Women's Initiative: Where Dreams Become Thriving Businesses

The recession has hit

I believe we can finally admit that we are in an economic recession. This morning on NPR I heard that the US job market has shrunk for the fifth month in a row, bringing the unemployment rate from 5 to 5.5 percent in the month of May.

What does this mean for microentrepreneurs and small business?

It means we need you more than ever!

Microenterprise and small business represent a huge portion of our domestic economy. Recent small business statistics published online by New Ground Publications (http://newgroundpublications.com) tell us that small business makes up 39% of the GNP, is responsible for 52% of sales and employs over 54 million people in the US!

Microenterprises have been able to create jobs during economically rough times. According to AEO microenterprise statistics (http://www.microenterpriseworks.org) microentrepreneurs in California generated more than 377, 000 new jobs and almost 80% of the job growth in the state during the last recession.

Women’s Initiative graduates are providing jobs for themselves and others. Nearly half (48%) of the graduates who start a business employ another person in addition to themselves.  The question isn’t really how microentrepreneurs will make it through the recession but how microentrepreneurs will help us all get through!

Good News for the Unbanked

Seventeen percent of our clients do not have bank accounts two years after training. Although this is slightly better than the statewide average, where one in five people are unbanked (as high as 50% of African American and Latinos), this means our clients are most likely wasting hundreds of dollars a year on check cashing fees and money orders. Predatory check cashing business are highly concentrated in low-income areas such as in the Mission District in San Francisco where our main office is located. In addition to having to pay much more for basic banking services, studies have shown that the unbanked are less likely to save and build assets.  At Women's Initiative we found out that following training, 44% more had business than they did before the program.

But there is more good news for our unbanked clients in San Francisco. The City has partnered with local bank and credit union branches to make banking accessible to all San Franciscans. Thanks to Treasurer Cisneros, the Federal Reserve Bank of San Francisco, the non-profit EARN and the New America Foundation, nearly all bank and credit union branches in San Francisco have committed to offering low- or no-cost accounts to unbanked individuals, even those with a history of bounced checks. In addition, Mexican and Guatemalan Consular IDs are now being accepted as proof of identification.

Governor Schwarzenneger has announced that the program will soon include Oakland, Fresno, San Jose,and Los Angeles.

For more information on the program or opening an account visit: www.bankonsf.org

Friday Linkblogging: Microenterprise

• May 20-23 will be the first National Summit on Entrepreneurship in Anaheim California. More information is here.

• ABS-CBN News Online has an article about how a Filipino foundation is helping to break the cycle of migrant overseas labor by helping Filipinos to start businesses at home.

• The Citi Foundation and the SEEP Network are partnering on a new three-year $11.2 million international grant program "to advance the integration of microfinance inot the mainstream economies of developing countries."

• U.S. News and World Report online has some tips for how to steel your small business against recession. The main one is to keep marketing!

When money is tight, it's tempting to hold on to what you have and not worry about expanding your brand. But if you stop advertising and marketing, you'll do your business serious harm.

• Here's a terrific blog called How I Changed The World Today, about a woman's daily efforts to make the world a better place. She's been doing a lot with KIVA and international sponsorships so check it out for ideas for yourself, if you need any.

• Even the music industry is getting in on the microcredit action!

• And finally, this article in the Mercury News about Stanley Ann Dunham Soetoro, Barack Obama's mother, tells us that she spent the latter part of her life working in microcredit in Indonesia.

She became a consultant for the U.S. Agency for International Development on setting up a village credit program, then a Ford Foundation program officer in Jakarta specializing in women's work. Later, she was a consultant in Pakistan, then joined Indonesia's oldest bank to work on what is described as the world's largest sustainable microfinance program, creating services like credit and savings for the poor.

Monday Linkblogging: Women Entrepreneurs

• The Gulf Daily News has an interview with Huda Janahi, the first Bahraini woman to receive the GCC Young Entrepreneur of the Year Award.

Getting a commercial registration (CR) was the biggest obstacle as I was told at the Labour Ministry that only males were allowed a CR for cargo businesses. However, there was a misunderstanding. When I joined the United Nations Development Organisation (Unido) for its Arab Regional Centre for Entrepreneurship and Investment Training (Arceit), I told them my problem and they said there was no law that stated that women cannot get CRs for cargo businesses. They advised me to go to the ministry after they contacted officials there and soon I was granted a CR.

• An article in the Maryland Gazette.net features Jennifer D. Collins, recently honored by Enterprising Women magazine.

Jennifer D. Collins had been steadily growing the event-planning company she started in 1997 until the hospitality industry was hit hard by the 2001 terror attacks on the World Trade Center and Pentagon. People stopped traveling to hold meetings, so she had to tap into her communications expertise to also provide clients with meeting strategies to keep her business afloat, she said.

• Entrepreneur.com has an article about women getting MBAs not to work at corporations, but to run their own businesses.

To be sure, getting your MBA isn't a prerequisite for becoming a successful entrepreneur. But one thing is for certain, at least according to our sources at some of the nation's top-ranked MBA programs: Whether you're looking for a program with the best professors, the best classroom experience or the greatest opportunity for women, business schools are the place to be--especially if you are interested in innovation, entrepreneurship and real-life case studies.

• Business Opportunist blog posts about niche marketing for home-based businesses:

You don’t have access to viable means and amenities to compete directly with large business houses and serve a broad spectrum of consumers. In such an adverse business scenario, niche marketing emerges as the most feasible and cost effective strategy that can help home business owners to stay ahead of their competitors and maximize their profits.

To Our Credit Microfinance Documentary

Here's a clip from a Rooy Media produced PBS documentary about microcredit in the US.

Rooy Media LLC has created over fifty programs that educate people about important social issues. This video clip is a sample from To Our Credit: Bootstrap Banking in America, a PBS documentary that profiles microenterprise development, an important new self-help strategy that shows significant promise in the fight to combat poverty in America. The

Rooy Media website has a whole microfinance section so check it out.

Women With Mojo

Just for fun, here's a series from Watchmojo.com (a web video magazine) on the top 50 women with mojo, as determined by the show's viewers.

You can see the individual clips for each woman here. The list is pretty celebrity-heavy.

What do you think? Who are your top women with mojo?

Brooks Times Op-Ed on Social Entrepreneurship

This New York Times Op-Ed from David Brooks talks about social entrepreneurship:

America Forward, a consortium of these entrepreneurs, wants government to do domestic policy in a new way. It wants Washington to expand national service (to produce more social entrepreneurs) and to create a network of semipublic social investment funds. These funds would be administered locally to invest in community-run programs that produce proven results. The government would not operate these social welfare programs, but it would, in essence, create a network of semipublic Gates Foundations that would pick winners based on stiff competition.

There’s obviously a danger in getting government involved with these entrepreneurs. Government agencies are natural interferers, averse to remorseless competition and quick policy shifts. Nonetheless, these funds are worth a try.

The funds would head us toward this new policy model, in which government sets certain accountability standards but gives networks of local organizations the freedom to choose how to meet them. President Bush’s faith-based initiative was a step in this direction, but this would be broader.

Furthermore, we might as well take advantage of this explosion of social entrepreneurship. These are some of the smartest and most creative people in the country. Even if we don’t know how to reduce poverty, it’s probably worth investing in these people and letting them figure it out.

They won’t stop bugging us until we do.

Not sure why this is an opinion rather than a news report, but Brooks is certainly self-fulfilling his prophecy when he says that "Fashions in goodness change, just like fashions in anything else, and these days some of the very noblest people have assumed the manners of the business world — even though they don’t aim for profit."

Wednesday Linkblogging: Women Entrepreneurs

• Patty Briguglio was named 2008 Enterprising Woman of the Year by Enterprising Women Magazine.

• Nancy Marmolejo at Vivavisibility.com has some tips on how to get yourself out there. It's a great marketing blog from a Latina entrepreneur, so check it out in general.

• Rolling blog has a long, passionate post about the state of women in India.

Reality is women are still unsafe, insecure, jobless and weak from malnutrition. She continues to be repressed, forced to abort her children, and if allowed to give birth at all, to abandon her own flesh and blood or face social ostracization unless society approves of the way it was conceived. She still cannot adopt easily, she cannot sign for her own surgery (kisiko saath mein layein hain aap?) or admit her children to school if the father refuses to acknowledge them. In most cases she is still deprived of her father’s property on one flimsy pretext or the other. She still can’t rent a house easily if she is alone in a strange city. (People think she is going to have sex and produce illegitimate babies or generally create some trouble or the other

• Know Your Place blog has a post about what you are doing with your voice. It's a woman entrepreneur blog, so check it out.

• Tulsa World has an interview with Yvonne Hovell, the only African American female Chrysler dealer in the country. Here's a little insight into owning a franchise.

• And another franchise owner, Carol Sluys of Snohomish County, has turned her Curves franchise into a base for health evangelism.

New Media Women Entrepreneurs

Wow, what a great project! The New Media Women Entrepreneurs:

will fund three women-led start-ups that will generate new ideas in the world of news and information and model a spirit of journalistic entrepreneurship. Winners will be given $10,000 to launch their ideas and blog about the process over the next year.

NMWE is a unique initiative addressing opportunity and innovation, recruitment and retention for women in journalism by spotlighting their ingenuity and entrepreneurial abilities. Pilot projects will show what can be done. Research will tell us what more to do. And an awards program and summit will showcase women’s creative ideas. NMWE is supported by the McCormick Tribune Foundation.

Application deadline is May 1, 2008! You can get all the info you need here.

First Lady Visits Women's Initiative!

We had an exciting week last week. California's First Lady Maria Shriver visited our Oakland office and three client sites, including Svea Vezzone's Swarm Gallery, where we held a reception in her honor.

The visit was organized to announce Shriver's statewide initiative or invest in women entrepreneurs, called "We Invest." Shriver committed $100,000 to Women's Initiative to support 100 women's training.

The Oakland Tribune had a great article about it:

"When you give a man a loan, you help him. When you give a woman a loan, you help her children, her family and her community," said Shriver, explaining that it was in the women's nature to pass the good along.

... The event was held at SWARM Gallery on Second Street, the business of Svea Lin Vezzone, a graduate of the Women's Initiative. Before she made her appearance at the gallery, Shriver visited the businesses oftwo other graduates, Sheron Campbell, the owner of World of Braids, and Allison Barakat, the proprietor of Bakesale Betty who employs 75 workers.

Shriver, dismissing the many praises being showered upon her when she took the stage, reminded her audience that she had never started a business as they had.

"I'm completely in awe of you," she said.

The Women's Conference is an annual event launched by the governor that unites 60 world leaders with 14,000 women in one arena to share stories of success and life lessons.

... The launch of WE Invest was announced at the Women's Conference in October. Shriver said she picked Oakland for the launch venue "because I've wanted to do something in Oakland. I wanted to start in a place that really needed it."

We're not sure what to be more excited about: the money (which will help us help 100 more women with trainings and loans), the publicity (which will help bring in both support and new clients), or getting to meet the first lady!