St. Louis "The Place" For Women Entrepreneurs   Susan Wilson Solovic St. Louis Now Ranks No. 4 In The Nation For The Fastest Growth Of Women-Owned Businesses St. Louis Small Business Monthly    March 2003    Women entrepreneurs are going strong in the St. Louis area. St. Louis now ranks No. 4 in the nation for the fastest growth of women-owned businesses—following Salt Lake City, Las Vegas and Phoenix. “We’ve seen a lot of growth in the Southwest cities because these are newer areas with fewer barriers to entry, “ says Sharon Hadary, executive director of the Center for Women’s Business Research, in Washington D.C. “It is exciting that St. Louis is showing that same kind of growth.” Not even 30 years ago, women owned fewer than 5% of small business in the United States. Today, women-owned businesses represent nearly 40% of all small-business owners in the country—in all, a total of 6.2 million privately held firms. And for nearly a decade, the growth of women-owned businesses has been twice the pace of business in general. Women-owned businesses make a dramatic difference in job creation and the economy. Even in a depressed economy, women-owned firms are experiencing an overall growth of 14%, revenue is up by 40% and employment is up by 30% over the past five years, according to Hadary. The privately held women-owned firms employ 9.2 million workers and generate more than $1.1 trillion in sales. “These numbers are important because these businesses are playing a greater role in our economy,” Hadary explains. While circumstances have dramatically improved for women business owners, there remain numerous challenges. According to a recently released survey from the Center for Women’s Business Research and commissioned by the Women’s Business Enterprise National Council, the top challenges are: access to capital; access to information, training and technical assistance; access to networks; and validation—the need to be taken seriously. In St. Louis, women are developing their own “good old boys” network with groups like the Women Presidents’ Organization (WPO), eWomen, and the National Association of Women Business Owners (NAWBO). These groups continue to grow and help women foster strong alliances. “I think the strong performance in the St. Louis market is due to the increase in networking outlets. Until recently, we didn’t have such strong connections with other women-owned businesses,” says Rebecca Herwick, president of Global Products, Inc., official licensee of Harley-Davidson giftware, apparel, novelties and embroidery products. “The Women President’s Organization and WBENC (Women’s Business Enterprise National Council) have been tremendous resources for me.” “I have been fortunate to form many sisterhoods associated with NAWBO and WPO. I am grateful to the women who have greeted me with an open mind and have gone out of their way to lend a hand where and when needed,” says Lorri Keenum, president of Midwest Trenching & Excavating, Inc. Not only do these professional women’s groups help area women entrepreneurs do more business collectively, Herwick says, but she also deliberately seeks out women-owned businesses every chance she gets. “I make it a point to pull out my WPO directory when I need a product or service, but also when I need help or advice,” she explained. “Throughout my career, women have always been my stepping stones to success. Women want women to succeed.” Relationships and people are key to the success of women-owned businesses. “The people that women surround themselves with are their competitive differentiator. Never underestimate the important role your staff plays in the kind of company you create and sustain,” says Donna Vandiver, of the Vandiver Group. “Women tend to create work environments that nurture people,” says Mary Quigg, president of Vandover, Inc., an outplacement firm. “That results in higher retention and perhaps better performance overall. You get what you give, and women tend to give more.” Access to capital is another critical challenge for women-owned firms. According to a research study released by the National Business Women’s Council, women-owned businesses receive less than 12% of the available credit for small businesses. “By the time we have access to capital, we no longer need it,” says Quigg. But perhaps the greatest challenge for women entrepreneurs is accessing markets. Of the $200 billion the federal government spends on procurement, less than 3% goes to women-owned firms. However, the situation is more dismal in private markets. Past research has shown that the biggest market penetration gender gap in selling products or services is in corporate purchasing. Nearly six out of ten Fortune 1000 companies spend $1 billion or more annually with outside suppliers, the median share going to women-owned businesses is just 3%. One in five major corporations spends less than 2% of their vendor dollars with women business enterprises. “Women business enterprises have been positioned as credible suppliers to the corporate marketplace. Yet, the disparity between the number of women-owned businesses and their presence in the corporate supplier marketplace continues,” says Susan Phillips Bari, president of Women’s Business Enterprise National Council. Despite the obstacles, women business owners in the St. Louis area remain optimistic about the future. Missouri is known as the “show-me” state—and as evidenced by their success—women business owners in St. Louis are showing the country how it’s done. St. Louis is the place for women entrepreneurs.

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