What is a Women Owned Business? By Elizabeth A. Vazquez CEO and Co-Founder, WEConnect International
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1 What is a Women Owned Business? By Elizabeth A. Vazquez CEO and Co-Founder, WEConnect International May 25, 2011
2 WEConnect International Facilitates sustainable economic growth by increasing opportunities for women-owned businesses to succeed in global value chains 501(c)(3) global non-profit incorporated in 2009 that represents over $700 billion in annual purchasing power Members: Accenture, Alcatel-Lucent, AT&T, Boeing, Cisco, Cummins, Dun & Bradstreet, Ernst & Young, ExxonMobil, Goldman Sachs, HP, IBM, Intel, Manpower, Marriott, Microsoft, Motorola, Pfizer, PG&E, United Technologies, Verizon, Walmart 2
3 Why Women + Value Chain? According to The World Bank, women-owned businesses represent 25-33% of all private businesses in the world Women do 66% of the world s work, receive 10% of the world s income, and generally do not own the means of production Women make over 70% of consumer purchasing decisions so their impact on value chain creation is key Women represent 50% of the world s population, but they are almost invisible in global value chains as suppliers, signaling that economies and markets are performing below potential 3
4 Challenges Faced by Women Owned Businesses Women s enterprises are often particularly small and concentrated in the retail or service sectors Women entrepreneurs excel when they have business knowledge and networks that offer access to markets, capital, technology, innovation and inspiration Access to markets and business contract opportunity is particularly difficult when women do not know buyers or how to compete for large contracts, including vendor registration Leveling the playing field for women entrepreneurs to compete is essential for ensuring sustainable markets 4
5 What is a Women Owned Business? According to the U.S. Government, a women owned business as a private business that is at least 51% owned by at least one woman. If the company is public, then 51% of the stocks must be owned by women There is no official global definition, but ownership is the main way that women owned firms are identified The IFC, for example, collects survey information from 125 countries on female participation in firm ownership as a "percentage of firms with females among the owners" but it does not clearly define how much the women own 5
6 Women s Business Enterprise Certification Standard Certification confirmation that a business is at least 51% owned, managed and controlled by one or more women Ownership at least 51% ownership of the company is held by one or more women Management the company is lead / managed by a Principal Executive Officer who is a woman Control the key business decisions regarding the company s finances, operations, personnel and strategy are made by a woman 6
7 Pros of 51% Definition The world needs a universal definition for women owned businesses so that the data collected on them is consistent and comparable Organizations that support women owned businesses want to know that their investment of time and resources will definitely benefit women, especially because women reinvest 90% of their income in their families, to men s 30-40% When a large organization tells the world that the buy from women and/or invest in women, that statement should be accurate, transparent and measurable 7
8 Cons of 51% Definition Does not include the many businesses that are owned equally by men and women Does not account for a common tradition of family owned businesses where women are rarely the majority owners Could be a barrier for women in countries where the women have not legally or culturally been allowed to own property Discourages equity investments by men and public offerings 8
9 For Discussion Additional definitions held by or observed by ANDE members Additional Pros and Cons of the definitions Should the ANDE Working Group on Women have their own definition? Invitation: To the women owned business you work with to join WEConnect via the self registration links at: 9
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