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On July 25, 2024, the National Women’s Business Council hosted the Reimagining Access Roundtable: Transforming Government Funding Practices. This gathering brought together business owners, policymakers, and advocates to discuss streamlining processes and creating equitable access to federal funding opportunities.

Roundtable Recap

Moderators

Panelists

Introduction

NWBC Chair Sima Ladjevardian shared welcoming remarks and summarized the Council’s history and mission.

Program

To set the stage for the conversation, Council Member Abrams shared an example of a federal solicitation recently disseminated by NWBC. The contract was set aside for Women-Owned Small Businesses, but the document requesting bids was, at a glance, long and relatively complex.

Q:

The Biden-Harris Administration has emphasized the importance of improving the quality of interactions between the government and its constituents. How have parallel efforts to advance customer service principles and to reform rules like Uniform Cost Principles for grantmaking informed your work to improve underrepresented small business owners’ experiences in seeking federal contracts?

A:

Q:

What are the most successful initiatives or pilot programs implemented by the SBA or other agencies to streamline procurements, and what measurable impacts have been observed? As you think about measuring results, could you tell us whether agencies have compared results of revised solicitations to traditional ones to identify changes in the number and nature of bidding companies and the success rates of certified small and disadvantaged firms?

A:

Q:

How can agencies ensure fair and equitable treatment of all competitors while providing more responsive and accessible information about solicitations, and without significantly increasing administrative burden?

A:

Q:

What are the toughest pain points for small companies with limited capacity and government sales experience when seeking federal contracts and grants? Is it finding the best opportunities, responding to accelerated timelines, compiling complex narratives and documentation, substantiating capability without a federal track record, or something else?

A:

Q:

Can you help us understand the work it will take to implement changes to federal purchasing practices by sharing the number of people or offices involved in procurement decisions, and how you coordinate with all stakeholders at SBA? Put that in context: how does SBA’s contracting operation compare in size to other agencies?

A:

Q:

What’s the best way for federal managers to communicate about innovations in procurement accessibility and to encourage the engagement of small and disadvantaged firms that have declined to compete for federal contracts in the past? Could you also address what outreach, and marketing should look like for both officials with broad mandates like our friends here from GSA and OMB, and for specific agency and contracting managers who work with subsets of the contractor universe?

A:

Q:

What ideas haven’t we discussed? What other processes and protocols to reduce contractor burden deserve consideration? For example, could agencies hold information about bidders’ past performance and capabilities on file after initial submission, and consult their existing records if and when companies bid on multiple contracts for which the same company-specific information is relevant?

A:

Q:

Can AI help small businesses make up for deficits in capacity and experience?

A:

Q:

Thinking about the sample solicitation we shared here, and others you’re familiar with:

What information would you put in the first line of a solicitation to quickly and effectively help potential bidders identify the most appropriate opportunities?

A:

Q:

How should we handle communication about legal requirements and restrictions?

A:

Q:

Given that the federal government requires companies to have pre-registered with SAM.gov and obtained a Unique Entity ID, and potentially to obtain advance business certification, what strategies can federal agencies adopt to ease time pressures on small businesses?

A:

Closing

Council Member Samantha Abrams provided closing thoughts, highlighting that government is working hard to improve and do more work with small businesses. She asked audience members to continue to engage with NWBC to help it develop independent policy recommendations to serve women business owners. She thanked panelists, attendees, and stakeholders.

On June 20, 2024, the National Women’s Business Council hosted a virtual roundtable. This meeting brought stakeholders together to discuss streamlining certification processes to make it easier and more attractive for women-owned small businesses (WOSBs) and others to participate.

Event Recap

I. Chair Remarks

NWBC Council Chair Sima Ladjevardian welcomed and thanked Council Members, panelists, and audience members for their presence. She introduced NWBC’s history, mission, and methods, and the topic of conversation for the day: streamlining certifications for small and disadvantaged businesses so that entrepreneurs can gain and leverage them efficiently to do business with many government and private entities.

All interested parties – buyers, sellers, and organizations that certify companies – could benefit from systems that are more integrated and that incentivize increased participation. As things stand, notwithstanding their similar goals and methods, certification programs have proliferated, and it is not uncommon for firms to go through new rounds of repetitive screening to sell to each new customer. In recognition that closer collaboration could lower barriers and increase value, government and private buyers, policymakers, and advocates have developed innovative joint initiatives that discussants were asked to share and iterate on during the roundtable conversation.

II. Moderator Introductions

Roundtable moderators Pam Prince-Eason and Brandy Butler introduced themselves and panelists. Council Member Prince-Eason is CEO of the Women’s Business Enterprise National Council (WBENC), an SBA-recognized certifier of Woman-Owned Small Businesses (WOSBs) that annually serves more than 18,000 firms. Council Member Butler is CEO of ADC Management Solutions, a staffing, training, and management consultancy firm that has done work for a number of federal agencies.

Panelists were:

  • Elly Bacon, Director of Certification with the City of Denver’s Division of Business Opportunity.
    • Kailey Burger Ayogu, Managing Director of the Harvard Kennedy School’s Government Performance Lab.
    • Nancy Conner, Director of Certifications for the National Veteran-Owned Business Association (NaVOBA).
    • Kathrin Frauscher, Deputy Executive Director of the Open Contracting Partnership, which advocates internationally for open, fair, and effective public spending.
    • Constance Jones, Senior Director of Certification for the National Minority Supplier Diversity Council (NMSDC).
    • Alisa Joseph, Director of Programs for U.S. Black Chambers, Inc., a national voice for Black businesses.
    • Olivia Jusme, Vice President of Supplier Diversity at the National LGBT Chamber of Commerce (NGLCC).
    • Jessica Kim, Chief Deputy in Los Angeles County’s Department of Economic Opportunity, which helps small businesses and high-road employers start and grow in the community.
    • Keith King and General Dick Miller of the National Veteran Business Development Council.
    • Marilyn Lapkass, Operations Assistant and experienced manager of certification procedures for Connect Consulting Services, a certified small, woman-owned, disadvantaged business enterprise.
    • Igbal Mohammed, Manager of the State of Minnesota’s Office of Equity in Procurement.
    • Cathy Muse, National Program Director of Public Promise Procurement, a National Association of Counties initiative to help public sector and other entities purchase more efficiently and cost effectively.
    • Juan Pablo Prieto, Director of Diversity Programs and the Disadvantaged Business Enterprise Liaison Officer for the Chicago Transit Authority (CTA).
    • Jackie Robinson-Burnette, the Associate Administrator of SBA’s Office of Government Contracting and Business Development.
    • Stacia Robinson, Director of Alabama’s Office of Minority Affairs.
    • Alisa Sheard, Director of the Women-Owned Small Business Program at SBA.
    • Brett Theodos, Senior Fellow and Director of the Community Economic Development Hub at the Urban Institute.
    • LaKesha White, WBENC’s Senior Vice President for Certification.
    • Sol Ybarra, Business Outreach Coordinator for the City and County of Denver.
    • Tasha Youngblood Brown, Managing Director with EY, and CEO and Founder of the Brown Bag Collective, which provides business advocacy and education for entrepreneurs.
    • Sheila Zegarra, Senior Associate with Living Cities.

III. Commonalities

Council Member Prince-Eason asked panelists to share the most important common certification application requirements across programs.

Responses included:

  • Ms. Conner: Documentation of ownership, control, and operation is a common requirement, and includes taxes, bylaws, operating agreements. What varies is identity or characteristic that certifiers are looking for: gender, veteran status, etc.
    • Ms. Jones: Structure and finances of business are key pieces of evidence to show management and authority. License agreements can be helpful in demonstrating actual control.
    • Ms. Jusme: NGLCC is not recognized federally, but by state and private entities. All certifiers ask for status qualifiers to show that owners are in the group the certifier serves. Organizations want it not to be onerous to prove status, but want to make sure checks are in place so ineligible people don’t receive contracting preference program benefits.
    • Mr. King: An on-site visit is a universal best practice. This helps to ensure that circumstances of business are as represented in documentation.
    • Ms. White: All certifiers have an application process that also serves to create a resume of sorts for participating companies. Private certifiers also charge fees – public sector agencies may not charge or may have different considerations in setting fees.
    • Ms. Sheard: There are many commonalities, which make for room to explore greater reciprocity between certifying institutions.
    • Council Member Prince-Eason: Common college applications may provide a template for common/base applications for certifications. Certifying institutions may start out with narrow missions to confirm business owner characteristics, but quickly realize how important it is to serve businesses through and post-certification to leverage their status. Safeguarding the confidentiality of sensitive information also is an important consideration in increasing reciprocity between organizations that serve underrepresented businesses.
    • Ms. Conner: NaVOBA has a reciprocity agreement with Disability: IN whereby service-disabled vet-owned businesses certified by NaVOBA can opt for additional Disability: IN disabled-owned certification simultaneously and without additional charge, using the same documentation. The organizations reached an agreement to make this happen, with applicants’ permission.
    • Ms. Joseph: US Black Chambers has a program entitled Buy Black that includes certification, and works with NMSDC to identify candidates – this program has revenue and time in business thresholds that may not apply to other certifications. US Black Chambers also is working with WBENC and the US Pan Asian Chamber of Commerce on reciprocal services and assistance. These organizations that are collaborating created a matrix of organizations, requirements, and procedures to identify opportunities for collaboration; and also is working with government buyers at different levels.

Council Member Prince-Eason asked SBA Associate Administrator Jackie Robinson-Burnette to address the minimum information that a single common certification application might need to collect, and how SBA and federal agencies were working to consolidate application procedures.

She shared that:

  • Currently, there is a backlog of more than 6,000 applications to SBA for WOSB status, with 5 people processing applications; as a result, certification often takes around 11 to 12 months. By contrast, there are 44 people processing veteran-owned certification applications because Congress provided robust funding for this program; wait times are often 2-3 weeks.
    • To ensure better and quicker service to certification applicants, SBA is preparing to merge its four separate certification procedures and teams into one. Companies will in the future submit one single application for all the certifications for which they’re eligible.
    • Absence of businesses awaiting certification from database of available contractors impedes market research and decision-making to set aside contracts.

Conversation between panelists of commonalities across programs resumed.

  • Mr. Prieto: Government is a tough customer and doesn’t stop at initiating contracts with certified suppliers – certification opens the door to providing more coaching and education to businesses that helps them grow and increase capacity to meet buyers’ needs (another win-win).
    • Ms. Kim: California law prohibits award of contracts based on race/ethnicity and gender, which can be a barrier to reciprocity and cooperation with jurisdictions that do take protected characteristics into account. Size requirements and local presence are key for LA County, as is facilitating access to opportunities at all levels of government and in the private market for certified businesses. Through its experience, the County can help other entities whose programs may encounter legal challenge to continue to recognize and to direct more business to underserved firms.

Council Member Prince-Eason asked panelists to think about other regulatory procedures like tax filing, and whether certification programs could access previous or parallel information/document submissions with minimal additional effort required from applicants.

Responses included:

  • Ms. Bacon: Denver is a partner in the Unified Certification Program for the state, and is concerned with size and owners’ personal net worth. It requires governing and financial documentation. One challenge is that different computer systems and programs in use by different certifying and purchasing entities and government agencies post barriers to use of the same documentation or information. Confidentiality also is a strong concern in thinking about accessing information from another source for certification purposes.
    • Ms. Ayogu: Our advice to state and local agencies is to look at nearby/parallel state and local jurisdictions’ programs for models and opportunities for certification reciprocity before launching new services. Certifiers and purchasers should consult sellers to understand how best to minimize burden from their perspectives. Finally, agencies and purchasers should think critically about how much more information they need for certification above and beyond the information they require in the contract bidding process or from any and all firms seeking license to conduct business in the jurisdiction.
    • Mr. Prieto: It would be a great advantage to certifiers to be able to check documents already filed with government agencies, such as tax returns. Sharing a digital platform with partner entities and businesses is helpful – many IL agencies use the same system.
    • Ms. Muse: Trust has a role to play in minimizing burden. It would be ideal for one entity’s review of foundational documents to be credited by another entity; for that, organizations may want to disclose review standards and procedures with one another. It may be logistically easier for organizations to work together than to actually share documents back and forth.
    • Ms. Sheard: SBA has a notice of funding opportunity out for a grant that would support technical assistance to WOSBs to secure certifications and bid on procurement opportunities. One complication to reciprocity that SBA has observed through administration of four certifications is that companies may change their governance structures in between applying for different certifications, so that even though a certification was duly awarded in the past, trust in the process that led to that certification may not mean that an entity can rely on the facts found in awarding additional or subsequent certifications.
    • Ms. Joseph: Both objective and subjective information goes into certification procedures. Certifiers need to be able to agree that they are looking at the same foundational documents such as financial statements and business registrations, so that they can also define the idiosyncratic elements that each is seeking and that aren’t common between certifiers. Companies should share the same documents with various certifiers as well. Comparisons and coordination should be easier in the age of and with the assistance of AI.

IV. Opportunities for Collaboration

Council Member Butler asked panelists to try to anticipate and highlight any potential unintended consequences of streamlining and synchronizing certification,  as well as other actors not present for the conversation who might play a part in implementing effective solutions to lower the potential burdens of certification.

Responses included:

  • Mr. Theodos: Reciprocity and collaboration will tend to lead to more certifications, and could create opportunities, in their details, for unqualified firms to secure certifications, so care is warranted. Actors must also consider legal challenges to and restrictions on preference, set-aside, and even certification programs, and whether procedures or partnerships could exacerbate public concerns about their effects and constitutionality.
    • Ms. Robinson: States are under scrutiny for their practices and need to find means of recognizing and promoting opportunities for underserved businesses that are widely supported and understood to be beneficial.

Council Member Butler next asked about the formation and most important precursors or features of effective certification partnerships, and whether roundtable discussions like the present one or other mechanisms might be particularly helpful for increasing collaboration. 

Panelists shared the following observations:

  • Ms. Jones: Roundtables are helpful to identify similarities and places where organizations can work together, and must be followed up by pushes for implementation and action. In developing reciprocity agreements, NMSDC’s experience has been that it has taken years to reach agreements and more years to perfect mechanisms for working together. What’s necessary is that a party is committed and motivated to get it done over the long term.
    • Ms. Mohammed: In order to partner, we also need legal grounds and authority. Local and state governments in Minnesota wanted to merge/harmonize certification systems since the 1970s, but didn’t have a common platform until 2016. The state also credits federal 8(a) and Disadvantaged Business Enterprise (DBE) certifications, but state agencies only just got authorization from lawmakers to accept private sector certifications. The most difficult aspects of the process are to achieve trust and confidence in another entity’s work and decision-making; and to manage annual recertifications. Minnesota nearly always agrees with outside certifiers’ decisions, but it does end up with a relatively small number of firms that are refused state or local certification but that win approval from SBA and its federal partners, and who are therefore automatically recognized by the state. Frequent recertification requirements are burdensome for small businesses, and also add administrative burden for certifiers who are cooperating with and must notify outside organizations of their decisions.
    • Mr. Prieto: CTA executed a Memorandum of Understanding with Southeastern Pennsylvania Transportation Authority (SEPTA) in PA – each entity accepts the other’s certifications. Both were founding members of the Equity in Procurement project, and in hearing about each others’ procedures, realized they were doing things very similarly. Agencies did site visits to one another before MOU. It was critical to build trust and affirm that practices were consistent and wouldn’t allow for improper entry of unqualified firms.
  • Pain Points in Certification Procedures

Council Member Prince-Eason asked panelists representing the buyer community to talk about the information they typically gathered to verify critical business and owner characteristics, and whether there might be creative and less burdensome alternative means of proving essential facts.

Responses included:

  • Ms. Mohammed: It can be difficult to fairly and accurately differentiate between woman-owned and family-owned businesses, and pursuit of reciprocity with other jurisdictions may complicate our ability to judge which is which. Substantial business management activity by a woman doesn’t necessarily make a family-owned business woman-owned in the state’s view. Minnesota would appreciate federal action on identifying indigenous-owned businesses.
    • Ms. Muse: There is strong interest in corporate social responsibility throughout the country that may make environmentally responsible certification and similar markers more important, and particularly important for actors to agree upon standards for the administration of. Some source documents will be very different from those used in the business certifications we’re discussing, but some will also be the same and DBE certification may be relevant to corporate social responsibility certification.
    • Ms. Ybarra: The pain point we see is that companies don’t know how to capitalize upon certification.
    • Ms. Bacon: The major distinction between Denver’s program and others is that Denver’s is built based on a city-specific disparity study, and continually updated in accordance with local conditions. The city depends on businesses’ feedback in its updating processes to ensure that resulting programs reflect business owners’ experiences and needs. Businesses themselves can and should help us understand what characteristics are important and how we can capture them in certification.
    • Ms. Youngblood Brown: EY seeks growth for the businesses it works with and buys from – to position businesses to seize opportunity. It benefits when companies have plans to use certification to expand. We should look in the certification process to position companies to succeed once they’re vetted so certifications don’t just sit on the shelf.
    • Ms. Kim: At the federal level, broadening the number and scope of contracts that can set aside for women by, e.g., expanding eligible North American Industry Classification System (NAICS) codes, would open up more opportunity. Buyers can think creatively – for governments that can mean simplified acquisition processes for direct awards to certified businesses, for example. While standardizing and expanding our practices to support certified businesses’ long-term success have merits, businesses will always need to meet due diligence standards to win and fulfill contracts, and certifiers could perhaps rely on contracting processes for review of insurance and other background information about companies to simplify actual certification. To help businesses capitalize on opportunity after certification, investment in Apex Accelerators and other advisors who guide companies to government customers is critical. To advance reciprocity, SBA may consider whether it can grant municipalities or other government entities access to its virtual record-keeping and document storage system. Many certifiers recognize SBA certifications, and would ideally access and reference companies’ applications to it when making additional determinations about, e.g., local operations. Shared access and use of a national certification database would greatly advance standardization.
    • Ms. Sheard: NAICS codes limits for the WOSB program don’t limit certification eligibility, but only the range of contracts that can be set aside for certified WOSBs. NAICS code eligibility has expanded from 444 to 733, or about 80%, of the spending categories. Access to federal systems would require IT security personnel input, but SBA hears the request and will consider how its platforms could serve and support buyer colleagues in other government agencies. SAM.gov could serve as a potential model – the General Services Administration maintains it and many separate agencies and instrumentalities pull information from it. SBA resource partners like Women’s Business Centers (WBCs) also work closely with Apex Accelerators to help certified businesses understand the purpose of certification. The earlier they can understand that, the better – different certification pathways make sense for different businesses depending on whether their potential customers are in the private or public sectors and at the federal or local level.

Council Member Prince-Eason asked panelists representing small business perspectives about the most difficult phases of the certification process for applicants.

Responses included:

  • Ms. Lapkass: Certifications can be fairly overwhelming for small businesses, and commonalities can actually equate to pain points: if a company must upload its tax documents several times over, for example, it multiplies its exposure risk from potential unauthorized access to those records. Even simple software bugs get in the way – it took this woman-owned small business several more months after obtaining third party certification to secure recognition in SBA’s database because of a snafu. A standardized order of documentation or formats across different portals and certifiers would help reduce burden for companies seeking certification, and make reciprocity easier. Checklists of everything required for certification are useful and we have created them for ourselves. Annual recertification can be onerous.
    • Ms. Zegarra: Administrative tasks are draining to small business people who often would rather concentrate on performing their craft. Networks and support systems are particularly important to help those owners who are averse to taking on more form-filling but who could benefit from certification and entry into the spaces it opens; and to counsel people about whether certification can be valuable to them and if so how to use it. Resource partners can be back office support to emerging businesses.
    • Council Member Prince-Eason added concern that there are people who exploit the knowledge gap and purport to help people certify but add more cost to the process than there need be. More information to business owners about nonprofit, community-based, trusted sources of support could be beneficial.
    • Ms. Jones: Time and effort required can be greater costs to businesses than the actual fees required to certify, which, when collected by entities like NMSDC, go to support the costs of providing guidance and back office-style assistance to certified companies. At the same time, NMSDC works to find sources to subsidize the cost of certification for businesses in need, and considers the benefits of charging fees – it has found that fee-paying customers complete the process more quickly, for example. Common agreements can be as powerful as greater reciprocity between certifiers in moving us in the right direction of lowering barriers to certification.
    • Ms. Frauscher: Global public procurement is a $13 trillion market, and these struggles resonate everywhere – only 1% internationally is won by women-owned businesses. Certification should be a welcoming door that is easy and friendly and communicates our values. It should facilitate a good experience as an active seller to government.

V. Conclusion

Council Member Butler noted important themes from the conversation, which included strong endorsement of reciprocity and standardization in certification.

Chair Ladjevardian again thanked participants and encouraged all to share additional thoughts by email to info@nwbc.gov, and to watch for future NWBC events and conversations.

A Roundtable on Increasing Access to Opportunity for Women Entrepreneurs

The National Women’s Business Council (NWBC) held a roundtable on April 30th from 1-4 PM ET in D.C. at the Mayflower Hotel in D.C. focused on increasing access to opportunity for women in business. The title of the roundtable was “Connecting Women Entrepreneurs to Federal Opportunities.”

The focuses of this conversation included the value of expanding outreach, awareness and data collection, the importance of lowering barriers to increase participation, and the potential for greater collaboration to open more doors for all when it comes to opportunities offered by the federal government. It also allowed the Council to release its groundbreaking research on women’s entrepreneurship in high-yield and high-growth industries.

RECAP

The event began with Executive Director Tené Dolphin’s remarks.

  • Executive Director Dolphin welcomed participants, introduced the National Women’s Business Council (NWBC), and described its history.
  • There has been significant progress over the Council’s 36-year history, including a 70% increase in federal contracts awarded to women-owned small businesses (WOSBs) under the Biden-Harris Administration.
  • Challenges remain to realizing women’s entrepreneurial potential.
  • NWBC convenes entrepreneurs, organizational leaders, and policymakers to develop, disseminate, and explain policy recommendations.
  • The focus around which the Council seeks policy solutions, was increasing opportunity for women founders in high growth, high yield industries and related federal programming. The roundtable participants discussed ways to improve outreach, lower barriers to participation, and strengthen cross-agency collaboration.

Chair Sima Ladjevardian delivered opening remarks.

  • Women-owned businesses make up 39.1% of all businesses and parity would add more than $7 trillion to the economy.
  • The surge of new women-owned startups during and after the pandemic is encouraging, but it is also alarming that critical programs like 8(a) have been challenged.
  • Taking stock of the moment, NWBC has transformed its Women in STEM subcommittee into the Access to Opportunity subcommittee – inspired by the Investing in America agenda, the scale of opportunity, and the urgency of connecting women with programs and initiatives.
  • Investing in America bills make landmark investments in equitable economic growth: $150 billion in the CHIPS for America Act; $391 billion in the Inflation Reduction Act; and $1 trillion in the Infrastructure and Investment in Jobs Act (Bipartisan Infrastructure Law).
  • The purpose of the roundtable was to build a blueprint for government programming that centers women, and creates pipelines to opportunity for women entrepreneurs.

Kajal Kapur, Principal of Kapur Energy Environment Economics (KEEE), LLC, presented preliminary findings of the firm’s literature review for NWBC on women’s entrepreneurship in high-yield and high-growth industries.

  • KEEE’s full literature review includes data and analysis, and identifies challenges, best practices, and policy recommendations.
  • In this area, present challenges mean there are future opportunities for growth.
  • Women in academic STEM roles have unequal exposure to patenting and commercialization opportunities and own far fewer firms overall, but among people younger than 44, women owners of STEM firms outnumber men.
    • One solution: increase the funding of programs for more and earlier STEM exposure for girls
  • There is a lack of seniority and resources for female STEM faculty, but women do report as much success as men in developing inventions and publishing articles about their work.
    • A few solutions: make gender-blind decisions about tenure, promotion, financing, and licensing; do proactive outreach targeting women and others who are underrepresented among patentees
  • Overall, women experience limited success securing grant funding, and awards they secure are less on average per person. One bright spot is that women who apply have strong chances at winning funding through some competitions such as SBIR/STTR.
    • One solution: recognizing women-owned nonemployer firms are closer to parity with male-owned counterparts than employer firms, programming could focus on types of technical assistance that help nonemployer firms get to the next level
  • Women face unfavorable financial sector evaluations of business plans and prospects.
    • One solution: lenders and investors could weigh social impact in decision-making, or concentrate intentionally on women
  • There is a lack of role models, partnerships and networks for women that grows from the presence of fewer women in STEM fields who can mentors others, particularly women of color. Although overall numbers are low, research shows Black women and Latinas own more STEM firms than Black men and Latinos.
    • A few solutions: build out resources starting in sectors where women are the most active as entrepreneurs; develop virtual programs and other creative ways to make the most of existing resources
  • Assistance to women in STEM dips when there are shocks, and pandemic-era assistance programs did not initially reach women. Eventually, however, pandemic conditions seem to have expanded opportunity for women in STEM.
    • One solution: during crises, focus emergency assistance on fundamental support services like childcare
  • The prospective benefits of creating wider opportunity for women entrepreneurs in STEM fields include more innovation, higher gross domestic product, better worker and customer relationships, and solutions for important problems.
  • Question for Ms. Kapur: What was surprising or notable? Women’s resilience in spite of odds and barriers, and the scale of the success women have attained in innovating in STEM fields.

The moderators for this roundtable were Council Members Pamela Prince-Eason, President and CEO of the Women’s Business Enterprise National Council (WBENC) and Selena Rodgers Dickerson, President and Founder of SARCOR, LLC and Selene, LLC. They introduced themselves, before introducing roundtable participants and their affiliations:

  • Ms. Alex Palmer-Sullivan, Professional Staff Member for the Senate Small Business Committee
    • Dr. Arti Santhanam, Executive Director of the Emerging Technology Centers
    • Ms. Christina Hale, Assistant Administrator of the Office of Women’s Business Ownership (OWBO) at the U.S. Small Business Administration
    • Ms. Danette Nguyen, Managing Director of the Maryland Women’s Business Center
    • Ms. Dottie Li, Founder and CEO of TransPacific Communications
    • Ms. Erin Kizer, Director of Land for the Commons at Industrial Commons
    • Mr. Francisco Cartagena, Program Manager of the Maryland Women’s Business Center
    • Ms. Glenda Thomas, President and CEO of ElectraGrid Solutions
    • Ms. Gray Harris, Senior Advisor for Food Systems Finance for Rural Development at the U.S. Department of Agriculture (USDA)
    • Ms. Jackie Lopez, President of Premier Enterprise Solutions
    • Ms. Laura Smailes, Assistant Director of the Center for Entrepreneurship and Innovation at UNC Charlotte
    • Ms. Maryam Janani-Flores, Chief of Staff of the Economic Development Administration (EDA) at the U.S. Department of Commerce
    • Ms. Miles Sandler, Director of Policy and Engagement at the Ewing Marion Kauffman Foundation
    • Ms. Molly Weston Williamson, Senior Fellow at the Center for American Progress
    • Ms. Natasha Williams, Managing Partner of N-Touch Strategies
    • Ms. Ngozi Bell, Region 3 Advocate in the Office of Advocacy at SBA
    • Ms. Rachel Snyderman, Managing Director of Economic Policy at the Bipartisan Policy Center
    • Dr. Randal Pinkett, Co-founder, Chairman and CEO of BCT Partners and the New Jersey Cybersecurity Regional Innovation Cluster
    • Ms. Shayvonne Jenkins, Founder and CEO of SheBillionaire

The first portion of the discussion focused on best practices around raising awareness of government programs and initiatives like those that make up the Investing in America agenda.

  • Council Member Rodgers Dickerson asked participants where they or their organizations fit into the ecosystem of federal opportunities.
    • Assistant Administrator Hale leads SBA’s Office of Women’s Business Ownership, and works for Administrator Casillas Guzman, the voice of small businesses in the Cabinet. OWBO supports Women’s Business Centers (WBCs), which connect businesses with federal resources. OWBO recently awarded grants to 17 new centers, bringing the total nationwide to more than 150. WBCs are adept at demystifying the web of available resources and at getting people what they need to meet their entrepreneurial goals. The Biden-Harris Administration’s Equity Action Plans hold agencies and our grantees accountable for engaging underserved owners.
    • Mr. Cartagena represents the Maryland WBC. Its staff meet clients where they are. Lack of awareness of resources is a constant challenge, and centers do not have the funding to do sufficient outreach and marketing. The MD WBC provides assistance in three languages, but its association with the government can make it challenging to establish trust with potential audiences most likely to use multilingual support. Finally, WBCs see businesses they serve encounter administrative and structural barriers like long waits for WOSB certification.
    • Ms. Li’s business benefitted from WBC assistance in its early stages, and in general, she took advantage of every SBA resource available. It is one thing to understand that programs are out there, but another to know how to go to take advantage. Networking is the answer. Business owners have to tap into human resources and build connections to elevate and grow. Ms. Li’s company earned a federal contract to produce translations during the pandemic, and tapping into technical assistance was a crucial help with securing the opportunity.
    • Ms. Bell is a regional representative with SBA’s Office of Advocacy, which conducts research and produces regulatory analyses to protect small businesses. Her responsibility is to be present in communities and to do culturally relevant outreach to help people learn about and understand regulations, and advocate to prevent harm to small businesses. She recommends that businesses participate in roundtables and give feedback to government entities to ensure the government is more responsive to small business needs.
      • Executive Director Dolphin noted that if women entrepreneurs could speak up before lawmaking on regulations that happen to affect them, that would be powerful, and asked how business owners could connect with the Office of Advocacy. Ms. Bell recommended making a personal contact and staying in touch. She sends a newsletter with information to her contacts, and otherwise maintains personal communications.
    • Ms. Williams said that as an early entrepreneur she engaged with lots of organizations, and then found it challenging to create and capitalize on the business opportunities that could open up as a result. She benefitted from connecting with and starting to do business with a mentor company. It was helpful to have someone demonstrate how to negotiate systems and break through volume to find promising opportunities – to provide feedback drawing on knowledge and experience she did not yet have.
    • Council Member Rodgers Dickerson summarized participants’ recommendations: personal connections and ecosystems are valuable. Women entrepreneurs should proactively seek out the help they need, seize upon opportunities to participate in policy conversations, and use free resources without hesitation.
  • Council Member Prince-Eason asked participants to identify resources and programs for women entrepreneurs that deserve greater attention than they enjoy.
    • Ms. Lopez said that despite her experience as a business owner and federal employee, she found it difficult to start a small business from scratch that did work with the federal government. WBCs, THRIVE, and the 8(a) program helped eliminate barriers to getting started; once her business was certified, it earned its first multi-million dollar contract. One standout WBC program paired lessons on business development with mentor feedback.
    • Ms. Weston Williamson concurred, adding that sufficient funding for agency outreach and education is critical to ensuring equitable access to opportunity, particularly for those who might be especially likely to miss out without that targeted outreach.
    • Ms. Snyderman agreed that there are vast resources for work in STEM fields across agencies, and noted that data-sharing across entities could not only help raise awareness but also improve the quality and outcomes of the programs. Cross-agency and government-wide efforts to improve access to contracting opportunities have achieved significant results.
    • Ms. Sandler said that SBA regional administrators and representatives are powerful and important voices, but their presence thins out in more rural areas, and in some areas there is a small number of people to represent SBA to a large geography. As advocates and economic actors we all need to connect one another at every opportunity and encourage entrepreneurs to support one another. The Kauffman Foundation has worked with the Urban Libraries Council because libraries are ubiquitous and are communities’ front doors and connectors to resources. It is important to connect and partner with historically underserved communities and spaces in building networks, including immigrant communities.
  • Council Member Rodgers Dickerson asked participants to speak about ways to overcome budget, staffing, and other constraints on raising awareness about federal programs.
    • Assistant Administrator Hale observed that women suffer the most from imposter syndrome and do not see themselves as the kind of business owners that resources and organizations are meant to serve. To raise awareness, we have to be proactive: SBA will now be funding issue-specific WBCs to reach more women who are not reaching out for help with entrepreneurial endeavors. It is frustrating to see the difference in the resources that get to people in the know vs. people who are still figuring it out, or who do not see themselves as part of the club.
    • Ms. Smailes works in a university setting withfaculty, students, and the community, and also sees one of the biggest hurdles as identifying oneself as a woman in STEM, an entrepreneur, a potential owner and inventor. It is helpful to set out archetypes that people identify with because women in particular will eliminate themselves from consideration if they do not meet every criterion. She makes sure to tell success stories, and to invite in successful entrepreneurs to do the same, to show people they belong.
    • Ms. Nguyen identified WBCs as a best-kept secret. Centers connect and serve entrepreneurs from ideation to maturity, and are able to introduce businesspeople to procurement agents. Her advice to other resource partners is to advertise the availability of services through multiple channels, including word of mouth among businesspeople. Resource partners also can and should borrow ideas and accessibility features from other kinds of programming: for example, if planning in-person programming, interpretation and childcare may be needed.
      • Ms. Li added that open communication during engagements is critically important, and made possible with linguistic accessibility.
    • Ms. Bell encouraged service providers to go to business owners. She has gone into mines and many other unusual locations to meet people who may never be able to make it to an SBA event, and recommends small business walkabouts, which she has found to be a good means to pulling business owners into networks and technical assistance opportunities.
    • Executive Director Dolphin noted that the small business walkabout bears resemblance to door-knocking in politics and organizing, which is hard and resource-intensive, but uniquely valuable in establishing new connections. Many or most business owners cannot sacrifice time on tasks to attend events and engage in ways that make take a medium or long term to pay off. AI tools might help to pick out and lift up resources and messages that are most valuable for particular individuals, from among the breadth of help available.
    • Ms. Santhanam said that the city of Baltimore successfully used similar methods to conduct outreach around pandemic-era programs. Instead of publishing a request for applications, city representatives went out to find and target less well-connected business owners. It also tailored programs – for example, support for artisans – to better match potential beneficiaries’ schedules.
    • Participants identified the need for a single tool that sorts resources by kind and stage of business and idiosyncratic needs, for those who already identify themselves as needing and qualifying for help.
    • Ms. Lopez observed that government programs are strong and comprehensive, offering something for every business at every stage. But the programs do not tend to be connected with effective strategic communications plans or efforts, designed to target communications to the right people at the right times. High-quality outreach requires funding that often is not currently available to agencies.
    • Ms. Palmer-Sullivan noted that prior to the pandemic, average annual SBA appropriations stood at less than $1 billion. Through its pandemic experience and responsibilities and with additional appropriations, SBA improved its marketing operations. Unfortunately, it is not a settled proposition that all federal resource partners can use public funding for outreach – WBCs almost certainly can, but have very limited resources.
    • SBA Senior Advisor to the Administrator Aditi Dussault shared that notwithstanding increases, SBA’s annual budget amounts to roughly one-half of the Department of Defense’s daily spending.
    • Ms. Kizer shared that her program has not always been government-funded, but has been able to and has done effective door-knocking and reaching the community in a way that the government cannot always achieve. In the past, for example, the National Science Foundation (NSF) did not fund nonprofits, but now is broadening the kind of partners it works with.
  • Outstanding questions that panelists did not have time to explore included:
    • What does success look like when it comes to outreach around federal opportunities? How is progress measured and where does data collection fit into this conversation?
    • How do you leverage existing and emerging networks to raise awareness of your opportunities, particularly for women and other underserved entrepreneurs? Do you come to them or do they come to you? How do you show up in their spaces and places? For business owners or funding recipients, how did you become aware of opportunities?
    • Why is ensuring that underserved communities are represented amongst program beneficiaries essential for developing a robust pipeline of innovators?
    • What advice do you have as business owners and advocates for government program managers looking for better ways of catching businesses’ attention and sharing compelling information about opportunities? From a business owners’ standpoint, what are the most effective methods for communicating proactively with women business owners and those that serve them?
    • How well do you think federal agencies are doing overall at raising awareness around their programs? What do constituents, data, or experience tell you about the level of awareness around federal opportunities?
    • What is one policy recommendation you might have for those three entities I mentioned before (the White House, Congress, and SBA) when it comes to raising awareness of opportunities offered by the federal government in support of women’s entrepreneurial participation?

During the second portion of the program, participants discussed best practices for lowering barriers to partnering with the government and securing public funding.

  • Council Member Prince-Eason asked participants to describe the time, effort, and knowledge required to engage with familiar government programs.
    • Ms. Santhanam said thatfinding the confidence and resources to start a company tend to be more significant challenges than establishing a customer base. Resource partners can help, but getting started can take too long to be practical for some entrepreneurs who also need income, and those who cannot find or raise startup money on their own can be misperceived as not serious about their enterprises. Improving representation among investors is important as well. In her experience, women are competitive applicants for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs but venture capitalists will not invest in awardees. Government entities should encourage and facilitate private investment in publicly supported entrepreneurs by making introductions, demystifying investment opportunities, and considering tax and other incentives.
    • Ms. Janani-Flores shared that EDA invests in supportive ecosystems for entrepreneurs by funding nonprofits and governments. The agency also administers a revolving loan fund program through partners. Recent initiatives include the Tech Hubs and the Recompete Pilot programs, which EDA has promoted by reaching out to cross-sectoral coalitions. EDA has been particularly careful to design accessible application procedures and requirements so that organizations with less capacity for grantwriting and administration can compete. For example, it employs a two-phase grantmaking process, in which the first phase only requires a five-page application. The agency provides direct, immediate feedback to applicants who seek it, and makes that information publicly available. Its leadership was also thoughtful about extending flexibilities for grantees in areas including grant matching requirements.
    • Ms. Santhanam affirmed the value of EDA’s process, noting that she had participated in development of an application to the Tech Hubs program, and that its structure encouraged formation of new, important, and enduring partnerships and the iteration of a proposal that lowered barriers to collaboration.
    • Ms. Kapur asked how EDA advertises flexibilities and the accessibility of its application procedures.
      • Ms. Janani-Flores replied that the agency is intentional about contacting organizations that are not among its past or frequent partners. This resulted in a majority of finalists for the Recompete Pilot program being organizations that had nor previously received EDA funding. The agency raised awareness through outreach webinars which were more accessible to a wider audience in virtual format, by updating frequently asked questions (FAQs) based on incoming inquiries, and by focusing on translation and strong linguistic accessibility. It also strove to communicate simply and clearly what it was looking for in applications. Its field representatives built personal relationships with applicants to help them create competitive requests.
  • Council Member Rodgers Dickerson asked participants to share what they considered to be the most essential features or elements of accessible requests for information, requests for proposal, and notices of funding opportunity.
    • Ms. Thomas said that greater advance notice of proposal deadlines would create more space for WOSB participation in government programs. Women’s enterprises also could benefit from more detailed instruction in FAQs and webinars around how to structure proposals.
    • Dr. Pinkett is involved with a Regional Innovation Cluster group, and through that experience was able to identify a number of helpful policy and procedural changes: shifting from request for information (RFI) requirements to justify set-asides to presumptions that set-asides are permitted; making a representative accessible before publication of a request for proposals (RFP) to describe the goods/services and outcomes sought; allowing more time to respond; avoiding response deadlines near holiday dates; and encouraging rather than prohibiting contract officers from providing feedback. In particular, he encouraged government purchasers to answer questions live rather than in writing if possible.
    • Participants also noted interest in purchasing officers engaging with potential offerors prior to issuance of an RFP to better understand potential solutions and to improve the quality and clarity of RFPs.
    • Ms. Dussault encouraged stakeholders to seek out SBA’s Procurement Center Representatives, who are liaisons to agencies and who can raise concerns and prompt changes when there are contracts that could and should have been set aside but were not. She also affirmed that contracting officers would prefer to allow more time for responses but are constrained by short appropriations cycles in recent years and significant uncertainty over federal spending. She agreed that forecasting needs is helpful for leveling the playing field, and also highlighted the value of establishing contacts and relationships with contracting officers, Offices of Small and Disadvantaged Business Utilization (OSDBUs), and other dedicated professionals.
  • Outstanding questions that panelists did not have time to explore included:
    • What changes or offerings has your organization initiated to lower barriers to participation in your programs? How did that change come about and what obstacles did your organization face in implementing them? Or for those who are not federal agencies, have you observed any of these best practices yourselves?
    • What types of changes do you all see on the horizon for lowering barriers to participation in programs? What do you all see as missing or as missed opportunities?
    • What impact does lowering barriers to participation have on entrepreneurial growth and success? Are there any success stories you all would like to share?
    • How are you all leveraging technical assistance providers and utilizing or improving user experience and front-end supports to lower barriers to participation?
    • How well do you think federal agencies are doing overall at lowering barriers to participation in their programs? What do constituents, data, or experience tell you about hurdles and helpful pathways for accessing federal opportunities?
    • What is one policy recommendation for the White House, Congress, and SBA when it comes to lowering barriers to opportunities offered by the federal government in support of women’s entrepreneurial participation?

The concluding minutes of discussion focused on encouraging collaboration by reducing silos, strengthening synergies and ensuring there is no wrong door for entering into entrepreneurship.

  • Council Member Prince-Eason asked participants to assess federal agencies’ collaboration with the private, public, and non-profit sectors to increase participation of women entrepreneurs in their programs.
    • Ms. Jenkins spoke about the value of mentorship and encouraged partnerships for that purpose.
    • Ms. Harris spotlighted USDA as an underappreciated source of investment in businesses, with 16 different programs that provide access to capital and other supports. The agency has created the position of community navigator as a part of the Rural Partners Network charged with introducing people in rural communities to the full breadth of federal agencies, all of which have rural desk officers. She shared a policy recommendation that agencies work toward adoption of a common application for federal programs and reductions in effort required for reporting, which would reduce burden on government reviewers and applicants alike. There are immense opportunities to collaborate across government agencies, and public-private partnerships can fill in the gaps government programs are unable to reach.
    • Ms. Sandler affirmed that advocates and public servants need to work with partners to be effective, and applauded the current Administration’s increased allocations of funding to nonprofits and community leaders who are connectors to underserved audiences. At the same time, community-based organizations have not gotten as much public support to guide entrepreneurs to leverage contracting opportunities in particular industries. More cross-agency collaboration could also help to build ecosystems that are more supportive of all business owners – for example, the U.S. Department of Health and Human Services, SBA, and other agencies’ participation could help to improve the viability of the care business model until child and family care are understood to be public goods. Government can also work with regional banks to reimagine how they assess creditworthiness.
  • Outstanding questions that panelists did not have time to explore included:
  • Have you met other people in this room before? How would you rate your level of awareness of their work?
  • Where do you see silos and synergies when it comes to collaboration around entrepreneurial opportunity? What organizations are doing great collaborative work and are there any you hope to get connected to in the future?
  • Where do you see the glass being half full when we talk about collaborations and what would you say to someone with this glass half empty perspective?
  • How are connections made between programs and offices? From a customer service and experience perspective, how does your office work to ensure there is no wrong door to opportunity? And from a user perspective, how are you seeing connections being facilitated between federal entities or recipients of federal funding?
  • What makes the roles of public, private, and non-profit entities unique and where do you see opportunities to leverage these unique roles more effectively?
  • How does state and local governance and field operations and outreach fit into this collaborative conversation?
  • What is one policy recommendation you might have for the President, Congress, and SBA when it comes to increasing collaboration within the federal government in support of women’s entrepreneurial participation?

As the meeting came to a close, moderators opened the floor to attendees to share their thoughts.

  • Council Members Rodgers Dickerson and Prince-Eason invited members of the audience to comment.
    • The first commenter observed that agencies have created and shared outstanding technical assistance, and from the ground up, the remaining deficit is in grant seeking expertise, and the ability to translate quotidian experiences into a vision and proposals matching the goals of appropriate programs. One potential answer is to build collaborative tables at which communities articulate their needs, and public and philanthropic resources encounter private businesses that can carry out work. Closer relationships and partnerships could help more players to successfully translate what they do, and what they want to do, into the right terms for government to understand.  
    • The second commenter sought advice for identifying a mentor to partner with in SBA’s mentor-protégé program. Participants encouraged her to pursue subcontracting opportunities, seek assistance from a WBC, and speak with women in the room for this event.

NWBC Chair Sima Ladjevardian thanked participants, her fellow Council Members, and the staff of WBENC for their assistance in organizing the event.

WASHINTON, D.C., March 9, 2020 – As part of its ‘#LetsTalkBusiness Roundtable Series,’ the National Women’s Business Council (NWBC) held its first roundtable of the year in San Juan, Puerto Rico on February  27, 2020, at the Puerto Rico Convention Center, together with the Puerto Rico Federal Affairs Administration (PRFAA). NWBC was joined by the Governor of Puerto Rico, Wanda Vázquez Garced, who delivered remarks on the state of women’s entrepreneurship on the Island.

NWBC Chair Liz Sara greeted the roundtable participants and attendees and thanked Governor Vázquez Garced for welcoming NWBC to the Island. Chair Sara then provided remarks on the importance of improving access to capital and opportunity for women entrepreneurs and business owners in Puerto Rico and across the country.

Governor Vázquez Garced underscored her administration’s commitment to strengthening economic conditions for women, emphasizing that “Puerto Rico is open for business” and that women business owners on the Island are key to helping revitalize and further strengthen the Puerto Rican economy.

Following the Governor’s remarks, Council Member Nicole Cober prompted the participants to share the impact that natural disasters—the 2017 hurricanes and recent earthquakes— have had on their businesses.

One female founder in the freight and transportation industry whose business provides global logistics solutions in Puerto Rico shared an emotional account of the widespread devastation experienced across the Island. “Everyone was at risk. Our whole island was at risk…. But the hurricane [Maria] created an incentive to push Puerto Rico forward.” Her company was in fact one of the first responders, creating a temperature-controlled warehouse to store medication and ensuring that medicine was getting to the most vulnerable—even in the most rural and remote areas of the island.

Another participant, a roofing manufacturer, noted that women business owners on the Island, and Puerto Rican women business owners on the mainland, were instrumental to helping provide immediate emergency services. She shared, “We were up and running just four days after the hurricane and brought together the business community. We visited communities across the Island and formed a ‘business emergency group.’”

Council Member Cober noted how important it is to support healthy ecosystems in the post-recovery phase as women-owned small businesses are instrumental to helping save and ensure the continuity of a stronger Puerto Rican economy. She then directed the discussion to the topic of financial education, asking, “How does Puerto Rico institutionalize financial literacy and education in K-12 grades and at the university, if at all?”

A bed-and-breakfast business owner with businesses in Maryland and Puerto Rico stated, “This is not just a problem in Puerto Rico. This is a nation-wide problem. Entrepreneurs often don’t understand that the extension of business credit is based upon an individual’s personal credit.” She continued, “Most kids today graduate from high school and don’t even know or understand what a credit score is; and although women make 75% of all buying decisions, many don’t often have an understanding of the fundamentals of financial literacy.”

Jennifer Storipan, Executive Director of PRFAA, noted that the Governor “is committed to institutionalizing financial education through an ‘Institute of Financial Education’”. She added that Puerto Rico is exploring best practices by taking an interdisciplinary approach—incorporating financial literacy curriculums across Math and Social Studies academic disciplines.

Yvette T. Collazo, the SBA’s Puerto Rico and US Virgin Islands District Director, noted the fact that all financial institutions, including credit unions, are certified in Puerto Rico. However, a challenge is that credit unions “are set up to provide personal but not commercial loans.” She also recommended to new start-ups that “while you need to think big, you need to start small, and for that reason microlending is key in Puerto Rico.”

District Director Collazo also noted how important STEM businesses were to the economy in Puerto Rico. Last year, the SBIR Road Tour made a pit stop on the Island for the first time in its history. Similarly, the SBA’s Emerging Leaders program was recently brought to Puerto Rico, a telltale sign of the economic and entrepreneurial potential on the Island.

Council Member Barbara Kniff-McCulla noted how the business community in her Iowa hometown chose to invest in STEM education. “In Pella, working with local manufacturers through a public-private partnership, we put in a STEM program in Central College. So, I would recommend that you look to local businesses to put money into your [education] program[s] because these are the businesses that will be hiring these students in the future.” She then asked the business owners to share some of the initial steps they took in looking for capital to start their business.

Another female lender—certified as a Community Development Financial Institution (CDFI) by the U.S. Treasury and certified by the SBA as a 504 Development Company Loan Program—noted that her organization created an ‘entrepreneurs academy’ and added a childcare component for academy participants free of charge.

A National Association of Women Business Owners (NAWBO) Board Member and business owner in the emergency medical services field also noted, “Because of my relationship with NAWBO, I’ve been supported and provided with mentorship. And today, we work with young ladies to provide them guidance and financial literacy.”

A Chicago-based lawyer/entrepreneur also reiterated, “Mentorship is great, but it’s not just mentorship. Women need sponsorship. Don’t just talk to women about how to do it, take her with you and walk her through the door.”

NWBC Council Member Rebecca Hamilton then asked the roundtable participants to share some of the primary drivers and top financial factors informing their decision whether to fund a prospective investment.

The head of an NGO in Puerto Rico stated that when considering funding an enterprise, their organization looks to certain criteria, which include ensuring: 1) there are at least two individuals tied to the project; 2) they have conducted a market study for their product or service; and 3) they commit to completing a curriculum and its required hours. Only after completing the curriculum do they get the funding.

A health tech female CEO also shared a gripping story that spanned from pitching her health tech start-up while five months pregnant to winning ‘Rise of the Rest Competition’ to raising $3 million for her enterprise with local capital. “I went through a whole acceleration process. Today, we are a woman-owned company with twenty-seven employees.” She shared that the road is not easy and that “you just have to get out there” and find opportunities to “expose your companies to Angel Investors.”

Council Member Cober wrapped up the roundtable discussion and reiterated the NWBC’s commitment to employ the feedback received as a springboard for the Council’s policy recommendations to Congress, the President, and the Administrator of the Small Business Administration. The Council appreciates the participation from diverse business owners and stakeholders in Puerto Rico.

For more information about upcoming events, please visit the NWBC website.

As part of NWBC’s #LetsTalkBusiness Roundtable Series, the Rural Women’s Entrepreneurship Subcommittee hosted a virtual roundtable on May 27, 2020, to explore the far-reaching impact of childcare availability and affordability, particularly barriers posed for women business owners and entrepreneurs.

NWBC Chair Liz Sara opened the conversation with an overview of the Council’s mission and its key focus areas. She then passed the torch to Council Member and Subcommittee Chair Jess Flynn, who shared the successes of the 2019 Women in Small Business Series and the insights received during discussions in Nampa, ID and Pella, IA. She noted the detriments of childcare deserts in both areas, which drove high rates of necessity entrepreneurship and crippling workforce shortages for local employers.

Council Member Rebecca Hamilton then shared some perspectives from Badger, her organic skincare products company based in Gilsum, NH. Her largely female manufacturing team benefits from an on-site childcare center that Hamilton says is worthwhile to support her team but not financially sustainable in the long run without support from the government.

A representative from an Iowa-based manufacturing company also operating its own childcare and early education center explained how the business filled a local void for those hesitant to utilize home-based care facilities. The firm eventually received a state grant and interest free loan due to their community investment, but growth is still a challenge due to shortages in staff and teacher recruitment. Council Member Barb Kniff McCulla noted that Iowa loses $153 million annually in tax revenue due to a lack of childcare and that 69% of parents rely on family members for childcare. She stressed a need to identify local best practices and make them available to other states.

The founder and president of a Michigan-based childcare facility highlighted the exorbitant costs to operate and pointed to real estate and heavy regulatory burdens as the biggest drivers. Parents and families are then faced with skyrocketing prices. The head of a digital talent marketplace noted that the burden to secure childcare sits largely with moms and lamented that many will barely break even after footing the bill and must make the difficult decision to exit the workforce.

Dr. Laurie Todd-Smith, Director of the Department of Labor Women’s Bureau underscored the scope of the issue noting that there are 24 million workers with school age children and 17.5 million workers with children under the age of six. She shared several federal initiatives including a database with the cost of childcare by county and efforts to tweak regulations that hinder employer’s ability to offer childcare benefits.

Multiple participants expressed concerns about the childcare industry’s resiliency after the COVID-19 pandemic and reiterated a need for holistic solutions involving state and federal government, community businesses, and parents.

The feedback received during this discussion will serve as a springboard for the Council’s FY 2020 policy recommendations to Congress, the President, and the Administrator of the Small Business Administration. NWBC thanks all participants for their open and honest candor.

Women’s Inclusion in STEM Entrepreneurship & Patenting and Trademark

The National Women’s Business Council (NWBC) held a ‘Let’s Talk Business’ Women in STEM virtual roundtable on July 28, 2020. NWBC Chair Liz Sara provided an overview of NWBC’s 2020 policy priorities and introduced the roundtable moderator, ‘Women in STEM’ subcommittee member Sandra (Sandy) Robert, CEO of the Association for Women in Science (AWIS). Ms. Sara and Ms. Roberts were also joined by Council Members Maria Rios, Barb Kniff McCulla, and the members of the ‘Women in STEM’ subcommittee—Dr. Susan Duffy, Dr. Marsha Firestone, and Subcommittee Chair Monica Stynchula.

More than 30 participants joined the STEM roundtable discussion representing women entrepreneurs and business owners, patent holders, government representatives, as well as other ecosystem builders in STEM. The group discussion focused on approaches to boosting female STEM entrepreneurship and women’s inclusion and participation in the patenting and trademark process. Overall, a variety of issues surfaced during the discussion including:

Sandy Robert opened the roundtable discussion by first noting the importance of recognizing the unique challenges faced by women innovators and entrepreneurs as they now look to reimagining their enterprise and pivoting in the current COVID-19 environment. Ms. Robert also emphasized the impact and significance of the current national conversation around achieving greater racial equity and inclusion—key focus areas for her own organization—AWIS. She called for more underrepresented populations to have a seat at the table.

In her opening remarks, Ms. Robert also underscored the realities that most professional and entrepreneurial women face—bearing most of the burden of balancing household, childrearing, elderly care, work and/or business management responsibilities. She noted that about 79% percent of AWIS members hold advanced degrees, 66% of AWIS members are at the mid-senior career level, and that while it is general common knowledge that female talent is out there, many organizations continue to struggle in recruiting and retaining more women.

Ms. Robert went on to underscore that certain cultural issues, gender-based bias, and even racism comprise just some of the unique barriers women and communities of color continue to face in work, business, and particularly in the STEM fields and innovation ecosystems. “Women have their expertise questioned much more frequently than men,” said Robert.

She also asked the group to really think about ‘levers of change’ that can be utilized to engage investors and ‘white professional males’ in STEM as well as reconsider the definition of STEM to effectuate positive change. Additionally, she asked the group to bring forth their thoughts and ideas of how to effectively engage more women so that they understand that career and business paths “don’t have to be so linear—that it is okay to have stops and starts.”

“Think about the problems you want to solve and the issues that need to be addressed… so let me start by asking the business owners in the group to describe your own journey to starting and growing a business? What barriers did you face and how did you overcome them?”

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Rebecca Contreras*, former NWBC Council Member, a patent holder, and CEO of an 8a and women-owned small business firm offering a “one stop shop” for complex organizational, human capital, and technology needs underscored the importance of women focusing on diversifying, expanding, and redefining their capabilities.

“I have been in the human resources field for years and came up with a software idea to solve complex workforce problems. My partner is a developer, but I never considered myself STEM-focused and had to really stand up for myself just to own my idea and co-patent it,” she said. “But you know, it takes a strong, bold personality to fight and wrestle with an equally strong, male-dominated IT culture to legally own your ideas. And there is a heavy monetary expense, which really just involves hiring the best lawyer. I didn’t have the tech background, but it was my workforce solution idea in the end, and so I hired the best to defend it,” she continued.

She also noted that whatever a woman’s expertise is, that expertise matters. And while there is a lot educational resources and intel “out there” to guide women on how to patent an idea, the cost is prohibitive to most, so making more grants available to women who cannot afford the high costs of patenting could be helpful. “The cost wound up being double of what I had planned—about $12,000—and our patent runway was about two and a half years.”

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“I never thought of my company as STEM, but it is Ed-Tech,” noted a virtual reality game developer and founder of a media company “offering an ‘edutaining-inspiring’ (education/entertainment) mobile application platform for young girls of color ages five to nine” which provides them with “access to content and characters that they can see themselves in.” The company products include virtual reality story books, games, and animation.

She shared that she holds two degrees in criminal justice and marketing. “My background is project management and digital strategy and I have to align myself with all these different acronyms just to fit in,” she shared and also opined that STEM-related products and services fit squarely within the realm of marketing. “They work hand in hand. My first business was a marketing place for African Americans to celebrate their weddings. I raised my funds through pitch competitions. I also attempted crowdfunding and got a little traction, but not as much as I hoped,” she continued.

She also retold what she described as a “horrific” personal experience “going through the SBIR circuit”—getting contradictory feedback from different program managers, and being asked to resubmit a proposal that had been initially deemed innovative but was ultimately rejected.

“There is a lack of diversity for animation and games based on my market research, so I submitted a pitch for ‘GeoQuest’ through the National Science Foundation (NSF),” she said and punctuated only 0.3% of NSF funding goes to African American women.

“My project pitch was accepted in 3 days. I tapped into the listed resources in New York City that did not actually exist,” she said. “Look, I’m an innovator and developer, and what I needed help with was writing the proposal. I finally found organizations to assist me, but I was up against the deadline after all this time and having surgery. Someone finally helped with my SAMS form, but because the program managers switched I was asked to resubmit and I was rejected because the last manager said my proposal was not innovative, even though all the others had said it was,” she continued. This participant concluded her remarks by noting that ‘Phase Zero’ assistance is not readily available to adjunct professors.

Overall, she noted a lack of standardization surrounding the expectations for SBIR applications. Stage zero was not available in New York and assistance is not currently available outside our colleges and university.

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The President and CEO of a group of three niche workforce development firms for scientific and technical professionals in the Pharmaceutical, Medical Device, Biologics, Diagnostics and Biotech industries shared that it took her 11 years to be “accepted” by her society of professionals. “My background is in linguistic archeology—my masters is in corporate communications. The last 5 years I have devoted to STEM apprentices, the majority of whom [over 50%] are women. I pivoted in my careers to build apprenticeships for biotech and food safety. I saw the opportunity to help newer graduates, returning mothers, and young veterans,” she said.

This roundtable participant shared how she led the creation of a food safety training academy mandated by a new set of laws with the aid of a federal grant program. “We received a grant to get the program going and we are looking at more,” she said and highlighted the U.S. Department of Labor’s (DOL) ‘Women in Apprenticeship and Nontraditional Occupations’ (WANTO) grants, which help “recruit, train, and retain more women in quality pre-apprenticeship and apprenticeship programs, and encourages them to pursue apprenticeships and non-traditional occupations (NTOs).”

“My company is qualified for this grant because of the work that we do, but the DOL gives you less than a month to apply for it. Most do not have the money to hire a grant writer. You need to have the money and know it will take at least 60 days.” She added, “I never thought I would take federal money until I started this program.” She concluded by noting the challenges that women must overcome in terms of finding and applying for funding. “Here we are with a mission to solve it, but you cannot get to the resources. We are reality. We are not Washington.”

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A founder and CEO of a software development and technology company with a background in software and weapons systems engineering shared her experiences in her field, which includes digital transformation, system of systems engineering, large-scale IT implementations, and inter-agency collaboration technology initiatives.

“My background is in systems engineering. I worked with large scale combat systems in the DOD. About a year ago, we launched a software and technology company. We do federal services software work,” she shared.

She shared that her role models were men growing up in a STEM environment. And she also suggested that women carry much of the domestic responsibilities at home and noted how the current pandemic has interestingly disrupted the culture in these industries for the better.

“I believe that what we are going through has been one of the greatest things that could happen, in a sense. One of the biggest barriers to entry was the idea that you want to be there for your family, and you recognize that this requires flexibility. There is a misconception that these careers are incompatible with what we want to do at home and now we see that it is possible to build in some flexibility.”

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Council Member and Executive Director of the Babson College Center for Women’s Entrepreneurial Leadership (CWEL) Dr. Susan Duffy emphasized the need to identify models of information-sharing, avenues for accessing funding, and programs that help more women from diverse backgrounds patent and commercialize their ideas. She then asked the group to share their thoughts on some of the specific challenges the participants’ have faced in patenting and commercializing their ideas.

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The founder and CEO at a renewable energy innovator and integrator with projects that range from solar integration for fast charging microgrids to smart city LED lighting with gunshot detection and camera surveillance, shared that she fell into her line of work somewhat accidentally. “This is the first time I have thought of my company as being STEM. I am an industrial psychologist and have a master’s in liberal arts but worked in the basement with my dad building automated equipment.” She continued, “in school, they wanted me to be a librarian. Back in the day, they funneled us towards secretarial positions.”

She too shared similar experiences of working hard and investing considerable amounts of money to ensure she had the right to own her idea. “I co-patented a gunshot detector. It all started like a traditional bar conversation, putting ideas on a napkin. There were engineers on the gunshot side, and I was on the LED side. We went through the process and the attorney fees.” She then emphasized, “they didn’t want me on even though I had the idea and paid for the fees and equipment.” She suggested women not overlook the potential for a cross-pollination of ideas: “it helps you come up with tremendous potential for the expansion of your business.”

She concluded by sharing that she is now looking to start a STEM course because “more and more, the younger girls are getting more excited about STEM careers.”

###

The owner of a company specializing in organic design, build-to-print and build-to-spec poser solutions from power supplies to testing equipment and ancillary equipment also shared her experiences and perspectives. “I started out as a STEM graduate. I have my bachelor’s and doctorate in chemistry. Along the way, I started a manufacturing company. I have run this company for 23 years.”

She noted that STEM is a relatively new term and that girls sometimes turn off from that sort of terminology, suggesting an alternative approach to addressing educational, work, and entrepreneurial pipeline issues is to appeal to women’s and girls’ interests – because part of the problem is the word ‘STEM.’ “STEM was a word that came around long after I was in the sciences. People, especially girls, turn off from those words. So, I never thought about it that way. I just thought: What were my interests?”

###

An aerial pilot and co-inventor on 16 patents on aerial and smartphone technology who also serves as vice president of a credit union shared: “We consider ourselves a tech company with the heart of a credit union… [and] we are very supportive of women in enterprise innovation.”

With respect to her experiences in patenting her ideas, she added: “I had a supportive journey. We had patent attorneys that worked with us who helped format our ideas.”

She further shared that she was greatly influenced by her father and brothers who were in STEM, also noting that there were not many female role models influencing her as a STEM innovator and entrepreneur. “I hold pretty much all ratings as a pilot. I pivoted that career after 9/11 and turned it into an innovation career.” She further suggested that there should be improved or concerted efforts to promote more women in STEM and in innovation generally.

###

A regional economic specialist representing a center for regional economic advancement at a major university responsible for producing data-driven research on economic development in Upstate New York also participated in the conversation. She explained how her program’s work is centered on advancing entrepreneurial programs that connect entrepreneurs with grant capital and development opportunities.

She noted that her program “helps STEM women commercialize their innovations and overcome challenges of leading a growing technology-based business” by combining a curriculum with guided entrepreneurship. There is also an entrepreneurship fund with a grant component.

“We had about 40 women participate this year. Many are at the very early stage [of innovation]. For example, one inventor we talked to is a mother of three.” She noted the main issues they are seeing as barriers for women include the cost involved and “just not understanding the process at all.” Through the fund, grantees are provided with $5000 to support them in the commercialization process. The mother of three she cited in her example used her grant to cover attorney fees.

This participant echoed the importance of helping women overcome barriers that are currently preventing them from fully contributing their talent and ideas to the economy. She emphasized:

“The isocratic and bureaucratic nature of the process is intimidating.”

She too raised the significant cost of childcare inhibiting women’s ability to cover the high costs of patenting and commercialization of their ideas. Ultimately, the burden of childcare is born by women, only. This presents a strict barrier to innovation.

She also shared that her university has a $5,000 grant for inventors, the grant can be used to pay for initial attorney’s fees for applying for a patent.

###

The first roundtable participant to speak and a former NWBC Council Member was recently awarded a patent. She spoke again, emphasizing: “make sure you have the right attorney.”

###

Council Member Dr. Marsha Firestone who is the president and founder of the Women’s Presidents’ Organization (WPO)—a peer advisory group for women who own and lead multimillion dollar businesses noted—shared “we are a business education group with 142 chapters worldwide and take a tech approach to providing information of various aspects of a business.”

She noted the importance of networking and platforms that catalyze information-sharing. “Many of our members of our community are tech savvy, one of which is a participant of today’s roundtable… Many of the discussions [at WPO] are not only about providing expertise for development. Members share and learn from each other,” she added.

###

A participant who is in the process of getting a patent noted that her greatest barrier was finding investors to help fund her idea, after having mostly bootstrapped to develop her idea. “I have a patent pending. It started with a vision as a young girl after having to administer medication to my father since the age of 10 (she is now 40). This is a challenge because it is a medical device and the cost of patenting is so high. Everything I have done or funded is all me.”

She added: “To keep moving forward is a challenge with the patent pending. I am struggling to find the perfect partner or investor that know manufacturing and research. I used up all my savings on this.”

She also noted looking into SBIR but deciding on keeping her focus and own investment of capital on looking for a partner or other investor and caring for her three children.

###

Council Member Barbara Kniff-McCulla who is the owner and CEO of KLK Construction in Pella, Iowa—a contractor in the telecommunications industry—noted that access to broadband and childcare are some of the most significant issues women are dealing with in the U.S. “In Iowa, we are involved in addressing structural childcare deficits. Our governor started a ‘2020 Childcare Challenge Fund’—a matching grant program working with private entities and the public sector.”

“Iowa is missing out on 670 million annual GDP… [so] this childcare piece of the puzzle needs to be resolved,” she continued.

###

Kim Alton, Deputy Director of the Office of Governmental Affairs and Oversight at the U.S. Patent and Trademark Office (USPTO) also joined the discussion. “Our country is missing out if we are not including everyone from different segments of society who have ideas,” she said.

She emphasized USPTO’s commitment to ensuring that women and minority communities have the information and resources that lead to commercialization success. “Within the past year, we have posted an ‘Are you new to IP?’ button —an interactive map to see what is available in your state.”

Deputy Director Alton also shared that from August 20th through the 22nd the agency would be hosting ‘InventionCON’—an event targeting independent inventors and entrepreneurs. She also announced a new upcoming report with updated data on issued patents starting in 2016 and going through 2017 and 2019. Additionally, in September 2020 the USPTO Director will be launching the ‘National Council for Expanding American Innovation’, which will focus on developing a strategy that includes voices from across industry and academia, as well as the public and private sectors.

###

“There is capital out there,” said a fragrance company founder and east coast chapter president of the National Association of Women’s Business Owners (NAWBO). “[But] the percentage of women that get venture capital is incredibly small. The percentage for women of color is even less,” she continued noting that there is a ‘systemic problem’ out there that does not support women in business.

“I was told by three attorneys that my product was not patentable. The average cost is between $10,000 and $20,000 just to get a patent. If it goes to court, then you just put a lot more zeros on the end of that to defend your patent!” The fact that women run the house, and raise the children, is unrecognized.

###

Council Member and CEO and Founder of the REUNIONCare, Inc. emphasized the importance of recognizing certain skills as ‘hard’ rather than ‘soft’ skills. “Many women entrepreneurs are doing this as a second career and assume they cannot manage. There are a lot of skills that are organic to the way we live that need to be recognized as hard skills that will take us a long way.”

She also noted that there is more participation by women in certain industries, like healthcare. “Healthcare is a different animal because the majority are women. It is not the same for other fields.”

And, recognizing the experience of one roundtable participant, she opined on the SBIR program that “a lack of standardization on expectations can leave you subject to a whim.”

She helped close out the discussion by emphasizing the importance of tapping into women and girls’ passion to make the world a better place. “Women and girls want to solve real problems. They ask themselves, ‘How do I make something better?’”

###

*To facilitate candid and engaging conversations, the names and companies of roundtable participants are not disclosed. Exceptions are made for former Council Members who approve release of their identity. Current Council Members’ and government officials’ names are also disclosed.

Virtual Roundtable | May 5, 2021

Focus of Discussion

WOSB Certification Requirements & Participation in Federal Government Contracting

On May 5th 2021, NWBC convened women business owners and entrepreneurs, government officials, resource partners, and other key stakeholders to address certification requirements and to hear their perspectives on the WOSB federal contracting program. Ensuring WOSBs have greater, more equitable access to federal contracting opportunities, including set-asides and sole source awards, remains a top priority for the Council.

NWBC’s #LetsTalkBusiness roundtable discussions help serve as a springboard for the Council’s annual policy recommendations. This event was closed to press. Business owners’ and external stakeholders’ names were kept anonymous to ensure an open and robust discussion.

Access to Capital and Opportunity Subcommittee Co-chair Pam Prince-Eason, the current CEO of the Women’s Business Enterprise Council (WBENC), served as the principal moderator of this virtual roundtable. Pam was joined by fellow subcommittee members Maria Rios, Nicole Cober, and NWBC Chair Liz Sara. Council Member Barb Kniff McCulla, who currently serves on the Council’s Rural Women’s Entrepreneurship Subcommittee, also attended the virtual roundtable.

Additionally, SBA Assistant Administrator for the Office of Women’s Business Ownership (OWBO) Natalie Madeira Cofield delivered pre-recorded opening remarks. Other key SBA officials joined the roundtable discussion as well, including: Deputy Assistant Administrator for OWBO Donald Malcolm Smith, Deputy Director for the Office of Government Contracting and Business Development Thomas (Tom) McGrath, and Supervisory Business Opportunity Specialist for OGCBD Alisa Sheard.

Summary of Key Takeaways

  • In addition to more education of key agency staff on WOSB set-asides and sole source awards, there needs to be some sort of incentive or consequence for noncompliance.
  • Some WOSBs find the certification process and website cumbersome, while others found the new website quite easy to navigate.
  • More clarity and guidance on WOSB award protests should be made available on SBA’s website.
  • Expand the certification time period.
  • Rather than raising the WOSB contracting goal above the current 5%, there should be more attention placed on increasing confidence in how the government arrives at that number.
  • The WOSB federal contracting program is not as robust as other comparable contracting programs. Also, the federal government needs to start asking whether bigger businesses are really meeting all their socioeconomic goals.
  • There must be greater education of contracting officer representatives (CORs) about the program and how to utilize it.
  • One of the most challenging steps is writing the winning proposal.
  • Overall, the option to sole source awards to WOSBs is not leveraged enough. There are not enough RFPs (Requests for Proposals) being put out that way.
  • Demonstrating past performance could be a potential barrier, making it difficult for more WOSBs to compete for awards.
  • The federal government needs more acquisition professionals with sufficient expertise on sole source contracting. Resources are limited with respect to expanding outreach efforts. Legislative action would probably be required to change the program.
  • Many women business owners operate within unique social constructs and time constraints. Federal forecasting schedules could prove useful in helping to cast a wider net of WOSBs.
  • Matchmaking does not work well or produce results for every WOSB.
  • Agency staff face resource and funding limitations, but there is a strong focus on getting more WOSBs into the process. A new NAICS Code Study is also close to completion.
  • An agency official underscored the importance of better educating buyers at federal agencies and contacting the OSDBU (Office of Small and Disadvantaged Business Utilization) as a contract requirement is being written.
  • A third-party certifier suggested that a central depository of information targeted to diverse audiences in multiple languages would be helpful.

Overview of NWBC

NWBC Chair Liz Sara

Chair Liz Sara opened the meeting by commenting on the Council’s ongoing priorities. She emphasized the importance the Council has placed on raising awareness and advocating for greater inclusion and participation of women entrepreneurs and business owners in high-growth, high-revenue industries such as those in the STEM fields where women have been traditionally underrepresented. Liz also commented that many women-owned businesses are often local, neighborhood service providers and that investors are typically more interested in funding high-growth industries. She also noted that in addition to encouraging more women into high-revenue industries, the Council’s Access to Capital and Opportunity Subcommittee remains focused on increasing federal government contracting awards to women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs). “Education of contracting officers is only going to take us so far. There needs to be some sort of motivation, award, or consequence for noncompliance.”

***

Opening Remarks

Natalie Cofield, Assistant Administrator for OWBO, SBA

Administrator Cofield shared the Biden Administration and U.S. Small Business Administrator Isabella Casillas Guzman’s priorities to help fuel an economic recovery and support small businesses, particularly traditionally underserved business owners, including women and minorities. She also provided roundtable participants with a broad overview of OWBO’s Women’s Business Center (WBC) program.

Ms. Cofield shared OWBO currently funds 135 WBCs across the country. “We are proud to have the largest expansion of the network in the history of the SBA … We are also funding nearly $70 million to support core grants, as well as COVID relief for WBCs to provide critical assistance.”

She also highlighted available pandemic relief available through the SBA. “I encourage all to learn more about the EIDL loan program where limits have been increased from $150.000 to 500,000. Visit us at SBA.gov … [and] thank you NWBC for all you do to serve as a voice for women entrepreneurs in Congress and across the Administration.”

***

Open Discussion

Q&A Led by Council Member Pam Prince-Eason

Principal Moderator Pam Prince-Eason opened the discussion by asking roundtable participants to opine on when a business is well-positioned and ready to certify. She specifically asked participants to share any challenges related to navigating the certification process. Pam also asked business owners who previously self-certified about their personal experiences with the recertification process.

***

CEO of a WOSB LLC specializing in technology-enabled services geared toward the federal and commercial sectors

Referencing the 5% WOSB contracting goal, this CEO noted, “The first 10 years of my journey, we never really saw anything for women-owned businesses.” She remarked on her own experiences sharing that from her perspective, the certification process “can get complicated” and advised that rather than losing valuable time, it may be worthwhile hiring a consultant who can shepherd a WOSB through the process. 

She also noted that self-certification was easier and that there is a lack of clarity with respect to what can trigger a legitimate protest. “I had an $18 million contract. Some protested and said my business was not really woman-owned… There was a lack of clarity on the SBA website as to whether the board could be all male, even if a woman is a majority owner. Even today there are lots of grey areas… I must have spent thousands of dollars and over a month of time with my senior staff.”

She also shared that the “shortest path to entry is to team with a larger company” because the business is positioned to “inherit its past performance.” Finally, she noted the significance of relationships and limitations on many women’s time who often shoulder the brunt of caretaking and childrearing responsibilities. “We all know that deals get closed over wine, drink, and dinner. We know that women are also the caretakers.” In short, she suggested that more set asides for women might encourage more established or larger businesses to reach out to WOSBs for teaming opportunities. She also emphasized the importance of educating everyone—all agency staff—from the top down to help more WOSBs access federal contracting opportunities.

***

A CEO of a local Grand Rapids supply chain management and warehouse supply company

This WOSB CEO offered a different perspective. “I had no trouble. We were already WBENC certified. I found the process intuitive and clear. I had my certification in about five weeks total.” She also praised individual members of SBA’s Office of Government Contracting (OGC) staff.

This roundtable participant also shared that she did not in fact encourage hiring consultants, particularly if a WOSB is already WBENC certified. She emphasized that the WOSB program is “not an act of charity” and that rather than raising the goal above the current 5%, the way that percentage is calculated should be examined more closely so that there is greater confidence as to how the agency arrives at that number. “We need to say we have confidence in that number. That is more important than raising the goal.”

***

President and CEO of an information technology company, Air Force veteran, and women veteran advocate

This executive described the certification process as “easy”. However, she noted: “I am also service-disabled veteran owned certified. Despite already being an 8a and self-certified woman-owned business, it still took 90 days. That was the part I did not understand.”

(This participant commented again on the set-aside and sole source awards. See below.)

***

A CEO of a Native American, third-party verified WOSB, management and technical services company

This business is a Native American women-owned business and recommended for the government to consider extending the certification period for WOSBs. She also raised whether it might be possible to consider one unified “process and cost structure” for third party certifiers to help level the playing field. “Your certification lasts for a certain period of time—you have to do it every year. One of the things that may be helpful is to expand that time period.”

She also suggested that there must be greater education of contracting officer representatives (CORs) about the program and how to utilize it. “We mentor a lot of other women-owned businesses. One of the things we find challenging is the education that needs to occur with CORs. One of the things we get is, once 8a, always 8a. There needs to be a more enhanced understanding amongst the CORs about the fact that we continue to serve. Part of success is growth. You find that it works against you when trying to go with the WOSB certification.”

***

Council Member Maria Rios

Co-moderator and Council Member Maria Rios asked a series of follow-up questions on the topic of bidding successfully and landing a contract. “How can women truly compete with larger or public companies that can afford to bid on a contract for far less? What were some of the challenges you faced in winning that first government contract? Specifically, what resources and tactics have you leveraged to overcome these challenges? Have you ever entered into a teaming agreement or joint venture?”

***

President of a company that focuses on providing role playing services to the federal government

This roundtable participant shared the challenges associated with writing a winning proposal. “The most difficult part is not doing the work, it’s not preparing to do the work, its being able to write the winning proposal.”

She was also interested to know whether the new certification requirements would “weed out” businesses that are not truly woman-owned and further impact the 5% WOSB federal contracting goal. “I wonder how many there truly are. I wonder if the percentage will truly be 5%. I am always for raising the goal.”

Finally, she emphasized that while it is possible to sole source an award to a WOSB, it is not really being leveraged enough. “We were fortunate to win a WOSB award as a prime. It is pitiful to see the number of RFPs they put out that way.” She emphasized the lack of parity with other like programs. “You can sole source an award to a WOSB, [but] I am not seeing that used anywhere. If it is not being used, there is no parity.”

Ms. Rios generally agreed that improvements should be explored and make the website “much easier to use,” otherwise it “would not be cost effective” to try to win the contract for some business owners.

***

President and CEO of an information technology company, Air Force veteran, and women veteran advocate

This roundtable participant opined that startup businesses just simply cannot compete. “I was a director at EXIM I have a lot of experience in this space. The only way you can truly compete is by understanding how and having the ability to write those proposals and how to price your proposal. You also have to have client intimacy.”

She also underscored that demonstrating past performance could be a potential barrier, making it difficult for more WOSBs to compete. “How do we create vehicles and opportunities for us to compete in our own environment? We represent 50% of the country. We should have 50% of the business. We are only 40% of the current businesses. Equal opportunity is the bedrock of American democracy. Our diversity is our greatest strength. That fact alone should say we need more WOSBs.”

She continued by noting that research shows that supporting more female entrepreneurs helps bolster national economies. “There are studies that say the world needs to support the development of women entrepreneurs. When women gain access to their own financial freedom, they are lifted out of poverty. This is not us just asking for more business. This is us saying, this would benefit the whole country.”

Most notably, she underscored the WOSB federal contracting program is not as robust as other contracting programs.  “There is a lack of teeth in the program–a lack in ensuring that those larger businesses meet their small business goals.” In short, the federal government needs to ask whether those bigger businesses really have met all their socioeconomic goals. “There should be more teeth with respect to measuring that participation from the beginning to the end of the contract… It’s what you measure and reward that actually gets it done.”

***

Alisa Sheard, Supervisory Business Specialist Opportunity Specialist, Office of Contract Assistance

Ms. Sheard provided feedback. “We do not have a WOSB contracting vehicle out there. I hear the feedback. Is there an opportunity to create an entryway for WOSBs and any other startup?”

She also noted that firms are not required to do a full documentation recertification annually. That recertification is only every three years. The annual is a much smaller, abbreviated process, simply addressing whether anything critical changed. “If not, you should be good to go.”

Ms. Sheard commented that procurement center representatives are sitting at the table during acquisitions. She acknowledged it would be beneficial to have more acquisition professionals with more knowledge or expertise on sole source contracting. “The problem is not necessarily just the sole source methodology—it may more so be outreach and awareness. [However], there is a resource limit as far as availability to expand outreach and awareness. Legislative action would be required to change the program. It was not written with the same criteria and execution as the 8a program.”

Ms. Sheard noted that the agency does not just look at the dollars awarded but also the actual number of contracts awarded. This can be evaluated against the available pool of women business owners. This could be a critical piece that has not been explored before. “Maybe there is a separate goal we can attach to using the set-aside categories. This could give teeth to the OSBDUs to encourage the use of these businesses.”

***

CEO of a writing services consulting firm

This business owner shared that there are many ways to get past performance that many small businesses may not be aware of. She noted relationship-building to get those letters of support and MOUs (memorandum of understanding). “You can show you have people that support your services… Past performance can start at the local or state level or on a subcontract.”

She went on to share information about her business’ core capabilities. “Not everybody that is a great executive, or a great leader, is a great writer. There is an art to it. We provide those services.”

She also provided an example of how bigger companies sometimes leverage WOSBs for a bid but sometimes never follow-up with the WOSB. “We got a multimillion-dollar contract and now we are going on year four, and we have not heard from them on that front. We have other business, but it is interesting to see how the accountability for the prime contractor is not there. Verifying credibility [is important] and making sure they are actually using those small businesses.”

***

CEO of a food and beverage supply company

This roundtable participant also called attention to the unique social constructs and time constraints in which many female business owners operate. She went on to share: “We act as a vehicle for small producers entering these larger federal procurement systems. A lot of what is being discussed is calling attention to building social capital.”

She also raised the possibility of third party certifiers, pre-vetting certain opportunities and funneling those by putting out forecasting schedules. “Time is something that lots of us do not have on our side.” By being more aware of potential opportunities, more women business owners “can come to the table with our beautiful proposals and past performance.”

***

Council Member Nicole Cober

Co-moderator Nicole Cober addressed the issue of goal setting for the WOSB federal contracting program. “For the second time in the last seven years, women-owned small businesses exceeded the federal government’s 5% goal by achieving 5.19% of all prime and subcontracting dollars. In your opinion, is there an arguable benefit to raising the federal government’s 5% contracting goal for award dollars to WOSBs?”

She also asked for specific recommendations to strengthen and improve WOSB/EDWOSB federal government contracting opportunities and spur better engagement from agency contracting officers.

***

Chair Liz Sara

Liz Sara also addressed this issue with the women business owners. “Is there any need for fixes or any improvements that should be made to the WOSB program and contractor experience?”

***

President and CEO and an expert in CMMI (Capability Maturity Model Integration), PMO (Project Management Office) and ERP (Enterprise Resource Planning) services. [Wendy Romeu]

This participant shared that matchmaking is not a tool that has worked for this business. “I am a younger WOSB. We are going through the process of subcontracting to ‘Bigs’ to get that past performance… The match making has not worked for us. This goes back to having funds to participate in everything that is available.”

She also shared, “I am also an 8a. Thank you to SBA for extending the program for one year. We are starting to see success with OTAs” (Other Transaction Authority, 10 U.S.C. 2371b).

***

CEO of an interactive software company and a leader in the educational software and serious games industry

“We have been a WOSB for 25 years. I loved the suggestion earlier that perhaps we do not have to recertify every year. There should be a more streamlined process.”

This participant also noted that while you can sole-source to a WOSB, she had not personally seen it. “There should be something for WOSBs that are not certified in other categories.”

***

Thomas (Tom) McGrath, Deputy Director, Government Contracting Business Development (GCBD), SBA

Tom McGrath is responsible for certification of women owned and economically disadvantaged women owned small businesses to compete for contracting opportunities under the set-aside acquisition programs. He underscored the importance of ensuring the program supports legitimate women-owned businesses while pushing out any individuals trying to take advantage of the program. “We want to get more WOSBs into the process. We think the process is fair and reasonable and that we are asking for the right documents to know who you are… We want to make sure the real businesswomen are successful.”

The agency expects about 16,000 coming through the process this year. “Right now, we are looking at about 9,000. We’ve had over 2,100 applications approved. WOSB and EDWOSB are about 50/50.”

He noted there are resource and funding limitations. “We are working to get more resources and personnel… We have a plan for AI [artificial intelligence] and robotics to conduct risk analysis.”

He also shared there are various initiatives underway and channels to help address questions or concerns. “If you do have issues, I have a biweekly seminar. We are trying to get a call center in.”

Tom McGrath also mentioned a new agency NAICS Code Study that is close to completion. “This is done every five years to look at disadvantaged codes. We do not want to decrease that list at all.” Ideally the list of NAICS code would increase if the findings support that.

***

Council Member Nicol Cober

Co-moderator Nicole Cober followed up with questions for government officials on addressing best practices to achieve parity with the 8a program, specifically related to sole-sourcing opportunities. “What specific resources are needed to improve sole-sourcing for WOSBs?”

***

Donald Malcolm Smith, Deputy Assistant Administrator, OWBO, SBA

There are currently 135 active Women’s Business Center (WBC) partners. “WBCs have an understanding of the WOSB program to point women in the right direction. Because of the largess of contracts in the DC area, the centers in Washington and MD are especially well-versed.”

He underscored the importance of better educating buyers at federal agencies. “I spent the first six years of my career as an Admin Manager at the Department of Labor. We need to educate those in the federal government who actually buy things. [It is important] to know how to write the request for information.”

“The contracting officer is actually educating you once you get to the buying process. This takes time away from you procuring something… That takes away from you selecting a WOSB or 8A. If you know this from the onset, you can go directly to the OSDBU to get the list of qualifying firms.”

He also noted that most federal agencies have a principal deputy secretary that functions somewhat as a COO. Therefore, it is important to engage the OSDBU as the requirement is being written. “There needs to be an encouragement for them to force the internal communication between the OSDBU and those buyers.”

***

Chamber President and Third Party Certifier

“Some of the challenges we see is there is no central depository for information when you want to get into the procurement space. Also, targeted information by demographic and providing that information in multiple languages would be very helpful.”

She also shared some of the advice she provides her clients. “Your elevator speech needs to be honed, big time. Don’t be so proud not to accept a helping hand. Not everybody makes a good government contractor. It is a question of capacity.”

***

Council Member Pam Prince Eason thanked the roundtable participants for their insights and adjourned the meeting.

OVERVIEW

Focus of Discussion

On February 4th, 2022, the National Women’s Business Council (NWBC) together with the Nasdaq Entrepreneurial Center (NEC) convened women business owners and entrepreneurs, government officials, resource partners, and other key stakeholders to address the ongoing challenges many BIPOC women entrepreneurs and founders continue to face when attempting to access equitable financing opportunities to fund a new or growing business.

The roundtable discussion centered on identifying barriers to BIPOC (Black, Indigenous, People of Color) women’s entrepreneurship, and more specifically, focused on identifying innovative approaches and best practices that may be leveraged to increase equitable access to traditional as well as non-dilutive financing opportunities, including by taking into consideration new criteria, which accounts for women BIPOC founders’ legitimate and important “lived experiences.”

NWBC’s Executive Director Tené Dolphin delivered opening remarks and welcomed all participants and attendees to this virtual event. NWBC Council Member and Access to Capital and Opportunity Subcommittee co-chair Nicole Cober, helped moderate the roundtable alongside founding NEC’s Executive Director, Nicola Corzine. Roundtable participant speakers included:

  • Anika Hobbs, CEO/Lead Curator at Nubian Hueman
  • Tameka Montgomery, CEO at Core Strategy Partners, Inc.
  • Diedre Windsor, President and CEO of Windsor Group LLC
  • Jill Johnson, Co-founder/CEO of the Institute for Entrepreneurial Leadership (IFEL)
  • Sara Razavi, CEO at Working Solutions CDFI
  • Jenny Flores, Head of Small Business Growth Philanthropy at Wells Fargo  
  • Therese Meers, Deputy Associate Administrator for the Office of Capital Access, U.S. Small Business Administration

Summary of Key Takeaways

NWBC roundtables help identify possible gaps and/or needs for research as well as serve as a springboard for Council Member deliberations and ultimately development of NWBC’s annual policy recommendations. Below are some high-level key takeaways from this discussion:

  • Black females get such a limited amount of funding from VC, that some don’t try or don’t pursue it at all to avoid disappointment and the discouragement.
  • Many investors are willing to provide feedback and encouragement but are not necessarily willing to cut a check.
  • Innovation and prototyping can be very expensive and can potentially become a ruinous proposition for some BIPOC women entrepreneurs.
  • Many investors fail to see or acknowledge that the marketplace is shifting, and that demand is coming from new consumers, including from “black and brown” populations with discretionary income who are increasingly demanding culturally curated experiences and products different from what is currently available in more mainstream markets. 
  • Capital funding/financing should be designed to enable people to “get traction” and “create a bridge to other forms of capital.”
  • Retirement funds and other forms of personal assets as well as individuals’ personal credit are at risk when opting to “bootstrap” a business.
  • “Women of color founders account for only 0.6 percent of all VC funding.”
  • SBA’s loan programs and entrepreneurial education resources are a great place to start when looking to get mentorship opportunities, put a business plan together, and/or acquire some startup capital. Unfortunately, entrepreneurs who have lost their businesses due to a national economic downturn may still be denied a loan or critical service, despite having assets and a robust business pipeline in place.
  • Black women entrepreneurs who have promising ideas, passed performance, and are nonetheless experiencing financing inequities to help scale their business need a special network of support and advocacy.
  • The lack of equitable financing for BIPOC women entrepreneurs is a “systemic” problem and does not stem, for the most part, from the entrepreneurs themselves. It is the system that needs to change.
  • Entrepreneurs do not need more education, mentoring, or talk. Rather, they need money, and when investors invest, they naturally have an interest in mentoring the business owner and to provide guidance.
  • On-ramps need to be designed in such a way as to allow BIPOC entrepreneurs to create a bridge to other forms of capital that already exists—to various capital stacks. CDFIs and even traditional lenders may not be positioned to absorb this kind of risk at the very early stages of startup so there is a role and an opportunity for SBA and the government to step in.
  • Policy has the power to unlock massive systems and opportunities and it may be time to consider what is “the next HR 5050,” looking at policy changes that can truly accelerate women’s business enterprise as well as incent more women to become investors, while also making decision-makers feel rewarded and protected in moving their capital into areas that have traditionally been considered “riskier.”
  • An entrepreneur raised the question as to why businesses who are generating revenue in the millions and have all their paperwork in place are still being denied financing.
  • Discrimination is real and experienced by many BIPOC women entrepreneurs. As such, more transparency is needed in the financial industry with respect to data and why certain individuals are being denied credit. This may be coming soon via implementation of Section 1071 of the Dodd-Frank Act.
  • More transparency and better data should also be matched with more diverse, and “better representation” in the lending, underwriting, and investor communities.
  • In addition to ensuring more diversity and better representation, organizations like CDFIs need to be adequately capitalized to be successful.

ROUNDTABLE HIGHLIGHTS

Opening Remarks & Featured Video

NWBC Executive Director Tené Dolphin delivered opening remarks, introduced roundtable moderators and participants, and provided background on the NWBC and NEC.

She also introduced a featured a video from the Venture Equity Project titled “Accelerate Investment in Entrepreneurs of Color.” Below are just a few notable quotes from some of the entrepreneurs who shared their unique lived experiences and how persistent challenges to accessing equitable financing continues to be one of the most significant barriers to women’s business ownership:

  • D Marie, CEO & Founder, MyRA Technologies: “So as far as my challenges when it comes to raising capital … I have just opted to go the route of either pitch competitions or grants or really just bootstrapping this on my own.” She later went on to say: “I just feel like the goalposts for myself and other individuals like me are just constantly moving.” And further added: “You know, the stats are out there that black females get such a limited amount of funding from VC anyways, I think that just to save myself the disappointment and the discouragement, I … have just opted to go the pitch competition or the grant route.”
  • Kimberly Evans, Founder & CEO, Just Her Rideshare: “Between meetings with investors, accelerators, [and] filling out grants … pitch competitions—I’ve had a total of about 60 plus—and I’ve got to tell you it’s really frustrating.” She also emphasized: “I’ve met some amazing investors, I’ve gotten some really great feedback, they tell me there is room for us in the market, but no one is cutting the check.”
  • Jacquelyn Clemmons, Founder & CEO, Okionu Birth Foundation: “So far our biggest capital raising challenges have been just around being a new startup. So, its super … important to have organization who are willing to go out on a limb and help us as we are building from the ground up.” Ms. Clemmons also shared: “We have gotten amazing feedback from potential funders about how they really would like to support us, but they really want to see data outcomes and they really want to see us with a little more experience before investing in us.”
  • Topaz Smith, Founder, EN–NOBLE: “Many times investors are looking for 10x businesses, unicorns, in order to, you know, back. ‘This is not a 10x business, we don’t know how to help you, you need to start small, maybe this isn’t something that can do well…’” (sharing what investors have expressed to her in the past). She added: “There also has been challenges around them seeing that the marketplace is shifting and that there is demand coming from new consumers in the marketplace, so black and brown people who have discretionary income and are wanting to experience cultural experiences that are different, from what’s currently in the marketplace. So, there’s been a lack of understanding.”
  • Marie Roker-Jones, Co-Founder & Co-CEO, Essteem: “As a black female founder some of the challenges I face include receiving conflicting information or feedback around our product and what we’re building.”
  • Dr. Charmain Jackman, Founder & CEO, InnoPsych Therapist of Color Directory: “I had no idea about funding sources other than getting a loan, so that already speaks to the lack of access to knowledge that I had about funding businesses.” She later went on to note that: “Women of color founders account for only 0.6 percent of all VC funding.” She ended by stating that: “As a black woman solo-founder, I feel that I have three strikes against me, but I know that I have a solid product that is in high demand. So, I will keep on looking—I’m going to find it!”
  • Annette Bentley Smith, Founder & Writer, AnneCorp Literary Works/Plush-Tales:” I have lost thousands and thousands of dollars trying to create my first … prototype.”
  • Dia Pfleger, President & CEO, DPA Global Consulting: “Everything that I’ve done so far has been 100 percent funded by my 401K, so I [dug] in my pockets to get my dream going, and it’s been quite difficult to get loans … just because of the interest rates … so, they want near perfect credit.”

Q&A and Open Discussion

Following the video, Executive Director Dolphin turned over the discussion to our roundtable moderators—Nicole Cober and Nicola Corzine—as well as our featured participants.

Nicole Cober

NWBC Council Member Nicole Cober opened the discussion by sharing her background as a woman entrepreneur of color, noting that this day of the roundtable marked the 20th anniversary of her starting on the path of the entrepreneurial journey and obtaining her first SBA loan. “I am the poster child for every access to capital program, but 20 years ago, I left corporate America … and I went on the [SBA] website and I scoured [it] for how to start a small business.” Council Member Cober went on to highlight some of the agency’s and resource partners’ signature programs including SCORE, entrepreneurial education and business development resources to help entrepreneurs develop a business (available at SBA.gov), as well as the agency’s “504 loan program to purchase a building and a 7(a) loan program for startup capital”.

Ms. Cober also shared her past experiences dealing with a fractured economy, which led to the loss of her business after being in operations for 10 years, sharing the need to reinvent herself and start over. She also reflected on how this experience allows her to better understand what entrepreneurs go through, and what they have been going through since the start of the COVID-19 pandemic. She further noted that while the PPP program (Paycheck Protection Program) might have had some imperfections at the start, the program ultimately did help salvage many businesses and provided a critical lifeline.

Finally, during her introduction, she underscored that as a member of NWBC and co-chair of the Access to Capital Subcommittee for the past three years, she has heard stories like her own, with successes and some challenges with access to capital. “I really want to help and be an advocate for black women entrepreneurs who have great ideas, who have passed performance, and are still experiencing inequities in their search for scaling their business.”

Nicola Corzine

Nicola Corzine congratulated Nicole Cober for her twenty years as an entrepreneur and thanked her for sharing her story honestly and describing what entrepreneurship “looks like and feels like… the messiness of the highs and the lows.” Ms. Corzine also went on to say: “We are here to discover and start moving toward some of those hopeful, forward-looking actions that can change that perspective for all those incredible women entrepreneurs that are here today, and those that are to come.” She also congratulated Ms. Cober for her efforts leading the BOW Collective, a new professional organization and nonprofit of black women business owners led by Ms. Cober and “dedicated to bringing financial opportunities to scale businesses that exceed 1 million [dollars] in annual revenue.”

Ms. Corzine introduced herself and shared her story as a daughter of an entrepreneur as well as her own lived experiences as an entrepreneur herself— “some great and some not so great.”  She spoke about her own experiences and how these changed the way she viewed and understood the importance of access to resources, also noting she felt lucky to have access to some of these resources but also became aware of “how much more [she] needed to know.”

After some time in investment banking, she spent a decade in venture trying to propel women entrepreneurs forward, but also realized “how much more there was left to do in that entrepreneurial journey,” which led her to the next phase of her career as founding Executive Director of NEC—”a home for global entrepreneurs.” She invited all panelist to join the discussion. “We are here to make progress in a direction that matters.”

The conversation was kicked off with questions directed to the funders. The first question centered around what is truly fueling investments in women entrepreneurs.  Ms. Corzine asked the participants to “discuss ideal networks and educational and funding entrepreneurial models.”

Jill Johnson

Jill Johnson shared that her start on the entrepreneurial journey was “as a kid with her parents owning a newspaper publishing business”—one publication noted was The Minority Business Journal of New York and New Jersey. “So, my father was hosting sessions like this … talking about access to capital. While it is great to have that insight, the thing that is discouraging however, is that this conversation could have been the same conversation back then. The conversation hasn’t changed unfortunately … That part is discouraging but it gives me the motivation to keep on fighting the fight and pushing forward.”

She shared that IFEL has focused its efforts “at the systemic level” because “the problem is not with the entrepreneurs; it is with the system.” Ms. Johnson underscored that it is the system that needs to change, and that the entrepreneurs are not the ones that are broken, but rather the system is broken. Additionally, with respect to models that work, it is primarily investing in these entrepreneurs that is needed—what they need is the funding and not necessarily more education. “They do not need more education, mentoring and talk, they need money… and when investors invest, they have an interest in the business owner and … they provide the mentorship and educational guidance … So, groups like Golden Seeds and Impact Seed and Pipeline Seed and Portfolia, and all these groups that invest in women, that is what we need more of.”

Jenny Flores

Ms. Flores who heads small business growth philanthropy at Wells Fargo shared that over the last twenty years she has focused her professional efforts on “moving billions of dollars into communities of color and for women.” She also underscored with respect to best practices, that it all comes down to intention, stating: “Are you really trying to solve this problem or are you trying to market around it?… And intention shows up, and it shows up in the data because it doesn’t lie.”

She went on to share that in 2020 as a response to COVID, the organization donated all the PPP fees it collected from that year to create an “Open for Business Fund” with the intention to keep women of color and BIPOC businesses open. “We were shocked at how many businesses were closing,” Ms. Flores further commented. The intention behind this initiative was to give those entrepreneurs who needed a grant an actual grant (rather than a loan), or give CDFIs a reserve, or renegotiate the terms of a loan giving business owners ample time to pay. “It is the flexibility that we built in that mattered.”

“All of us that have the privilege of being investors, need to be very thoughtful and partner with communities to design solutions,” she continued.

Nicola Corzine agreed that the solutions can’t be “one-size fits all,” keeping in mind BIPOC women’s “lived experiences.”

Sara Razavi

Ms. Razavi spoke to her organization’s focus on community development as a CDFI (Community Development Financial Institution), which she opined have had increasing visibility, especially during economic downturns, unfortunately. Further, CDFIs have become even more well known since the onset of the pandemic.

She also shared that much like some of the previous presenters, she is a child of immigrants who “made their way to the American dream by way of entrepreneurship.” After coming to the U.S. from Iran at ten years of age, her mother gained her footing by opening two small businesses—a translating business and small bookstore—after finding a community of micro and small business entrepreneurs. However, it was not until Ms. Razavi attended business school that business and finance “became demystified”—citing several examples, including, understanding that a balance sheet merely provides information on what a business owner has and what losses may have been might incurred.

“I started really recognizing that some of this language is intentional to keep folks unaware of wealth. What is a balance sheet; what is an income statement; why are they different?… Why is cash flow the most common use of a financial statement for many of our businesses, and yet we grade them on balance sheets that many haven’t put together yet?” She further opined that there is intentionality in keeping certain individuals out of the financial mainstream.

Ms. Razavi also noted that through her work at a CDFI she is better positioned to focus on impact by, in part, demystifying the language of finance and capital. “I think the intent of CDFIs is to sit down with specific populations, meet them where they are, and recognize with intention there is a reason why you have had limited access to capital. There is a reason we have been having the same dialogue for many, many decades.” She then went on to note that Working Solutions is a Wells Fargo, “Open for Business” grantee—poised to support small business owners with grants or with debt relief, or to help entrepreneurs take a pause and soften the blow from balloon payments, helping mitigate the stress of borrowers, so they can ultimately pay their lender back.

Nicola Corzine then presented statistics on funding for BIPOC women, who are getting lower amounts of funding. For example, women of color founders account for only 0.6 percent of all VC funding.

Nicola Corzine

Ms. Corzine highlighted some relevant, but daunting statistics that show: “BIPOC women are getting lower amounts of funding, they are getting harder hit with the rates, and their valuations are not … where they need to be when compared to male business owners.”

Ms. Corzine again turned to the funders to ask what can be done so that these issues no longer persist.

Jill Johnson

Ms. Johnson proposed that it might be because of how we are looking at venture capital (VC) these days. “Venture capital is for a very, very, very… small sliver of the population. The media makes it seem like everyone is just going out there and getting VC money—well, they’re not. Now, that is not at all to let the VC community off the hook… They have a long way to go, but when we’re talking about… the general access to capital issue, that’s not really the place to look. It’s how do people get an on-ramp to venture capital, to even bank debt, right? That starts with personal wealth, so that is where we have to address the issues of the wealth gap more broadly.” She further underscored that it starts with having the personal wealth or being in the position to access the personal wealth of friends and family.

The stories from entrepreneurs saying that “they bootstrapped their business” usually come from well-funded individuals and not typically from BIPOC women entrepreneurs. “When we hear that we say that’s not bootstrapping in our world. In our world we’re trying to rub together two nickels, and trying to make that stretch, and make it any way we can, which then results in a low credit score because we we’re robbing Peter to pay Paul, just trying to keep our businesses afloat… and the system is designed to ding you for that… you don’t get credit for being innovative and creative and keeping your business afloat. That is deemed to be a negative.”

She further suggested that the focus needs to be on providing that “early capital” and giving due consideration to which institutions can absorb that kind of risk. “CDFIs while doing an amazing job, are not designed to absorb that kind of risk at the very earliest stages, before there’s the traction. Banks themselves are not designed to absorb that risk. The kind of capital that is needed really has to be something… that is designed to enable people to get traction and to create a bridge to other forms of capital that already exist, and that is why I think there is a role for the SBA and government to step in.”

Ms. Corzine then turned to Ms. Flores to comment further on the idea of leveraging on-ramps to ensure equitable opportunities to “capital stacks” so that financing is available “later on, down the road.” She specifically asked: “Has there been anything that you’ve seen emerge from all the incredible BIPOC women you support that has inspired you, around where and how change is showing up?”

Jenny Flores

Ms. Flores emphasized the issue is systemic. “I often think about the fact that before the Equal Credit Opportunity Act (ECOA) women couldn’t apply for a [loan] on their own… you needed a male co-signer… and then in the eighties we got the [Women’s] Business Ownership… bill … women could apply for small business loans without a male co-signer, we got Women’s Business Centers, National [Women’s] Business Council, we got the Census tracking… [women-owned] business more accurately. So, I really feel like policy oftentimes unlocks massive systems and opportunities, and I think it’s time we consider what is that next HR 5050. What do we need to get behind that accelerates venture, that accelerates more women to understand [that they] can also be good investors… and how do we get protections as we move our money into these areas that are considered ‘risky’”? 

Co-moderator Nicole Cober than directed the next set of questions to small business owners and asked them to “share their own personal stories” and lived experiences, calling first on a BOW collective member Diedre Windsor to share her experiences accessing capital.

Diedre Windsor

Ms. Windsor is a retired army officer and former federal government career executive who quit her job in 2016 to start her own business. “In 2017 we started in earnest…our first year of business we probably made about 100 grand…in 2020 we got to about 2.5 [million], and last year we close to tripled and we’ve never been able to get a loan.” She went on to share that initially she bootstrapped leveraging credit first then going to friends and family. However, she noted “individuals are not positioned to absorb a loss if you cannot pay them back.”

She also emphasized it is important to identify where the real problem lies in, with the respect to the issue of “intention.” She asked: “Well, who takes that [intention] to the underwriter? Because that is where the block is… and you are talking to the same processor a hundred times, asking you the same questions… And now my number one source of capital nowadays [are] my clients… so it’s our company’s revenue… but why do I need a network… if on paper it says what it needs to say? So yeah, it is a struggle, it’s tough.”

She concluded by saying that financing should be based on the merits, “what’s on paper”. She also shared that although she is not able to absorb the risk, she has found herself lending money to other women business owners for payroll because she recognized they are dealing with the same struggle she has dealt with. “We are contributing to society, we are contributing to people’s livelihoods, so how do we get to a place where that is enough?”

Co-moderator Nicole Cober agreed: “These are not stories, [this] is our lives…We’re trying to create a network. Black women don’t have a network… You have to wonder is race a factor when all objective criteria are made right?… When is it appropriate or relevant to say maybe there is some discrimination that may be attributable for these women that are highly successful but are still being denied?”

Ms. Corzine directed the discussion back to the funders: “It is important to have allies and so I turn it back to Jenny—what do you say to people that say I’ve checked all the boxes and I was still denied? Do you see discrimination?”

Jenny Flores

“Well let’s just put it this way, I’m Latina. My Mom is a business owner [and] she experiences it. And so, I see clearly from where I sit, I perceive that there is bias. I perceive it.” She went on to share a personal story of how her mother had been poorly treated while doing business at a national bank, and how she had to help advocate for her mother’s customer rights. “I mean I get it, I’m in banking. I know how the system works. We know, we feel it, we know that something’s wrong.”

Referencing The State of Latino Entrepreneurship report she underscored … “When you look at Latino business and you control for business performance… the same performance… Latinos who applied for loans and were 100 thousand, 20% get approved… 50% of the white counterparts… So, we need transparency in the industry. Why are people getting declined, what is their background?”

Sara Razavi

“You’re right Jenny, the data is coming. The Dodd-Frank Act of 10 years ago is now going to be realized in the Consumer Financial Protection Bureau’s [implementation of section] 1071… I say all this because this is a smart group to understand the policy will follow.”

Ms. Razavi also opined that the data may likely show some financial institutions never really reached out to [underserved] communities to “even get them through the door, to inform them.” She continued, “there is not going to be deep change until there is representation. The person sitting across from you, the lender sitting across from you has to be a person of color… and a woman of color so they understand what you mean when you say there is a little bit of discrepancy in your flow or hours for your staff or clientele—it is a little bit different, because frankly most of them are parents.”

She added: “And the lived experience comes into play when we recognize not everyone who applies for those jobs may seem qualified for those jobs… and we have to [recognize] those barriers as well.”

Tameka Montgomery

Ms. Montgomery, a business owner, formerly served at SBA under the Obama Administration heading the Office of Entrepreneurial Development, overseeing all resource partners. She noted that at the conclusion of the Obama Administration, leadership was looking at lending in underserved markets.

She added: “But something else we want to think about is not only the representation of those individuals who are lending the money, but then also, one of the things we need to work on is more individuals of color who are leading organizations in the way Sara is leading them, that they are capitalized to be successful… those organizations are experiencing those very same problems that the entrepreneurs are dealing with, which impacts their ability to really help those businesses, grow, and scale.”

“We also have to look at how we are funding organizations that are led by people of color.”

Anika Hobbs

Ms. Hobbs shared her experience as a retailer: “I’m a retail queen, I love brick-and-mortar. And of course, it’s been very tough… before the pandemic and during the pandemic, being in a space that serves black and brown people, and a brick-and-mortar space that serves black and brown people. I know for me that the staggering statistics already creates mentally a barrier for entry for us.”

She also went on to comment that the tailored products to her community are advertised differently and that there is different information delivered and different levels of encouragement that is shared. “I kind of have been in the same space of what everyone has shared… I have all the paperwork but at times I’ve been asked: ‘What is the impact or the purpose of [the] business’?”

“We are a retailer that exclusively focuses on black and brown brands. We are still in a space where we… have to measure our impact, or prove our impact, when the numbers may not speak to that. And it goes a lot deeper as far as ecosystems that are built, and families we are able to help support. Some of that does not necessarily translate on paper, and so that has been a barrier.”

She went on to share a recent personal experience attempting to obtain a line of credit, where a financial institution’s representative noted she might have a great chance at acquiring credit because there was a “special initiative” but not because of her business model, traction, or what her paperwork reflected. “Because we’re trending, there’s a great opportunity that this might work, but it’s not because of what my figures say, what my paperwork says, the traction that we’ve made—none of that.”

Ms. Hobbs also shared that she has faced challenges with respect to investment opportunities, in addition to issues she’s faced with credit and lending opportunities. “We opened in 2013, and an investor came in early 2014 saw the space and said: “Um would you mind changing the name of your business? And you know the name of my business, Nubian Hueman, connotes what we’re about. So, you know, just not understanding who we are, what we do, and what we represent can become a challenge in receiving funds.”

Ms. Cober then called on SBA Assistant Administrator Therese Meers to share the agency’s perspective on overcoming barriers to financing for BIPOC women entrepreneurs.

Therese Meers

Assistant Administrator Meers shared she is a former entrepreneur and manufacturer of a high-protein low-sugar yogurt. Additionally, she most recently served as Senior Counsel to Senator Ben Cardin of Maryland focusing on entrepreneurial development programs at SBA as well as federal contracting. During the pandemic, Ms. Meers was laser-focused on ensuring women and all underserved entrepreneurs were granted access to PPP and other COVID relief funding during her time serving on the Hill.

Her current stated focus is to support the priorities of the Biden Administration and help support SBA Administrator Guzman as well as the Associate Administrator for the Office of Capital Access “to get much needed funding and opportunity to overlooked populations—women and minorities.” She further added: “We’ve been working on… improving tech as well trying to make SBA more user-friendly, trying to make SBA more visible as well. After all the COVID relief that has gone out… I sort of sit in this intersection of… [getting] more dollars and opportunity and education.”

She also shared her personal story as an entrepreneur and her journey to learning about the different avenues to accessing capital as an emerging entrepreneur. “When it comes to access to capital there certainly isn’t one single path, you can piece things together and figure it out. But I do encourage to those listening, if you are thinking about access to capital, don’t overlook your SBA District Offices. They are there to help and to serve and can give you a wealth of information on different types of loan products and traditional lending at SBA as well as equity investment through… SBICs… Women’s Business Centers, Small Business Development Centers, and Veteran Business Centers, [and] SCORE chapters for mentoring.”

Nicole Cober interjected with a follow-up comment and question: “We’re looking for policy issues and SBA products are the fallback product because it is a new venture or the owner’s credit is marginal, and those loan terms… the rates… are more egregious than traditional loans, right? My point is that the interest rates are higher… Why is that?… The government has a lot of ways to not monetize that… [With] the PPP loan process, they eliminated credit barriers and they got that money out… [particularly] that second tranche by going to CDFIs, credit unions… those micro and small business were successful—they were successful because it was an emergency… Equity is [still] an emergency—so, is there a way that the Administration or Congress can look at the successes behind that liquidity… that was going directly to the end users with those small businesses. Why do we have to change that? Why do we have to go back to having these very arduous criteria around SBA lending?”

Therese Meers

“Thank you, Nicole. I definitely am hearing you. I had the opportunity to work on the CARES Act and to build up the Paycheck Protection Program [PPP] as well as help to get funding to the SBA resource partners or technical assistance. And, also with the American Rescue Plan for President Biden… worked on creating the Community Navigator Program to help get word out to communities about the relief programs in place, and we’re still certainly looking through and understanding and digesting the lessons learned from PPP… A lot of cleanup as well that we’re working though in the Office of Capital Access—figuring out what worked, what didn’t work, and what can continue as a result of PPP.”

She further responded: “I do hear you though that interest rates can be, and are, often higher mainly because the loans are often high dollar value, higher risk and in exchange there’s opportunity to get longer repayment terms than from traditional banks. But we certainly are working internally at SBA to improve regulation and streamline where we can, to make the process easier, [simpler]… looking at affiliation rules…criminal background rules and potential barriers as to what’s causing hang ups to access to capital.”

Nicola Corzine posed the same question to the funders: “Equity is an emergency, could not have said it better. Our women, our new majority, our BIPOC [women] are the fastest growing segment. What, thinking of the women that are in your networks…the ones you advocate for…what do you want for them to make sure they have access to great equity options for them?”

Jill Johnson

“As we continue to say minority and BIPOC, etc., it does not actually draw attention to where attention needs to be placed. These populations are historically excluded, so I would challenge everyone to adopt new language to place the emphasis where it needs to be.”

“To answer your actual question, what I would love to see…PPP went out the door really quickly, a lot of corporations established very large grant programs… imagine if that capital was put toward women of color fund managers so that they would have this capital to deploy? I’m sure we would see capital… very creatively being deployed to women like those on this call. So that is what I would like to see, more capital being put in the hands of women of color.”

Jenny Flores

“For a lot of the funds that are women-led or of diverse background—it’s just that the cost structure doesn’t work… You’re barely stay[ing] afloat. So, how do we aggregate that power so we can all leverage that power so you’re not working with an attorney that charges you… to give you advice?”

She continued, “I’m thinking that we aggregate and share best practices. Also getting this money to these diverse founders is critical. Also, accredited investors, they are putting money into funds… do they even understand the power that they have to invest in these diverse funds?”

“We are working on something to help move 10 thousand women who have the ability to invest into funds that are earmarked for women. It’s a billion dollars—real tangible things are coming… that’s what I’m working on.”

Sara Razavi

“All of my career… the frustration has been the level of scrutiny that social enterprises have to manage… The level of scrutiny that nonprofits have around policy and governance is comparable to a public company.” She went on to comment that instead of setting up another nonprofit, it is best to leverage the strength of existing organizations. She also emphasized greater trust should be provided to government lines so that entrepreneurs are afforded the flexibility to maintain their business. “Again, these systems are set up to be limiting.”

Nicola thanked everyone for their time and transparency—and asked each participant to provide one key takeaway:

  • Jill Johnson: Continue having these kinds of conversations. Act with intention and purpose, but also, we must take action. The investor community has the greatest ability to act and make change, to create a more inclusive entrepreneurial system.
  • Anika Hobbs: Need to come up with creative opportunities for women entrepreneurs’ capital stack. We need to begin and build legacy, and it start with us—gaining as much knowledge and entering into as many networking circles as possible. Sharing knowledge and building trust is also important. Access and information are the only way we will be able to build those pathways forward.
  • Tameka Montgomery: Go to the stakeholders to those who are really going to be impacted and give them a seat at the table and let them be part of the design process.
  • Therese Meers: Encourage use of SBA resources starting with SBA District Offices and other SBA resource partners such as Women Business Centers, Community Navigators, and understand SBA’s equity products.
  • Sara Razavi: No one is smarter than you. Assume nothing and when you have a question, simply ask. Ask the question because it doesn’t undermine your lived experience. Make sure when you invite stakeholders to the table make sure they don’t feel undermined in the room—let people ask questions without underestimating them.
  • Diedre Windsor: Let your story be heard. If no one knows what you’re going through, then no one can help you. Also, your best source of capital is your client so try to cultivate those relationships because your revenue is capital also. And keep going.
  • Jenny Flores: Remember that as a collective we have power. When you use it and reimagine what the financial ecosystem can be, there’s no one who can say that is not what they want to support. Sometimes we just have to create the vision.
  • Nicole Cober: Empower yourself, don’t shame yourself. Share your stories. We are usually marginalized when we’re isolated, and usually that marginalization is in our minds. Share, tell, and link up. “You have some much power in your story, but when you bring it together with others—it’s datapoints.” The BOW collective is an attempt to bring together the stories of black women entrepreneurs—the successes and the challenges. “We are going to the banks together… and we are going to report out together… You change the world by changing your narrative.”

Nicole Cober and Nicola Corzine thanked all the roundtable participants and recommitted to continuing these important conversations going. Ms. Cober also thanked the Council Members of the NWBC and Executive Director Dolphin for the opportunity to serve on the Council, ending her service on a high note and focusing on further promoting the BOW Collective.

***Closing***                                                                           

Tené Dolphin

Executive Director Dolphin also thanked the roundtable participants for their insights and adjourned the meeting. “Your voice is part of this group… and your voice matters. Thank you to all the amazing panelists here today, I wish we had more time.” She wrapped up with some of her personal takeaways:

  • The next HR 5050—it’s time for the next.
  • Looking at the data [collection] with the implementation of [Section 1071] of Dodd Frank is critical.
  • Representation matters!

“This is the beginning—remember we have policy recommendations to make. This is the springboard, so this is not the last conversation so we can get more information and visualize what those solutions are.”