In the Spirit of the National Women’s Business Ownership Act, Women Continue to Advocate for Advancement
This October, the National Association of Women Business Owners (NAWBO) celebrated the 35th anniversary of the historic passage of H.R. 5050, The Women’s Business Ownership Act.
Founding members of NAWBO were pivotal in working with Congress to pass this legislation and the advocacy legacy continues to this day.
The act was created to address the needs of women in business by giving women entrepreneurs better recognition, additional resources and by eliminating discriminatory lending practices by banks that favored male business owners. The bill was signed into law by President Ronald Reagan.
Many significant and positive changes were brought about in the enactment of H.R. 5050. Here are just a few highlights of some of the major changes that had a direct, measurable impact on the number and success of women business owners in the United States: • Established the Women’s Business Center program. • H.R. 5050 required that the U.S. Census Bureau include C corporations when presenting data on women-owned firms. Prior to the inclusion of this data, statistics for women business owners were not accurate and diminished the vital contribution women were making in the business world. • H.R. 5050 eliminated all individual state laws that required women to have a male relative sign a business loan. • H.R. 5050 required the creation of the National Women’s Business Council (NWBC). This bi-partisan council consists of women entrepreneurs and women’s organizations that advise the president, Congress and the Small Business Association (SBA) on policy and program recommendations.
In 1992, the number of women business owners was only 26%. By 2002, that number increased to 57%. Although more women choose to start their businesses with their own private finances, having equal access to business loans has enabled scores of women to start and grow their businesses without requiring a man to co-sign.
In 1989, there were only four Women’s Business Centers in the U.S. Today, there are more than 100 throughout the nation. However, after Congress voted to decrease funding to women’s development centers in 2009 no new centers are being funded.
Right now, according to government data, women own 13 million businesses, employ approximately 11 million people and generate $1.9 trillion in receipts.
“Women continue to have an uphill climb to remain competitive in our nation’s economy, and it is our job to advocate for ourselves,” said NAWBO National Board Chair Lisa Coppola. “Our policymakers must know what policies women need to ensure our women business owners can grow and scale with today’s workforce challenges in the modern economy.”
Areas for future involvement and policy include: • Expanding access to capital • Recruiting and retaining a qualified workforce • Providing avenues to access technology and digital tools • Addressing the needs of the micro-business owner • Caring for the business owner and providing flexibility for the employee
“Our NAWBO Institute is an avenue for women business owners to receive the education to learn how to scale their businesses. Together with the numerous women’s organizations in our country, we can work to ensure that our women’s businesses grow our nation’s economy in the years to come,” added Jeanette Armbrust, NAWBO Institute for Entrepreneurial Development board chair.
Founded in 1975, NAWBO is the unified voice of America’s 13 million women- owned businesses. NAWBO develops programs that help navigate women entrepreneurs through the various stages of their business growth. H.R. 5050, the historic act supporting women entrepreneurs and ending discriminatory gender-based loan practices celebrated 35 years of existence this October.