CPA News Releases, Advisories, and Editorials

Washington, DC, February 22 — The power and potential of one sector of our economy is still almost a secret – women entrepreneurs are increasing their business impact in leaps and bounds. But despite the fact that they are contributing to the economic prosperity in every state, and are effective in creating new jobs, the Center for Policy Alternatives’ (CPA) ground breaking study, State Venture Policy: Investing in Women Entrepreneurs, discovered that even more can be done to leverage this powerful engine of growth.

Over the last dozen years, annual sales of women-owned businesses have grown by an unbelievable 436%. These companies employ over one-quarter of U.S. workers and generate over $3.6 trillion in sales. This trend is likely to continue.

“Despite this tremendous growth potential, states have not put together a clear and comprehensive strategy to tap the entrepreneurial spirit of women,” states Linda Tarr-Whelan, President of CPA. Women own 38% of all businesses, but only 18 states have an economic development plan that includes furthering the strides of these businesses. Even fewer states – only 13 – collect and analyze the growth and development of women-owned companies.

Recent data has shown that small businesses are the engine of job growth. With Fortune 500 companies generating no new net jobs since 1990, and small businesses generating 22 million new jobs, state leaders appear to be foregoing an opportunity to create cooperative, community-centered initiatives that leverage this growth and bolster the livelihood of employees of these entrepreneurial companies. Given that states are expecting to see unprecedented sound fiscal health for a sixth year in a row, the government and private sector can play a key role in partnering for positive solutions to expand women’s entrepreneurship.

State Venture Policy: Investing in Women Entrepreneurs, funded by the BellSouth Corporation, identifies both unique obstacles faced by women-owned businesses and opportunities to catalyze more growth in this sector.

Key Findings Include:

• Women-owned businesses are underrepresented in programs designed to assist business;
• While many states offer training and education programs for women business owners, women have trouble accessing these programs due to problems concerning cost, time and transportation;
• While the majority of states are engaging in the global economy, they are not integrating women-owned businesses into that strategy;
• Technology is beginning to change how states work with women-business owners.

The report lays out recommendations for states to better tap this sector of the economy. Policy recommendations for states include:

• Measure the impact of entrepreneurship in general, and women-owned businesses in particular, on their state’s economy;
• Develop policies that promote business growth from the micro level to mid-sized level;
• Build public/private partnerships to support the start-up and growth of women-owned businesses;
• Develop innovative community investment strategies that allow for progressive workforce benefits for employees of small and mid-sized companies.

State Venture Policy also provides examples of best practices across the states. An embargoed copy of this report is available by following the link above.

CPA is a progressive, nonpartisan public policy and leadership development center working across the 50 states to realize solutions for American’s future. CPA will present the findings of State Venture Policy at a news conference in Atlanta, Georgia on February 22 at 9:00 a.m. in the Capital Rotunda of the State Legislature. Georgia Senator Connie Stokes and BellSouth representatives will join CPA to speak about state strategies for entrepreneurship. Media interested in interviewing Linda Tarr-Whelan in advance to the 22nd may make arrangements by calling Kristina Wilfore at 202/387-6030 x. 141. Galley copies of the report are also available in advance by calling the above listed number.

BellSouth (NYSE: BLS) is a $25 billion communications service company. It provides telecommunications, wireless and wireless long distance communications, Internet and data services to more than 37 million customers in 20 countries worldwide. For more information about BellSouth, visit the BellSouth Web page.

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