[Congressional Record Volume 143, Number 54 (Wednesday, April 30, 1997)]
[Extensions of Remarks]
[Pages E799-E800]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  WOMEN'S BUSINESS DEVELOPMENT PROGRAM

                                 ______
                                 

                          HON. JOHN J. LaFALCE

                              of new york

                    in the house of representatives

                       Wednesday, April 30, 1997

  Mr. LaFALCE. Mr. Speaker, today I am introducing legislation to 
authorize permanently a very successful, low-cost, community-based 
program to train and counsel current and potential women business 
owners. This program was created as part of the Women's Business 
Ownership Act of 1988, which I authored.
  Mr. Speaker, women entrepreneurs are 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 first heard testimony from dozens of women 
business owners on this issue. 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.
  As befitting a program administered by the Small Business 
Administration, this program takes a very entrepreneurial and 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 process is very competitive as Federal funds for the 
program are limited 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 centers 
operational over the long term.
  Nine years after getting off the ground, there are currently 54 
training sites--19 of which are currently receiving Federal funding--in 
28 States and the District of Columbia. Contributing to the program's 
success is the fact that this program does not require a one-size-fits-
all approach. Each center tailors its style and curriculum to the 
particular needs of the community--be it rural, urban, low income, or 
linguistically or culturally diverse.
  With the centers flexible enough to base everything from hours of 
operation to class offerings on community needs, the sites have 
understandably been highly responsive to low-income women and those 
seeking to get off welfare. We all know the intensive assistance that 
must be given to women who are likely to be entering the business world 
for the first time. Having spoken to the directors of many of the 
women's business centers about their programs, I can attest to their 
commitment to working with these women; to making available the 
necessarily broad array of business and skills courses; and to 
providing them a learning atmosphere that is supportive enough to 
bolster them in their decision to make the transition from welfare, yet 
realistic enough to prepare them for the responsibilities of owning a 
business.
  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 startups, expansions, and job creation. Equally 
important, the program has also prevented business failures.

  Mr. Speaker, 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 of 
how creatively this program has responded to the needs of its clientele 
and the realities of the economy and business world they seek to be 
part of:
  The Washington, DC and Los Angeles sites are working on a pilot 
program with the Department of Defense to provide business training to 
military spouses, who often cannot develop a career because of the 
frequent moves required by military life. The training is focusing on 
portable businesses--ranging from computers to hair care services--that 
the military spouse can move when the family changes duty stations. 
This pilot program will take place in Norfolk and San Diego.
  All of the women's business centers--including those no longer 
receiving Federal moneys--are linked on a women's business intranet, 
which will lead shortly to an Internet training site. Based at the 
Dallas business center, the computer training site will make available 
to any woman with a computer business training, mentoring, counseling, 
etc. This program and its potential so impressed IBM that it has 
partnered with the Small Business Administration's Office of Women's 
Business Ownership to give them 240 computers for the sites to teach 
women how to use computers for business purposes such as developing a 
business plan.
  The Milwaukee program has set up in a nearby office building a coffee 
business called Coffee with a Conscience. The training center rotates 
potential businesswomen as ``owners'' of the coffee cart, giving them 
firsthand experience in the fundamentals of owning a business, 
including bookkeeping, ordering supplies, and working with customers, 
and also gives them an opportunity to answer threshold questions such 
as whether they want to put in the time that owning a business demands.
  The Center for Women and Enterprise in Massachusetts last year was 
given $150,000 by the Bank of Boston toward the center's private 
matching fund requirements. Since then, one of the center's clients has 
won a Small Business Innovation and Research award, which is a highly 
competitive Federal grant given to small businesses which have 
technologically innovative and commercially feasible products to 
develop.

[[Page E800]]

  Mr. Speaker, 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, involves 
only a small amount of Federal 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.

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