[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Extensions of Remarks]
[Pages E1495-E1496]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   WOMEN'S BUSINESS TRAINING PROGRAM

                                 ______
                                 

                          HON. JOHN J. LaFALCE

                              of new york

                    in the house of representatives

                         Friday, August 2, 1996

  Mr. LaFALCE. Mr. Speaker, today I am introducing legislation to 
authorize permanently a very successful, low-cost, community-based 
program that I created as part of the Women's Business Ownership Act of 
1988, to train and counsel current and potential women business owners.
   Mr. Chairman, women entrepreneurs remain an increasingly significant 
part of the U.S. economy. They account for approximately one-third of 
all U.S. businesses and are starting businesses at twice the rate of 
men. Masked by these impressive statistics, however, is the fact that 
women encounter numerous obstacles trying to start, maintain or expand 
a business--obstacles which must be eliminated if we are ever to 
realize the full potential of this dynamic sector of our economy.
  While all small businesses have common challenges--access to capital, 
for example--there are particular problems faced by women. In 1988, the 
Committee on Small Business heard testimony from dozens of women 
business owners on this issue, and one area which was repeatedly cited 
was a need for business training to teach women financial management 
and technical skills. The women's business training program, which is 
the subject of today's legislation, thus was established as a pilot 
program to see if it could help fill the training void. I can report to 
you today that it has exceeded our hopes for it.
  Currently, the authorization for this program expires at the end of 
fiscal year 1997. My bill does not change any of the terms or 
conditions of the program; it simply removes the expiration date, 
thereby allowing existing training centers to plan their futures with 
more certainty, and encouraging States and locales without centers to 
try to establish them.
  As befitting a program administered by the Small Business 
Administration, this program takes a very business-like approach to 
fostering and assisting women entrepreneurs. Organizations experienced 
in business counseling and training may submit to the SBA proposals for 
Federal funding to start a training center. The proposals are very 
competitive for a number of reasons, including the facts that Federal 
funds for the program are limited, are given for a maximum of 3 years, 
and must be matched by non-Federal assistance according to a specified 
formula. I can assure you that such terms weed out all but those who 
are the most committed to assisting women entrepreneurs and are the 
most likely to be able to keep their center operational when Federal 
assistance ends after 3 years.
  If, as one says, the proof is in the pudding, let me now turn to 
that. Eight years after getting off the ground, there are currently 54 
training sites in 28 States, with each center tailoring its style and 
curriculum to the particular needs of the community--be it rural, 
urban, low income, or linguistically or culturally diverse. More than 
55,000 women have sought and benefited from the training and counseling 
in business management, marketing, financial and technical assistance 
offered by the centers. The centers have directly led to business 
start-ups, expansions and job creation. Equally important, the program 
has also prevented business failures.
   Mr. Chairman, I could spend hours giving concrete examples of the 
accomplishments of this program and describing the experienced and 
talented people who put enormous time and energy into running their 
sites. I will, however, take just a minute to give a few examples:
  There is a site in Mississippi where the National Council of Negro 
Women operates the training program, essentially ``circuit riding'' 
from place to place to bring assistance to rural women who are or want 
to be business owners.
  The Center for Women and Enterprise in Massachusetts, a new site, has 
been given $150,000 by the Bank of Boston toward the center's matching 
fund requirement. I think this says volumes about the center's 
importance to the community. The director of this training site has a 
Harvard MBA and experience in microenterprise development in South 
America.
  The Ms. Foundation has given a grant of $150,000 to the site in 
Ukiah, CA, a rural area some hours north of San Francisco. This 
training center is one of the many still up and running even though its 
Federal start-up funding has ended.
  One of the earliest sites started under the program, run by the 
National Association of

[[Page E1496]]

Women Business Owners in Chicago, remains operational 4 years after it 
stopped receiving Federal money under this program. For mere seed money 
in the late 1980's, we are still helping women get their economic 
footing.
   Mr. Chairman, this program has since its inception received broad 
bipartisan support in both houses of Congress. It does what we want 
most Federal programs to do: runs on a shoestring, produces concrete 
results, reaches and benefits a wide array of individuals, permits only 
a finite and brief period of financial aid to any one recipient 
location, and requires no bureaucracy to run it. This program works and 
it puts people to work. I urge all Members to support this bill and I 
look forward to its quick passage.

                          ____________________