Experiences from the U.S. Department of State and the U.S. Small Business Administration

1. The United StatesCritical Factors and Stakeholders to Ensure Women Entrepreneurs Achieve their Growth Potential Experiences from the U.S. Department of State and the U.S. Small Business Administration

2. Key Points for Discussion • Overview • International experiences from the U.S. Department of State • Domestic Experiences from the U.S. Small Business Administration

3. Overview • Since the adoption of the San Francisco Declaration in 2011 • Supported regional women’s entrepreneurship forums in every region of the world and over 50 International Visitor Leadership Program Exchanges • Supported additional research, development, and small grants • USAID launch of Women’s Leadership in SME • The Asia Foundation and USAID GenderCLIR • Worked with multilateral institutions • IFC, World Bank, Inter-American Development Bank • Engaged heavily with the private sector, experts and civil society • Secretary’s International Council on Women’s Business Leadership • Global Banking Alliance • Multinational corporations and small retailers • Engaged with Governments • 2 APEC focused workshops – government procurement and access to capital

4. The San Francisco Declaration • Overall we have found that the four primary barriers outlined in the San Francisco Declaration hold true and that women do in fact face additional barriers to starting and growing small and medium enterprises. • This has case has been further confirmed and researched over the past three years by private sector partners and multilateral institutions with a focus on drilling down on what works to support the development of women’s entrepreneurship.

5. Women’s Leadership • Stronger and multiple networks • Necessary to be able to assist, provide services and opportunities to, and connect with women entrepreneurs • Organization and institutional capacity • Awareness of existing structures or organizations to leverage and governance • Identifying common missions and objectives • Stakeholders engagement • Priority areas

6. Access to Capital • Financial institutions internal capacity building • The need for additional outreach to reach women entrepreneurs • More risk adverse • Financial literacy training for women • Government policies • Loan guarantee programs, credit bureaus, and small claims courts • Exploring new innovations • Crowd funding, PayPal, use of account receivables, and alternatives to collateral • APEC Access to Capital Workshop • Developing Financial Products to Support Women-Owned Businesses- September 15-16th

7. Access to Markets • Opportunities are increasing but often there is a lack of awareness and knowledge of how to capitalize on the opportunity • Increased private sector engagement and interest in sourcing from women entrepreneurs • However, companies often have difficulty finding women entrepreneurs • Need additional support ensuring that women owned businesses are certified and have the capacity to meet their standards and qualifications • Government procurement presents an enormous opportunity • Currently women entrepreneurs capture less than 1% of government procurement opportunities globally.

8. Skills and Capacity Building • International standards: • Quality, consistency, timing, phytosanitary standards, packaging, diversification, and certification • Business management training: • Financial literacy, digital literacy, business plan development, strategic visioning and succession planning • Trade: • Customs procedures, general system preferences, and transportation • Security and gender-based violence: • The need to address security issues, gender based violence, harassment and discrimination

9. Programs and Resources to Advance Women’s Entrepreneurship U.S. Small Business Administration Answers | Resources | Support For Your Small Business

10. Focus on Women’s Entrepreneurship • 1979 Presidential Executive Order Established the Office of Women’s Business Ownership within the Small Business Administration • Since it was established in response to an executive order in 1979, the U.S. Small Business Administration’s Office of Women’s Business Ownership has fostered the participation of women entrepreneurs in the economy, especially those who have been historically under-served or excluded. • In 1970 only 5% of all US businesses were owned and operated by women. Today there are over 7.8 million women owned firms, representing 28.7% of all nonfarm businesses. • From 1997 to 2012, the number of women-owned businesses in the United States grew by 54%. • Analysis by American Express suggests that the number of women-owned businesses has risen by 200,000 over the past year alone, which is equivalent to just under 550 new women-owned firms created each day.

11. Women’s Business Ownership Act • In 1988, the Women’s Business Ownership Act established both the National Women’s Business Council and the Women’s Business Center Program. • National Women’s Business Council (NWBC) is a non-partisan federal advisory council created to serve as an independent source of advice and counsel to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners. • The Council is the government’s only independent voice for women entrepreneurs. Members are prominent women business owners and leaders of women’s business organizations. NWBC is composed of 15 members who are appointed to three-year terms. • The Council brings together women business owners, policy makers, bankers, representatives of women's business organizations and other stakeholders to discuss potential solutions to the challenges facing women business owners, and to recommend these solutions to the president and Congress.

12. Women’s Business Ownership Act • In 1988, the Women’s Business Ownership Act established both the National Women’s Business Council and the Women’s Business Center Program. • The Women’s Business Center Program utilizes over 100 non profit organizations that provide business training and counseling, access to credit and capital, and marketing opportunities for women entrepreneurs. • Each Women’s Business Center tailors its services to the needs of its individual community, including offering services at convenient times for women. Many of the centers provide day care services and offer classes in multiple languages. • Annually, approximately 140,000 clients are served by the Women’s Business centers around the country, helping many to start and grow their businesses.

13. Access to Capital • Women owned businesses, on average, receive less venture capital funding than men, and more than half of women-owned businesses used personal or family savings to start or acquire their business, compared to 60% of all businesses. • SBA guarantees loans on reasonable terms through financing partners to small businesses that are unable to obtain funding from conventional lenders. • According to the Urban Institute, SBA loans are 3 to 5 times more likely to go to women and minority owned businesses than conventional loans. • And since 2009, the SBA has supported more than $12 billion in lending through more than 35,000 SBA loans to women-owned businesses.

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