Women's Business Ownership Act
The Women's Business Ownership Act of 1988 was an act introduced by John LaFalce aimed at aiding the success of women business entrepreneurs. It provides a basis for policies, programs, and public/private sector initiatives supporting women's business endeavors. The bill was signed into law on October 25, 1988. For much of history, women were excluded from the business world, but at the time of the legislation women are becoming entrepreneurs at a fast rate. The market contains many inequities that influence the success women in business are able to achieve. Sexual stereotyping and past societal barriers result in women not having the same access to ownership or control. The Women's Business Ownership Act was drafted in response to the Small Business Committee's series of six hearings on problems facing women entrepreneurs and follows the recommendations outlined in the Committee report "New Economic Realities: The Rise of Women Entrepreneurs." within business opportunities for women. Congressional Findings The Congressional Committee identified four barriers to women owned businesses that they wished to address. "the need for technical training to maximize growth potential of women owned business" "inequality of access to commercial credit" "virtual exclusion of women owned business from government procurement activities" "inadequacy of information and data relative to women owned business" These findings were included in the Committee Report 100-736, which was filed on June 28, 1988. Findings like this are critical in order to formulate the basis for public policies and programs in order to benefit women entrepreneurs. List of organizations that endorsed the legislation National Federation of Independent Businesses National Small Business United (merged with National Small Business Association in Small Business Legislative Council National Association of Women's Business Owners National Federation of Business and Professional Women's Clubs Women's Equity Action League Black Women's Agenda Outcomes of the Women's Business Ownership Act Women's Business Centers The Women's Business Ownership Act provided seed funding for women's business centers through an annual grant process by the Small Business Administration. They were intended to provide technical assistance to women in order to form businesses, particularly those who were socially or economically disadvantaged. Women's business centers provide training, technical assistance, and support for entrepreneurship for women. The Global Entrepreneurship Monitor research project has consistently shown that women have lower entrepreneurship endeavors than men, but research on women's business centers indicate that the centers in the United States are accomplishing their intended mission. Women lack equal access to education, finance, and other support services, such as business networks. Women often also have to pay higher interest rates than men for similar loans. In addition to these logistical factors, women are often influenced by societal norms, such as being unlikely to be exposed to the concept of negotiation. The lack of resources for women entrepreneurs in daily assistance in the beginning stages of their businesses make it difficult for women to start businesses. As a result, women entrepreneurs are more likely than men to stay in business for only short periods of time. Women’s Business Centers