the Institute for Economic Empowerment of Women
Empowering Women All Around the World - Economically | Socially | Politically
17Oct

The Women’s Business Ownership Act, What It Means Today

Posted by: Jane Categories: Blog
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By Terry Neese

In 1976, I was a successful new business owner who decided it was time to purchase an office for my growing company. At that time, an Oklahoma law required me to obtain a male relative’s signature to obtain a loan; I was completely unable to borrow money on my own, despite my personal success.

Refusing to accept the fact that I would need my husband’s signature, I found a building and worked out an arrangement with the seller whereby I was allowed to pay the building off over 10 years. I was able to pay off the building in five years and we are still in the same building today. This experience showed me firsthand some of the great barriers that women business owners faced, and inspired me to dedicate my time and passion towards women’s economic empowerment throughout my career.

It has been a little over a quarter of a century since President Ronald Reagan signed into law HR 5050 also known as the Women’s Business Ownership Act, on October 25, 1988. As a past president of the National Association of Women Business Owners, I was part of the movement that pushed this landmark piece of legislation through Congress.

The act aimed to facilitate women business owners by recognizing their value as entrepreneurs, increasing resources available to them, and ending the discriminatory state lending practices that had required me to obtain my husband’s signature for a loan. It also established the National Women’s Business Council, a panel that advises the president and legislators on issues involving economic issues relevant to women, and Women’s Business Centers, which help women across the country fund and run their businesses.

Great strides have been made as a result of HR 5050. One of the most important results directly stemming from the legislation is the Census Bureau’s inclusion of data on all women-run businesses rather than just a select few. Prior to HR5050, only some of the data on women in business was collected, resulting in inaccurate information that diminished the role of women in the workforce. With the proper data available, the true impact that women make on the economy has been realized, reinforcing the value of women-owned businesses.

While there have been many significant strides made when it comes to women in business there are many aspects that still fall short. According to the 21st Century Barriers to Women’s Entrepreneurship report from the U.S. Senate there are three hardships that women in business are up against:

  • Women entrepreneurs still face challenges getting fair access to capital.
  • Women entrepreneurs still face challenges getting equal access to federal grants,
  • Women entrepreneurs still face challenges getting relevant business training and counseling.

When it comes to access to capital women are routinely turned down for loans only getting 4 percent of total dollar value of all small business loans. Some of the reasons behind women not receiving loans include the lack of collateral, strict banking regulations, perceived risk on the end of the lender, low or negative cash flow and revenues, and lack of preparation.

The federal government is supposed to award 5 percent of federal contracts to women, this quota has never been met. This means that women business owners are missing out on 4 billion dollars each year in capital.

Though there are Women Business Centers in almost 50 states, Congress has not been able to reauthorize it since the 1990’s. These centers in each state are sometimes the only place that are specifically for women in business. Since they have not been reauthorized, they are losing funding and are unable to adequately have the support, training and counseling that women business owners depend on.

Without the passage of HR5050, women business owners would not be where they are today. That does not mean that we should stop empowering women to be involved in the policies and procedures that affect women business owners. There are still many obstacles that face women in today’s society, without being involved no changes will be made.

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17Sep

The Global Rise in Female Entrepreneurship

Posted by: Jane Categories: Blog Media
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Is the rise in female entrepreneurship due to the fact that women tend to have companies or organizations that are more focused on the greater good?

Recent studies have shown female entrepreneurs who receive micro-loans are more likely to use that money building their businesses; in order to give back to their families and their communities than their male counterparts. You see this in the products and services that women-owned businesses produce and the organizations that they put their time and money into.

We see this in our Peace Through Business program graduates from Rwanda and Afghanistan. After taking a total of 13 weeks of entrepreneurial education, they go back to their countries with a new sense of to pay forward their knowledge to other women entrepreneurs in their own community. As I believe “when you educate a woman, you educate a nation.”

According to the National Association of Women Business Owners’ (NAWBO) “2014 State of Women-Owned Businesses Report”, women are very optimistic about their business performance and the economic outlook going forward, which is a jump from 2013.

The report also found that 92 percent of women surveyed predict that more women will be venturing into entrepreneurship. These numbers are reflected in our program. In 2014, we received more applications for our 2014 class than ever before, and our statistics show that after eight years, more than 80 percent of our graduates are still in business, which is an amazing number for developing countries.

Hillary Clinton’s International Fund for Women and Girls initiative reports that, in emerging markets, women reinvest a staggering 90 cents of every additional dollar of income in their families’ education, health and nutrition. Compare this to only 30-40 percent that men reinvest. Think of women’s increased income and assets as a gender dividend driving family, community and country well-being.

The recent Global Entrepreneurship Monitor (GEM) found 126 million women owned businesses, and 98 million operating established (over three and a half years) businesses. That’s 224 million women impacting the global economy — and this survey counts only 67 of the 188 countries recognized by the World Bank.

Entrepreneurial activity creates growth and prosperity — and solutions for social problems. And today’s trends show that women will be a driving force of entrepreneurial growth in the future.

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7Sep

American, Afghan Women Foster PEACE THROUGH BUSINESS Skills

Posted by: admin Categories: 2011 PTB Students IEEW in the News
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McClatchy posted a video discussing the work we’re doing in Afghanistan, highlighting 2011 Alumnae Zarmina Popal.

View the video at http://videos.mcclatchydc.com/vmix_hosted_apps/p/media?id=103780521&item_index=&genre_id=00008877

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7Sep

Building Peace through Business

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By Susan Solovic.

Published September 06, 2012 on FOXBusiness

 

 

Being your own boss, controlling your own destiny, for many in our country is the American Dream. But starting and building a small business is difficult. That’s why the failure rates are high.

Entrepreneurs face myriad challenges from finding the start-up capital they need to obtaining access to markets and technical resources. And yes, we complain about how difficult it is. But imagine if in addition to these common business challenges, you were faced with death threats from competitors, scorned by society or struggling to rebuild after having survived your family being torn apart by waves of genocide and political repression?

Recently I emceed an economic summit in Washington DC and was humbled and in awe of some of the women I met there. They were visiting the U.S. from Afghanistan and Rwanda — part of the Peace Through Business program sponsored by the Institute for the Economic Empowerment of Women (IEEW).

Sixty women from Afghanistan and Rwanda participate in IEEW’s business leadership training, which begins with in-country training. Then 30 women are selected to travel to the U.S. for more extensive training and mentoring. Their visit culminates with a special graduation which includes a bold presentation to the Ambassadors of their respective countries outlining what support and changes they need in order to succeed. That part truly gave me goose bumps. I was so proud of them for their bravery.

Warm, gracious, fierce and courageous, each of the women entrepreneurs from Afghanistan and Rwandan is determined to build her business dream despite the odds, and each has a compelling story. When you listen to what they face daily, it makes your own difficulties seem like child’s play.

Put yourself in the shoes of Kabul businesswoman Freshta Hazeq. The mother of three owns the only-female run printing company in Afghanistan, and she was sabotaged by her male employees who were bribed to do their work incorrectly. Hazeq also lives with death threats after winning a contract which had previously been awarded to a male competitor. Then there is the bravery of Kobra Dastgirzada, whose multi-faceted company in Afghanistan includes a driving school for women. Although women today are allowed to drive in Afghanistan, it’s still condemned by many men and some women face punishment.

“I feel that being in business is not just about making money; it is about making a statement and making a difference in the lives of others,” Dastgirzada says.

The Oklahoma City based IEEW is founded on the principle that societies which are economically stable have a much greater capacity for peace. Therefore, the Institute hopes the training and on-going mentorship given to these determined women entrepreneurs will help rebuild their war-torn economies. An infra-structure exists in each country so the program’s graduates can pay-it-forward and help other women start and grow successful business ventures.

So the next time you find yourself frustrated over your current business situation — stop! Think about Hazeq or Dastgrizada and then reassess your situation. We’re lucky to live in a country which gives us so much freedom and opportunity to build our business dreams. Perhaps, one entrepreneur at a time, we can build peace through business around the globe.

This opinion column was written by New York Times bestselling author and small business consultant Susan Solovic.

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2May

The Importance of Ongoing Education for Entrepreneurs

Posted by: Terry Neese Categories: Blog
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By Dr. Terry Neese, Founder, Institute for Economic Empowerment of Women

2011 PEACE THROUGH BUSINESS Women Entreprenuers at Northwood University

 

No matter how long you are in business, there is always something new to learn. Whether it is becoming more familiar with the benefits of marketing through social media or learning about new products that are available in your field, all small business owners can benefit from enhanced education. I believe that this is true whether you are 26, 46, or 66.

As a small business owner, here are some cost-effective ways for keeping up your skills. The same could be said for your employees; it is worth investing in their education as well. You will wind up seeing the end results in your bottom line.

 

  • Consider a degree part-time

Universities and colleges all across the country welcome entrepreneurs who want to return to college to finish up a degree on a part-time basis. Usually, there is financial aid available, as well as flexible funding programs. For instance, one of our partners at IEEW,NorthwoodUniversityinCedar Hill,Texas, offers majors in management, marketing, and accounting with concentrations that range from international business to entertainment management to automotive marketing and management. All these programs can benefit entrepreneurs, and Northwood’s student body ranges from ages 17 to 60. The school offers evening classes for undergraduate and graduate degrees, and 98 percent of the students receive financial aid. In fact, Northwood is so committed to assisting small business owners that it hosts our Business Boot Camp from July 9-13 every year for our PEACE THROUGH BUSINESS® students fromAfghanistanandRwandathat graduate from IEEW’s unique entrepreneurship program.

 

  • Take online courses

If you or your employees just don’t have the time to get to a traditional classroom setting, consider taking courses online. About 29 percent ofU.S.higher education students are taking courses online, according to the Sloan Consortium, a nonprofit group that promotes online education in general. This is a way for small business owners to improve their skills, with a great deal more flexibility in scheduling compared to traditional classroom time.

 

  • Attend trade/professional association workshops and conferences

Whatever kind of business you are in, there will be some association to represent you. Aside from the valuable contacts you can make by joining such a group, there are always educational opportunities available. Associations offer certifications and designations, which will give you valuable knowledge and training and help you market yourself as an expert in your field. Even if attending an organization’s annual meeting is too costly for you at the present, there are usually local chapters that will offer workshops and chances to obtain certifications. They are welcoming to new members. There also are wonderful networking benefits of joining a local chapter of the key association in your industry. Your time will be well worth it.

  • Read, Read, Read!

Trade magazines are in business for a reason. That reason is to inform and enlighten those in a particular industry. Spend the money (and remember, subscriptions to trade publications can be written off as a business expense) and subscribe to one or two of the leading magazines in your industry. Nowadays, you can even get very inexpensive online subscriptions to most publications. You can keep up on the latest trends, learn new marketing and branding information, and connect with individuals quoted in articles who can become part of your client base. For instance, I read the Washington Post, Washington Times, New York Post, Wall Street Journal, and my local newspapers every day without fail. It keeps me in the know, and I can follow all the new trends in business. It is well worth my time – no matter how busy I get.

 

Utilize education for the amazing tool that it is and happy learning!

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