Newswise — A new Babson/AWBC research study looking at Women's Business Centers (WBCs) nationwide found that these community-based programs are drivers of entrepreneurship among a wide range of women entrepreneurs, particularly those formerly underserved --- socially and economically disadvantaged women. The study shows that the success of Women's Business Centers can be attributed to shared business practices targeted specifically to women's needs. Business and consulting specific practices, tailored educational programs, a relationship-oriented approach, and seminars that develop social capital and marketable enterprises are key practices consistently used by Women's Business Centers nationwide. Women's Business Centers, created through the federal Women's Business Ownership Act of 1988, provide an effective, longstanding model for entrepreneurship training and business consulting for women. The Association of Women's Business Centers commissioned The Center for Women's Leadership at Babson College to conduct The Impact and Influence of Women's Business Centers in the United States research study, based upon grant funding from the Ewing-Marion Kauffman Foundation. Other collaborators in the project were the National Women's Business Council and The Level Playing Field Institute. The study collected survey data from 52 Women's Business Centers in 33 states and the District of Columbia. In addition, focus groups provided qualitative data from 34 center directors.
"The research findings make it very clear," says Dr. Nan Langowitz, Director of Babson's CWL, "Women's Business Centers have 'cracked the code' on helping disadvantaged women develop as entrepreneurs. Success will continue and indeed will thrive with increased funding and community support for this important policy initiative." Professor Langowitz and Babson colleagues Professor Mary Godwyn and Professor Norean Sharpe were the principal researchers who conducted the study.
"The results of this study link entrepreneurial training with economic development," says Ann Marie Almeida, President of the Association of Women's Business Centers. "Understanding and supporting entrepreneurial ventures and entrepreneurial training for women is a solution to our national and international economic challenges. Economic stability and vibrancy is a long-term investment in, and contribution to, democratic institutions that ultimately allow us to become our amazing selves and reach our potential. The work of Women's Business Centers provides the structure for women to achieve their economic dreams. The impact is noted among the jobs created, the communities revitalized, the families fed and educated, and the lives of women reinvented."
The Impact and Influence of Women's Business Centers research found that:
Women's Business Centers are consistently serving clients nationwide who are economically and socially disadvantaged.
"¢ The majority of Women's Business Center clients have household income of less than $50,000."¢ The majority of Women's Business Center clients have a modest education; 49% have only a high school diploma while 6% have no high school diploma."¢ 42% of clients served are women of color."¢ Client demographics are consistent across Women's Business Centers regardless of the individual Center's age, or co-location. The few non-urban centers in our study serve a lower percentage of women with income < $50,000. "¢ While most clients served are women, Women's Business Centers also serve men; 13% of clientele, on average, are male.
Women's Business Centers are drivers of entrepreneurship among economically and socially disadvantaged women. "¢ On average, 60% of Women's Business Center clients are actively managing a business venture."¢ Outreach to women of color is particularly notable; Women's Business Centers serve women of color at a far higher rate than their prevalence in the general population."¢ Socially and economically disadvantaged women lack equal alternatives to turn toward for assistance
Women's Business Centers exhibit shared practices that underlie their success."¢ Centers tailor programming to be relevant to the industry interests and time schedules of women clients."¢ In addition to business formation training, Centers provide access to opportunities as well as a network of support.
"¢ Centers provide a safe space for women, enhancing the opportunity to build relationships and a support network; primarily female staffing is important to this objective."¢ Centers use a relationship-oriented approach to attract targeted clients. "¢ Networking, mentoring, and peer-to-peer roundtable discussions are key support services.
Funding is the single greatest challenge to sustaining the success of Women's Business Centers. "¢ Centers are largely dependent on outside funds, rather than fee or programmatic income, for their operating budgets; outside funding sources are diverse."¢ The primary sources of funding for the typical Center are: SBA funding (41%), fees and program income (18%), grants (16%), and non-SBA government funding (14%)."¢ The funding environment has become increasingly difficult in recent years."¢ While most Centers have benefited from Small Business Administration funding, it has been less than sufficient. "¢ Centers need to further diversify and enhance their funding sources.
Staffing and working with the SBA represent other key challenges for Women's Business Centers."¢ Tight funding hampers Center infrastructure improvement, particularly the addition of staff and technological capability."¢ There is disparity in satisfaction with the SBA grant process; communication issues are also apparent.
For more information and a full report of the research, see: http://www.babson.edu/cwl or http://www.awbc.biz.
The Research Collaborators: The Center for Women's Leadership at Babson College is the first comprehensive center dedicated to women in business and entrepreneurship at a leading school of management. Through educational programs, CWL develops women's leadership skills and promotes the advancement of women as entrepreneurial leaders within corporations, entrepreneurial business ventures, and not-for-profit organizations. CWL research focuses on the economic value that women, as business leaders, create. Studies also focus on the context and influence of women as organizational leaders and the ways in which organizations are transforming themselves to respond to a diverse world. Visit http://www.babson.edu/cwl. The Association of Women's Business Centers (AWBC) is a national 501c3 organization representing women business owners and women's business centers. The AWBC was founded in 1998 to support entrepreneurial development among women as a way to achieve self-sufficiency, create wealth and to expand participation in economic development through educational, training, technical assistance, mentoring, development and financing opportunities. The vision of AWBC is a world where economic justice, wealth and well-being are realized through the collective leadership and power of successful entrepreneurial women. Visit http://www.awbc.biz
The Ewing-Marion Kauffman Foundation works with partners to encourage entrepreneurship across America and improve the education of children and youth.The Foundation focuses its operations and grant making on two areas: entrepreneurship and education.
The National Women's Business Council is a bi-partisan Federal advisory council created to serve as an independent source of advice and policy recommendations to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. The Council's mission is to promote bold initiatives, policies and programs designed to support women's business enterprises at all stages of development in the public and private sector marketplaces, from start-up to success to significance. Members of the Council are prominent women business owners and leaders of women's business organizations.
The Level Playing Field Institute (LPFI). promotes innovative approaches to fairness in higher education and workplaces by removing barriers to full participation. LPFI works towards this mission by conducting activist research, developing programs and providing grants in these issue areas. Based in San Francisco, LPFI was founded in 2001 by Freada Kapor Klein, an expert consultant on sexual harassment and bias in the workplace.
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