dinnocenzosestak BRYN MAWR, Pa. (July 23)--There’s both good news and bad for women looking to start and grow small businesses, according to testimony given by the Pennsylvania Small Business Development Centers (SBDC) today before the US House of Representatives Small Business Committee. The hearing, led by Congresswoman Nydia Velazquez (NY-12) and Congressman Joe Sestak (PA-07, shown right) in Bryn Mawr, Pa., focused on the specific issues and challenges women business owners face.

The good news is that women-owned businesses have seen tremendous growth in recent years, accounting for the largest percentage of new businesses formed, said Donetta D’Innocenzo, Pennsylvania SBDC Advocacy and Resource Board co-chair (shown left).

The bad news is many ventures—both male and female-owned—are in jeopardy, due to lack of essential business skills and available training needed to prepare them to run successful businesses. The struggles of maintaining profitable sales are further complicated with policy issues facing small businesses across Pennsylvania: affordable health insurance, rising energy costs, and increasing issues with taxes, lawsuits, workers compensation and regulations. The concern of foregoing health insurance alone can deter a prospective entrepreneur from going into business, especially if there’s a family’s care to consider.

D’Innocenzo, as owner of NetGain, a small consulting firm in Harrisburg, could speak from personal experience. “Since many of these challenges result from public policy decisions, I urge the committee to review them and investigate possible remedies,” she said.

But there’s more news still: prospective and current business owners may access the resources of the Pennsylvania Small Business Development Centers. In providing information, education, tools and consulting to both female and male entrepreneurs for 26 years, the network of 18 university- and college-based centers have helped thousands work through their challenges needed to start and grow successful businesses. Services are provided on a non-discriminatory basis—often at no cost—and are tailored to the needs of individual clients.

Help may arrive in linking prospective women business owners with resources such as the Small Business Administration’s pre-qualification loan program, designed especially for disadvantaged populations, or in obtaining Minority/Women Business certification, which opens opportunities for women business owners to win more contracts. The SBDCs also serve women entrepreneurs by providing targeted training and technical assistance to help them compete.

Services like these are crucial, D’Innocenzo emphasized. “As a business owner, I can reinforce what the SBDCs tell their clients all the time: Growth only occurs when firms are able to increase their profitable sales.”

Women representing some of the thousands helped by the SBDCs in a single year span a range of industries. Audra Mitchell was able to obtain financing to move her manufacturing firm, Absolute Powder Coating, from her barn to an industrial park in Ridgway, Pa. thanks to the Clarion University SBDC. Melissa and Shannon Jacobs were able to purchase and revive the historic Jean Bonnet Inn and Tavern in Bedford County with guidance from the Saint Francis University SBDC. Both clients have increased sales exponentially since.

“The U.S. economy is dependent upon the initiation and growth of small firms for its strength, as these companies are contributing vital innovations, creating good paying jobs, and helping to boost our country’s global competitiveness,” D’Innocenzo concluded.

In the most recent reporting period, the Pennsylvania SBDC network consulted with 4,262 women or dual owned businesses, which represents over half of the clients served. An additional 7,400 women learned how to improve their operations though attending SBDC educational programs.

The SBDCs provide assistance to women business owners in all industry segments, in the most recent year helping:

1,429 women-owned manufacturing companies;
145 women-owned technology companies;
4,071 women-owned service businesses;
1,415 women-owned retail companies;
238 women-owned travel and tourism destinations

The program also helped women-owned companies export $23 million worth of products and obtain $75.5 million in government contracts in the previous year.

For more information and success stories about women-owned businesses helped by the Pennsylvania SBDCs, visit www.pasbdc.org/women.

PHOTOS AVAILABLE. Printable version and testimony available for download.

Contact:

Megan Schmidgal
(215) 898.1219