In addressing her organization”™s 2019 Women Rising Gala and Awards Luncheon, Women”™s Business Development Council (WBDC) President and CEO Fran Pastore insisted that “economic equality is not a female issue. It is an economic imperative.”
Founded in 1997, the Stamford-based WBDC has been the prominent force in encouraging a new wave of women business professionals in Connecticut. In this edition of Suite Talk, Business Journal Senior Enterprise Editor Phil Hall discussed the state of Connecticut women in business and the challenges they continue to face.
What is the state of women”™s entrepreneurship in Connecticut? Are women creating new businesses?
“Are women creating new businesses? Yes. In fact, my understanding from the secretary of state is that more LLCs were filed in the first six months of 2019 than in all of 2018, and the majority of those LLCs were women-owned.
“Most women-owned businesses have growth revenues of under $1 million per year. The gap between the scale of different businesses is great. Women also only get about 4% of all private equity capital. Access to capital is still the biggest burden for women.”
Why is that? Here we are in 2019 and wouldn”™t you think that level of disparity would be something for the History Channel rather than today”™s business news pages?
“It was only in 1988 when a woman could access capital in her own name for commercial purposes with the Women”™s Business Ownership Act. But there are still systemic societal barriers that, over time, have become acceptable. A lot of cultural barriers still exist ”” there is still a bias when it comes to accessing capital. A man and a woman can have the same business plan, the same financials and the same resume and a man will access the capital more than a woman will.
“What is astounding is that we also know businesses that are owned and operated by women and have women on their board will outperform other businesses. I believe that there are certain fears that women have around money and a certain discomfort when it comes to pursuing wealth. One of my clients said it really well ”” she has a food truck and she said people are always surprised to see a woman running a food truck, but they want us in the kitchen, all of the time, cooking.”
What is the situation for women of color in entrepreneurship?
“Women of color and Latinas are the fastest-growing segment of women starting businesses. And accessing capital is no different for them than it is for everybody else.”
What type of businesses are being created by women in Connecticut?
“I would say there is a resurgence of small manufacturing. There is a lot of health and wellness and a lot of cannabis and hemp. There is a lot in the food industry. A lot of our clients are in the service-oriented industries.”
In the corporate world, are you seeing more women in the C-suites?
“Women represent more than half the country”™s population, earn more than 57% of undergraduate degrees and an even higher percentage of master”™s degrees, yet women represent a mere 5% of Fortune 500 CEOs. We are only 7% of top executives in Fortune 100 companies and just 26.5% of executives, senior officials and managers overall.”
What can be done to rectify that imbalance?
“We can start by creating cultures that prioritize developing female leaders across all sectors of business and society by providing opportunities for professional development and entrepreneurial training and education for women entrepreneurs. Doing so will fill the pipeline of tomorrow”™s leaders ”” if she can see it, she can be it.”
Who do you see as the role models for today”™s women entrepreneurs?
“It”™s a tough question because most of the women in business that I meet in Connecticut have pulled themselves up by their bootstraps. These are not wealthy women who came from families with money. When I think about a lot of the women we hear about in larger companies, they had access to a lot of resources ”” from financial resources to household help and childcare ”” that many of the women I meet don”™t have.
“Oprah had a tribe of family and friends that believed in her, supported her and provided her with a lot of the guidance she needed to build confidence in herself. When you have a tribe, you can make things happen.”
