Grist for the Mill: Supporting Growth-Oriented Women Entrepreneurs
There’s increasing interest in moving beyond supporting the entry of more women into business ownership, toward a greater understanding of what growth-oriented women business owners need to get to the next level in their entrepreneurial journey. There are two new reports that shed some light on this issue. First, infoDev, a multi-donor program in the World Bank Group, recently published Growing Women-led Enterprises in the Mekong: Testing a Methodology for Accelerating Growth. This report, supported by the government of Finland, pilot tested a series of workshops, peer-to-peer sessions and one-on-one coaching over a six-month period in Cambodia, Lao PDR and Vietnam. Secondly, the World Bank’s Trade and Competitiveness group also just published a policy note entitled, Supporting Growth-Oriented Women Entrepreneurs: A Review of Evidence and Key Challenges, which draws upon and synthesizes existing research from within and outside the Bank. Each of these reports is well worth reading on their own, but what is perhaps most interesting and relevant is that they draw some similar conclusions:
- Short-term training with little or no follow-up does not always lead to measurable business growth. This can be a funding challenge for defined-length, externally sponsored projects and speaks of the need for a greater focus on sustainability measures and local partnerships;
- Established women business owners benefit greatly from peer-to-peer learning. Merely providing networking opportunities for women business owners can reap valuable rewards;
- Selecting women who are “growth-oriented” can be challenging: mindsets may matter as much as recent performance; and
- Existing programs are very heterogeneous, with a wide variety of interventions. This reduces the ability to draw conclusions about what works best and share lessons learned.
Adding to this new information is some research conducted by Womenable way back in 2007, Mapping the Missing Middle: Determining the Desire and Dimensions of Second-Stage Women Business Owners, which not only raised the point that not enough policy and programmatic attention was being paid to established women-owned firms that had not yet cracked the million-dollar revenue barrier, but sized this population at between 16% (if defined to include firms with employees or between $100,000 and $1 million in revenues) and fully 91% (if having employees and revenues over $100,000 was not a criterion) of the entire women-owned business population. A short survey was conducted among established women business owners in the United States and found that “missing middle” women business owners:
- Were indeed mostly growth-oriented - 64% were in search of tools for business growth;
- Had a much greater appetite for information than the average woman business owner; and
- Wanted to learn from one another, would prefer just-in-time, experiential learning over classroom-style information, and would value the guidance of a mentor.
We applaud this increased focus on providing “grist for the mill” of business growth - and for the grist provided by these two new reports!