According to the SBA, women currently own about 40 percent of
U.S. firms but only receive 2 percent of federal government
contracts.
While these are irrefutable facts, solutions to the problem
aren't clear-cut. Some believe preferences, set asides and
special programs can help. Others argue the best remedy is a fair,
open and competitive marketplace.
Entrepreneur recently discussed the issue with proponents of
both positions. Gen Xer Naomi Lopez Bauman is director of the
Center for Enterprise and Opportunity at the San Francisco-based
nonprofit Pacific Research Institute, and author of Free
Markets, Free Choices: Smashing the Wage Gap and Glass Ceiling
Myths (Pacific Research Institute). Susan Phillips Bari, 54, is
the president of Women's Business Enterprise National Council,
whose mission includes certifying firms as women-owned.
Content Continues Below
Cynthia Griffin: Define set asides, preferences and
goals.
Naomi Lopez Bauman: The government operates many programs
that have either a direct or indirect financial benefit on business
enterprises. Special preferences created or promoted by the
government aren't effective in truly creating opportunities for
women. The best way to promote women businesses is to reduce the
tax and regulatory burden.
Susan Phillips Bari: [That there are special government
programs for women in terms of set asides and preferences is a
misconception.] The only set aside program is 8(a), which is
primarily for minorities. Until recently, Caucasian women
[couldn't] participate [in 8(a)]. And even today, there are
fewer than 100 nonminority women-owned businesses in the
program.
In the private sector, most supplier diversity programs operate
with goals. They make sure a certain number of women are included
in the mix of businesses from whom procurement officials seek
bids.
Bauman: I agree that the private sector has made great
advances in promoting women-owned businesses, and that's the
appropriate place where [this] should take place. But I don't
believe preparing small businesses for private contracting is a
legitimate government function. I don't see society [or
taxpayers] benefiting by having small businesses obtain government
contracts. And talking about things like the 8(a) program and
pointing to statistical disparities that show women may not be
participating in the same numbers as white males is [merely]
scratching the surface.
A statistical disparity doesn't [necessarily] mean
women-owned businesses are being discriminated against. While [the
number of] women business owners has grown at a rapid rate, they
certainly don't represent the majority of companies in terms of
sales, employment and size.
Bari: I'm a shareholder to the public sector. I'm
a taxpayer who pays for all contracts, and I want to make sure
contracts aren't awarded merely as part of some old boy
network.
In terms of your statement that statistics don't show women
have been discriminated against, I suggest you look at studies by
the Center for Advanced Purchasing Studies at Arizona State
University. [They indicate that] while it's clear [women are
making progress] and discrimination is becoming less of a factor,
it's still a major factor.
One of the things that really makes me believe the old boy
network is still here is that in the newer industries like
telecommunications and the Internet, women are doing better in
terms of employment and as suppliers.
Bauman: I've taken a look at the issue behind the ASU
study, too. It's very important to recognize a couple of
things-younger men in business today went to school with women and
have competed with women all along.
Griffin: Do you think women have had adequate
opportunities to compete?
Bari: I don't think it's a question of adequately
competing. If they have the opportunity to compete, women can
adequately show quality, performance and price. The question is how
you put their faces and capability statements in front of
purchasing officials?
Bauman: There's plenty of evidence that shows women
don't have a long history with government contracting, and they
don't have the opportunity to compete on equal footing. But I
don't think it's limited to women-owned business. Very few
people have the opportunity to compete for government contracts due
to the set-up of the system.
Bari: My organization focuses on how to give women-owned
businesses greater opportunity to grow. And because of the way [the
federal government] operates, women don't have an equal
opportunity to compete. That's what we're looking
for--creative ways for women to get their feet in the door. We
don't want them to be given anything; and we're not in
favor of sole source contracting. But we are in favor of making
sure women are part of the process, and that has not happened.
Bauman: I think it sets a dangerous precedent. Whenever
you establish goals or a basic number you want to achieve,
that's [basically] what you're going to get. In some ways
you create a ceiling on potential. I think policies that are blind
to age, gender, sex, ethnic origin, etc. are much better.
Establishing guidelines that focus on delivery time and cost and
are open to public scrutiny will go a long way [toward reaching
that goal].
Griffin: Do you think your respective ages impact how you
view this issue, and could that be endemic in the rest of
society?
Bari: Age has something to do with it. I've heard the
arguments. I've considered myself a conservative Republican and
believed in those things that Lopez is talking about. But I'm
discouraged because I haven't seen the market operate in what I
consider to be a fair, open and competitive manner.
I've always felt regulation was bad, but have come to the
conclusion that sometimes it's necessary.
Bauman: I think age has a lot to do with it.
Opportunities are absolutely better today. I also think the younger
generation is a lot more independent. They're big risk takers
and, quite frankly, a lot of us didn't grow up surrounded by
the notion of victimization. We don't feel constrained to think
about things the way people expect us to. It makes us more
resilient in terms of setting our own paths and being more
aggressive about reaching our goals.
Page 1 |
2 