Woman-Owned Business Advantages

As of 2010, women-owned businesses made up 29 percent of all companies in the United States, according to American Banker. Despite this relatively large number of firms, women-owned businesses earn only 4 percent of total revenue. This gap in revenue has spurred many different agencies to provide additional support and opportunities for women-owned firms. Women-owned companies now enjoy many political and financial advantages that can help them find them bridge this gap and find success in business.

Federal Contracting Opportunities

In 1994, the U.S. government passed the Federal Acquisition Streamlining Act (FASA). Under the FASA, the federal government has a goal of awarding at least 5 percent of each federal contract to women-owned businesses. This act was designed to increase opportunities for socially and economically disadvantaged firms, including women-owned companies. Since the FASA was passed, government procurement agents have taken extra steps to include women-owned companies in all aspects of government purchasing and services.

State and Local Opportunities

Many states and municipalities have their own minority inclusion goals or requirements, which are separate from those required by the federal government. For example, in Maryland, 10 percent of all state contracts must go to women-owned businesses. In Ohio, this figure is 6.9 percent. This means that contractors in these states must pursue bids and award contracts to women-owned companies in order to be eligible for state contracts. This also allows women to earn contracting opportunities without sacrificing price, and keeps prices on par with those of companies owned by men.

Funding Opportunities

The U.S. Small Business Administration provides special financing opportunities for women-owned companies. Traditionally, these firms may have struggled to obtain financing from banks or other standard sources. SBA loans often offer favorable terms, such as low interest, or may be available to companies who wouldn't otherwise qualify for other loans. The SBA also offers grants for some types of women-owned companies.

Some states also offer special loan programs to encourage women-owned companies and help them succeed. For example, in California, women can secure loans and funding from the California Women Economic Venture. These types of nonprofit or state-funded groups may also be available in other areas.

Networking and Support Opportunities

Women have a wealth of resources at their fingertips when it comes to obtaining business advice or assistance. The SBA Women's Business Offices are designed to aid women with any part of starting or running a company. This organization, along with the National Association of Women in Business and the National Women's Business Council also offer networking and support opportunities.

Public Relations

Some companies are quick to hire or buy products from a woman-owned business simply because of the good PR potential. Even when minority participation is not required to secure a contract, many businesses maintain minority inclusion goals. Companies that hire women contractors, for example, may benefit from good public relations associated with helping a disadvantaged firm. This can help women-owned companies get their foot in the door and win jobs they wouldn't be able to otherwise.

References

• American Banker; What Women-Owned Firms Need Most -- Access to Capital; Margot Dorfman; October 2010
• Ohio Department of Administrative Services: Female Participation Goals
• Maryland Department of Transportation: MDOT MBE Program FAQ
• U.S. Department of Health and Human Services: Fact Sheet
• U.S. Small Business Administration: Office of Women's Business Ownership

Resources

• Women's Business Enterprise National Council
• National Association of Women Business Owners