Economic Recovery and Job Creation

Job Creation Survey: What the USWCC Learned From You

>>Tell Congress and the White House we want a strong job creation package now!

Recently, I asked my communications team to reach out to our members and supporters across the U.S. to learn about the financial condition of your businesses, your use of credit and capital, and the potential for job growth in the coming months.

Your response was overwhelming. Thank you for sharing so much important information with us.

We used the aggregate information from your responses, along with your views and comments, to bring the White House and key leaders in Congress up to date on the status of women-owened businesses and recommendations for the creation of growth, opportunity and jobs.

Here's what you told us. . . .

As expected, the answers are different depending on the size of business and industry, as well as number of years in business (expertise). However, when looking at this information in aggregate, we found some very clear information.

• Very small micro businesses (which rely heavily on consumer spending) have taken very big losses.  These businesses will return as consumer spending increases and credit loosens.
• Small business in the $250-$500K range have taken a big hit financially (revenues down over 18%). But, since most of these fims do not have large equipment or materials overhead, they will respond with job growth as new contracts and business relationships bloom.  [These businesses expressed a strong appetite for job creation.]
• Businesses in the $500k - $1M range will respond well to tax incentives, incentives for equipement purchase and allowing permanent expensing in new capital purchases in the year the purchase is made. 
• Businesses in the $1M - $5M range have experienced a much smaller contraction (revenues down only 5.5% overall) and need access to capital to sieze new business opportunities, access to federal contracts, and equity investment education, resources, and incentives.
• Businesses in the $5M - $10M range need increased access to traditional bank lending and larger lines of credit.
• Businesses in the $10M - $30M range have seen revenue growth over the last three years and have effectively managed their firms business/financial condition. We believe growing consumer and business spending and incentives to hire while pushing down payroll costs will provide the best opportunity for growth within these firms.

Additional Observations and Suggestions:

• Green Products & Energy:  New businesses are forming to take advantage of green products and energy efficient solutions. Key to these formations are private sector investments, legal assistance and connections to regional and national influencers.
• Don't Waste Our Time:  Many women business owners tell us of time and money wasted in federal contracting and corporate supplier diversity sessions that are no more than PR sessions.
• Who Is Lending?  We need to step up the awareness of women business owners of key regional banks and credit unions and help business owners learn who is lending.
• How Do I Manage Credit and Capital?  Business owners need to better understand how to manage their challenge credit/capital/debt needs.
• Keep Us Informed:  Education should be provided to help business owners understand the ever changing set of tax incentives, equipment expensing, payroll incentives, etc.
• The SBA is Not Helping Me:  The view of the Small Business Administration overall is not good. Many respondents complained about the expertise and commitment of the SBA as well as the large corporate marketing delivered through the SBA.
• Help Me Reposition My Debt:  We recommend a specific lending program facilitated by the SBA to buy up high interest credit card debt and convert this into traditional fixed interest loans, provide zero capital gains for invesments in small businesses, allow small businesses to expense up to $250,000 in new capital purchases in the year the purchase was made, provide tax incentives for new hires (with easy to manage processes), and reduce payroll expenses.
• Lending Transparency:  We also recommend the SBA become much more transparent regarding the loan program with monthly reports widely disseminated providing details of who is lending including to women-owned firms, size of loans, and for what purpose.
• Open the Doors to Federal Contracts:  It is vitally important for the Obama Administration to implement the Women's Federal Procurement Program is it was intended by Congress way back in 2000.  After the Bush Administration failed to implement this important program, the Obama Administration has let another year slip by without acting.

Again, thank you for taking the time to respond to our Job Creation Survey.  Your responses gave the U.S. Women's Chamber of Commerce excellent insights into your current position and needs for growth.  We will continue to make your views heard on the Hill as your strong, independent voice for progress.

Margot Dorfman, CEO
U.S. Women's Chamber of Commerce