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Woman owned business

Topic: Finance

 From HandWiki - Reading time: 3 min

A woman-owned business is a specific designation used by American government agencies and industry associations to set aside special programs to encourage and empower female business owners. Most definitions of this term involve a practical look at the legal and ownership structure, as well as the issue of control of the day-to-day operations of a business. The consideration of control of a business is meant to discourage the unethical practice of men placing wives, daughters, or low-level female employees in positions of ownership, when in fact she may have little to do with the day-to-day management of the company, for the sake of receiving some government benefits or other consideration.

A Woman-Owned Business Enterprise (WBE) is defined as one that is at least 51% owned, operated and controlled on a daily basis by one or more female American citizens. WBEs are typically certified by a third-party, city, state or federal agency.[1] The Small Business Administration offers a similar definition of a Woman Owned Small Business (WOSB) as a small business that is at least 51% owned, operated and controlled on a daily basis by one or more (in combination) female American citizens[2]. The SBA's WOSB definition differentiates from the WBE definition, as it looks at the size of the business according to the specific industry standards table.[3]

Support for Women Business Owners

Research shows that in most countries there are significant challenges for women business owners in comparison to men business owners.[4][5] These challenges stem from many sources, including social and cultural stigmas, family and child-rearing responsibilities, maternity needs, educational background, career experience, and community support.[6] Depending on the country in which a woman resides and/or is a citizen, there may be government or non-profit support for female business owners.

There are several US organizations that provide third-party women-owned certifications and support including: U.S. Women's Chamber of Commerce,[7] Women's Business Enterprise National Council (WBENC)[8], California Public Utilities Commission[9][10] and National Women Business Owners Corporation.[11]. In India, supporting groups include WeConnect[12], WEI,[13] and some specific bank-sponsored loan schemes.[14] In Europe, the Entrepreneurship 2020 Action Plan is aimed at supporting women business owners, among other initiatives.[15]

US Federal Contracts

There are specific set-aside programs for certain NAICS codes in which certified WOSBs (or in some cases Economically Disadvantaged Woman Owned Small Businesses (EDWOSB), a subcategory of WOSB) may receive special consideration in a US government contract.[16] According to the Center for Responsive Politics, the Federal government of the United States gave $25.4 billion in federal contracts to women-owned businesses in 2017, this was 5 percent of the total budget in the fiscal year. This was up from 3.25 percent of contracts in fiscal year 2008.[17]

References

  1. ↑ Small Business Administration WOSB Program
  2. ↑ "Small Business Administration" (in en). https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-contracting-program. 
  3. ↑ "Small Business Administration" (in en). https://www.sba.gov/document/support--table-size-standards. 
  4. ↑ Stockton, Gary (29 January 2018). "Statistics and Obstacles Facing Women Entrepreneurs". Experian. http://www.experian.com/blogs/small-business-matters/2018/01/29/statistics-and-obstacles-facing-women-entrepreneurs/. 
  5. ↑ Fernandes, Paula (August 27, 2018). "7 Challenges Faced by Female Entrepreneurs". Business News Daily. https://www.businessnewsdaily.com/5268-women-entrepreneur-challenges.html. 
  6. ↑ "The Global State of Women-Owned Small Business Enterprises". business.com. https://www.business.com/articles/the-global-state-of-women-owned-small-business-enterprises/. 
  7. ↑ U.S. Women's Chamber of Commerce
  8. ↑ Women's Business Enterprise National Council
  9. ↑ "IC System Renews Certification as a Women-Owned Business Enterprise". https://www.icsystem.com/blog/ic-system-renews-certification-as-a-women-owned-business-enterprise/. 
  10. ↑ "Certification". http://www.cpuc.ca.gov/Certifications/. 
  11. ↑ National Women Business Owner Corporation
  12. ↑ "eMERG India". http://www.emergindia.org/certification.php. 
  13. ↑ "Women Entrepreneurs India|Women Entrepreneurs|Support for Women Entrepreneurs|Women in Business" (in en). https://www.womenentrepreneursindia.com/. 
  14. ↑ "9 Schemes For Women Entrepreneurs In India" (in en-US). https://www.news18.com/news/indiwo/work-and-career-9-schemes-for-women-entrepreneurs-in-india-1522125.html. 
  15. ↑ "Female entrepreneurs - Growth - European Commission" (in en). https://ec.europa.eu/growth/smes/promoting-entrepreneurship/we-work-for/women_en. 
  16. ↑ Kim, Amy. "SBA Women-Owned Small Business (WOSB) Federal Contract Program". https://business.defense.gov/Portals/57/WOSB%20SBTW18.pdf?ver=2018-05-01-183937-050. Retrieved 2018-09-04. 
  17. ↑ Janetsky, Megan (2018-04-13). "Women- and minority-owned businesses receive only a small fraction of federal contracts". OpenSecrets.org (Center for Responsive Politics). 




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