Karen Herson is the Founder & CEO of Concepts, Inc., a disability- and woman-owned small communications firm.
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During Women’s History Month each March, we celebrate the contributions of women to America’s ongoing story, whether through academia, the arts or industry. These include, of course, many women business owners—and as an entrepreneur myself, I’m thankful for the trails they blazed for me and many others.
The Rise Of Women-Owned Businesses
While women-owned businesses remain underrepresented, our numbers are on the rise, and as a result, we’re increasing employment opportunities for all people. Based on the Census Bureau’s Annual Business Survey, in 2020, 21.4% (1.24 million) of “employer businesses” were owned by women.
This represents a slow but steady increase over previous years. Collectively, these businesses employed 10.9 people and $432.1 billion in annual payroll. When it comes to businesses without paid employees, an estimated 41% (10.9 million) are women-owned. So combined, the estimated number of women-owned businesses in the U.S. in 2020 was approximately 12 million.
In short, whatever way you slice and dice the data, women business owners are contributing to America’s economy in significant ways—and gradually etching away at historical inequities stemming from gender discrimination. For instance, women have traditionally had a harder time securing funding and accessing education and training to launch and run businesses.
Understanding History
Many advocates, both women and men, helped equalize the playing field over the years, and one important but sometimes overlooked dimension of their work relates to federal contracting, which has been critical to my business’s growth and opened doors to rewarding work.
One major milestone occurred in 1979 when President Jimmy Carter issued Executive Order 12138: “Among other provisions, the executive order required federal agencies 'to take appropriate affirmative action in support of women’s business enterprise,' including promoting procurement opportunities and providing financial assistance and business-related management and training assistance." It also directed the Small Business Administration (SBA) to add woman-owned small business (WOSB), as a category, to the list of small business contracting goals it negotiated with federal agencies.
While the next decade saw an increase in WOSBs receiving federal contracts, it was very slight, going from 0.2% in 1979 to 1% in 1988. Advocates argued for additional action to combat lingering inequities. This resulted in the Women’s Business Ownership Act of 1988, which, among other things, provided SBA with statutory authorization to establish annual procurement goals for federal agencies related to both prime contracts and subcontracts.
That same year, the Business Opportunity Development Reform Act of 1988 authorized the president to annually establish a government-wide procurement goal for small businesses overall as well as small disadvantaged businesses, meaning those owned and controlled by socially and economically disadvantaged individuals. Shortly after, advocates argued for a similar government-wide goal for WOSBs.
Years later, the Federal Acquisition Streamlining Act of 1994 (FASA) established a 5% procurement goal for WOSBs. This goal went into effect in 1996, which coincidentally is the year I established my business. My first client? A federal agency committed to achieving its small business procurement goals. That client led to another, and soon I was managing multiple contracts.
Growing A Business
Those early years were not without challenges. With growth, I had to learn how to hire and effectively manage staff and shift to a “we” mindset, as decisions now impacted more than just me. This was a new way of thinking, and it took time to adjust.
Key to making the adjustment to a “we” mindset is involving employees in decisions in order to understand their impact on the organization as a whole versus one person or one project.
I also had to learn to let others take leadership roles and trust them to deliver, even if they might use different approaches to accomplishing tasks. For many entrepreneurs, this does not come naturally, as our decision to start a business is often rooted in a desire for autonomy.
After FASA’s implementation, the number of federal contracts awarded to WOSBs did increase, but still very slowly. So, advocates once again went to work, and now today, competition for certain contracts is limited to businesses certified under the WOSB Federal Contract program.
My company is now one of those businesses—and this month, I honor the many people who helped level the playing field for us to compete and succeed in fulfilling federal contracts. While progress has been made, there is more to come.
Learning From Others
In this spirit, I encourage my fellow women business owners to learn more about the WOSB Federal Contract program and how it can benefit their businesses.
I also encourage them to take a moment to honor those who taught and encouraged them along their entrepreneurial journey. For me, this starts with my mother, who, whether consciously or not, served as a role model to me growing up. As just one example, she launched and produced her own show in the early days of cable television. I learned a great deal from her—and continue to do so today as she continues to be a leader in retirement through charitable work.
One key lesson my mother taught me is that while starting and running your own enterprise requires self-initiative, it also necessitates knowing when to ask for help or join forces with others to maximize impact.
The key here is building and maintaining your professional network through involvement in industry or community organizations. Although this can be a challenge given the typical day in the life of an entrepreneur, I believe it’s essential to long-term success—and, when opportunities arise to partner with other women business owners, it serves a greater benefit.
I think the advocates who worked to bring the WOSB Federal Contract program to fruition understood this. Working together, they both benefitted themselves and expanded opportunities for future generations of women entrepreneurs. As such, they’re an important part of women’s history and American history, and I salute them every month.
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