Bill Overview
Title: Empowering Women in Small Business Act
Description: This bill permits certain women-owned small businesses to retain for seven years their certification under the Small Business Administration's Women-Owned Small Business (WOSB) Federal Contracting program even if the ownership interests in the small business are held by a licensed small business investment company that would otherwise reduce the ownership percentage below the threshold required for participation in the WOSB program.
Sponsors: Sen. Ernst, Joni [R-IA]
Target Audience
Population: Women small business owners globally
Estimated Size: 1300000
- Globally, women entrepreneurs constitute a significant portion of small business owners, though exact figures vary by country; in many regions, women-owned businesses represent around 20-30% of all businesses.
- The legislation primarily impacts women who are engaged in or own small businesses and are seeking federal contracts.
- Small Business Administration programs, including the WOSB program, are used globally as models but not replicated exactly; thus, direct impacts of similar legislation would only apply where such programs are present.
- The global population of small business owners is vast, and while not all are women or would engage in federal contracting, a significant number run businesses that could seek government contracts.
Reasoning
- The policy impacts a specific subset of women-owned businesses focused on federal contracting, primarily enhancing their stability over a seven-year term.
- The allocated budget suggests a targeted approach, scaling gradually from $100 million in the first year to over $1 billion across a decade, possibly indicating a long-term economic engagement plan.
- Given the large number of women-owned businesses in the U.S. (approximately 13 million), only businesses involved in federal contracting or those inclined to be would be directly impacted.
- Interviews will include a range of entrepreneurs, including those not directly using the program, to assess indirect policy impacts or unawareness.
- Commonness scores for interviews will reflect how typical the scenarios are within the general population of women entrepreneurs.
Simulated Interviews
Owner of a small tech business (New York, NY)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 5/20
Statement of Opinion:
- This policy ensures business stability and confidence in seeking federal contracts.
- It grants us more time to develop our business strategically without fearing reclassification.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 4 |
Owner of a marketing agency (Austin, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I'm hopeful this policy will make it easier to get and maintain contracts.
- It might encourage us to apply for certification sooner.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Consultant (Atlanta, GA)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- We benefit from policy certainty, but it won't change our current trajectory significantly.
- The policy is more about retaining what we've already built.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Restaurant owner (Chicago, IL)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I didn't know about this policy; we're not in the contracting space.
- It seems like a specialized policy for a different kind of business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Environmental consultancy owner (Seattle, WA)
Age: 48 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 3/20
Statement of Opinion:
- Very supportive, as we were forced out of the program due to ownership changes.
- The policy provides an opportunity to expand our contracting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Real Estate Developer (Miami, FL)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 8/20
Statement of Opinion:
- I don't directly benefit, but it's good to see more opportunities for women in business.
- Stability like this for smaller, emerging businesses can have ripple effects.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Owner of an online retail business (Los Angeles, CA)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- The policy doesn't apply to my business model, but it's progressive for those it affects.
- Might explore it if we ever pivot to a qualifying business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tech Startup Founder (San Francisco, CA)
Age: 27 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- This policy could be game-changing, we were concerned about future funding rounds affecting eligibility.
- We plan to leverage this stability to pivot responsibly into contracting.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 8 | 5 |
Fashion brand owner (Denver, CO)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This policy ensures ongoing eligibility, offers a pathway to maintain and even expand operations.
- It's great for maintaining certification while growing our investor base.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Co-founder of a biotech firm (Boston, MA)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 4/20
Statement of Opinion:
- This policy could significantly bolster our operations.
- We anticipate reduced pressure on equity structuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Cost Estimates
Year 1: $100000000 (Low: $80000000, High: $120000000)
Year 2: $102000000 (Low: $82000000, High: $122000000)
Year 3: $104040000 (Low: $83640000, High: $125280000)
Year 5: $108163000 (Low: $86530400, High: $130196800)
Year 10: $117169000 (Low: $93735200, High: $141162800)
Year 100: $216096000 (Low: $172876800, High: $259315200)
Key Considerations
- Support to women-owned businesses can indirectly boost economic growth and job creation.
- Costs could escalate if more businesses qualify and apply due to broadened eligibility rules.
- Long-term participation of women-owned businesses in federal contracting depends on sustained economic opportunities and policy effectiveness.