Thursday July 3, 2008

smSmallBiz.com - SmartMoney's Small Business Site

best practices: Group Urges Female Business Owners to Run for Office

best practices

Group Urges Female Business Owners to Run for Office

September 14, 2006

Updated on July 6, 2007.

MELISSA BEAN, FOUNDER of a consulting firm that provides marketing and sales advice to high-tech Fortune 1000 companies, knows how to seal a deal. That's why she ran for Congress.

Now representing Illinois's 8th District in the House of Representatives, Bean encourages other female entrepreneurs to use the gut instincts that served them well in business to run for public office. "You have an advantage as a business owner, because you've created a strong network," Bean, 44 years old, told dozens of entrepreneurs gathered in Washington, D.C., in September 2006 for Women Impacting Public Policy's annual conference. "It's a big part of why I ran."

Bean's message reflects a new initiative by the bipartisan lobbying group (known as WIPP) to get more female entrepreneurs active in the political process at the local, state and national level.

The idea is basic: Women should take their success in business and turn it into political clout. Once elected or appointed, they can use their seats to push for issues important to the small-business owner: affordable health care, tax relief and — especially for women — access to capital.

Currently, only about 18% of the members of Congress are women. Carol Kuc, a founding partner of WIPP, says the initiative includes financial support and training for political candidates. "If we have women business owners who are part of the system, they will understand what our issues are," says Kuc, who also serves as president of the National Association of Women Business Owners. "You don't have to go in and explain the basics. They know what it's like to make payroll, or provide maternity leave."

At the WIPP conference, Sen. Blanche Lincoln (D., Ark.), one of 16 women currently serving in the Senate, said she grew up watching her father run a small farming business. His struggle to provide seasonal workers with health insurance throughout the year spurred her to introduce legislation last year that would allow small-business owners to band together for lower health-care costs.

Lawmakers need to come up with more creative solutions for small-business owners, who are the backbone of the economy, she says. And more female entrepreneurs should step up to the plate. "Women were not enormous business owners at the turn of the last century, but moving into the 21st century they are," she says. "They've got a lot at stake. It is our fault if we as women don't come forward."

Nationally, women-owned firms continue to grow at twice the rate of all firms, according to the Center for Women's Business Research. Between 1997 and 2006, the number of majority women-owned firms grew 42% to 7.7 million from 5.4 million, compared to all firms, which grew 23%.

Deborah Wilder, who runs a law practice focusing on small-business concerns, served twice as mayor of Foster City, Calif. She told attendees that campaigning for election, and then serving in office, is a "life-changing experience" that requires a serious investment of time and energy. Don't run unless you have "the fire in your belly," she says. The reward is making a difference in the community you serve. She urges entrepreneurs who are hesitant to get involved at the local level. "Not everyone has to run for the House or Senate," she says. "You can run for the planning commission."

Wilder says she was able to step away from her law firm while in office because she had 12 employees and a reliable management team in place. Business owners who want to embark on a campaign should make sure their business is in a similar stable position, she advises.

Bean, the Congresswoman from Illinois, says business owners make great politicians because they are used to marketing themselves — and they're used to critics. "Many of your friends and family probably said, 'you're so talented, but are you sure you want to start your own business?'" she says. "There are a lot of naysayers."

Looking to run for office? Check out the National Women's Political Caucus or the Women's Campaign School at Yale University. The U.S. Department of State also keeps a list of women's advocacy groups, many of which work to get women elected.