News
Think Tank on Women Entrepreneurs makes recommendations to improve climate for women in SC
The Alliance for Women at Columbia College
The South Carolina Women's Business Center
Recommendations from
The Think Tank on Women Entrepreneurs
Fall 2006
In August 2005, The Alliance for Women identified three factors critical to improving the status of women in South Carolina . Those factors, emerging from the Economic Impact Study conducted by The University of South Carolina, were:
1. Increase women's economic autonomy.
2. Increase the number and effectiveness of women making policy level decisions.
3. Increase women's health and well-being.
In the area of women's economic autonomy, a review of statewide initiatives to improve the economic health of the state - including the work of The Palmetto Institute, The Competitiveness Council, The State Chamber of Commerce and the South Carolina Department of Commerce - led the Alliance to focus attention on women entrepreneurs. The Alliance felt the fastest way to help women close the pay gap was to encourage the effective entry of women-owned businesses into the marketplace and to encourage existing women entrepreneurs to develop plans to increase their markets and profits.
In October 2005, a Think Tank on Women Entrepreneurs was formed to study the current state of entrepreneurship in South Carolina and to review national best practices effective in improving the climate for entrepreneurs in other states. The mission of the Think Tank was to develop statewide recommendations for programs, policies and/or legislation that will (1) increase the number of sustainable women owned businesses, (2) increase the profitability of existing women-owned businesses and (3) increase the number of women-owned businesses with employees. A Think Tank on Women Entrepreneurs was held in December 2005 to summarize current data and best practice initiatives. Additionally over 300 women entrepreneurs attended one of twelve regional meetings around the state. These entrepreneurs gave feedback about obstacles to their business growth and specific support that would increase their business capacity.
After a year-long review of the current state of entrepreneurship in South Carolina and a study of national best practices effective in improving the climate for entrepreneurs in other states, The Alliance for Women Think Tank on Women Entrepreneurs found there are four general categories of inhibitors to women's economic autonomy: Resources, Public Awareness of opportunities for growth, Culture and Networks. They further found that these inhibitors are not exclusive to women-owned businesses, but limit all business growth in South Carolina. We believe that our recommendations will improve the business climate for all South Carolina entrepreneurs.
To immediately increase the economic autonomy of women, The Think Tank on Women Entrepreneurs recommends an initial statewide emphasis on growth and sustainability of existing women-owned businesses.
Business Growth and Sustainability
Resources:
Although the Think Tank found a large number of resources available in South Carolina to support entrepreneurs; we found that those resources were not easily identified. There is no central site through which an entrepreneur can learn about services of the SBDC's, FastTrac, the Women's Business Center or other resources available around the state. There is, however, a central site, Business One Stop, that has been developed for business licensure. Initial advertising has been successful in establishing this site as a single source of information about business in SC.
1. The Think Tank recommends that Business One Stop be expanded to include a portal for business start-up and business expansion. This portal would allow an entrepreneur to identify all resources within the state appropriate to meet the specific needs of each individual business in the areas of business planning, financial analysis, and opportunities for capital investment.
It was obvious to the Think Tank that many South Carolina citizens are not aware of the resources available within their communities to support entrepreneurship. Despite the fact that there are economic development specialists around the state, active chamber initiatives, technical college initiatives and numerous counseling resources for entrepreneurs, far too many of the 300 women entrepreneurs in the regional meetings were unaware of those resources.
2. The Think Tank recommends that the state develop and fund a statewide marketing campaign for existing business resources including Business One Stop.
1. Increase women's economic autonomy.
2. Increase the number and effectiveness of women making policy level decisions.
3. Increase women's health and well-being.
In the area of women's economic autonomy, a review of statewide initiatives to improve the economic health of the state - including the work of The Palmetto Institute, The Competitiveness Council, The State Chamber of Commerce and the South Carolina Department of Commerce - led the Alliance to focus attention on women entrepreneurs. The Alliance felt the fastest way to help women close the pay gap was to encourage the effective entry of women-owned businesses into the marketplace and to encourage existing women entrepreneurs to develop plans to increase their markets and profits.
In October 2005, a Think Tank on Women Entrepreneurs was formed to study the current state of entrepreneurship in South Carolina and to review national best practices effective in improving the climate for entrepreneurs in other states. The mission of the Think Tank was to develop statewide recommendations for programs, policies and/or legislation that will (1) increase the number of sustainable women owned businesses, (2) increase the profitability of existing women-owned businesses and (3) increase the number of women-owned businesses with employees. A Think Tank on Women Entrepreneurs was held in December 2005 to summarize current data and best practice initiatives. Additionally over 300 women entrepreneurs attended one of twelve regional meetings around the state. These entrepreneurs gave feedback about obstacles to their business growth and specific support that would increase their business capacity.
After a year-long review of the current state of entrepreneurship in South Carolina and a study of national best practices effective in improving the climate for entrepreneurs in other states, The Alliance for Women Think Tank on Women Entrepreneurs found there are four general categories of inhibitors to women's economic autonomy: Resources, Public Awareness of opportunities for growth, Culture and Networks. They further found that these inhibitors are not exclusive to women-owned businesses, but limit all business growth in South Carolina. We believe that our recommendations will improve the business climate for all South Carolina entrepreneurs.
To immediately increase the economic autonomy of women, The Think Tank on Women Entrepreneurs recommends an initial statewide emphasis on growth and sustainability of existing women-owned businesses.
Business Growth and Sustainability
Resources:
Although the Think Tank found a large number of resources available in South Carolina to support entrepreneurs; we found that those resources were not easily identified. There is no central site through which an entrepreneur can learn about services of the SBDC's, FastTrac, the Women's Business Center or other resources available around the state. There is, however, a central site, Business One Stop, that has been developed for business licensure. Initial advertising has been successful in establishing this site as a single source of information about business in SC.
1. The Think Tank recommends that Business One Stop be expanded to include a portal for business start-up and business expansion. This portal would allow an entrepreneur to identify all resources within the state appropriate to meet the specific needs of each individual business in the areas of business planning, financial analysis, and opportunities for capital investment.
It was obvious to the Think Tank that many South Carolina citizens are not aware of the resources available within their communities to support entrepreneurship. Despite the fact that there are economic development specialists around the state, active chamber initiatives, technical college initiatives and numerous counseling resources for entrepreneurs, far too many of the 300 women entrepreneurs in the regional meetings were unaware of those resources.
2. The Think Tank recommends that the state develop and fund a statewide marketing campaign for existing business resources including Business One Stop.
3. The Think Tank recommends that the Women's Business Center expand the geographic sites in which it offers business consulting.
The Think Tank applauds the work of the Women's Business Center with specific recognition of their continuous support of each client through all stages of development. This long term attention to business development is important to encourage the growth of women and minority business ventures in the state.
Public Awareness of Opportunities for Growth
The most likely areas for business growth in South Carolina are in the emerging Competitiveness Council clusters. These cluster groups are working to develop collaborative networks to make the cluster products marketable throughout the world rather than just in South Carolina . The Think Tank found that few businesses were aware of the clusters. Without a keen awareness of the emerging clusters, businesses cannot take advantage of the opportunities for collaboration and growth.
4. The Think Tank recommends that the Competitiveness Council identify and promote opportunities from business clusters in South Carolina to stimulate business interest in those areas.
It is unclear how the competitiveness clusters identify and encourage participation among women-owned businesses. The Think Tank would like to encourage greater participation among women business owners as appropriate.
5. The Think Tank recommends that The Alliance for Women assist in identifying women-owned businesses for each cluster group.
Culture and Networks
Think Tank members recognized that the culture of South Carolina may not promote entrepreneurship as an ideal option for women. Additionally, we found that too many women business owners are not active in established networks like local chambers. Addressing the impact of culture and the lack of networks is a long term strategy, but we believe there are some short term solutions that can quickly influence culture changes.
6. The Think Tank recommends that The Alliance for Women develop and collaborate to produce a media series (ETV, radio, newspapers, web) to promote women entrepreneurs.
7. The Think Tank recommends that the State Chamber of Commerce develop a strategy for local chambers to use in reaching out to established women entrepreneurs.
8. The Think Tank recommends that The Alliance for Women work to establish a statewide system of Women's Centers like the Charleston Women's Center. These centers can serve as stimulus for geographic networks and single sites for programming to support women owned businesses
In addition to efforts focused on existing business growth and sustainability, The Think Tank agreed that a more effective system for supporting new business development is important. They are concerned that too many women-owned businesses fail within the first few years because of limited basic knowledge of business and business planning. To improve the effective development of new business ventures, The Think Tank recommends that the state develop a system for basic business start-up support.
Business Start-Up Support
The Think Tank recognizes that expansion of existing women-owned business will have limited impact on those women in poverty, without education or financial resources, and in rural areas without opportunities. Think Tank participants encourage the state to develop strategies to increase sustainable business start-ups.
The Think Tank recognizes the work of Rural Crossroads, the Clemson Economic Development agents and the Small Business Development Centers in working with rural entrepreneurs, but believes that additional support could make a huge difference to individual entrepreneurs and communities.
Research and regional meetings identified three obstacles to sustainable business start-ups: access to capital, access to comprehensive, basic "how to" programs for new entrepreneurs and limited educational attainment Fortunately the state has begun to recognize each of these inhibitors and is working on strategies. We would like to see those strategies move faster and reach deeper into poor rural communities.
Access to Capital
9. The Think Tank recommends that the state encourage the funding and implementation of the Capital Access Program approved legislatively in 2006.
10. The Think Tank recommends that the state develop a micro-loan program for South Carolina .
Basic "How To" Programs for New Entrepreneurs
11. The Think Tank recommends that the state implement a statewide system of basic education for business start-ups to feed into the successful FastTrac programs.
In addition to these recommendations, the Think Tank identified two important and complex factors that inhibit success in entrepreneurial endeavors: health care for small business owners and their employees and workman's comp costs. The Think Tank recommends that The Alliance for Women collaborate with other partners concerned about these two issues to encourage legislation to address both from the perspective of encouraging business growth. As an example, Think Tank participants envisioned a system in which small business owners could pool healthcare risks.
Finally, the Think Tank found that a root cause of limited business growth and sustainability in South Carolina is the education system. They found that the low High School graduation rate and the low scores on basic skill sets limited individuals who wanted to start a business and limited existing businesses seeking employees.
Success indicators:
The measure of success of implementing these recommendations includes:
1. Increased revenue from women-owned businesses
2. Increased number of WOB in competitiveness clusters. The increase will include both existing businesses unknown to the clusters and new businesses that start because of the clusters.
3. Increased number of WOB with employees.
4. Increased awareness of WOB success. Currently WOB are somewhat invisible to young women and men in SC. They can only be role models of what can happen if they are visible.
5. Decrease in WOB failures.
8. The Think Tank recommends that The Alliance for Women work to establish a statewide system of Women's Centers like the Charleston Women's Center. These centers can serve as stimulus for geographic networks and single sites for programming to support women owned businesses
In addition to efforts focused on existing business growth and sustainability, The Think Tank agreed that a more effective system for supporting new business development is important. They are concerned that too many women-owned businesses fail within the first few years because of limited basic knowledge of business and business planning. To improve the effective development of new business ventures, The Think Tank recommends that the state develop a system for basic business start-up support.
Business Start-Up Support
The Think Tank recognizes that expansion of existing women-owned business will have limited impact on those women in poverty, without education or financial resources, and in rural areas without opportunities. Think Tank participants encourage the state to develop strategies to increase sustainable business start-ups.
The Think Tank recognizes the work of Rural Crossroads, the Clemson Economic Development agents and the Small Business Development Centers in working with rural entrepreneurs, but believes that additional support could make a huge difference to individual entrepreneurs and communities.
Research and regional meetings identified three obstacles to sustainable business start-ups: access to capital, access to comprehensive, basic "how to" programs for new entrepreneurs and limited educational attainment Fortunately the state has begun to recognize each of these inhibitors and is working on strategies. We would like to see those strategies move faster and reach deeper into poor rural communities.
Access to Capital
9. The Think Tank recommends that the state encourage the funding and implementation of the Capital Access Program approved legislatively in 2006.
10. The Think Tank recommends that the state develop a micro-loan program for South Carolina .
Basic "How To" Programs for New Entrepreneurs
11. The Think Tank recommends that the state implement a statewide system of basic education for business start-ups to feed into the successful FastTrac programs.
In addition to these recommendations, the Think Tank identified two important and complex factors that inhibit success in entrepreneurial endeavors: health care for small business owners and their employees and workman's comp costs. The Think Tank recommends that The Alliance for Women collaborate with other partners concerned about these two issues to encourage legislation to address both from the perspective of encouraging business growth. As an example, Think Tank participants envisioned a system in which small business owners could pool healthcare risks.
Finally, the Think Tank found that a root cause of limited business growth and sustainability in South Carolina is the education system. They found that the low High School graduation rate and the low scores on basic skill sets limited individuals who wanted to start a business and limited existing businesses seeking employees.
Success indicators:
The measure of success of implementing these recommendations includes:
1. Increased revenue from women-owned businesses
2. Increased number of WOB in competitiveness clusters. The increase will include both existing businesses unknown to the clusters and new businesses that start because of the clusters.
3. Increased number of WOB with employees.
4. Increased awareness of WOB success. Currently WOB are somewhat invisible to young women and men in SC. They can only be role models of what can happen if they are visible.
5. Decrease in WOB failures.
You Should Know
At the current rate of change, the wage gap will not be eliminated until 2039.Thanks to the following organizations for their generous support and/or sponsorship:
