[Congressional Record Volume 146, Number 20 (Tuesday, February 29, 2000)]
[Extensions of Remarks]
[Pages E193-E194]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




            THE CHANGING FACE OF AMERICA'S FINANCIAL SUCCESS

                                 ______
                                 

                           HON. JENNIFER DUNN

                             of washington

                    in the house of representatives

                       Tuesday, February 29, 2000

  Ms. DUNN. Mr. Speaker, women are changing the face of America's 
financial success. Today, there are nearly 8.5 million women-owned 
businesses in the United States, and they are increasing in number, 
range, diversity, and earning power. As their companies expand, women 
business owners employ 18.5 million individuals and produces $3.1 
trillion in sales.
  Since 1994, the Republican-led Congress has diligently worked on 
behalf of women business owners. We have instituted a variety of 
reforms from achieving a balanced budget and modernizing financial 
services, to easing the burden of unnecessary regulation and taxation. 
In this new century, we must do everything we can to keep the economy 
growing and enable women to keep more of their hard-earned dollars.
  I would like to take the opportunity to submit an insightful 
interview, conducted by the Center for International Private Enterprise 
in their magazine Economic Reform Today, highlighting the positive 
contributions of women-owned businesses to the U.S. economy.

                    Businesswomen in the Mainstream

       ERT: In recent years, the US and a few other industrial 
     nations have seen very impressive growth in the number of 
     women-owned firms. What do you think is the reason for this 
     rapid increase, and what impact is it having on the US 
     economy?
       Mr. DONOHUE: It's very true that the number of women-owned 
     firms has increased phenomenally. In 1997, the US Small 
     Business Administration (SBA) found that women owned 8.5 
     million small businesses in this country--that's one in every 
     three small businesses! Together, they employ more than 23.8 
     million people and generate up to $3.1 trillion in sales.
       There are many reasons why there has been such a rapid 
     expansion in the number of women in business. First of all, 
     women in general are increasingly better educated than they 
     were a few decades ago. According to the US Department of 
     Commerce, in 1970 only 8% of women completed college, 
     compared with 14% of men. By 1990, that number had risen to 
     17.6% (compared with 23% of men). Women's educational 
     attainment increased by 4.8% while men's rose by only 2.8%.
       In addition to being better prepared, women are also 
     delaying marriage and childbearing in order to enter the 
     workplace--a trend that started in the 1970's. The percent of 
     never-married females ages 20 to 29 rose, in average, by 
     11.4% between 1980 and 1990. This helped power an increase in 
     productivity from which we are benefiting today.
       The impact of these twin social trends has been to increase 
     the influence of women in business--particularly small 
     business. For many women, owning a business and setting their 
     own schedules has been a way for them to reconcile their 
     personal and career goals. Between 1987 and 1996, the number 
     of women-owned businesses grew 78%--and, according to the 
     National Foundation of Women Business Owners, women are 
     starting businesses at twice the rate of men. As a result of 
     this incredible productivity and activity, women-owned firms 
     now employ more people than do the Fortune 500 companies!
       ERT: The US Chamber has seen a significant increase in 
     women-owned businesses
       Mr. DONOHUE: In recent years, the US Chamber has approached 
     this positive situation in two ways. First, we have worked 
     hard to provide resources for businesswomen. For example, 
     throughout 1999 the Chamber is cosponsoring three national 
     satellite conferences designed to help women entrepreneurs 
     develop winning small business strategies.
       These conferences are intended to present women business 
     owners with an excellent opportunity to grow and learn from 
     fellow entrepreneurs and to share their knowledge and 
     experience with colleagues. These conference programs also 
     include a question-and-answer session with the studio 
     audience and call-in participants. Co-sponsors of the series 
     include Edward Jones, the US Small Business Administration, 
     the Small Business Development Center Program, IBM, the 
     American Business Women's Association, and Service Corps of 
     Retired Executives (SCORE).
       We have already held two conferences. The first was held 
     May 17, 1999 and offered ``Practical Tips for Today and 
     Tomorrow.'' It featured Jay Conrad Levinson, author of 
     Guerilla Marketing: Secrets for Making Big Profits from Your 
     Small Business and Flori Roberts, an ethnic cosmetic pioneer 
     who now runs motivational seminars. The second satellite 
     conference was held August 30 and focused on how to expand a 
     business. The third in the series--on financing for stability 
     and growth--is set for November 2.
       Networking opportunities and new resources have always been 
     a key reason that women have joined the Chamber. But let's 
     face it--wehther you're a male business owner or a female 
     business owner, you're still going to have the same interests 
     and concerns when it comes right down to it.
       You're still going to worry about high taxes, health care 
     mandates and onerous workplace and environmental regulations 
     that cost business well over $700 billion every year. We 
     understand this, and we fight for all of our members' 
     interests before the US Congress, regulatory agencies, in the 
     courts--and in the court of public opinion. And in our view, 
     that's the main reason why women-owned businesses--and 
     indeed, all of our business members--join together with us.
       ERT: How can women business leaders help to shape public 
     policy, and what is the role of public policy in promoting 
     the involvement of women in business?
       Mr. DONOHUE: Most women business leaders are so busy 
     running their businesses that they have little time for 
     public policy. But the most important public policy effort 
     that women business leaders can make is to recognize that 
     their interests lie in protecting and improving our system of 
     free enterprise. Taxes, health care mandates and regulations 
     impact every business, and it's important for women--and 
     their male counterparts--to recognize this.
       My advice to businesswomen in this country is to get 
     involved. Join your local and state chambers of commerce. 
     Become a member of the US Chamber of Commerce! Find examples 
     of other women who have successfully fought for business and 
     emulate them--for example, the Treasurer of the Board of 
     Directors of the U.S. Chamber of Commerce is Carol Ball, the 
     Publisher and CEO of Ball Publishing Company of Greenville, 
     Ohio. She is a tough, ardent advocate for a pro-business 
     agenda, and we are lucky to have her on board.
       When it comes to promoting women in business, I believe 
     that the US government ought to do two things. First, through 
     agencies like the Small Business Administration, it should 
     provide information and act as a clearinghouse for different 
     resources that would be beneficial to women.
       Second, I believe that the federal government should create 
     a better climate for enterprise creation. From serious 
     regulatory reform to better bankruptcy laws, pro-business 
     policies will help all business owners,

[[Page E194]]

     but they will aid women in particular, who, as I previously 
     noted, start businesses at twice the rate of men.
       ERT: Women's business associations appear to be growing 
     around the world. How can they make a difference? Do they 
     address special needs of business-women that traditional 
     business associations do not?
       Mr. DONOHUE: Women's business associations are an 
     invaluable resource for women at all stages of their careers. 
     The networking possibilities alone make them worthwhile. In 
     addition, some associations offer member benefits such as 
     loans and discounts on business products. These benefits, 
     other resources and networking are major draws for women 
     enterpreneurs.
       For example, the American Business Women's Association 
     (ABWA) offers options for every phase of a career. Whether a 
     woman is looking for a promotion, career move, her own 
     business or a way to stay active in retirement, ABWA offers a 
     specific membership program tailored to get her on her way.
       But remembers, women's business associations and 
     organizations like the Chamber can work together! The Chamber 
     offers conferences and leadership forums to help prepare 
     women for the world of business. And, as I've mentioned 
     before, we also fight for pro-business policies that benefit 
     both men and women.
       ERT: In many nations, wowen-owned businesses are confined 
     to cottage industries and the informal sector. Do you see 
     this changing over time!
       Mr. DONOHUE: Yes, I do. As more women in those societies 
     enter the workforce, as they become better educated and as 
     societies become more open, you will see greater numbers of 
     women assume top corporate leadership posts around the world.
       ERT: Many women business owners--
       Mr. DONOHUE: I'm very glad you asked that. The scale of 
     international trade today is such that even the smallest of 
     companies, be it an importer or a manufacturer, is operating 
     on a global scale. The US Chamber has long been committed to 
     policies that make it even easier for companies of all sizes 
     to trade. Right now, we have a major international trade 
     education project under way, in which we hope to communicate 
     the benefits of increased trade to the public. By looking 
     beyond our borders, women business owners have an excellent 
     opening to grow their businesses, especially with the advent 
     of information technology, the Internet and e-commerce. At 
     the Chamber, we aim to create an environment so that these 
     companies prosper, and that they take advantage of the 
     opportunities available to them.
       ERT: Speaking of technology, how do you foresee the 
     Internet and other information technology boosting the 
     ability of small-scale entrepreneurs--like many women-owned 
     firms--to access international markets?
       Mr. DONOHUE: The Internet is one of the most profound 
     inventions of this century. It enables the smallest of small 
     companies to compete with the biggest ones--if they can 
     figure out how to do it.
       The Internet confers many advantages on small businesses. 
     For example, small companies can use it to monitor orders and 
     other customer services--and cut costs dramatically. Network 
     connectivity makes it possible for you to hook up your local 
     area network (LAN) directly to the Internet. And a wide-area 
     network (WAN) connection offers multiple simultaneous 
     connections through a dedicated data line, at tremendous 
     savings over individual modems and standard telephone lines. 
     This makes your existing internal email address work as 
     Internet email addresses, and allows you to set up your own 
     Web server (with your own domain name) to provide volumes of 
     information to existing and potential new customers and to 
     take orders on-line.
       The Internet also offers small businesses a much wider 
     consumer base. There are 92 million Internet users in North 
     America. The number of women Internet users jumped by 80% in 
     only nine months, passing the 10 million mark. And 55 million 
     people have shopped on the Web for products ranging from 
     books, computers, clothing, CDs, and videos, to cars, car 
     parts and even houses. Those consumers spent $12 billion this 
     year, up from $7 billion last year.
       Moreover, the biggest business is . . . business! Companies 
     have spent even more than consumers--about $43 billion on 
     Internet purchases according to Forrester Research. This 
     year, that figure will likely jump to nearly $110 billion. 
     It's no wonder, as the University of Texas reported, that the 
     Internet economy generated $301 billion of revenues in 1998 
     and created 1.2 million jobs.
       In short, to connect with people and businesses in other 
     countries, the Internet can't be beat. And there's nowhere to 
     go but up as more and more nations get wired and go online. 
     E-commerce will be the story of the next century.

     

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