From the March 4, 2005 print edition of Dallas Business Journal

Front Lines: Women dominating small business
They're opening new firms at twice the rate of all companies
by Debbie Hurst

Take a minute to think about all of the companies you do business with on a daily basis. Whether it's a construction firm, catering service, advertising agency or manufacturer, you'll find that half of them have one thing in common: they are woman-owned.

The changing economy and evolving role of women in society are helping drive the growth of female-owned businesses in Texas and nationwide. In 2004, women business owners were the largest single group of small business owners in America, accounting for 50% of the 10.6 million privately held firms in the United States.

Opening businesses at twice the rate of all companies, women owners are a key component of America's economic landscape and have proven to be a powerful financial force in the Texas economy. Dallas ranks seventh among the nation's top 50 metropolitan areas for such firms, employing 266,000 people and generating more than $38 billion in sales.

Women-owned firms are increasing in what are considered "nontraditional industries" as well. The construction industry alone has shown a 57% increase in women-owned firms between 1997 and 2004. Following close behind are agricultural services, transportation, communications and public utilities.

The number of women-owned firms in Texas has grown by 17.7% since 1997.

Nevertheless, women-owned businesses continue to remain underutilized and unrecognized as key partners and participants in the supply mix of corporations and government agencies. They gain less than 5% of corporate and government contracts every year, highlighting the need to bridge the gap between the capability of women owned businesses and the opportunity for business.

Enter organizations such as the Women's Business Council-Southwest. Based in Arlington, the WBCS is in its 10th year of providing ongoing procurement, networking and educational opportunities to the 60 corporations and approximately 500 certified women business enterprises (WBEs) it serves. A nonprofit organization that provides mentoring, training and more to women business leaders in North Texas, Oklahoma, Arkansas and New Mexico, it is the only group that offers national certification that is accepted by companies, institutions and government entities from coast to coast.

In a country where women make 83% of all purchasing decisions, most forward thinking, successful companies have begun to not only market to women as their customer base, but to do business with them as well.

One way in which the council is helping to fulfill that need is through the organization's annual Round-Up Trade Fair event held at the Arlington Convention Center in April. The two-day networking and educational exhibition is the Southwest's largest trade fair for women-owned businesses, providing expanded marketing opportunities for WBEs and connecting corporate members -- or "sustaining members" -- with ways to reach them. In addition to more than 100 exhibitor booths, the event offers additional opportunities to help make those connections, including a workshop, a networking breakfast and luncheon and face-to-face "Supplier-To-Buyer" meetings, which schedule appointments for corporate buyers to meet with qualified WBEs.

Many corporations have supplier diversity initiatives requiring that a percentage of their procurement dollars be spent with WBEs. They know that a diverse supplier base equals increased competition which equals increased savings and a better bottom line for everyone involved.

The WBCS educates women business owners on how to become more accessible for these programs, and how to compete and grow their business smartly through educational seminars held in partnership with the University of Texas at Austin's McCombs School of Business.

If your company does not involve women-owned businesses as part of its integral plan, now is the time to take action. Doing business with women-owned businesses is an investment in your customer base and in the overall economy. It just makes good business sense.

A WBCS member once told me that your net worth is equal to who you know. Next time you pick up the phone at work to place an order or complete a transaction, keep that in mind. Working with one of the many leading WBEs in the state could mean big savings for your business.

Hurst is president of the Women's Business Council-Southwest, a nonprofit organization that offers educational training, mentoring and networking opportunities to women business leaders in North Texas, Oklahoma, Arkansas and New Mexico.

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Webmaster's note: Women's Business Council-Southwest is a sister organization to NAWBO D/FW.