[Congressional Record Volume 143, Number 129 (Wednesday, September 24, 1997)]
[House]
[Page H7819]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   WOMEN OWNED BUSINESSES IN AMERICA

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from California [Ms. Millender-McDonald] is recognized for 
5 minutes.
  Ms. MILLENDER-McDONALD. Mr. Speaker, I am proud to announce that 
tomorrow will be an historic day for women business owners. For the 
first time, women business owners from a range of professions will 
convene on Capitol Hill to share their stories with Members of the 
Congressional Caucus on Women's Issues. My colleague, the gentlewoman 
from New York [Ms. Kelly], and I will cochair this unprecedented 
bipartisan forum, addressing the vast growth of women-owned firms and 
the contrasting poor rate of procurement to these firms.
  With the procurement rate to women-owned firms at less than 2 
percent, the need to explore the problems women business owners are 
experiencing in trying to obtain Federal contracts and to develop 
concrete solutions to these problems has never been greater.
  Over the past decade, this country has experienced an explosion in 
the growth of women-owned businesses. The statistics speak for 
themselves. Between 1987 and 1996, the number of firms owned by women 
grew by 78 percent, which is almost twice the rate of increase in the 
number of all U.S. firms, which is 47 percent. Sales increased by 236 
percent, nearly $2.3 trillion, and employment increased by 183 percent.
  In the same time period, the number of minority women-owned 
businesses increased by 153 percent, which is three times the rate of 
overall business growth in the United States, the rate of employment by 
minority firms grew by 276 percent, and revenues rose by 318 percent.
  Between 1987 and 1996, the number of Hispanic women-owned firms grew 
206 percent, the number of Asian, American Indian and Alaska native 
women-owned firms increased by 138 percent, and the number of African-
American women-owned firms increased by 135 percent.
  There are now approximately 8 million women-owned firms, providing 
jobs for 15.5 million people and generating nearly $1.4 trillion in 
sales. Women-owned businesses now employ 35 percent more people in the 
United States than the Fortune 500 companies employ worldwide.
  Between 1987 and 1996, the industries with the fastest rate of growth 
for women-owned businesses were in nontraditional fields. Women-owned 
firms grew by 171 percent in construction, by 157 percent in wholesale 
trade, by 140 percent in transportation-communications, by 130 percent 
in agriculture, and by 112 percent in manufacturing.
  In the same period, the same phenomenon of women-owned businesses 
growing at the fastest rate in nontraditional fields were even more 
astounding among minority women-owned businesses. These firms grew by 
319 percent in construction, by 276 percent in wholesale trades, and by 
253 percent in transportation-communications and public utilities.
  Although the number of women-owned firms has grown in every State 
over the past several months, they have exploded in the State that I 
represent. In California, from 1987 to 1996 the number of women-owned 
firms has grown by 78 percent, employment has increased by 255 percent 
and sales have grown by 313 percent. Women-owned businesses now account 
for more than one-third of all firms in California.
  As a result, California ranks first out of the 50 States in the 
number of women-owned firms, first in employment and first in sales. 
This unprecedented growth of women-owned firms is happening in the 37th 
District of California, Mr. Speaker, which is my district, generating 
$105 billion in the Los Angeles-Long Beach metropolitan areas.
  This area ranks second out of the top 50 metropolitan areas in the 
number, employment and sales of women-owned firms. That sounds 
promising. Maybe. But, the rate of procurement for all women-owned 
businesses remains a meager 1.8 percent, far below the 5 percent goal 
which was established in 1994 by Congress.
  Mr. Speaker, we cannot allow this discrepancy to continue. It is only 
hurting the strength of this Nation's economy. We are not utilizing 
this hidden resource within the business community.
  When the Government continues to contract with the same large 
companies, America's taxpayers lose money, because when various 
agencies select their bid without real competition, it is highly 
unlikely that that bid is indeed the least expensive, more effective 
way of getting the job done.
  Mr. Speaker, tonight I speak for millions of women business owners 
throughout the country. I ask that we recognize that tomorrow will be 
an historic day for women as we continue to grapple with the notion of 
women business owners and the lack of procurement and meeting the goals 
Congress has established.

                          ____________________