Missouri lags behind rest of country for women-owned firms

Nationally, the percentage of businesses for which women have majority ownership is about the same as it is for businesses owned by men, at around 41 percent. The remaining 18 percent are equally owned by men and women.

In Missouri, however, only 29 percent of businesses are listed as women-owned, compared to 57 percent owned by men. The remainder are jointly owned

“Fewer women are titling their business in their own name, and that has significant implications down the road,” said Janet Michel, franchise owner of consulting firm The Enterpreneur’s Source in Springfield. Michel cited government contracts and grants from nonprofit organizations designed to help women entrepreneurs.

The lack of women-owned businesses goes back to credit history – Michel said many women haven’t developed enough of a credit history solely in their own name to allow financial institutions to lend them money without a co-signer. The issue, she added, is especially prevalent in women 40 and older, which is the fastest-growing group of entrepreneurs, according to research from The Entrepreneur’s Source, which offers advice to people looking for a franchise. Part of the problem may be that men and women will jointly make large purchases, such as a home, but a lot of day-to-day expenses, such as utilities, are in the man’s name only.

“Those women may have credit history in their own name that’s 20 or 30 years old,” Michel said. “The bank then comes back and says, ‘Yes, we’ll give you the loan, but only if your husband co-signs.’ And then you lose all the advantages of being a women-owned business.”

Programs for women

Women-owned businesses are defined by the U.S. Small Business Administration as any business in which 51 percent or more is owned by a woman or women.

Citing information from the Women’s Business Enterprise National Council, Michel said 23 percent of all federal government contracts go to small businesses, and represent $46 billion in sales. Of those, about 3 percent, or roughly $6 billion, are set aside for women-owned businesses.

Barbara Caldwell, public information officer for SBA’s Kansas City office, said that while there aren’t any government loans set aside for women business owners, SBA’s Women’s Business Centers offer help for female entrepreneurs.

“Women who come in who have questions on how to start a small business, or how to build a business plan can get assistance,” Caldwell said. “They also offer different courses that people can attend, on how to network or how to get government contracts.”

On the state level, the Missouri Women’s Council, a division of the Missouri Department of Economic Development, offers resources for women looking to open or expand a business.

Some nonprofit organizations can help as well. The Women’s Business Enterprise National Council advocates to national corporations for women-owned businesses as suppliers, and Make Mine a Million $ Business provides access to capital and marketing for female entrepreneurs.

A turnaround?

While the percentage of women-owned businesses in the Show-Me state doesn’t match national figures, the number is growing.

The Show-Me State boasted nearly 142,000 women-owned businesses as of the end of 2006, up 47 percent from 1997. That’s faster growth than Missouri’s neighbors in Iowa, Nebraska, Kansas and Oklahoma.

Vicki Simpson is one of those Missouri business owners. She opened Bigfish Screenprinting in 2001. She said obtaining financing wasn’t a problem because of her gender.

“As far as how businesses or financial institutions have reacted, I haven’t run across any kind of hurdle,” Simpson said, noting that she is aware that special government grants are available for women entrepreneurs.

“To be honest, I haven’t taken advantage of those because I don’t feel like I’ve had additional difficulty because of being a female.”

But Mary Cottom, executive director of the Missouri Women’s Council, said that some of the women she has talked with have experienced difficulty.

“Financial help is one of the biggest issues,” Cottom said. “Men also have problems with loans, but women, it seems, have to prove themselves more.”

Whatever it takes

Michel said women shouldn’t be afraid to go into business for themselves. She says women should start strengthening their credit early – and the process starts at home.

“Look for opportunities to build up a credit history in your own name,” Michel said. “It’s just logical – if you have credit history with you and a spouse, (banks) are going to want business financing to be for you and your spouse.”

Michel recommends taking some household bills, such as telephones, utilities and credit cards, and putting them solely in the woman’s name to build her credit rating. She also pointed to the plethora of organizations designed to help women through the process.

Whatever is needed to get a new business going, Cottom said it will take a lot of hard work to be successful.

“You really have to have a passion for the business you want to start,” she said. “I find that women are very hard workers and they will take that extra step to make sure their business gets started and prospers.”[[In-content Ad]]