Annual Report 2022

In July, 2022, women entrepreneurs and the Women’s Business Centers that support them in California won a historic victory.  Governor Newsom approved $8 million for the WBC Enhancement Program that was designed to fill the funding gap resulting from the end of the federal pandemic CARES Act.  WBCs saw a 150% increase in clients – to 15,000- during this period, and this demand remained steady, even as our state’s economy emerged from COVID restrictions. 

 In my capacity as the State Advocate for the CA Network of 18 WBCs, I was responsible for orchestrating this advocacy effort.  With enthusiastic participation from all the WBC directors, we met with every woman legislator to make our case.  More than 100 clients met with their elected officials or sent letters.  Senator Nancy Skinner (D. Berkeley) encouraged us to pursue this modest request and Assembly Member Eloise Reyes (D. Colton) was our champion.  Twenty three bipartisan members of the Assembly and Senate joined as sponsors.  One key strategy was showing how WBCs helped create 2700 new slots of childcare by providing business assistance and capital to childcare providers, most of whom were immigrant women.  Because of this strategy and our legwork, the CA Women’s Legislative Caucus supported our Budget Request.

This experience was a cliff hanger, but an example of what women can accomplish when we work together, have a powerful message and cultivate the women legislators on issues close to their hearts, and the hearts of their constituents.

WBCs are using this three-year funding program to serve more Women of Color, help more childcare providers start and expand programs, and increase access to capital for women entrepreneurs who can’t access bank loans. 

This victory represents more than money – it is a symbol of the increased visibility of women entrepreneurs and WBCs.  For the first time in my career I am seeing Women as the focus of public policy.  Childcare is now a hot button issue – not just in CA but nationally as well.  What we accomplished in CA, together with the strategic focus on Childcare, are now informing the Women’s Business Center Modernization Act now moving through the US Senate.  Members of the CA WBC Network and myself are actively taking the lead alongside our national sisters, through the Assoc. of Women Business Centers (AWBC).

We are turning Leaders into Advocates!

A unique From Leader to Advocate Training for WBC staff and their clients was organized, thanks to a generous grant from the Kaufmann Foundation through the national AWBC.   These sessions will seek to enlarge the vision of WBC staff and their clients, and build their confidence by showing how to effectively raise their voices on behalf of themselves and their sister entrepreneurs. (Note that this program was delivered in 2023: 300 clients; avg. 64 individual WBC staff participated for total of 4 sessions).  

 What was once an almost forgotten, under-funded SBA program for women has now become a movement, thanks to the vision and leadership of the CA WBC Network and its Steering Committee, Chaired by Nancy Swift, CEO of the JEDI-WBC, serving the far north Siskiyou and adjacent counties.   It has been an inspiration and privilege to work on behalf of this group of dedicated leaders. 

 Special Purpose Credit Products: The Pandemic in 2020 and ‘21 slowed down our work in promoting more capital access, particularly lines of credit for certified Women Business Enterprises (WBEs), based on the results of our 2018 Survey, What do Women Want in Growth Financing.   However, this Survey report was requested by the Office of the Comptroller of the Currency (OCC) and also sent to the Consumer Financial Protection Bureau (CFPB) this year, as part of their joint research into Special Purpose Credit Products.  SPCPs constitute more flexible underwriting and can be offered by banks to underserved small business owners without being dinged by the regulators as too risky.    We first met with regulators and bankers to promote SPCPs for women business owners through LA ReacH, a program sponsored by the OCC to stimulate new approaches for getting capital to BIPOC communities and businesses in the Los Angeles region.  Although initial interest of the banks seemed tepid, the OCC has continued to spend energy on marketing the SPCP concept, and will be ramping up these efforts in 2023.  

SSBCI (State Small Business Credit Initiative):  The Dept. of Treasury has allocated $1.1 Billion to California to provide credit enhancements targeted to increasing capital access for underserved and BIPOC businesses….but will they benefit more women-owned businesses in California?  I have been actively involved, along with some strong WBCs that also do lending, in advocating to ensure women, Women Of Color and underserved communities benefit from this funding, which includes $25 million for credit Technical Assistance over 5 years.   However, credit enhancements assume capital is already available to make these loans and that there is a pool of loan ready clients.  Focus must be put on ensuring CDFIs have enough capital for these small loans and that a pipeline exists of prepared, loan- ready women business owners.  WBCs are capable of creating this pipeline.  In 2022 they leveraged $44million in capital for their clients-- the vast majority of these loans were under $50,000.  Imagine if they could double this impact!

Moving Forward in Gratitude

This past year was successful in raising the visibility of women entrepreneurs, WBCs, and their economic impacts despite the severe challenges of the pandemic economy.  We are now “at the table”, but need to sustain compelling messages, good data and solidarity in order to stay there.  As the “Chief Catalyst” at I-WE, my role has been one of strategic organizer, communicator and mentor.  The goal has always been to direct more resources to women entrepreneurs in a sustainable manner, and not just in high profile one-off programs.   I’m looking forward to having the CA WBC Network hire a full time Marketing & Communications Consultant who will build upon what we started, and enable me to focus more on  strategic advice and relationship development.  And, I want to thank all the women who have supported me during this process.  Special thanks to Charlene Bautista, my young Communications person, who scheduled all the Leg. meetings with WBCs and entrepreneurs and handled social media for the CA WBC Network events and member activities.  California’s Small Business Advocate, Tara Lynn Gray, has been a source of encouragement and inspiration to keep the faith.  Thanks too to Corinne Goble, CEO of AWBC, who has involved me in their national advocacy and promoted our successes in California.  And, last, but not at all least, I want to express deep appreciation for the continuing support of Rosana Han, formerly of First Republic Bank, but now gracing the CRA department of JPMorgan Chase Bank!  

Financial Report

Community Ventures- Statement of Activities

Invest In Women Entrepreneurs Accrual Basis

January through December 2022 Jan - Dec 22

Ordinary Income/Expense

Income

4100 · Direct Public Support 20,000.00

4110 · Corporate Contributions 10,000.00

4120 · Individ, Business Contributions. 30,000.00

Total 4100 · Direct Public Support 30,000.00

Total Income

Cost of Goods Sold

6000 · Program Costs 8,225.00

6010 · Program Contractors 370.41

6080 · Program Supplies 8,595.41

Total 6000 · Program Costs 8,595.41

Total COGS 21,404.59

Gross Profit 21,404.59

Net Ordinary Income

Other Income/Expense

Other Expense

9900 · Fiscal Sponsorship

9920 · Fiscal Sponsor Fees 2,700.00

Total 9900 · Fiscal Sponsorship 2,700.00

Total Other Expense 2,700.00

Net Other Income -2,700.00

Net Income 18,704.59

Sky’s the Limit – Supporting underrepresented and 30 years and younger Entrepreneurs during the Pandemic and Beyond

Learn to Listen by Stephanie Podue

I-WE Pivot - California PUA for the self-employed

Photo grid from Cafe Gabriela Instagram account.

Pivot Profiles | Penny Baldado, owner of Cafe Gabriela

Pivot Profiles | Janeé Gutierrez, owner of Madre Churros & Cacao

Janeé Gutierrez making plates for pre-orders. Photo courtesy of San Diego Women’s Business Center

Janeé Gutierrez, the owner of Madre Churros & Cacao, has an amazing product line up of high-quality cacao bars, nibs, and powder, along with tasty gluten-free vegan churros, but she was apprehensive about becoming a business owner at first. With so many regulations and requirements for the food industry, and all that is required of business owners in general, she was concerned about missing important details as a small business owner on her own. But working with the San Diego Women’s Business Center demystified the processes and set her up with a mentor and support system that she could rely on. Of her mentor, she says “Cally has helped me stay organized and holds me accountable. I feel as though I’ve not only gained a lifelong mentor but a friend as well." Soon she was selling her fantastic treats at several San Diego farmers markets and in Old Town, as Madre Churros & Cacao. She was able to do all of this while also maintaining regular work in the restaurant industry. 

When the pandemic hit, Janeé had to get creative in order to keep up with new state guidelines and changes to her usual venues. After taking a little time to step back and accept the pandemic as our new reality, she did some brainstorming and partnered with another business owner to host drive-thru style pick-up in the parking lot of her production kitchen. Customers order ahead online, select a pick-up window, and are safely handed their orders when they arrive. Some people park and eat their fresh churros on the spot. “Not only are we hosting this fun, safe, get out of the house moment for our beloved customers, we have also made churro bite boxes for a few local hospitals to show our appreciation. Our ethos is driven by community and supporting one another, this was the least we could do to make our frontline workers known and seen,” says Janeé. 

The response has been beyond her expectations and has helped maintain some income as the restaurant industry came to a halt and has yet to stabilize. She’s currently working on a plan to expand her business by selling her churros frozen at local markets and getting an online shop going for her cacao products, which are more shelf-stable. In the meantime, she’s hosting videos on social media to show how to get the most enjoyment out of her fine cacao, which has broadened her reach and brought her new clients since the beginning of lockdown. 

Learn more about Madre Churros & Cacao on their website, https://www.madrechurrosandcacao.com/. You can also follow on Instagram and Facebook, @madrechurrossandcacao.

Want to connect with your local Women’s Business Center for support and guidance? You can find a full list of centers, nationally from the Association of Women’s Business Centers at https://www.awbc.org/

---

The Pivot Profiles are our series on women business owners pivoting their model to meet these unprecedented times. Have a story to share? Let us know!

Pivot Profiles | Gabrielle Moes, owner of Seasons Catering in Ventura, CA

L: Gabrielle Moes, owner of Seasons Catering, R: Michelle Osbourne, cefe de cuisine, distributing meals.

Gabrielle Moes, the owner of Seasons Catering in Ventura, CA., remembers the moment that everything shifted. It was Wednesday, March 11th, and her biggest client of the year, an international conference, called to cancel their contract due to the COVID-19 pandemic. She wasn’t sure what to do, so she called Women’s Economic Ventures, her local WBC, for financial advice and they set up an appointment for her the next day. 

With their financial advisor, she created a three-month worst-case plan, and then met with her general manager to talk about how they could pivot and continue to get revenue while everyone was canceling events. This was before businesses were called to close their doors and before the population was asked to shelter in place. Ventura County had just asked elderly residents to stay indoors, and they realized that they could provide meal service for residents that were beginning to self-isolate. 

They quickly mobilized a plan, deciding to set up a meal service station in their parking lot where people could drive up and pick up food orders without ever having to leave their car. When they saw that grocery store shelves were quickly being picked over, they decided to add grains and proteins to their pick-up offerings. As for produce, they still get their produce from a local farm, so all the meals offered are fresh and minimally handled. These offerings are then regularly updated on social media. Recently, Moes was also able to secure a contract providing 1,400 meals per week to local hospital staff, providing more regular income to make up for the canceled event contracts. 

Moes has had to lay off some of her staff, and even now, the remaining team is taking it day-by-day. She’s very open with everyone about the financial situation and has helped employees with unemployment planning. She is also a self-proclaimed “clean freak” and has made sure to keep the working environment even more sterile than usual with the rapid spread of the virus. Containment is very important to her and the team, who practice as much distancing as possible. Because it’s a small group that all know each other well, she’s confident in their collective effort to stay properly distanced both at work and in their personal lives.

When asked what she’s hoping for as lawmakers work on relief packages, she said that while grants are ideal and low/no-interest loans are helpful, none of that will do business owners any good if people can’t afford the goods and services offered. If a low-interest loan is the best she can get, but it means there is more money to put directly in people’s hands, she’s good with that. She hopes lawmakers are thinking about the buying power of the massive amount of people that are and will be suffering financially during this crisis. 

---

The Pivot Profiles are our series on women business owners pivoting their model to meet these unprecedented times. Have a story to share? Let us know!

Pivot Profiles | Jennie Lennick owner of Jenny Lemons, San Francisco CA

Jennie Lennick, in front of her store Jenny Lemons located in the Mission District, San Francisco (photo provided by Jennie Lennick).

Jennie Lennick, the owner of Jenny Lemons, a small-batch clothing line and retail shop offering craft workshops, was taking COVID-19 precautions seriously even before San Francisco residents were urged to Shelter In Place and the March 16th order for all non-essential businesses to close their doors. She knew the pandemic was going to change things, and fast. 

She reached out to Ingrid Marthy, the program director of the Renaissance Women’s Business Center where she had created her business plan and received past coaching and support. Immediately, Ingrid found and connected Jennie with resilience coach, Gwendoline Wright. Jennie and Gwendoline discussed moving both her retail business and her crafting workshops online, something that Jennie had wanted to do for a while but hadn’t had the time for. She also applied for the city's $10k COVID-19 grant once that became available. 

Jennie’s been using social media to keep customers informed as the situation progresses, and has seen a strong response from the community. She’s noticed a particular demand for the art kits that she offers and is rapidly trying to restock from small makers around the country. The ability to move her classes from the studio to an online setting has helped to continue diversifying her revenue options beyond retail and engage her creativity. “I have a lot of interests,” said Jennie, whose shop offerings reflect her many talents as a creative, maker, and teacher. While the circumstances aren’t ideal, she is seeing the opportunities for growth, or at least, sustainability. 

She’s also used her time and the fabric scraps from her clothing line to host a free online class on making fabric protective masks, and has donated supplies to over 400 people around the country to make their own. The class was hosted by The Ruby, a club for creatives in the San Francisco Bay Area. 

Since our interview, the City of San Francisco has extended and tightened shelter-in-place laws through May 3rd. But Jennie has made promising moves and is keeping customers engaged by offering a bright spot for creativity and fun in an uncertain time.

---

The Pivot Profiles are our series on women business owners pivoting their model to meet these unprecedented times. Have a story to share? Let us know!

The Pivot Profiles

All around the country, governments are stepping up precautions in light of the COVID-19 pandemic. Here is California we’ve been ordered to shelter in place, and non-essential businesses are coping with a number of restrictions that could change at a moment’s notice. 

This is particularly challenging for small and women-owned small businesses, who don’t have the same support systems in place as larger organizations. City and state governments and the federal government are scrambling to provide assistance for small business owners, and what’s available can be overwhelming and confusing. 

Women’s Business Centers across the country are there to provide assistance not only in sorting out disaster capital but also in helping with resilience coaching and business counseling. 

We’ve spoken with WBCs and women business owners to talk about some of the big changes ahead, and what we’ve found are resilient women making their business work in ever-changing circumstances. 

These are the Pivot Profiles. In this short series, we will introduce you to women who are doing their best to adapt with the help of their local WBC. Hopefully, this will inspire you in your own pivot or offer a spark of light in the dark of uncertainty. Check back with us throughout the week.

Support for Black Women Entrepreneurs

The work of our friends at the Renaissance Entrepreneurship Center was recently featured in a KPIX CBS Channel 5 Bay Area news story focused on the unique challenges faced by black women entrepreneurs.

While black women are the fastest-growing demographic of entrepreneurs, they’re earning significantly less due to a lack of support and resources. That’s where organizations like Renaissance come in, providing equitable access to the tools necessary for entrepreneurs to succeed. Renaissance serves all genders but with a client base of 76% women, they have a thriving women’s business center to serve the unique needs of women entrepreneurs from various backgrounds and communities.

Three women served by the center are featured in the video, including Tracy Phillips, owner of Confetti This Lifestyle Boutique, Renaissance’s Emerging Entrepreneur of the Year.

See the full report, here, and be sure to share it!

WE CAN Funded from Union Bank

We were thrilled to have helped design Union Bank’s new We CAN Women Entrepreneurs, Capacity building, Advocacy and Nurturing growth) program that will commit $500,000 over the next two years to six WBCs, fund CAMEO to offer leadership training and collaborative resources, and the kicker, to fund statewide advocacy towards establishing regular funding of our WBCs in the State of CA budget!

This is the first comprehensive technical assistance and capacity building program for women entrepreneurs, funded by a major bank in the US.  The advocacy component is unique and shows that the bank is committed to the sustainability of all Women’s Business Centers in our state. WE CAN will be holding an event to announce the launch of the program during the first quarter of 2020, most likely in Sacramento. We will let you know the exact date soon, so that you can help us celebrate this significant investment in WBCs.

The Power of a Dream: Maria Rogers Pascual, Executive Director of Prospera

Maria Rogers Pascual, Executive Director of Prospera

We need women to be in the lead right now in our society. And it’s not even women as a sex or a gender, but a more feminist way of leading is what the country, what the world, is really calling for; more caring for people, families, communities, and the environment. It’s more of a paradigm shift and an unlearning that we need to do. This is the moment, right now, that women need to lead, and that informs Prospera a lot. In order to lead, we need to heal, we need to support one another, we need to be unapologetic, and we need to make money. This is what gets me up every morning. – Maria Rogers Pascual

Maria Rogers Pascual is a stream of sunlight through an open door. She is inviting you to the other side, to something more collaborative and communal in the lonely world of entrepreneurship, particularly entrepreneurship for Latina immigrants, who face very particular challenges when they come to the U.S., like having a family to care for and often holding multiple jobs. Maria is the director of Prospera in Oakland, CA, a space that is changing the way we think about entrepreneurship, and how to build a strong, sustainable, and equitable economic future for everyone. 

Maria’s background inspires her fire for women and community. Her mother was a refugee from the Spanish Civil War and her family emigrated from Mexico when she was 13 years old. She remembers growing up with many mothers and experienced the collaborative and cooperative spirit of Latina women from an early age.

According to Maria, when Latinas immigrate, many already have experience working collaboratively, much like she did growing up, but they arrive knowing the individualistic nature of the entrepreneurial model in the U.S. “They come to this country thinking the only way to do it is on your own, and we try to support women to unlearn that.” At Prospera, what the women know intuitively and experientially about supporting each other is what builds them as a community of women and as individual leaders and entrepreneurs.

Before Maria joined Prospera as its director, it was called WAGES (Women’s Action to Gain Economic Security). She came to the nonprofit as a consultant and contractor in 2013 to help with conflict resolution as well as leadership coaching. Eventually, they asked her to join full-time, but she hesitated at first. Having worked at non-profits before, and having the desire to start her own organization, she wasn’t sure if taking on this space was right. But the focus on women entrepreneurs, particularly Latina immigrants, is what drew her in. After joining in 2015, she helped adjust the model from building cooperatives that are eventually handed over to their workers, to a place where women come with their own ideas and are supported through their growth, cooperative or otherwise. “Prospera is about doing with rather than doing for,” Maria said. Women can take their own insight into the needs of the community and use that to build something together.

Prospera is a hub where Latina immigrant women entrepreneurs come because they’re interested in being entrepreneurs. We create community, education events, fireside chats with successful entrepreneurs, and have an annual summit where they can come together for a day-long event – our 3rd one is this year in Berkeley – for members and non-members.

Prospera offers a 30-hour program where women learn how to start a cooperative business, and while the focus is on cooperatives, Maria recognizes that this model isn’t for every person nor is it for every business. The cooperative model taught at Prospera is more of a mindset and set of values and principles, Maria noted. “It’s not about competition, it’s about actually wanting [everyone] to succeed.” She then told the story of a member who was hospitalized, and the Prospera community of women entrepreneurs came together to help take care of her clients and her family while she recovered. This is what it’s about. It’s about building together and the strength that comes from that mutual support.

Once women graduate from the program they continue to have access to monthly meetings where they gather together for support and celebration. Additionally, Prospera has a fellowship program that all of their graduates can apply for. The fellowship offers more in-depth support, coaching, and training beyond Prospera’s regular offerings, and it’s rewarded to the businesses that have the most passionate leaders and will have the greatest economic impact. You can read more about the current fellows on their website.

While Prospera is doing incredible work with a model that is at the same time innovative and deeply rooted in traditional culture, Maria has a dream of something even bigger. It’s called The Power of a Dream Incubation Fund, and it will have three main components:  1) seed grants for the first year so that the women will have 20 hours a week to devote to developing the business;  2) a home for the incubation period, such as a co-working space with offices and meeting rooms to protect the development time;  3) a revolving loan fund where they can get loans of  $20k and up, so that women who won’t qualify for traditional loans aren’t held back by lack of funds. Additionally, Maria wants the fund to have money that women can access for health and childcare so that they aren’t weighed down by surprise financial burdens that could get in the way. 

The work that Prospera does, and the vision and drive that Maria brings, are a much-needed change from the model that we are accustomed to. Being an entrepreneur is a long and lonely journey, and women entrepreneurs everywhere will tell you just how valuable community is for their spirit and for their business. Prospera not only provides a space for community, they build it into the business model.

Lets Talk About Growth Capital

In our first-of-its-kind survey of women owned businesses, we unearthed what it is that women business owners need to grow their business, and the challenges that they face. We interviewed a few of the women who participated in our survey. Here is what they have to say about the challenges that women face in getting the capital they need.

LISA CHRETIEN, President of EventMover

Lisa Chretien, Founder and President of EventMover, an event transportation service, describes her entrepreneurial spirit as “jump off the cliff and then check to see if the parachute opens.” She is full of life and drive, and when she sees an opportunity she isn’t one to pass it up. In 2001 as she saw the company she worked for diluting its business as they grew, she decided that she could do a better job, and without even knowing what Quickbooks was, decided to branch off and start her own business. 

In the first year she made about $275k, enough to have her husband quit his job and join her in the venture, and by 2010 had been able to grow her business to nearly $2 million. At this point, she knew that she needed to do something if she was going to maintain and grow what she had built. 

She joined WBEC-West for their certification at the prompting of a client who wanted to add her to their diversity profile. She learned that if she was going to have an opportunity at the growth capital she needed in this post-financial crisis world, she was going to need a CPA that fought like a lawyer, as well as the assets to back her up.

Lisa faces the challenge of being in a service rather than an asset-based company. She is an organizer and mover of intricate puzzle-pieces, with venders, contractors, and employees all working in concert to get things done. A line of credit is vital to keeping the business healthy, strong, and in motion, because clients don’t always have terms of 30 days like her vendors do. So, even with millions in the pipeline, banks aren’t the most friendly to service-based companies because they don’t have assets to use as collateral, and as Lisa says, “[the banks] don’t want to be in the business of owning personal assets.” 

Lisa went to 25 different banks with open books, her CPA, and personal assets at the ready before finally finding one that would give her a line of credit. Like many women in similar industries, she has to use her own home equity to back her line of credit, something that she recognizes as an advantage over women business owners that don’t have such resources available. 

This is a big point of frustration for Lisa. “You could be in a room of 300 women [at a networking event], and I would like you to find me three women that are doing over a million dollars because you will not find them in the room… they can’t grow their business because they can’t get funding… what could they do if they had the ability and the cash flow to grow their company?” She has seen first hand the lack of options available to women in the missing middle (businesses with $250k-$1milion) and sees the huge potential that gets wasted because of it. 

Even with well-known national companies attracted to her WBEC certification, keeping that business would be impossible without her line of credit (LOC). Larger companies tend to set their own payment terms, sometimes as far out as 75 days, and the most she can extend terms for her suppliers is 45 days. Lisa said that it’s difficult as a small business to “play bank” for large companies. And what does the actual bank have to say? “The bank tells you that’s bad business,” said Lisa, followed by a pause and a laugh. 

While Lisa got her LOC, she still faces the challenge of keeping the amount available to her where she needs it, because the LOC is reviewed and renewed annually. With a seasonal business like hers (trade shows and conferences slow in the summer and holiday season), at one moment she might only have half her annual revenue secured, and the next, have all of what she anticipated and then some. In 2018 she was just under $4 million, and this year she is projected to make just over $4 million. She attributes a lot of her success both to the mentorships that she’s had and the LOC that she’s been able to maintain through the years.

PAM ISOM, CEO of ICE Safety Solutions

Pam Isom started ICE Safety Solutions twenty years ago, providing safety and CPR training, equipment and medical supplies to corporate clients. Now she employs 12 full-time employees and 20 contractors with revenues in excess of $3 million annually.

Two years ago, Pam realized that “what got us here, will not get us there.'' She innovated technology into the safety training division by using virtual reality technology and the Oculus Go VR headsets.  She is now able to deliver safety training using VR headsets, helping clients reduce the cost of training while ICE’s employees are deployed in other revenue generating projects.

Her growth has been slow and organic. While she has received lines of credit (LOC) in the amount of $25-$50K, they only support three operation areas: payroll, credit cards, and payment to vendors within 30 days. “This lack of capital makes it impossible to grow, let alone invest in technology, says Pam. Additionally, she said

The #1 reason why my current Line of Credit cannot support growth is the following: Corporations demand the lowest price and extend payment by 60-90-120 days which forces a business to utilize the Line of Credit for operational purposes and forces us to pay interest on the line, which negatively impacts profitability!  The interest charges affect profitability which, in turn, affects our saving money for a ‘rainy day’, then affects our ability to utilize savings to make the investment in technology growth. This is an everyday reality. 

It has been a constant challenge to get the financing she needs.  She spent five months in meetings with a major financial institution for growth capital to fund the virtual reality division of the company.  “Meeting after meeting was focused on us purchasing the bank’s tools - payroll, saving etc. etc. The focus was more on my business buying services from them, rather than on my needs to secure capital to grow,” said Pam.  

Looking back, Pam explained that a line of credit for $100K would have enabled her to fund and build the VR technology. “If the lender could have evaluated our 20 years in business, customer list, our traction, success, and scale in the US and how our technology is poised to change how corporations avoid fines and penalties from insufficient safety training from OSHA, if this could have been an option for us, I am confident our VR Safety division would now be growing by leaps and bounds.”

ANNUAL REPORT

I-WE ANNUAL REPORT

After conferring with a range of women business leaders, including a number who are active in Republican politics, Claudia Viek launched the  I-WE Initiative formally in November 2017.  She created the Steering Committee who  enthusiastically supported the purpose of changing the status quo of chronic under-funding for women entrepreneurs.

 In February 2018, Rebecca Kee was hired to serve as Communications Director, and she promptly created our website, logo and NewsFlash monthly letter. We love that mauve and yellow logo and many have complimented our look and website design.  In June we hired a summer intern, Tidani Berhe, to help us gather gender and race data from federal agencies supporting women entrepreneurs. In August we contracted with Erin Musgrave of EMC Strategies to provide PR consultation in crafting and disseminating our messages effectively.  We have built out our bi-partisan Sphere of Influencers (SOI) network and mailing list.  We published one Op-Ed in the American Banker, several blogs and entrepreneur profiles.  We convened our network members in Washington DC and in San Francisco to further define our strategies vis a vis our aspirational goal-- generating $50 million in more funding for women’s business assistance and $50 million in new capital to fund the start- up and expansion of women-owned businesses. 

In the past year, many directions opened up where I-WE could provide expertise, serve as advocate or as a catalyst and connector to advance our goals.  Our immediate objective is not to significantly grow the organization, but to stay small and focused on actions in partnership with our network members.  In 2019 we will need to discern the best opportunities to stay focused and effective. 

Following is a progress report on the three strategy areas currently governing our activities:

1.     Increasing Capital Access

·       What do Women Want for Financing Growth:  Completed sample survey of 405 Women Business Enterprises certified through WBEC-Pacific, the West Coast affiliate of WBENC. 134 (33%) responded and 45% of these respondents reported need for growth capital with majority indicating need for lines of credit $250-$500K.(survey)   We were invited by WIPP to include our survey questions in their upcoming national annual survey of thousands of WBEs.  This information will be used to develop a profile of WBE borrowers that we will take to lenders to advocate for the types of products indicated and to set up a channel for WBEs to access capital from lenders that participate. We will approach several lenders in CA with the sample survey outcomes to assess interest.

·       Home Equity Financing for Business Needs:  The NY Federal Reserve included our question of whether home equity was used to finance business needs in their 2018 Annual Survey of Small Business Credit.  This will be the first time that this key national study will have such data on all businesses, broken out in segments on women and race.  This information will create better understanding of how personal assets are used for business financing and will indicate possible policy directions, e.g. support for homeownership for LMI women.

·       Connecting Private Wealth Managers with Impact Investing in Women Entrepreneurs:  currently testing approach to reaching private wealth clients of banks, offering the opportunity to donate to the RSF Social Finance Women’s Capital Collaborative (WCC).  The bank would offer this tax exempt contribution to their clients to illustrate the bank’s CSR commitment.  We developed this offer as a result of trending research that shows that investors, and especially women, are interested in socially responsible options.  The WCC staff are following up with interest expressed by First Republic Bank.   WCC’s overall goal is to raise $10million in capital to loan to women entrepreneurs whose businesses include social impact goals.  (rsfsocialfinance.org/give/give-to-rsf-projects/capital-collaborative/ ).

Challenges

·        Convincing lenders to create relevant financing products for growth- oriented women owned businesses

·       Creating referral channels between WBENC/WIPP WBEs and interested lenders.

·       Identifying and attracting wealth managers to support the RSF Women’s Capital Collaborative.

2.      Increasing Funding Resources for  Business Assistance Programs and Women’s Business Centers

·        Supported California legislation that provided matching funds and expansion funding for 14 SBA WBCs.  I-WE Steering Committee members, Carolina Martinez of CAMEO, and Marsha Bailey of WEV, did the heavy lifting as did a number of our SOIs, notably Nancy Swift of JEDI and Bianca Blomquist from Small Business Majority.  The total amount accessed was around $2.5 million. This legislation could serve as a model for other states considering support for their WBCs which are chronically under-resourced.  

·       Approached Union Bank to create a special TA program for women entrepreneurs in CA. (Pending)

·       Advising Bank of the West on development of their new Women’s Entrepreneur Platform and array of resources for women-owned businesses.  This is the first financial institution in CA to create a women-focused program.

·       Crowdfunding for Women:  Sponsored and participated in I-WE Steering Committee member Jenny Kassan’s Fund and Fuel Your Dreams Conference in Baltimore. Jenny created the platform, Crowd Fund Main Street, to direct investors to her women entrepreneur clients.  We are discussing further opportunities for collaboration.

·       Advocated to Increase federal funding for SBA’s Women’s Business Centers and the Assoc. of WBCs.  No progress was made in this area due primarily to lack of agreement on a coordinated strategy.  A better approach, according to WBC leadership feedback, would be to direct funding support to the AWBC to work with their members to build capacity for growth.  

Challenges

·       Achieving consensus on a coordinated strategy for increased funding for WBCs

·       Identifying and developing supporters and champions that will advocate to increase budgets in federal agencies serving women entrepreneurs.

3.       Aggregating Data on Women-Owned Businesses

·       Various I-WE members have asserted that “we need new metrics for women-owned businesses.  What doesn’t get counted, doesn’t exist”.  Shining a light on the landscape of women entrepreneurs has been the most frequently requested and responded-to area of our work.  There is the general perception among policy makers that women owned businesses are too marginal to make a difference in the economy.  Too often we hear the word “hobby” applied to businesses that are bringing in household income that is significant i.e. enabling home purchase, college education, etc. 

·       We are seeking data on gender and race from the following agencies that provide entrepreneur support and loans to women: SBA, HUD/CDBG, USDA Rural Development, EDA’s Minority Business Development Agency. The objective is to show the current federal commitment and estimating the economic impact. 

·       We publish Op-Eds, Letters to Editors, and blogs, aggregating information from various studies on women-owned businesses:  American Express, Bank of America, Nation Business Women’s Council, Federal Reserve, Bureau of Labor Statistics, Emergent Research’s State of Independence Report, etc.  We respond to opportunities to frame our case in major media.

Challenges

·        Except from the SBA, we have been frustrated in our ability to get numbers on women and minorities from government agencies funding small business support and lending programs.  Therefore, we secured the assistance of Kamala Harris’ office in getting this information.  We will use this data to estimate the overall economic value obtained and frame a case for increasing investment in women. 

·       I-WE needs to develop specific strategies to address the lack of relevant metrics for women-owned businesses.  We see this as an opportunity to re-frame how women businesses are valued.  For example, we could host a webinar with several presenters that offer alternatives for measuring impact of women businesses; we could develop white papers on more appropriate metrics; we could collaborate with NWBC and the Federal Reserve to encourage more research and advocacy in measuring economic impacts.

Future Planning

Guidance is needed in defining a focused work plan, based on the varied opportunities that have emerged in our first year and are briefly described above.  I-WE is a catalyst, using our network to identify opportunities for actions that will advance our mission.  Are there other areas we should be addressing?  Where can we be most effective? 

Some I-WE members encouraged the identification of champions in Congress that would put  women’s funding “on the table”.  There’s agreement that the new members of Congress, a large number of whom are women and/or were elected by women, would be good prospects to approach for support.  Who are the best partners for I-WE to collaborate with?  Should we soft-pedal the advocacy and focus on metrics and education of policy makers?   

Financial Summary (projected through December 31, 2018)

Revenues

Individual Gifts                     $27,000

Grants

   First Republic Bank          10,000

Total                                   $37,000

Expenses

Staffing

   Communications             6,362

   Intern                                     1,000

Consultant

  EMC Strategies                     1,000

Travel/Lodging                    2,322

Food                                           852

Supplies/Printing                     192

Web(hosting, subscript)         483

Conferences                             650

Total                                      12,861

Net                                       24,139

Entrepreneurial Risks Reap Rewards for Gig Economy Women

When Reina Terry’s oldest daughter was preparing to leave for college, Reina felt compelled to give what she refers to as “the ole’ college speech,” urging her to follow her dreams. But Reina, who had worked as an office assistant for nearly two decades, realized that the person actually deserving of that lecture was herself.

Reina knew that she had great party-organizing skills but had never taken the leap to turn her hobby into a career. “A friend from the neighborhood where I grew up (in Bayview) told me about a Women's Entrepreneurship program starting up at the Renaissance Entrepreneurship Center, and that with my talent it would be a great idea for me to come check it out,” Reina explains. She enrolled in the classes in hopes of making her dream a reality. Now, two years later, Reina is founder and CEO of PartyHapps.

Reina is one of many women who are self-employed and earn a living through the “gig economy” - combining entrepreneurial efforts and contract work to make a living. Growing numbers of women are seeking out gig work to increase their income, have a flexible schedule, and find satisfaction in their work. According to a recent survey of 1,000 women in the gig economy, 44% cited flexibility as the top reason for self-employment, a reason that Reina herself gives as the defining factor in allowing her to spend time with her children without compromising her employment.

Reina loves running her own business and schedule, explaining, “I totally appreciate the flexibility of being able to go see plays and sports games at my young daughter's school without having to worry whether or not I'd be jeopardizing my employment by taking off the time to support my family’s activities.” She’s particularly grateful that she found a supportive network of fellow entrepreneurs, touting one of her favorite sayings, “teamwork makes the dream work.”

Taking that leap of faith as an entrepreneur can be very challenging at times and sometimes we just need a little nudge or friendly reminder from someone whom we trust to bring us out of having those feelings of discouragement.”

Nationwide, businesses founded and run by women have increased by 58% since 2007, according to the 2018 American Express State of Women-Owned Businesses Report. But Reina is part of a particularly successful subset, Latina women, who have seen their numbers grow by an impressive 172%. Unfortunately as minority women-owned businesses have grown in number, they have shrunk in revenue, from an average of $84,100 down to $66,400. PartyHapps has given Reina more financial stability: “I have quickly learned that entrepreneurship requires multiple streams of income and that I will be able to utilize my gifts through these different avenues as long as I plan well and execute accordingly.” Reina has supplemented her income from PartyHapps with rideshare driving to stay afloat in the expensive Bay Area.

Reina is now modeling the chase-your-dreams lifestyle that she wishes for her daughters, and she takes pride in her work. She hopes that more women will take the plunge and pursue their own entrepreneurial efforts, especially because supporting each other will lead to more success for all. She urges, “Surround yourself with like-minded people so that you can feed off of each others’ ambitious energies and perpetuate a challenge to become greater.” Maybe Reina has a personal stake in their success too - all of those successful women entrepreneurs will be needing help coordinating their office parties and anniversary celebrations in the future.

YABETTE BRINGS THE SWANK

San Francisco is known for its wide-ranging assortment of creative start-ups, from funky retail shops to online purveyors, upcycled reused material creations to brand new products, solo ventures to collaborative team efforts. But rarely does a single entrepreneur manage to do it all. For Yabette Swank of SwanketySwank, she’s managed to explore every avenue of business ownership, with her latest venture building on her many years of experience. 

When Yabette first came to San Francisco she was an audio engineer, but the unrelenting pace of studio work led her to her first entrepreneurial effort: sewing bags that became popular enough for her to justify quitting her day job and opening a retail shop. “I started making bags that were interesting and unique but also fully functional for mamas in the city like me,” Yabette explained. She provided space for other creative types to sell their wares, building up a local artist community that supported one another’s work. After taking a class in business planning at Renaissance Entrepreneurship Center in San Francisco, Yabette reevaluated her plan and has now launched an online shop where she sells her latest creations: sustainable clothing for men and women.

Yabette has a close network of friends who have helped her launch new ventures, but wishes that support and loans were more readily available to budding women entrepreneurs. “I would love access to getting funding and upscaling in an easier way,” Yabette shared, “as an artist I don’t always meet a bank’s criteria,” a problem she believes that many women, particularly creative-types, face on the financial front. Yabette laments this obstacle because it holds women back from sustaining their local economies. “When I get funding I’m putting that money into local seamstresses - I’m very much about fueling my local community.”

Yabette counts herself fortunate to have supported herself in San Francisco’s competitive economy all while switching things up and pursuing her passions. “Following my heart isn’t always the best business model," she confesses, "but I wouldn’t have it any other way! Check out Yabette’s latest designs, for women and men of all body types in styles ranging from casual to luxurious, at www.swanketyswank.com, where you can also click through to her kickstarter link to get in on the action!

Wild Curls Inspire Wild Success for Jess McGuinty

Jess McGuinty, founder of Jessicurl

Jess McGuinty didn’t dream of becoming an entrepreneur, her unmanageable hair pushed her into it. Fighting her way through wild curls, Jess found an online community of similarly tangled folks who all shared the challenge of finding products to tame their locks. Strangers quickly flocked to her when, after much trial and error, she concocted a formula for the perfect homemade hair gel.

When Jess tried to share the recipe she was surprised by the responses of her online friends: no one wanted her free instructions, everyone just wanted Jess to make it for them. Looking back she laughs, “my customers forced me into business!”

Jess knew that she could make a great product, but had no idea where to begin as a business owner. Living in Berkeley at the time, she happened upon an organization called SCORE that connected her with retired business professionals who could share their expertise. A friend offered her use of his chemistry lab to perfect the preservation of her products, and her father gave her business tips that she wasn’t too stubborn to take.

Jess advises up-and-coming entrepreneurs to not let their egos get in their own way: “You haven’t done this before, so how can you be expected to know how to do it?” The resources and friends that supported her were essential to her success, and Jess points out that most communities have a Small Business Development Center where free advice and services can go a long way in setting a new business owner on the path to profit.

What started in Jess’s kitchen has grown into Jessicurl, a strong business that operates out of a factory in Arcata, California. Jess takes pride in her successes (including an appearance on the Rachael Ray Show) and the excellent staff she employs, but it always comes back to her commitment to her customers. Helping them to find the products and community that enable them to love their hair and themselves is what inspires her.

Jess knows that a simple idea can lead to big achievements, so she recommends that other budding entrepreneurs take advantage of community resources and lean on others for help. “Just ask questions and keep learning,” she encourages, “that’s literally how everyone else before you has done it!”

The Madness of Judi Henderson

Judi Henderson, founder of Mannequin Madness

Judi Henderson, founder of Mannequin Madness, calls herself the "accidental entrepreneur." Successfully working as an employee of large corporations, she had no intention of founding and running her own business. But after a chance encounter with a retiring business owner who specialized in mannequin sales, Judi decided to buy his whole inventory and open up a shop of her own.

Like many budding women entrepreneurs, Judi faced two challenges: seeing herself as an entrepreneur and having the business skills to succeed. "I think sometimes women are loath to see themselves as entrepreneurs because there aren’t images that look like us. I never saw someone on the cover of Entrepreneur Magazine that looked like me. Women entrepreneurs were mostly involved in fashion or food. There was a lack of role models for thinking beyond those spaces."

Judi had the drive and the idea, but needed the business skills to get her company off the ground. She took a class at the Renaissance Center, a resource center for entrepreneurs, which helped her design a plan. "What I originally had in mind wasn’t going to be successful, which Renaissance helped me realize. They saved me from making a costly mistake."

Judi recommends to other budding entrepreneurs that they seek out similar resources to start off on the right foot. Moreover, she thinks that more women need to see themselves as business owners and more banks need to fund them. "You look at loans to women - the success rate is unbelievable. Often higher than among the men. Women are very resourceful, and they are often working on businesses that benefit the community locally and at large." She insists that banks and the government need to see that women might do business differently, but that doesn't make them a risky investment: they're highly motivated and invested in their families. While investors may be dazzled by big tech start-ups, Judi makes the point that smaller businesses are more likely to hire locally, and that even tech firms need the support of community businesses to provide services and support. 

For a long time Judi saw herself as a hobbyist, until her business began to take off and she realized that she had become a role model to others. "I was featured on CNN and a woman in London liked my idea. We started communicating online, and ultimately I met with her in person there, and next thing you know she was having her own entrepreneurial success."

Judi now runs Mannequin Madness in a 3200 square foot warehouse with a diverse group of employees. Her two biggest pieces of advice to aspiring entrepreneurs are:

#1: Educate yourself by taking workshops, classes, and surrounding yourself with other entrepreneurs. Find support. Don’t try to do it alone. 

#2: Become digitally savvy. Even a low-tech business needs to use tech skills to grow, whether its having an e-commerce website or tools for running the business.