Fewer Women Becoming Small Business Owners

The Good News Is
There’s plenty of help for women entrepreneurs who want to launch new businesses. The U.S. Small Business Administration has many resources on how to start, grow and finance a small business, along with tips on training and finding a business mentor.

The SBA’s Office of Women’s Business Ownership, for example, helps women entrepreneurs learn how to start a business through its Women’s Business Centers, or WBCs.

Federal Contracts for Women
The SBA helps women-owned small businesses expand access to federal contracting opportunities through a rule passed in 2010 to allow more small businesses to compete for federal contracts. It identified 83 industries in which women-owned small businesses (WOSB) are underrepresented in federal contracts.

To be eligible, a firm must be 51 percent owned and controlled by one or more women, and primarily managed by one or more women who are U.S. citizens. The firm must be “small” in its primary industry.

Federal contracts for WOSBs are set aside for up to $5 million in manufacturing contracts and $3 million in other contracts.

Finding a Business Mentor
For women business owners seeking a mentor for advice, the SBA suggests taking these steps:

Use Government Resources
The government offers many free resources and services to help small business owners with mentoring. SCORE Mentors is a nationwide network of business executives and others who offer advice.

Other government resources that offer help with mentoring are Small Business Development Centers, Women’s Business Centers, and the Minority Business Development Agency.

Trade Associations

These offer mentoring through one-on-one sessions and group networking. Most industries are represented by trade associations. To find one, consult your local SBA district office.

Mentoring for government contractors. If you sell products and services to the federal government, you can get a specialized mentorship in the General Services Administration’s Mentor-Protege Program for small businesses.

Your Network
Will your former boss or a friend who owns a business help you? Tell them why you chose them as a mentor, and share your goals and what you’re looking for from them.

Working With a Mentor
The SBA recommends having a formal structure and establishing a mutually beneficial relationship. Be respectful of your mentor’s time, don’t expect them to make business decisions for you, plan mentoring sessions in advance, take notes and create action items, and thank them for their time and assist.