What is it? A bold new initiative that will provide women business owners, government, and corporate and economic leaders with a framework to create results that are more positive for women in procurement.
Elements include: Women's Business Procurement Councils made up of women business owners, corporate and government leaders, and economic development leaders; National Women's Procurement Support Network comprised of government and corporate supporters who sign on to create real progress within their organizations; Women's Procurement Network – the voice for women in procurement; USWCC National Women's Enterprise Certification to enable more women to easily and inexpensively obtain a quality national certification and assist them to reach across state and regional barriers to procurement opportunities. For complete details, see the full Procurement Project document. Why? Despite the efforts of national and local organizations to increase the success of women in procurement, the progress has been very slim.
Between 1997 and 2002, women-owned firms grew 14% to 6.2 million and their sales increased 40% to $1.5 trillion. But, while women-owned businesses represent 38% of all businesses in the U.S., they capture only 18% of the available purchasing dollars and generate only 16% of the business revenues.
The statistics get worse when we look at the big market opportunities for women – the places where a woman business owner can drive her business to make strong revenue gains.
Since 1990, there has been a federal government-contracting goal of 5% to women-owned businesses. But more than a decade later, women-owned businesses continue to get less than half of that goal. And, even though the federal government spends $200.9 billion annually with small business (22%), they only spend $4.6 billion or 2.3% with women-owned small business.
Procurement opportunities with state and local governments or corporations are no better. Data from the states show that most state purchasing goals with women-owned businesses are 3% or less. Additionally, women-owned businesses receive less than 5% of corporate purchasing dollars.
These results have come about in spite of the efforts by many different entities to make a difference. We believe if we keep doing what we've been doing, we will continue to get what we have gotten. We believe we must do something differently to assist with the movement of women-owned businesses into procurement markets. What's different? First, we will provide an overview of the history of women in procurement and the system(s) as they work today. This will be followed by the structure and thrust of the USWCC Women's Business Procurement Project. Overview and History of Women in Procurement Markets
As women in business began to reach to the procurement markets for business growth, it became clear that access would be a challenge because larger businesses with long-term relationships, longer records of accomplishment, more ready cash and expertise, and a strong desire to protect their domain and drive these markets.
As the challenge to market access continued, corporations and governments began to understand a need to support the economic development of women in business and to reach out to their constituents (customers) through these markets.
This led to "certification" – an outgrowth of Affirmative Action. The concept was to provide a certification for a business that was owned by an underserved class and then force the system to use these businesses regardless of the preparedness, ability to fulfill contracts, or experience in procurement markets.
This affirmative action initiative created the "nickel ceiling" as the federal government created a mandate that tried (unsuccessfully) to force the purchasing of at least 5% of all goods and services from women-owned businesses.
States and city governments now have hundreds of certification programs across the U.S. – all seeking to prove the same basic standards: a business owned, operated and controlled by one or more women who have 51% ownership. Most certifying entities use similar tests of the standard: ownership and governance, operation and control, contribution of expertise and/or capital, independence, risk. State and city governments certify thousands of women-owned businesses every year.
Corporations followed suit with "supplier diversity" programs – partly because (in some instances) they have requirements to fulfill for their own government contracts, and partly to be good corporate citizens. Corporations and governments, also came to understand that working through "supplier diversity" was a new way to market their own products and services to women.
The corporations came together to create a non-profit called the "Women's Business Enterprise National Council" (WBENC). They created a national entity that is primarily governed by corporations (the "corporations" are the "members" of the non-profit itself). WBENC-certified women-owned businesses represent a women's forum as part of WBENC. This women's business forum receives a very limited number of board seats on the WBENC board of directors (current representation is about 7 to one - seven corporations for every one business owner).
WBENC was founded in 1997. Of the over 6.2 million women-owned businesses in the U.S., they certify under 2,500. Their certification seeks the same high-level standards of the city and state governments – but calls these certifications "national." WBENC provides the corporate members with a database of certified women-owned businesses to use in their procurement processes.
The National Association of Women Business Owners (NAWBO) launched their certification arm – National Women's Business Owners Corporation (NWBOC) - the same year as WBENC (1997). It is difficult to ascertain the volume of certifications completed by NWBOC, as their website is not updated (most items show 1998 as last update). However, they continue to be active in the certification arena.
The federal government has not yet implemented a targeted program for women-owned businesses mandating a certification (they currently accept "self" certification). However, it appears this may soon change. When and if the federal government begins to mandate a separate certification, many elements on the national scene will change. The federal government may use their existing systems for certification that establish disadvantaged small businesses, use third party certifiers, or a combination of methods.
Additionally, city, state, federal and corporate run organizations have begun outreach to women-owned businesses to bring more of them into the system. They have held training classes, meet the buyer programs, how to get certified programs, etc. And, still – the statistical data reflects very little change in the results. The Difference "What's different" about the USWCC Women's Business Procurement Project?
Several things:
§ Women business owners will work in partnership with key influencers to create change. As part of the U.S. Women's Chamber of Commerce, the U.S. Women's Business Procurement Project will be a strong advocate for women business owners. We are working to give women a seat at the table of influence and to make women a strong, influential part of the solution.
§ Women will finally have a large, united public voice reaching both nationally and locally with laser-like focus on procurement markets through the USWCC Women's Procurement Network.
§ Women-owned businesses, corporations or governments don't have to pay to join anything. Women can be part of the Women's Procurement Network even if you are not a member of the U.S. Women's Chamber of Commerce. All USWCC Women's Procurement Network registrants (women-owned businesses) will be able to be listed in our national supplier list (which will be available at no cost to corporate and government buyers and will include up to date, verified certification information), take part in our national surveys gauging the progress of women in procurement, access our online buyer's list (in development), receive notifications of upcoming USWCC procurement related events.
USWCC members will receive additional benefits including weekly eNews with the most up-to-date procurement news available, member discounts on products and services that will assist with business growth and procurement opportunities, instant email notifications of opportunities that meet your specifications, key leadership roles on local councils, discounts to USWCC events and activities.
Corporations and government leaders can support the initiative without paying to join anything. We certainly hope corporations and governments will support our efforts through membership in the USWCC. Corporations and governments who do support the USWCC through membership may derive additional benefits. But, membership in the USWCC is not necessary to help us or be part of the USWCC National Women's Procurement Support Network.
Our point is to make a difference – regardless of USWCC membership, or membership in any organization.
§ Extensive and frequent surveying and reporting will be used to see when and if advancement is made. We will report on the success and challenges of women in business, corporations and governments. We believe that ongoing monitoring is very, very important. Women in the procurement network will be asked to report back on their preparedness, activity, experiences and success. Corporations and governments will be asked to report back on increases of women taking part in their systems, their preparedness, abilities and the successes of women in procurement.
§ Local and National Procurement Councils will include experts in finance, legal needs, operational growth and technology to address all of the challenges of women entering the procurement markets.
§ Great emphasis will be placed on getting information out to women about procurement opportunities and reaching out to them to get them involved in bidding opportunities. We will move beyond passive "announcements" to dedicated efforts to get women into the process and provide feedback regarding their preparedness.
§ The USWCC will work to greatly raise the visibility of women in procurement. While much has been done to create visibility for corporations and governments in procurement – it is time we also focus on the women-owned businesses that are active and promote them to the public.
§ We will focus strongly on access to capital and technology for women to increase the ability for their businesses to grow and be ready for growth.
§ We will make it easier for women to have the necessary certifications to work with all entities without redundancy, expense and wasted time. Highest standards will be upheld.
§ We will use the breadth of our network to improve and enforce local and national government policies supporting women-owned firms in procurement.
§ We will provide educational opportunities that go beyond what are currently in the marketplace – giving women the next level of support they need.
§ We will work to give women-owned businesses honest feedback regarding their preparedness, bids, and presentations. We believe women need a gentle but real level of honesty helping them to get beyond "no" to "yes."
§ Corporations and governments will receive help from the USWCC to get businesses that are ready for opportunities into their systems and into their bids. We will avoid flooding them with businesses at any one time and work to improve the flow of women-owned businesses so that businesses that are ready for opportunities are there at the time the opportunity is available through our "just in time" program.
§ We will also include women business owners from non majority-owned businesses in our educational and resource efforts, as these women deserve our support as well. We don't want a system that relies on "certification" to prevent women from growing their businesses as minority owners. Our view is any woman business owner deserves the support of the project. How? Women's Business Procurement Councils
The driving force to the USWCC Women's Business Procurement Project is the USWCC Women's Business Procurement Councils. These are being established at national and local levels. Theses councils will be led by women business owners and will include government and corporate leaders, experts in the areas of certification, corporate and government contracting, finance, law, technology and operations. The Women's Business Procurement Councils will oversee the Procurement Project, monitor the progress and keep us on the cutting edge. Women's Procurement Network
The USWCC Women's Procurement Network is the voice for women in procurement. This network is comprised of women-owned businesses and women business owners seeking success in procurement markets. The Women's Business Procurement Council will work closely with the Women's Procurement Network members to increase women taking part in procurement opportunities, increase their success, keep them better informed, and ease their challenges through education and services. National Women's Procurement Support Network
The USWCC National Women's Procurement Support Network is comprised of government and corporate leaders, supplier diversity managers and buyers who sign on to make a difference for women. They will report set and keep reasonable goals for improvement, assist with educational programs, communicate with the USWCC regarding upcoming opportunities for our "just in time" program, and help us deal with the challenges. Join Us
We hope you will join us in creating more opportunities for women-owned businesses and woman business owners through the USWCC Women's Business Procurement Project. For more information, or to become part of the project, go to www.uswomenschamber.com/html/procurement.htm or call 888-41-USWCC.. |