President's Report - December 2008

Seat at the Table

Linda Denny, WBENC President and CEO, along with leaders of 14 other women’s business associations, met with President-Elect Barack Obama’s Transition Team in mid-December and now have a seat at the table to represent the concerns of the women's business community to the new administration.

"What this means to WBENC is an opportunity to voice the challenges women face when doing business in the U.S.," said Denny. "The team was looking for suggestions on how to deal with the challenges, which is most encouraging"

One of the specific challenges Denny addressed during the meeting was that women business owners are required to hold multiple certifications in order to do business with the many different government entities at the local, state, Federal and agency levels. Many of these certifications are basically certifying the very same thing. These requirements add significantly to the time and expense a WBE utilizes to get government contracts. It was suggested that if a business owner holds a certification (such as WBENC's certification) that requires a more in-depth level of review and scrutiny, that it be accepted.

"Together, with the commitment for future dialogs and the possibility of playing a significant role in the stimulus of the economy, I am encouraged by this first step," said Denny. "I also am optimistic that it is the first of many steps to be made by the new administration to engage women-owned businesses as major contributors to the nation's economy. In addition, this forum not only created a two-way dialog between women business associations and the new administration, but also opened the door for opportunities among the associations, which can lead to a strong collaborative effort."

Some of the specific issues/suggestions raised by the group of 15 different associations include:

• The "Economic Blueprint-The Women Business Owners' Platform for Growth", developed by Women Impacting Public Policy (WIPP). WBENC was a major contributor to this plan’s development.
• The "Employee Free Choice Act" dealing with labor unionization.
• Access to Federal Government procurement and the faulty ruling proposed by the SBA.
• Access to capital and credit, including the SBA lending programs.
• Globalization and access to the global markets.
• Lack of training resources for women's businesses beyond the start-up stage.

At the end, meeting moderator Rita Lewis, a member of the Transition Team, stated "This is the first conversation, but it will not be the last."

"As we go forward, WBENC will solicit WBE input from time to time," Denny shared. "WBEs should be prepared to give suggestions so we can take full advantage of our 'seat at the table' and best represent their interests and views."

The Women's Business Enterprise National Council (WBENC), the nation's leading advocate of women-owned businesses as suppliers to America's corporations, has announced its 2008 Dorothy B. Brothers Scholarship Award recipients. Supported by Bank of America and its suppliers, the 2008 scholarships will provide 14 WBEs (women's business enterprises) access to continuing executive management education.

The Dorothy B. Brothers Executive Scholarship provides a framework to enable women-owned businesses to formulate and implement business strategies to achieve a competitive advantage. Through this program, scholarships of up to $4,500 in tuition are awarded annually to select certified women business owners to continue management education through an approved executive level course.

The 2008 award recipients are:

"This is a great opportunity for WBEs to elevate their core competencies," said Betty Cole, WBENC Sr. Director of Programs. "As WBEs begin to grow their business, they often need help in growing their abilities to manage the new challenges. Thanks to Bank of America and their vendors, the Dorothy B. Brothers Executive Scholarship provides funding to support continued education."

Dorothy B. Brothers was a Bank of America Supplier Diversity & Development executive and WBENC board member, who passed away in 2002. Her accomplishments helped diverse suppliers grow and successfully participate in competitive procurement opportunities within corporate America. She founded WBENC's executive management scholarship program for women business owners to have access to the same high caliber management education that is available to Fortune 500 companies, and in 2004, the scholarship program was branded with her name.

"We want to get the word out, so that other WBEs can compete for a tremendous scholarship opportunity," shared Elsie Gomes-Hudson, WBENC Sr. Program Manager. "WBEs can obtain more information about the program and an online application at http://www.wbenc.org/EventsAndPrograms/ExecutiveScholarshipProgram.aspx. "

Candidate Eligibility

Candidates should meet the following criteria for scholarship consideration:

• Currently certified as a women business enterprise by WBENC
• Have at least three-to-five years experience running a business
• Employs at least three full-time employees
• Maintains a minimum annual sales volume of $500,000 (the range is $500,000 to $50,000,000)
• Has not previously attended a comparable executive management program (TUCK-WBENC Executive Program graduates are eligible to apply but preference will be given to WBEs that have not already received a scholarship)

Any exceptions to the eligibility criteria should be explained in detail in the essay.

Taking a stand on behalf of women-owned businesses, Linda Denny, President and CEO, testified before the Maryland Public Utilities Commission (MPUC) in December. The hearing was for public comment about a proposed memo of understanding between the MPUC and the utility companies which it regulates. The proposal is for 25% of procurement to be conducted with diverse suppliers including 15% to MBEs, 5% to WBEs and 5% to service disabled veteran enterprises (SDVE), which is not reflective of the number of businesses in each category. The 2002 Economic Census Data (the most recent U.S. Government data) shows that:

• 6.5 million firms  are 51% or more woman-owned
• 3.9 million firms are 51% or more are minority-owned
• 200,000 firms are owned by service disabled veterans (as estimated by the SBA based on information from the Veterans Administration)

Based on extrapolated Census data, the Center for Women's Business Research states that in the beginning of 2008, the number of businesses that were at least 51% woman-owned was 7.2 million firms. Woman-owned companies are the fastest growing segment among small businesses. Forty percent of all small businesses are at least 50% woman-owned.

According to the 2002 Economic Census, the most recent figures available, the 3.9 million minority-owned firms comprise 18% of all firms.

The SBA-VA estimates there were approximately 215,000 SDVBE in 2007, but also recognize that the majority of these are very small, single person businesses with less than $100,000 in revenues.

Based on these statistics and in order to provide a more realistic economic parity for the WMDVBEs that will be engaged by these programs, Denny suggested the following break down of the 25% goal:

• 13% to women's business enterprises
• 10% to minority business enterprises
• 2% to service disabled veteran businesses (1% would not be out of line given the numbers)

The Maryland Public Utilities Commission is scheduled to issue its report and ruling by January 16, 2009.

RESOURCES

Contrary to the tough economic news, 2009 is the year to join thousands of women entrepreneurs in growing their businesses, creating jobs, and taking charge. WBENC has agreed to support and collaborate with Count Me In as they launch the Make Mine a Million $ Business RACE™ (M3 RACE). The M3 RACE™ is a year-long business marathon that provides guidance, tools, resources, plus access to new markets, business coaching and financing options to women entrepreneurs seriously interested in growing their business.

"One of the core values of WBENC's strategic plan is Resources," said Linda Denny, WBENC President and CEO. "Collaborating with Count Me In by offering the M3 RACE™ is a tremendous business development resource for many WBENC certified women business enterprises. Ultimately, the goal is to get one million businesses to one million dollars in revenue in one year. The structure of Count Me In's M3 RACE™ program, with the support of sponsors like Sam's Club and Reader's Digest, create just the right formula to deliver the promised results. I want to be sure that WBENC WBEs have the opportunity to take advantage of these resources and the chance to grow their business and their revenues."

Only three percent of the 10.5 million women-owned businesses in the U.S. generated a million dollars or more in annual revenue. "That's why Count Me In is launching the M3 RACE™," says Nell Merlino, Count Me In President. "We have learned what propels women to grow sustainable, thriving businesses - community. We are committed to passing on our knowledge and help thousands more women entrepreneurs succeed in reaching the one million dollar goal in one year." WBEs with revenues that already exceed one million dollars are encouraged to register and grow their business to a multi-million dollar business, mentor other women, and receive information and resources relevant to their stage of growth.

The M3 RACE™ starts online at www.makemineamillion.org where WBEs can enroll in the race and declare their revenue goals for the year. Registration is open through May 31, 2009 with a $100 registration fee.  Starting January 27, WBEs will have access to experts, resources and opportunities tailored for their business. The M3 RACE™ ends at midnight on December 31, 2009, and winners will be announced in February 2010. Some of the benefits participants will receive as part of the M3 RACE™ are:

• Cutting-edge, online business assessment with expert advice and education.
• Opportunities to reach new national markets with partners like American Express OPEN, Reader's Digest, Dell and Sam’s Club.
• Invitations to three national educational and networking events.
• Promotion through local and national TV, newspapers, magazines, radio, and blogs.
• Prizes and national recognition for crossing the WBE's personal finish line, as well as the chance to win the Grand Prize of $100,000 in cash, plus national advertising and press for the WBE's business and other business-boosting and work-life balance prizes.

For more information about the M3 RACE™, its offerings and its benefits, please visit www.makemineamillion.org

Source: From Nuwireinvestor.com as shown on Your Business at MSNBC

As traditional loans and credit lines are frozen, small businesses might explore alternative loans, such as;

1. Microloans - Organizations such as Trickle Up (http://trickleup.org) and Grameen Bank (http://grameen-info.org) have made billions of dollars available to entrepreneurs all over the world. In today's world of social networking, the microlending scene has gone online. Person-to-person lending site Kiva (http://kiva.org), for example, raised $25 million in its first two years by allowing individuals to earmark their loans to specific borrowers. 
2. Community Banks - Businesses that have been working with large money-center banks may have more success now with smaller community banks. Many have established commercial lending departments, which can usually respond quicker that the larger commercial bank. Most community banks have not been adversely affected by problems of the larger banks and are usually eager to lend within their community. Business owners should look for a community bank with a Small Business Lending department and that is a Preferred Lender Participant (PLP) with the SBA. A PLP lender is approved by the SBA to make credit and other unilateral decisions and can provide a very quick turn-around on loan requests. Typically, loans guaranteed by the SBA require a smaller amount of cash injection from borrowers and provide a longer repayment period than conventional bank loans. Another alternative lending source is credit unions, some of which offer business loans. The larger credit unions have established internal business lending departments.  They have funds to lend, usually within larger market areas.
3. Peer-to-peer lending sites - NuWire (http://www.nuwireinvestor.com/) reviewed the following peer-to-peer lending platforms for distinctive qualities such as respective levels of risk on investment, potential for return, strictness of borrower criteria and any unique features offered exclusively through these companies.
   1. Prosper (http://www.prosper.com/), “America's largest people-to-people lending marketplace, and has garnered more than 790,000 members and some $169 million in loans since its debut in 2006. Through the platform’s auction-style format, borrowers post loan applications with requested loan terms and relevant credit and personal information, then lending members view and bid on loans until the loan is fully funded or until the auction deadline has elapsed. Borrowers can obtain unsecured, three-year fixed rate personal loans up to $25,000 for rates as low as 8.68 percent. Qualifying borrowers must have a minimum credit score of 520. Fees for obtaining a loan through Prosper generally range from one to three percent, depending on the borrower’s credit grade.
   2. LendingClub (http://www.lendingclub.com) is similar to that of Prosper, in that lending members can contribute money to specific loans that are posted on their website. LendingClub also offers its own unique feature: LendingMatch™, a sophisticated online tool that presents lending members with a diversified portfolio of borrowers that fall under specified lending criteria. Similar to Prosper, LendingClub offers three-year term loans of up to $25,000. Interest rates start as low as 7.88 percent. Lending criteria for borrowers, however, is considerably stricter than that of Propser: applicants must have minimum credit score of 640 and debt-to-income ratio (excluding mortgage) below 30 percent.
   3. Through the Zopa (http://us.zopa.com/) website, lending members purchase one-year CDs at a rate of 3.75 percent for a minimum amount of $500. The CDs are insured investments guaranteed by any of six credit unions partnered with Zopa. The biggest advantage of peer-to-peer lending through Zopa is that if a borrower defaults on a loan, it does not affect the lending member’s return on investment on the CD. Because borrowers may receive help from any number of other Zopa members, it's possible for a borrower to receive an interest rate of zero percent if they receive sufficient help from other Zopa members. Borrowers can obtain loans at a rate as low as 8.49 percent for a five-year, $5,000 loan, not including any of the help that borrower may receive through other Zopa members. In order to qualify for a Zopa Loan, however, borrowers must meet strict standards, such as a minimum credit score of 640 and a stable gross income of at least $2,000 per month.
4. Special Programs (such as for veteran-owned or minority-owned businesses) - Many businesses come out of special circumstances, and there are lots of programs aimed at special interest groups. For example, some members of the military community may qualify for funding through the Patriot Express Loan Initiative (www.sba.gov/patriotexpress/), a special SBA program designed to help veterans start or build their own businesses. Loans of up to $500,000 are available to businesses that are at least 51 percent owned by veterans, active-duty service members eligible for the Transition Assistance Program (http://transition.military.com/reg/transition_center_registration.do), reservists and National Guard members, spouses of any of these, and widows of service members or veterans who died in connection with their service.
5. Network - Virgin Money (http://www.virginmoneyus.com/BusinessLoans/tabid/138/Default.aspx) facilitates loans between family and friends. Consequently, Virgin Money does not provide a listing service for lenders and borrowers, as it is assumed that the two parties have already been "matched" through relationships that have already been established.

EVENTS

 WBENC announces its first annual 2009 Summit in conjunction with its Salute to Women's Business Enterprises: The Bridge to Quality on March 25-26, 2009. The 2009 Summit workshop and panels include:

• Bridges for Growth: A Multi-Prong Approach to Accelerating the Growth of Businesses Owned by Women of Color - (For Corporate Members Only) – Based on the Center For Women’s Business Research's three-year study called, Accelerating the Growth of Businesses Owned by Women of Color, the study revealed that women of color are starting businesses at rates of three to five times faster than all other businesses. However, once in business, their growth lags behind all other firms. Learn about the partnership and the collaborative approach to address the specific challenges uncovered by the study.
• Maximizing Results in the Current Economy (For WBEs Only)
  • These Troubling Economic Times – An economist's view of the hazards presented to small and diverse businesses by the current recession.
  • Understanding the New Economy – An expert's perspective on how to meet the challenges of the current economic storm.
  • A Survivor's Story – One business leader shares the specific steps she took to save her struggling business, past surviving to thriving.
• Teeing It Up for Business (Corporate and WBE) - While a face-to-face meeting may last 30 minutes, a round of golf provides you with four to five hours of easy conversation at a wonderful outdoor venue in a non-adversarial setting. Learn more about the nuances of business golf.
• Industry Workshops - (General Session) -
  1. Financial Services;
  2. Petrochemical;
  3. Professional Services;
  4. Telecommunications.

More details about Summit speakers will be provided in January 2009.

Don't miss out on sponsorship opportunities! Sponsorships are currently available for the 2009 Summit and Salute. Please contact Paige Adams at (202) 872-5515, extension 8020 or email at padams@wbenc.org.

WBENC's Women in Business: The Bridge to Quality Auction Committee, is pleased to announce the 2009 Auction Events. The Live Auction will be held during the Salute to Women's Business Enterprises on March 26, 2009 at the Gaylord National Resort and Convention Center, National Harbor, Maryland.  The Silent Auction will be held on June 9, 2009, at the Hilton San Francisco Hotel during the 2009 WBENC Women in Business National Conference and Business Fair.

The 2009 goal is to raise $200,000.

To achieve this goal and make these very special events a success, all are invited to participate in the donation process.  Donations of items that generate excitement, great interest, and great bids are being sought. 

The challenges that businesses are facing in the coming year are substantially greater than those of the past. This early solicitation is perfect for using charitable funds allocated for 2008 or including a donation in the 2009 budget.

A donation, to either Auction, guarantees national exposure reaching thousands of businesses and may be tax deductible.  In addition, your early and generous commitment helps build excitement in support of both Auctions, and offers another outstanding reason to attend the 2009 WBENC Summit and Salute to Women’s Business Enterprises and the 2009 WBENC Women in Business National Conference and Business Fair. 

For more information about the Auctions or to obtain an Auction Donation Form, please contact Terri McNally-Beals WBE Auction Co-Chair at tcmcnally@globalcapitalltd.com or 847-223-7820, or Nita Smith, Corporate Auction Co-Chair at juansmi@cdw.com.Proceeds from this event support the programs and services that are provided by WBENC and its 14 regional partner organizations.

The 10th Annual WBENC Women in Business:  The Bridge to Quality National Conference and Business Fair will be held in San Francisco, CA, June 9-11, 2009, followed by International Day on June 8.

Wachovia Corporation, Wal-Mart Stores, Inc., Artech Information Systems L.L.C., and Hollister Construction Company will take the lead as the 2009 Conference Co-Chairs. More than 2,500 attendees and 400 exhibitors are expected to attend the two-and-a-half day event.  This year's conference will include a series of Symposiums offered over three days. Learn more about the Symposiums and speakers in next month's President's Report. Event sponsorships and branding opportunities for Corporate Members and WBEs, as well as Exhibitor package information are available now.

For sponsorship opportunities, contact Paige Adams at padams@wbenc.org. Click here for sponsorship details.