“Women entrepreneurship proves itself in many ways”

Nashville Business Journal, by Laura Campbell

Ask a group of young children what they want to be when they grow up, and you'll probably not hear "entrepreneur" as an answer.
Then query a class of high school students about their career plans. Chances are the responses will include everything but "entrepreneur." Move on to a group of women, inquiring about business goals for the next five years. In all likelihood, the "e" word is not going to come up.

Why is that? Do we have the wrong idea about entrepreneurs and what it takes to become one? Today, many women have very narrow definitions of entrepreneurs. Too often, they view them as executives who successfully mold business ideas into multi-million dollar revenues and public offerings.

In fact, the woman who starts a small business from her kitchen table may not think of herself as a savvy entrepreneur. But she's every bit as much of an entrepreneur as the woman who aggressively knocks on doors seeking venture capital funds. For women working in existing businesses, a keen spirit of entrepreneurialism is alive and thriving there, too. When a female executive takes the reigns to launch a new product line or thinks "outside of the box," she's wearing the hat of an entrepreneur. One contemporary view of an entrepreneurship sees it as a method of management with an emphasis on innovation."Successful firms and individuals must be capable either of rapid response to changes that are beyond their control or be so innovative that they contribute to the change in the environment. Entrepreneurship is an approach to management that offers these benefits," notes the Center for Entrepreneurship at Belmont University.

Some women limit their passions due to a lack of confidence or know-how to move ahead. When I was first approached years ago about starting my own business, my initial reaction was that I didn't have what it takes. But after careful examination, I realized that I had strengths and interests that could lend themselves into a business opportunity if I took the time and effort to think things through and diligently work a strategic plan of action. Certainly, women are no strangers to the business world. More than nine million businesses are women-owned in the country, representing 35 percent of all businesses, according to the National Foundation for Women Business Owners. In Nashville, the city ranked fifth in the United States among cities with the fastest growth in women-owned businesses, according to Entrepreneur Magazine in 1997.

Women have a solid track record in running businesses as well. Their companies are considered as financially sound and creditworthy as the typical firm in the United States and are more likely to remain in business that the average U.S. firm. Of new start-ups, women begin businesses at twice the rate of men, launching 70 percent of all new companies. Investors and lenders have increasing confidence in women-owned businesses. For instance, venture capital funding to women increased to $35.4 billion in the first half of 2000. And, more than 40 percent of venture-financed start-ups had a woman on their senior management team last year.
Despite recent woes about the economy, this is actually a tremendous time to seek debt and equity funding to support the growth of a women-owned business. A record $68.8 billion in total venture capital investments were made in 2000, a whopping 80 percent increase from 1999. A $12 million median amount was raised per company, also shattering previous milestones. This year, monies are available due to a record $69.1 billion raised by venture capitalists in 249 funds in 2000, double the $34.5 billion raised in 202 funds in 1999.

In addition to an active Middle Tennessee investment community, there are a number of excellent area resources for women entrepreneurs seeking funding for their businesses. I serve on the boards of directors of two new initiatives that can assist women in securing the funds they need. Belmont's Center for Entrepreneurship Women's Programs offers guidance through its "Access to Capital" educational programs, a new initiative that began last spring. Another new resource is the Technology Funding Alliance, an angel investor network affiliated with the Nashville Technology Council. Launching in November, this network seeks to streamline an inefficient process by linking entrepreneurs needing growth capital with private investors.

With monies available and resources to guide you, the missing link is your passion to custom create work opportunities that are consistent with you as a person. If you dream about stretching your career from earning a paycheck into being a part of something bigger, then there's no better time place and time than right here and right now. Laura Campbell is president and CEO of Laura Campbell & Associates, a business growth advisory firm serving entrepreneurial businesses and private equity investors.