Circular Summit a sounding board of ideas for women entrepreneurs
Women-owned businesses face a Catch-22 as they grow: The owners need capital to expand. They raise that money from investors, most of whom are men. But if their ownership stake falls below 51 percent, they no longer qualify for preferences awarded to certified women-owned companies.
Losing the “women-owned” certification can make it harder for these businesses to get contracts with larger companies or the government. In some situations, it also could affect tax incentives and grants or loans from the Small Business Administration.
On Thursday, a group of about 75 women entrepreneurs, policymakers and investors gathered in Houston to discuss ways to address challenges as specific as that. One recommendation offered was to change the certification criteria to “women-led” or “women-run” businesses.
“That’s something we can all come together and probably change. It’s not a partisan issue,” Elizabeth Gore, entrepreneur-in-residence at Dell, told the group at Hotel ZaZa. “It’s good for enterprise. It’s good for women entrepreneurs. It’s great for the economy.”
Kimberly Weisul, editor-atlarge for Inc. magazine, suggested that in the meantime, women venture capitalists invest in
women-owned companies to help them maintain the 51 percent threshold.
Gore applauded organizers of Thursday’s #JoinTheCircle luncheon for bringing together a varied group to discuss specific actions. It preceded the second-annual Circular Summit, which drew about 300 this year and runs through Friday.
“I think it is very rare when you get a cross section of not just industries but backgrounds in the room,” Gore said. “… When that happens, I think it’s a much richer conversation about what do we all need to succeed. Some of that’s leadership. Some of that’s policy. Some of that is just encouragement for folks to support women entrepreneurs.”
On another topic, Eileen Gittins, co-founder and CEO of Bossygrl, suggested tax credits for venture capitalists and other investors who put their money into women-led and minority-led businesses.
“We seem to have a president right now who is very interested in tax credits,” Gittins said.
The luncheon forum was a continuation of discussions that began in the fall. Dell and Deloitte led a series of dinners that included CEOs and entrepreneurs in San Francisco, Chicago and New York to identify specific policies that women entrepreneurs need to succeed at higher levels.
Based off these dinners, more than 80 people signed a letter in November to the presidential candidates. The letter high- lighted ways to expand access to capital, increase access to local and global networks and markets, and help women entrepreneurs thrive in the changing face of technology.
“Already, we’ve had two bills not just passed but signed by the president for women entrepreneurs and women in STEM,” Gore said, referring to science, technology, engineering and math. “So that is an early win that a huge collective group has worked on.”
The information gathered from Thursday’s luncheon will be included in a presentation to Congress and the White House in late May or early June, Gore said.
“The policies are being seen. We’re excited about that,” Gore said. “It’s up to us to continue the conversation. Continue the momentum.”
The Circular Summit is a networking event for women entrepreneurs that provides opportunities to meet investors, mentors and peers and to trade tips for expanding their companies. It’s co-chaired by Gore and Carolyn Rodz, Houston-based founder of a digital accelerator program for women called Circular Board.
Among the event’s speakers is Cherie Blair, founder of the Cherie Blair Foundation for Women and wife of former British Prime Minister Tony Blair. During the luncheon, howquences ever, she focused her comments on the three “C’s” that women entrepreneurs need. The first is confidence.
“This is so important for women because, as we all know, somehow or the other we’ve internalized the idea that we’re not good enough,” Blair said. “Men, on the other hand, always believe they’re absolutely good enough.”
After a round of laughter, she detailed the other “C’s” as capacity, including
education and training, and capital. Nina Vaca, chair and CEO of Pinnacle Group, later recommended adding one more.
“The fourth C is a contract,” Vaca said. “Because the best way you can help a woman, is you give her a contract. Because the contract will help float all boats. It will help float the boat of access to capital, the access to education, the access to management.”
Houston City Councilwoman Amanda Edwards discussed the mayor’s Technology & Innovation Task Force that she initiated. She said it is looking at how the city can be proactive and also “get out of the way” in assisting tech innovation.
“Sometimes you have to explore and take a very deep dive as to what all parties can do to really contribute toward building a stronger ecosystem,” Edwards said.