The proposed change will elevate the office to directly report to the Office of the Administrator.
12/16/2021 1:30 P.M.
3.5 minute read
U.S. Small Business Administration (SBA) Administrator Isabella Casillas Guzman has announced that the SBA intends to elevate its Office of Women’s Business Ownership (OWBO) to directly report to the Office of the Administrator and provide more opportunities for women entrepreneurs, according to a news release from the SBA.
The announcement comes after the release of the first-ever National Strategy on Gender Equity and Equality commissioned by the Biden-Harris administration, which outlines strategies for combating gender inequalities for women.
While women entrepreneurs continue to play a large role in our society and economy, they remain underrepresented. This structural shift for the OWBO aims to combat these issues by leveraging government resources—like the equitable federal procurement strategy, bipartisan infrastructure law, and the Build Back Better Act.
“In 1972, there were a little over 400,000 women-owned businesses in the United States. Today, there are over 12 million proving that women entrepreneurs have become the fastest growing and one of the most impactful segments of the business community,” Guzman said in the news release. “While there has been historic progress in women’s entrepreneurship, significant disparities still persist, impacting women entrepreneurs’ access to resources and opportunity, especially in the face of the economic challenges posed by COVID. That is why I am proud to advance the mission of the Office of Women’s Business Ownership and reaffirm our commitment to America’s women-owned small businesses.”
Under Guzman’s leadership, the SBA has expanded the number of Women’s Business Centers (WBCs) to a record 140 locations nationwide, offering resources like counseling, training, business development, technical assistance and more.
Entrepreneurship amongst multicultural women is the fastest-growing entrepreneurial segment in the country. The SBA’s Office of Advocacy found that between 2014 and 2016, the number of employer firms owned by women grew 6%—driven by an increase in employer businesses owned by minority women, which saw a 14% increase in that time.
“Female entrepreneurs are integral to the American economy, starting new businesses at high rates and employing millions. But COVID dealt a severe blow to women-owned businesses, and we can’t afford to leave them behind,” said Rep. Nydia M. Velázquez, D-N.Y., chairwoman of the House Small Business Committee, in the SBA news release. “I’m pleased to see the Biden-Harris [a]dministration prioritizing driving recovery for these small firms and addressing longstanding inequities for women entrepreneurs. I look forward to continuing to work with Administrator Guzman to eliminate obstacles for women in the small business sector and ensure they are in a position to thrive.”
According to SBA Small Business Facts released in August, there are 1.1 million women-owned businesses with 10.1 million employees. Most women-owned businesses are small, according to the SBA.
“It is an honor to lead OWBO during this historic time of entrepreneurial growth for women, and when supporting them through recovery and ensuring that women small-business owners are positioned for the future is so imperative,” said Natalie Madeira Cofield, assistant administrator, Office of Women’s Business Ownership at SBA, in the news release. I look forward to working directly with Administrator Guzman to keep the concerns of women, especially those from underserved and disadvantaged communities, at the forefront of SBA’s executive leadership, initiatives, and programming, and I am grateful for her championship of this fast-growing and critical segment of American small businesses.”
As the OWBO’s reorganization is currently still in the planning stages and is predicted to be finalized beyond the close of the 2022 fiscal year, the OWBO still stands as an organizational component of the Office of Entrepreneurial Development.
ACA Involvement
Women-owned and women-led businesses continue to grow in the accounts receivable management (ARM) industry and remain a big part of the conversation at the congressional level and within the SBA.
In the ARM industry, women make up a high percentage of collection agents when compared to the overall workforce, according to research from ACA International in partnership with Kaulkin Ginsberg, ACA previously reported.
Women’s groups as like the Chamber of Commerce and the ACA Hub group Women in Collection Resource Council (WICRC)—which can be accessed through your My ACA profile at acainternational.org—as well as other association groups specific to your industry are excellent resources.
If you currently hold a HUBZone, Minority-Owned Businesses, Women-Owned Businesses or Veteran-Owned Businesses designation, you can be a part of ACA’s Member Directory.
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