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There are more than 11 million women-owned businesses in the U.S., making them the fastest growing segment of our economy. According to an American Express study, the number of women-owned businesses

Rhett Buttle • September 1, 2020

NAWBO

There are more than 11 million women-owned businesses in the U.S., making them the fastest growing segment of our economy. According to an American Express study, the number of women-owned businesses increased by 114% from 1997-2007, compared to 44% for all businesses. They also employ 9 million people and generate $1.7 trillion in sales.

Unfortunately, women-owned businesses have been severely impacted by the COVID-19 pandemic, especially the 5.4 million that are owned by women of color. A recent National Association of Women Business Owners (NAWBO) survey reported that 20% of its members who responded still need access to capital to survive the pandemic, another almost 20% said they need additional resources to expand online, and 25% said they simply needed time to spend on their business.

As National CEO of NAWBO, Jen Earle leads an organization that has advocated for female business owners for the past 45 years. Her efforts to give back to others started in college when she worked in a shelter for abused and runaway teenagers. Today, she focuses on supporting women business owners and furthering female entrepreneurship. 

I recently sat down with Jen to discuss the impact of COVID-19 on women-owned businesses, how lawmakers can support them, and the steps female business owners should be taking to remain open and viable. I’m grateful to Jen for taking the time to offer her insights and perspective; below is a summary of our conversation.

Rhett Buttle: How are working women, and especially women small business owners, being impacted by the COVID-19 pandemic? 

Jen Earle: Entrepreneurs are agile, lifetime learners, and this is one of their biggest lessons. According to our recent NAWBO survey, women business owners are maintaining a balance as the pandemic spreads into its six month. While 62% are not concerned about their business failing if states must shutter again, 38% are concerned with the vast majority of those believing they only have 3-9 months to stay afloat.  

Regardless of the circumstances, many of these women are struggling, but they continue to push forward, looking past these setbacks toward long-term goals. Our women business owners are innovative, changing their business plans and creating other revenue streams to remain open. Others are finding ways to keep their businesses viable by cutting their salaries in half. 

With our working moms, we hear their struggles now more than ever, and with the start of virtual schooling, it will only get worse. Many of our NAWBO moms describe themselves as a "Business owner, mom, and teacher with no break in sight." Despite the situation, these women keep going even when they feel they cannot or are too tired, beat up, and beat down. They are finding avenues to manage the stress and maintain mental wellbeing – having grace with themselves and their teams – to avoid burnout. 

Buttle: What effective support of women-owned businesses has there been from policymakers and other leaders (e.g., corporations, philanthropy)? What else should they be doing to help?   

Earle: The federal government relief programs, the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program, have supported numerous women business owners during the pandemic. About half of our members received a PPP loan, and about 40% applied for EIDL loans. However, business owners could use more support.   

We believe Congress should prioritize the inclusion of the Small Business Expense Protection Act of 2020 (S.3612). As our business owners climb the uphill battle to stay open, this proposal would allow businesses to deduct expenses paid with a forgiven PPP loan from their taxes. Also, Congress should recognize the importance of the Ensuring Increased Disaster Loans for Small Businesses of Act (S. 4227). By lifting the caps and infusing more money in the EIDL Program and the EIDL Advance Program, our business owners will remain open by using these long-term, low-interest loans that do not require a relationship with a financial institution.  

These common-sense, bipartisan solutions would significantly improve the economic landscape for women business owners as they continue to face these hardships. We also need to look at options where women can access capital without going into debt. Women are risk averse, and there needs to be more grant options to keep their doors open. 

Buttle: What are the top things female small business owners need to think about and do to keep their companies viable in these uncertain times?   

Earle: For women business owners to be resilient, it is going to take what I like to call the 4 C's: capital, community, confidence, and Capitols. 

Capital needs to reach our women's business owners. We must work to help them overcome barriers to access to capital, and hopefully, Congress will set-aside money specifically for these women-owned businesses.    

We need to continue our efforts to build a community. Business owners need an avenue that allows them to connect with other individuals who have been through similar challenges or are presently undertaking them as well. Our women business owners have been meeting virtually one to two times a week to discuss everything from how to handle employees that come down with COVID-19 to talking about the struggle to shift to a different virtual business model, and sometimes just to talk about the chaos at home. NAWBO provides this community, and there are so many communities out there for women and business. Go find your people! 

Women business owners need confidence and support to trod the sometimes lonely and challenging path of entrepreneurship. Women business owners often feel alone regardless of this pandemic, and we need to ensure that no one feels isolated. We must ensure women have the confidence to innovate and try new things to revitalize their businesses.  

Finally, Capitols. Lawmakers need to understand the contribution of women business owners. Before the pandemic, we would boast that women business owners represent the fastest growing economic sector in the country, employing 9.4 million and generating $1.6 trillion in revenue. As I said before, according to our recent survey, if states must shutter again, 38% of our respondents said they are concerned about the viability of their business. The vast majority of those business owners believe they will only have 3-9 months to stay afloat. Everyone needs to think and prepare for what may happen. We need to ensure that these women business owners vocalize what they need to lawmakers to remain open. 

Buttle: What resources can help business owners during this time?  

Earle: I would look at ways to expand your network virtually. Our annual Women's Business Conference is going all virtual this year. From September 22-23, we'll be doing breakout sessions and hearing from speakers and panelists. Some sessions include:
  • Shifting Your Marketing Strategy Post-COVID-19, 
  • Leveraging Technology to Ensure Business Agility and Digitally Transforming Your Business, and 
  • Assessing the Financial Impact of Strategic Decisions in Uncertain Times. 
By participating in virtual events, it builds your community but also diversifies your network to expand during tough times.   

Don’t miss my earlier conversations with Ron Busby, CEO of the U.S. Black Chambers, Inc., Ramiro Cavazos, President And CEO of the U.S. Hispanic Chamber Of Commerce, and Chiling Tong, President And CEO of the Asian/Pacific Islander American Chamber Of Commerce And Entrepreneurship.

Other Resources:

This piece originally appeared in Forbes on August 31, 2020. You can view it online here.

Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes.

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