Washington, DC – A just-released report from the Center for Women’s Business Research shows that firms owned by women of color may lack the requisite business skills and experience and be challenged in their access to capital and networks. These critical elements, as well as a supportive business environment, are necessary to start and grow a successful business. The report, summarizing the current state of knowledge about businesses owned by women of color, helps fill a significant knowledge gap about the internal and external dynamics affecting these businesses and marks the beginning of a multi-year research project to identify the barriers, obstacles, and opportunities they face.

The report entitled, Accelerating the Growth of Businesses Owned by Women of Color: Opportunities and Possibilities, A Literature Review, is underwritten by a consortium of corporate, foundation and association sponsors. It describes the rationale for the major national initiative jointly undertaken by the Center for Women’s Business Research and the Women’s Leadership Center at Babson College. Corporate and foundation sponsors include: Wal-Mart Stores/Sam’s Club, Inc.; UPS Capital; Wells Fargo; American Airlines; Avaya; Best Buy; IBM; Level Playing Field Institute; MasterCard; Principal Financial Group; Verizon; Wachovia. Sponsoring associations include the National Women’s Business Council; the National Association of Women Business Owners; the Women’s Business Enterprise National Council; and the Women Presidents’ Organization. Other organizations supporting the initiative include the American-China International Foundation, Association of Women’s Business Centers; Women’s Business Development Center of Philadelphia and the Women’s Leadership Exchange.

“To date, few scholars have studied the dynamics of growth of businesses owned by women of color, “said Margaret Smith, chair of the Center for Women’s Business Research. “This lack of knowledge regarding the dynamics of growth is a significant gap in our understanding of these businesses. This report strongly suggests the need for the initiative undertaken by the Center for Women’s Business Research and the Center for Women’s Leadership at Babson College which seeks to provide the answers to some of these questions.”

The average revenues for businesses owned by women of color are less than half of those owned by men of color. Asian women entrepreneurs slightly outperformed White women in terms of average annual revenues ($158,000 vs. $154,600) but still made less than half of the average revenues of Asian men-owned firms ($366,000). The gender discrepancies are much larger in the other ethnic groups.

The scholarly literature showed that in comparison to Caucasian women, women of color in general have less education, fewer years of work experience, and less specific experience in their chosen business field. It also shows that women of color have fewer connections that generate information and customers. This research will also explore the obstacles in communities not open to diversity.

Research forums are scheduled to be held in four cities during 2007, Philadelphia, Atlanta, San Francisco, and Dallas (in chronological order), that will utilize an action research model to gain a greater and more current understanding of the forces that impact the success of businesses owned by women of color.

The full report, Accelerating the Growth of Businesses Owned by Women of Color: Opportunities and Possibilities, A Literature Review, is available from the Center for Women’s Business Research for $90. (Discounts are available for Center Corporate Partners and NAWBO members.) For further information, contact: Center for Women’s Business Research, 1411 K Street, NW, Suite 1350, Washington, DC 20005-3407. Phone: 202-638-3060, ext. 710. Email: info@womensbusinessresearch.org, Web site: http://www.womensbusinessresearch.org.

Center for Women’s Business Research The Center for Women’s Business Research provides data-driven knowledge that propels the growth of women business owners and their enterprises to economic and social significance. We do this by setting the national agenda; creating insight on the status and achievements of women business owners; altering perceptions about the economic viability and progress of women-owned enterprises; and driving awareness of the economic and social impact of this vital business sector. Find out more online at http://www.womensbusinessresearch.org.

Center for Women’s Leadership at Babson College Babson College is a premier independent school of management and is the recognized international leader in entrepreneurial education. Its Center for Women’s Leadership (CWL) is dedicated to the advancement of women in business. It is a premier academic source for the insights and educational opportunities that women need to achieve their leadership goals and organizations need to leverage their talent and market power. Information on CWL may be found at http://www.babson.edu/cwl/.