

In fact, a new initiative, Street Reach, has been introduced. This program puts loan officers, 

equipped with laptops and cell phones, on the streets to meet the needs of local business owners. 

The Program maintains a strong referral network with partner organizations that also provide 

services to support small business owners starting or expanding their enterprises.These services 

range from assistance in creating financial and marketing plans to help solving legal issues and 

other specific business problems. In most cases, services are provided free of charge from among 

more than thirty local partner organizations including: 

� American Woman’s Economic Development Corporation 

� The Boricua College Small Business Development Center 

� New York Association of New Americans 

� The Queens Overall Economic Development Corporation 

� The Small Business Development Center at Lehman College. 

11 
The Coleman Foundation 

The Coleman Foundation (Foundation), founded in 1951 in Illinois, has long supported efforts 

by women and minorities who wish to establish their own companies. The Foundation has 

provided support in a number of venues, including entrepreneurial education and awareness, 

for the past 20 years. The philosophy of the Foundation assumes certain characteristics to be 

essential to entrepreneurial development. This is reflected in their focus on “a commitment to 

the principles of self-determination, self-reliance, self-respect, and individual initiative.” 

Since 1981, the Coleman Foundation has granted over $24 million to support educational 

and community programs that promote awareness of entrepreneurship as a career choice. The 

Foundation staff consists of six board members and four full time staff members coordinating 

and operating the day-to-day activities. Foundation staff visit classrooms and communities 

throughout the country making presentations and routinely serve as resource and referral agents 

for development and delivery of foundation-sponsored programs. Typically, the Foundation 

funds agencies and organizations that support grass roots and small business promotion 

initiatives. Grantee agencies funded in 2001 include: 

� Purdue University, Calumet 

� Accion Chicago 

� The Center for Entrepreneurship, New Mexico 

� Active Pursuit for Entrepreneurial Excellence 

� Women’s Small Business Development Center 

� Entrepreneurial Education Foundation 

� Heartland Institute 

� Illinois Business Hall of Fame 

� Illinois Business Week Illinois CPA Society 

Recently, the Foundation Board of Directors has decided to work with the United States 

Association of Small Business and Entrepreneurship to continue its efforts to support 

entrepreneurship options for women and minorities. This joint initiative will replace the 

Foundation’s national Entrepreneur Awareness and Education Grants program but will 

ensure the same level of support for these important initiatives. 

12 
Dingman Center for Entrepreneurship 

The Dingman Center, located within the University of Maryland in College Park, Maryland, 

was founded to “advance, support, and encourage entrepreneurship and new venture growth 

through outreach, education, and research.” Established in 1986, the Dingman Center is 

currently staffed by ten professionals with experience in academia and the business community 

and is linked to the University of Maryland’s School of Business. The program’s services and 

activities are publicized through community newsletters, posters on campus, and through 

business networks and organizations in Maryland. 

The Dingman Center offers a number of free and low cost services to entrepreneurs, including a 

clearinghouse of information on business, government, and financial organizations that support 

small business. Although the Dingman Center accepts all interested entrepreneurs, women 

business owners are encouraged to participate and comprise slightly more than half of Dingman 

Center clients. While the Dingman Center is linked to the University of Maryland, staff also 

cultivate close ties within the non-academic business community, hosting a number of outreach 

programs that bring entrepreneurs together with local business members. 

Among the programs offered is the Mentor program, which currently boasts participation of 

more than 200 mentors from a broad range of business backgrounds with an average of 20 years’ 

experience. Mentors are available to provide advice, networking opportunities, and training in 

business plan development. A nominal fee is charged for participation in this program, which 

continues as long as mentors and their protégés deem necessary. Typically, protégés continue to 

meet with mentors well beyond the company start-up phase to take advantage of their advice 

as the business proceeds through its first stage. 

Membership in the Baltimore/Washington Venture Group is also available to Dingman Center 

clients for a small fee.This program helps introduce entrepreneurs to sources of business capital, 

professional services, and management team candidates and offers training in access to capital 

topics like fund negotiation, financial planning, and how to issue an initial public offering 

(IPO). Similar services are offered through the Dingman Center’s Private Investors Network. 

This Network provides business plan review and offers new entrepreneurs advice on how to 

present their ideas to investors. 

13 
Ewing Marion Kauffman Foundation 

The Ewing Marion Kauffman Foundation (Kauffman Foundation) is a national non-profit 

organization based in Kansas City, Missouri, whose Center for Entrepreneurship was founded in 

1992. Since that time, the Kauffman Foundation has succeeded in providing assistance, training, 

and support to women business owners through a range of programs, research, and educational 

initiatives. The Kauffman Foundation’s activities reflect an impressive breadth and depth of 

expertise focused on helping entrepreneurs start and grow their businesses. 

The Kauffman Foundation support services are organized into six primary areas, including 

entrepreneurship training for youth, for college students, and for adults, as well as policy and 

research. As part of its research mission, the Kauffman Center for Entrepreneurial Leadership 

recently co-sponsored, The Diana Project, a multi-year study of women business owners and 

business growth activities. 

The Kauffman Foundation’s area of adult entrepreneurship offers a number of web-based sites 

designed to help women business owners who can choose training support appropriate to their 

specific business needs. A sample of these sites includes training and information on specific 

business arenas as well as general entrepreneurial issues: 

�	 Developing Your Child Care Business — In partnership with child care 

resource and referral agencies, this program incorporates entrepreneurship, 

community support, and early childhood development to help familybased child care providers launch and sustain viable businesses. 

�	 EntreWorld — A clearinghouse of more than 1,000 articles on
 

small business development that target topics most helpful to 


small business start-ups.
 

�	 FastTracTM — A series of courses offered throughout the country that 

provides training, experience, and support in business planning, loan 

application, and business expansion. These courses are taught by 

experienced business professionals and are designed to foster mentoring 

relationships with small business owners. 

�	 Kansas City Initiatives — A series of programs based in the Foundation’s 

home city, these initiatives cover a range of available service offerings such 

as creation of local mentoring programs, development programs targeted 

at growing local small business IT firms, and raising awareness of the 

business achievements of Kansas City’s African American community. 

The foundation is linked to universities and communities throughout the country. 

14 
 

Institute for Social and Economic Development 

The Institute for Social and Economic Development (ISED) is a non-profit organization, 

founded in 1987, that offers a range of services designed to help disenfranchised people enter 

the economic mainstream and create a solid economic future. Headquartered in Coralville, Iowa, 

ISED operates branch offices in five other Iowa cities as well as in Utah, Arkansas, New York, 

Nebraska, and Delaware. The Institute is funded through a variety of sources including grants 

from government agencies, foundations, and corporations; service support contracts with 

organizations and agencies; and contributions from private individuals. It is staffed by 

14 professionals with backgrounds in finance, business, and marketing. Most staff are located 

in Coralville, although they provide services throughout Iowa and the ISED’s satellite offices. 

ISED’s primary mission is to strengthen the social and economic well-being of individuals and 

communities. Objectives that support this mission include provision of life skills training, job 

training, asset accumulation, and microenterprise development. Delivered in the state of Iowa, 

the microenterprise development program offers technical assistance on the skills needed to 

start, expand, and strengthen small businesses to low-income people and residents of distressed 

Iowa communities. One critical goal of this effort is to help clients access the capital they need 

to grow their businesses. According to the most recent available statistics, 127 clients received 

microenterprise training and 43 of these actually started a business during FY99. Commercial 

loans were the primary source of start-up funds for these entrepreneurs. Loan amounts ranged 

from $200 to $150,000, reflecting the diversity in funds needed to start different types of small 

businesses as well as client abilities to successfully borrow these funds. 

Program services are provided through a number of venues and mechanisms. Applicants qualify 

for ISED microenterprise assistance based on a sliding income scale ranging from below 

$16,000 for a single person household to a maximum of $57,300 for a household with 8 people. 

Qualified applicants receive training in market research, business feasibility, and financial 

planning. Service offerings are tempered by assessment of a client’s realistic understanding and 

c om m on-sense appro a ch to operating a small business. Tools available to clients include materi a l s 

for developing a business plan, classes and consulting by professionals allied with the ISED, and 

access to mentoring and consulting throughout the client’s business life cycle. The program also 

offers a self-administered questionnaire available through the center or online. This resource 

helps applicants explore basic issues involved in starting a small business and offers a series of 

exercises to help potential applicants assess whether self-employment is a viable option for them. 

The guide also provides tips and strategies for determining a business’s financial requirements 

and presents the essential elements for a business plan. 

15 
 

Minnesota Women’s Business Center 

Minnesota Women’s Business Center (Minnesota WBC) is located in northwestern Minnesota 

and serves a thirteen county area in a predominantly rural location. Founded in 1998, with a 

five-year sustainability grant from the SBA, the center is staffed by four women, three full-time 

and one part-time staff. In addition to paid program staff, the Minnesota WBC also encourages 

and employs local volunteers. As with most of the nine programs in the study, paid staff have 

backgrounds in management and business that foster credibility among their target womenowned business clients. 

The Minnesota WBC offers a range of services designed to help women-business owners 

develop effective business plans to support their business loan applications. Primary services 

include classes and workshops in business plan development as well as consulting and 

one-on-one mentoring that deal with all aspects of the loan application process. 

Fall and winter tend to be the busiest times for the Minnesota WBC, when most clients enroll 

in programs or visit to explore the possibility of receiving grants and training. Minnesota WBC 

staff report that a primary focus of many client visits is to seek assistance for their plans to 

open service or retail shops. Although the Minnesota WBC is open to anyone interested in 

entrepreneurship or loan application training, after initial inquiries and information gathering, 

the number of serious clients remaining in the program has hovered around ten women each 

year. While this number may seem low, the Minnesota WBC has had considerable success with 

clients qualifying for bank, SBA, and micro-lender program loans. Minnesota WBC staff report 

that they’ve been able to procure more than ten loans for their applicants, which represents some 

considerable success in light of their rural location and the cyclical nature of their program. 

Another noteworthy feature of this program is the local community support it receives. Local 

m e rchants and business people ro u t i n e ly donate both time and free adve rtising to support pro g ra m 

initiatives. These donations help maintain effective mentoring services and supplement program 

promotional materials and print advertising used to generate awareness about the program. 

16 
 

The Wachovia Corporation 

The Women’s Program at Wachovia (Women’s Program) was begun in 1999 with a corporate 

commitment of $5 billion to be loaned to women-owned businesses over a ten year period. 

Wachovia Bank, recently merged with First Union, is headquartered in North Carolina and 

primarily serves the mid-Atlantic region of the U.S. The Program is administered by one 

full-time employee who oversees its operations as part of her job as Director of Emerging 

Growth Markets. 

The intent of the Women’s Program is to serve all small business applicants; however, it focuses 

on women-owned businesses by offering services from training and forums to business planning 

workshops.The program’s services are promoted through its web sites as well as in the outreach 

activities and forums that the Corporation sponsors and attends. The Program promotes its 

approach as holistic — that is, providing support for the entire business life cycle, from start-up 

though maturity. According to Wachovia staff, this is especially important to women business 

owners because they believe the capital life cycle for women-owned businesses is longer than 

that for men. 

The program is advertised through a number of venues, in addition to the Wachovia web site. 

Wachovia participates in a range of grass roots forums and local functions that help publicize the 

Women’s Program services. The corporation also advertises in Enterprising Women magazine 

and has formed alliances with the National Alliance of Women Business Owners (NAWBO) 

and other national organizations. 

Wachovia’s Program is targeted toward women whose businesses have been operational for 

one to two years — those with at least a short track record. For clients with new business 

ventures, Wachovia assists owners with applications for SBA and other government-sponsored 

loan products. In order to ensure its customer focus, Wachovia implements a broad range of 

customer feedback mechanisms, including liaison with regional NAWBO champions on a 

regular basis, p e riodic surveys and question n a i res sent to small business cl i e n t s , and opport u n i t i e s 

for networking at the many forums in which they participate. 

17 
 

Women’s Business Center of Northern Virginia 

The Women’s Business Center of Northern Virginia (NoVa WBC) was founded in January 

2001. The NoVa WBC targets primarily low-income women interested in exploring the 

possibility of owning their own business. It is staffed by two full time women with extensive 

small-business and managerial experience, including leadership roles in entrepreneurial, 

corporate, and non-profit settings. The program’s services are promoted through local 

advertising (which is typically donated by community businesses), and posters and bulletin 

boards located throughout the Northern Virginia area. 

According to NoVa WBC staff, many clients are somewhat naïve about the prospect of owning 

their own business. They are typically exploring their options and often enroll in courses without 

a solid sense of their objectives. A noteworthy hallmark of this program is its emphasis on 

helping women understand what owning a business entails so they can make an informed 

decision about this career option. While staff are enthusiastic about helping women realize 

e n t re p reneurship opport u n i t i e s , t h ey are also pointedly realistic about client aptitudes and attempt 

to provide appropriate counsel in light of their assessment of the client. This commitment to 

realism helps keep program activities geared to an appropriate level for each client. Program staff 

are equally realistic about funding referrals, considering carefully whether a specific client should 

attempt to generate funds to start a business. When generating funds is considered a viable 

objective, the NoVa WBC typically promotes loans rather than grants for seed money. 

The Center offers assistance in three primary areas ranging from the most basic to the most 

advanced entrepreneurship topics: Introductory Entrepreneurial and Small Business Training, 

the Toolkit Series, and Business Plan Development Training. A fourth class, comprising 12 

weeks of training to develop a business plan, is also offered, but is not part of the primary 

sequence. Courses are offered to applicants at minimal costs on a sliding scale based on HUD 

guidelines and most clients receive scholarships that cover the entire cost of the training. 

According to center statistics, an approximately 50% attrition rate occurs from one level to the 

next for the courses in the primary sequence. However, nearly one in four of the 30–50 clients 

who enroll monthly complete the entire course sequence. Considering that the NoVa WBC 

has been operating for less than two years and that many in this client population are in an 

information-seeking stage, this number is quite impressive, indicating that clients are receiving 

useful information in this training. 

18 
In addition to the formal classes, the NoVa WBC also offers training on social networking skills 

and one-on-one counseling. These services are generally performed by local accountants, attorneys, and other business professionals who donate their time and skills. The NoVa WBC also 

maintains a database of professional referrals and resource partners from the community who are 

willing to help support the program. 

Acting on feedback from other client centers that indicates that women in their target audience 

tend to be intimidated by a formal business setting, the NoVa WBC prides itself on having 

created a “homey” atmosphere for their program, which even includes an activity corner where 

clients’ children can play. The NoVa WBC generates program awareness through Web-based 

announcements and sales of a community-based calendar they produce but relies primarily on 

word-of-mouth to promote their services. 

Women’s Growth Capital Fund 

Founded in 1997 in Washington, D.C., the Women’s Growth Capital Fund (Fund) is a Small 

Business Investment Company Program whose mission is slightly different from other programs 

discussed in this report. As a venture capital firm funded by a group of institutional investors, 

this fund provides venture capital to women-owned firms that have been in business for at least 

two years, have revenues of at least $500,000 and have submitted a business plan that supports a 

projected annual growth rate of at least 20%. The program also offers second phase capital to 

those women-owned companies who have passed the start-up phase and are planning for 

growth and expansion. 

Operating costs for the Women’s Growth Capital Fund are funded through U.S. Small 

Business Administration (SBA) grants as well as a percentage of investment capital. It is staffed 

by four professionals: three directors and a business manager who have backgrounds in finance, 

marketing, business and law. If a firm is selected as a client, one of the three directors is 

assigned to sit on the company’s board and offers hands-on, continuous training and advice. 

This ongoing relationship between investors and client companies is considered an important 

hallmark of the program. 

Given the current downturn in financial markets, the Fund is doing quite well. It is currently 

fully subscribed with nine active companies being funded. Since 1997, seven of the original 

companies that were funded are still operating. The Fund confines promotion activities to its 

website. Fund staff report applications numbering in the thousands after their most recent 

announcement seeking potential clients, from which the nine current client firms were selected. 

Experience has shown that when news of available capital arises, there is no need to advertise 

since business owners tap into their own networks to receive information. 

19 
Based on the number of applications received and the number of firms funded, the Fund’s client 

acceptance rate is very low — approximately 1%. However, even if a firm is not selected, the 

Fund does provide business advice and materials to help applicants procure other funding. 

Links to other organizations and funding institutions are available on the Fund’s web site. 

At its inception, the Fund solicited clients from firms located across the country and currently 

invests in two companies located in California. However, as applications from the Mid-Atlantic 

region in which the Fund was founded increased, Fund staff decided to focus primarily on firms 

based in the Mid-Atlantic in order to simplify associated program logistics. This program is 

considered to be an overwhelming success because it is fully subscribed. Since it typically takes 

approximately five years for companies to show a profit after expansion or growth, Fund staff 

and investors feel confident that the nine original client companies will realize a profit in 2003. 

20 
S U C C ES S S T O R I E S 

The following success stories illustrate ways programs included in this study have positively 

influenced their women business owner clients.7 

ACCION New York’s microenterprise program has helped more than 3000 low income 

New York City residents access capital for business startups and expansions. 

�	 Nearly 20 years ago, Uvalda left Mexico to seek promised economic 

opportunity in the United States, but she found only seasonal employment 

and wanted more for her family. With a reputation as a great cook, Uvalda 

looked for space to open a restaurant and a loan to get started. With a loan 

of $1,500 from ACCION New York, Uvalda was able to build a small 

kitchen and counter in a garage to replace the trailer where she had started 

her business. She subsequently moved to a 10-seat restaurant which was 

such a success that she recently moved to a 70-seat restaurant that she was 

able to afford with 5 years of savings and another ACCION New York 

loan. Uvalda now employs 10 people and is expecting her sales to double 

to $500,000 next year. 

7 These stories were obtained from program websites.
 

For additional success stories,please visit the websites of the programs discussed in this report as provided in Appendix A.
 

21 
 

The Ewing Marion Kauffman Foundation developed a training resource, “Developing Your 

Family Child Care Business,” that is offered through Heart of America Family Services in 

Kansas City. The program’s goals are to increase the number of child care businesses, the 

long-term viability of the child care business, and the number of businesses and community 

resources that support family child care. 

�	 Veda was already involved in providing child care but, like many small 

businesses, needed help to improve her business cash flow. She sought out 

the Kauffman Foundation curriculum, which consists of 24 hours of 

training that covers a number of topics such as helping providers create a 

business plan, providing panels of experienced providers for discussions, 

offering sample budget and cash flow worksheets, and suggesting ways to 

find and access other community resources.Through the Kauffman course, 

Veda learned how to improve her cash flow along with creative ways to 

find the funding assistance her business needed. 

The Institute for Social and Economic Development fosters microenterprise development as 

a strategy to alleviate poverty. The collaboration between ISED and the state of Iowa has helped 

literally hundreds of Iowans achieve their dreams of self-employment with loans of up to 

$35,000 to start small businesses. The following two stories are examples of the success ISED 

has achieved in Iowa. 8 

�	 Amy was a single mother with three children who had a degree in Child 

Development and a desire to open a child care business. After leaving her 

m a r riage to an abusive husband, Amy went on welfare but also applied for and 

received training from ISED that resulted in a $35,000 loan. She used these 

funds to open the first commercial day care center for infants and pre-school 

children in her town. Within three months the center was at full capacity 

and currently has six employees. In 1998 the business grossed $100,000. 

In 1999, the owner received the welfare-to-work award from the SBA. 

�	 Rhonda was married with a young son but was forced to go on public 

assistance after her husband was sent to prison. In order to make a living, 

Rhonda decided to take advantage of her background as a gymnastics and 

dance teacher and open a dance studio. After finishing her business plan 

with help from ISED, she applied for a loan but was told she had no 

collateral. Her mother put her car up for collateral and ISED provided the 

bank with a guarantee. Rhonda opened her studio more than six years ago 

8 Realizing the Dream: Microenterprise Development as a Welfare-to-Work Strategy in Iowa. Institute for Social and 

Economic Development. 

22 
and currently offers a variety of dance instruction for both children and 

adults. In 1999, Rhonda went to Washington, DC with ISED to accept 

the Presidential Award for Excellence in Microenterprise Development. 

Although Wachovia’s Women’s Program9 has only been in existence since 1999, it has already 

helped develop a number of successful business initiatives owned by women. 

�	 Ten years ago Laura Matrisciano bought 82-year-old Fritz Moving 

Company from the granddaughter of the original owner, Harry Fritz, 

who was known for having offered the first enclosed moving van in 

Berks County, PA. As the first non-family owner, Matrisciano injected the 

business with a fresh supply of energy, enthusiasm, and will to succeed. 

Today Matrisciano is on the move, providing local, national, and 

international moving and storage services to residential, commercial, and 

industrial customers. “During the past 10 years I've come to realize just 

how difficult it is to own a business. Many entrepreneurs rely on their own 

personal area of expertise to guide them. But that in itself is not enough. 

The program has provided us with professional services and addressed our 

individual needs. They have always been our banking partner, which has 

helped us to continue our growth,” notes Matrisciano. The company is a 

recent recipient of Mayflower Transit’s “Circle of Excellence Award.” 

The award is given to a select group of agents that excel at providing 

quality service as determined by their customers. The company is proud of 

its consistent ranking in the upper 10% of Mayflower agents nationwide. 

�	 Joan Donnelly and Renee Datz met for the first time in a math class 

10 years ago. Donnelly, a teacher for 19 years, was taking the class to help 

meet teaching certification requirements. Datz was just beginning a career 

as a mechanical engineer. Soon after they met, the two women decided to 

start a new business together. Still working days at their full-time jobs, in 

the evenings they began remanufacturing — or recycling — laser printer 

toner cartridges on a table in Donnelly’s living room. Today, what started 

as a moonlighting opportunity has blossomed into a $3.25 million 

business. Future objectives include a commitment to spend increasing 

time, energy, and training dollars on service-related activities and exploring 

the idea of selling and servicing document-management software and 

related equipment to support the “paperless” office concept. 

9 Wachovia and First Union Bank have recently merged and further information about the program can be found at 

www.FirstUnion.com. 

23 
The Women’s Growth Capital Fund selects its recipients from among thousands of women 

business owners with a business track record of at least two years and annual receipts of at 

least $500,000. 

�	 Cylex,TM Inc., founded in 1992 as Biotechnology Transfer, Inc. (BTI) 

by Dr. Marjorie Wier and Peter Sottong, is a bioscience company that 

develops products that allow physicians to measure the immune response 

of patients receiving immunosuppressant therapy for organ transplantation. 

Initially, the company provided consulting and contract research services to 

industry and academia. Cylex was selected as one of nine clients among 

thousands who applied to the Women’s Growth Capital Fund. Their 

patented technology provides an innovative approach for measuring 

immune activity in transplant, AIDS, and cancer patients, and those with 

other infectious diseases and autoimmune disorders. In April 2002, Cylex 

announced that it had received Food and Drug Administration (FDA) 

clearance for the CylexTM Immune Cell Function Assay, a test that 

improves upon other available assays because it is easy to perform, results 

are available within 24 hours rather than several days, and it uses only a 

small amount of whole blood. The Cylex assay is the first product cleared 

by the FDA for measuring global cell-mediated immunity. 

24 
B E ST PR A C TI CE S 

In many ways, the best practices identified while reviewing these programs reflect the same 

attributes the programs foster in their training, philosophy, and service delivery. They include: 

� Community Liaisons 

� Customer Focus and Attention to Feedback 

� Realistic Expectations 

� Staff Commitment 

� Staff Background and Experience. 

Each of the practices discussed below are present in varying degrees in each of the nine 

programs included in this study and are seen as necessary elements for defining training for 

access to capital program success. 

C o m m u n i ty L ia is o ns often become important extensions of the support provided by 

program staff. Partner organizations and local community service agencies with similar target 

audiences can often reach potential clients more efficiently than would otherwise be possible, 

regardless of advertising budget. Partners working together toward shared goals create synergies 

that result in effective mentoring programs and client access to a broad range of business 

expertise. Volunteers from local communities provide logistical and administrative support as 

well as legal, accounting, marketing, and other strategic business support that is considered 

indispensable by each of the nine study programs. Salaried staff report that these volunteer 

skills not only provide critical training and support, but also act as real-world examples that 

help enhance program credibility. Community support typically extends beyond skill sets and 

extra bodies, however. Many programs report receiving space and facilities, free advertising, 

and even office supplies from local businesses and partner organizations. 

25 
Cli en t Foc us and A t te n ti on t o Fe e d bac k are also seen as critical to the success of these 

programs. While constantly emphasizing these values to their clients, successful programs heed 

their own advice when developing access to capital training programs. One striking example 

of this is the conscious decision by the Women’s Center of Northern Virginia to design and 

decorate their center to make it homier and less intimidating to their clients — low-income 

women determining whether entrepreneurship may be a good career choice. Similarly, the 

Wachovia Corporation and the Dingman Center demonstrate their understanding of the typical 

entrepreneurial personality by offering holistic skills training that supports all phases of the 

business life cycle, providing the experience and perspective clients need to ensure business 

success well beyond start-up. This strategy helps these programs establish a solid client base 

while promoting success of the enterprise over time. 

Successful programs encourage and benefit by continual client feedback and tailor their 

training, strategies, and funding sources accordingly. The Wachovia Corporation, the Coleman 

Foundation, and the Kauffman Foundation, each large regional and national organizations, 

rely on representatives outside each organization’s headquarters to provide information on 

program content and applicability. The resulting feedback is acknowledged, analyzed, and used 

to revise products and procedures as indicated. On a local scale, successful programs adapt as 

the economy expands and contracts to offer training and resources that reflect client needs in 

the specific markets they serve. 

Whether programs support clients on a local or national scale, effective client communications 

are ensured through mechanisms such as Web-based communications, meetings and 

conferences, customer satisfaction surveys, and newsletters that help gather feedback necessary 

to maintain effective client focus and program success. 

R e a l i s ti c Expe c ta ti o n s are considered critical to establishing actionable, achievable program 

objectives, effective training curricula, and overall program credibility. The programs presented 

here implement a range of different tools and techniques to assess applicant aptitude for starting 

and running a successful company as well as a defined set of criteria to obtain funding. Providing 

one-on-one mentoring with an established businessperson or offering a toolkit containing items 

to measure business acumen are some of the ways these programs ensure that women business 

owners are working toward achievable goals. Several members of various program staff made 

remarks to the effect that their program, “was not in the business of giving away government 

grants like that man in the commercial would have you believe.” In fact, successful programs 

often go out of their way to dispel these myths, understanding that it is in their best interest to 

help applicants understand the rigors of owning a business. 

26 
S ta f f B ac k gr ou nd a nd Exp er i e n c e are often cited by clients who measure program 

credibility by the degree of staff experience in business, especially in marketing and finance. 

Hands-on experience allows staff members to speak knowledgeably about the time and effort 

required to start or grow a business and ways to overcome funding obstacles that can mean the 

difference between success and failure due to cash flow issues. 

S ta f f C o m m i tm e n t is evident from the enthusiasm and dedication virtually all program 

staff express about their programs and the pride that shows when they boast about their clients’ 

accomplishments. Clearly, many staff members interviewed perceive their positions, not as 

jobs, but as vocations that allow them to help women work their way out of poverty or, in true 

entrepreneurial spirit, to share a client company’s success through expansion or an IPO. 

Discussions with staff reveal a tendency to literally work overtime exploring strategies for 

increasing resources, expanding their client base, and keeping up with trends that impact their 

work. The nature of these programs demands that staff members be entrepreneurial to be 

effective resources for the entrepreneurs they serve. 

27 
C O N C L US I ON & RE C OM M E ND A T I O N S 

The value of the attributes cited as best practices in this report will come as no surprise to those 

involved in any successful initiative — whether in public, non-profit, or private sector arenas. 

Each of these practices relates in some way to customer satisfaction and the synergies created 

when committed people and organizations work together toward shared goals. It is, therefore, 

no surprise to see them listed as best practices for organizations that seek to help women 

business owners learn how to access capital. 

Focusing on the specific needs of the clients served by these businesses drives each of the other 

practices cited. Appropriate liaison activities and the relevant experience of program staff each 

depend on an analysis of client needs. Similarly, identifying committed staff with the business 

savvy to assess clients and steer them toward realistic, achievable goals also relates to customer 

satisfaction or client focus. 

This report reflects only a snapshot of a sample of successful access to capital training programs 

for women business owners. Derived from a broad range of program types, these study programs 

can serve as models to similar programs, and their practices can be recommended to agencies 

seeking to establish or improve their efforts to assist women business owners. Further research 

to determine program awareness of the range of funding options offered through banks, 

foundations, government agencies, and other institutions, as well as the impact of the recent 

economic downturn and resulting lower level of venture capital funds on women-owned 

businesses, will help extend these findings and provide additional guidance for these initiatives. 

28 
A P P E N DI X A 

S tu d y P ro g r a m I nf o r m a t i o n 

Program 

Accion 

Website 

www.accionnewyork.org 

Description 

ACCION International is a worldwide organization 

whose mission is to New York give people the tools 

they need to work their way out of poverty. Founded in 

1991, ACCION New York has grown to become one 

of the largest microlending and business training 

programs in the country. In the past decade, it has 

made over 3,840 loans totaling $16.8 million.The 

program’s staff consist of approximately twelve 

directors, loan officers, and VISTA volunteers who 

help publicize the center and coordinate the variety 

of services and organizations involved in the small 

business training, loan management, and financial 

planning. 

The Coleman 

Foundation 

www.colemanfoundation.org The Coleman Foundation, founded in 1951 in I llinois, 

has long supported entrepreneurial efforts by women 

and minorities to establish their own companies. 

The Foundation has provided support in a number 

of venues, including entrepreneurial education and 

awareness for the past 20 years.Their mission 

focuses on a commitment to the principles of selfdetermination, self-reliance, self-respect, and individual 

initiative. Since 1981,the Coleman Foundation has 

granted over $24 million to support educational and 

community programs promoting entrepreneurship 

awareness. 

Dingman 

Center for 

Entrepreneurship 

www.rhsmith.umd.edu/dingman The Dingman Center for Entrepreneurship is located 

in the School of Business at the University of 

Maryland at College Park. The center offers a variety 

of training and referral resources including assistance 

with business plan development, mentoring on all 

aspects of small business operations, and loan 

applications.The center also offers opportunities to 

meet members of Washington DC/Baltimore, MD 

venture capitalists. 

The Ewing 

Marion 

Kauffman 

Foundation 

www.emkf.org The Ewing Marion Kauffman Foundation is a 

nationally focused non-profit organization based in 

Kansas City, Missouri, providing assistance, training, 

and support to women business owners through its 

various programs, research, and educational initiatives. 

The foundation’s activities reflect a wide breadth and 

depth of expertise with the goal of helping individuals 

start and grow their businesses.The foundation’s 

support is organized into six primary areas, including 

entrepreneurship training for youth, college students, 

and adults as well as support for social entrepreneur 

ship, policy and research.The area of adult 

entrepreneurship offers a vast number of web-based 

sites to help women business owners decide which 

training is most appropriate. 

29 
Program Website Description 

The Institute 

for Social and 

Economic 

Development 

www.ised.org The Institute for Social and Economic Development is a non-profit 

organization providing services to assist primarily disenfranchised persons 

to enter the economic mainstream and create a solid economic future for 

themselves and others. It is located in Coralville, Iowa, with five other 

offices in Iowa. ISED’s primary mission is to help low-income individuals 

and disadvantaged communities improve their employment and acquire 

assets to escape poverty. ISED is staffed by 14 professionals with 

backgrounds in finance, business, and marketing. 

Minnesota 

Women’s 

Business 

Center 

www.mnwbc.org The Minnesota Women’s Business Center was founded in 2000 

and is supported by a 5-year sustainability grant from the Small Business 

Administration. Managed by two women with entrepreneurial experience 

and backgrounds, the center is located in northwestern Minnesota and 

offers business training, mentoring, and training for women who are 

exploring the option of starting their own businesses. 

The Wachovia 

Corporation9 

www.wachovia.com The Wachovia Corporation has committed to loan $5 billion to 

women-owned businesses in the next ten years.The corporation currently 

has one full time woman staff member who oversees the program from 

Wachovia’s headquarters in North Carolina and coordinates with 

Wachovia staff on the East Coast.The program offers resources for 

women-owned businesses to learn the steps needed to start and 

maintain a business and offers assistance for women-owned businesses to 

obtain funding, including SBA loans, in addition to the Wachovia funds. 

Women’s 

Business 

Center of 

Northern 

Virginia 

www.wbcnova.org The Women’s Business Center of Northern Virginia is staffed by two 

women with managerial and corporate experience.The Center offers 

technical assistance, one-on-one business counseling, and assistance with 

loan applications. 

Women’s 

Growth 

Capital Fund 

www.womensgrowthcapital.com The Women’s Growth Capital Fund was founded in 1997 to make equity 

investments in women-owned businesses in ear ly and expansion stages. 

With $30 million under management, the Fund, which has been fully 

subscribed since December 2001, focuses on companies located on the 

U.S. East Coast. It is one of only three women-focused funds licensed 

as a Small Business Investment Company by the Small Business 

Administration. 

9 Wachovia and First Union Bank have recently merged and further information about the program can be found at www.FirstUnion.com. 

30