These statistics tell a powerful story of the impact women-owned firms have on business and the economy nationally, statewide and in our Kansas City region. Yet this impact is still not widely understood.

“I have been in the economic development field for nearly twenty years but was very surprised when I first learned the financial impact women have on the Kansas City area economy,” says Lori Kravets, director of the Missouri Women’s Business Center. “I doubt that many women business owners recognize their importance to our economy.”

According to the Center for Women’s Business Research, women-owned businesses nationwide spend an estimated $546 billion annually on salaries and benefits. Women-owned firms employ 19.1 million people and generate $2.5 trillion in sales.

Despite this economic clout and significant progress during the past decade, a Center study released in March, 2005, shows that women business owners’ use of capital Ð both credit and equity Ð still lags behind men’s. According to the Kauffman Foundation’s Diana Project, “In spite of the fact that their rate of participation in new venture creation has been at an all-time high for the last fifteen years, women have received a disproportionately low share of available venture capital in the United States. There is a substantial funding gap that limits women’s opportunities to grow their ventures aggressively and to lead high-value firms.”***

Education about equity and venture capital markets is important to the continued success and growth of women-owned businesses. It is also critical for women business owners to be aware and involved in public policy issues that can affect their bottom line. This includes using all the certification opportunities available to women-owned businesses for which their business qualifies, including certification as women business enterprises (WBE). Such third-party certification is used by corporations and governments to determine eligibility for their supplier diversity initiatives, opening the doors to government contracts and other sales opportunities statewide. Yet, in the state of Missouri alone, only a small percentage of women-owned businesses is currently WBE certified.

Even though women have made dramatic strides as business owners, women in business still have mountains to climb. In the Kansas City region they are fortunate to be assisted in this venture by the many resource organizations dedicated to the education, training and advancement of women-owned businesses.

Maria Meyers is Network Builder for KCSourceLink, connecting a network of 130+ nonprofit organizations providing business assistance to small businesses. Contact her at 816.235.6500.

*Source: Center for Women’s Business Research, Women-Owned Businesses in 2004: Trends in the U.S.and 50 States
** Source: Bureau of the Census and Center for Women’s Business Research, 2002.
***Source: Gatekeepers of Venture Growth: A Diana Project Report on the Role and Participation of Women in the Venture Capital Industry Kauffman Foundation study, April 2004.

Article Source: http://www.flourishmagazine.com