NWBC 2018 Annual Report : simplebooklet.com

3MESSAGE FROM THE CHAIRTo the U.S. President, Members of Congress, and the Small Business Administration (SBA) Administrator: It is my honor to have been appointed Chair of the National Women’s Business Council (NWBC) in August of 2018. As 2018 was the Council’s 30th anniversary year, I entered the organization during an exciting time of both reflection and transition. I joined at the end of a scal year and my rst order of business was to seek qualied candidates to nominate and ll the slate of empty Council Member seats. Likewise, the appointment of Nina Roque, the current NWBC executive director, came toward the end of last scal year and her immediate focus was to reorganize and build up the NWBC Council staff. In addition to this period of Council and staff transition, the year served as a time to reflect upon the enormous successes the NWBC has spearheaded on behalf of women entrepreneurs. That reflection, in turn, inspired change – fueling the vision that will carry the Council into a new era where it will build on past and current achievements, ensuring its advocacy loses neither momentum nor impact.Over the course of the past 30 years, the Council has served as the federal government’s only independent voice for women entrepreneurs, paving the way for increased growth and contribution by women entrepreneurs to the U.S. economy. When the Council was established in 1988 by H.R. 5050, the Women’s Business Ownership Act, the Council advocated for a once-considered “invisible” population of women business owners, who were then believed to account for only ve percent of all U.S. businesses. Today, women-founded rms comprise an estimated 40 percent of the country’s businesses, with a growth rate nearly ve times faster than all other privately held businesses over the last 10 years. 2018 was a year of signicant economic growth and opportunity, with an estimated 12.3 million women-owned businesses generating approximately $1.8 trillion in revenue. Without constant vigilance and continued advocacy, these gains would not have possible. As a female business founder – rst as co-founder of a software company and second as founder of a marketing strategy rm in business since 2001 – I have lived through the challenges that women entrepreneurs face. As Chair, I will take that rst-hand experience and use it to accomplish key initiatives on behalf of fellow women business owners. I will focus on actual outcomes – not rhetoric. During my tenure, I will work to ensure that the voices of women entrepreneurs are heard and amplied. I will serve to safeguard the continuance of the Council’s vital mission of promoting policies and programs for the advancement of women’s business entrepreneurship. As a new Council and new NWBC staff have taken shape this past year, the NWBC has begun to focus its efforts on the progress that remains to be achieved. The Council is moving forward with an emphasis on three goals: • COMMUNICATE the ndings of NWBC research – and the research of third-party groups – to audiences nationally, including members of Congress, the White House and the SBA. We will accomplish this through a concerted outreach program that will encompass national and business press, social media, NWBC eNews publications and the NWBC website. This will all be done with an objective of raising the visibility of women business owners and outlining the steps needed to increase their success. • CONNECT the wide-range network of women’s business organizations – facilitating their proactive collaboration that they might join in organized support of the many important programs and activities in place across the women’s business ecosystem. We will seek new and diverse voices to incorporate into the Council while maintaining the extremely valued relationships that have been built over the years with traditional women’s advocacy groups. • CONVENE the business community and legislators for the exchange of relevant information and the creation of actionable results. We will lead roundtables, forums and other face-to-face meetings on Capitol Hill and around the country to enlighten and support our policy recommendations. We will engage and encourage large organizations that fund annual surveys on women’s business ownership to participate in this exchange and lend important research ndings to our policy advice. Finally, the NWBC will begin to take an active role to ensure the information exchange is ongoing – offered more than just annually through this report. On behalf of the Council, I would like to thank this administration for making women’s entrepreneurship a priority, the SBA for productive collaboration, and the members of Congress for continued support of the Council. Sincerely,Liz SaraChair, National Women’s Business Council

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4 | National Women’s Business Council | Annual Report 2018SETTING THE LANDSCAPECOUNCIL MISSIONThe National Women’s Business Council is a nonpartisan federal advisory council established to serve as an independent source of advice and policy recommendations to the Administrator of the SBA, the U.S. Congress, and the U.S. President. Members of the Council are small business owners and representatives of national women’s business organizations including women’s business center sites. THE NATIONAL WOMEN’S BUSINESS COUNCIL IS COMMITTED TO: • Analyzing research and data on issues of importance to women business owners and their organizations • Communicating these ndings widely • Connecting members of the women’s business community to one another and to public policy makers • Providing a platform for change in order to expand and improve opportunities for women business owners and their enterprises – from start-up to success to signicanceAppointed Business Owners and Leaders Who Serve Three-Year TermsPresidentially Appointed Chair of the CouncilOwners of Small Businesses Who Are of the Same Political Party as the President;Owners of Small Businesses Who Are Not of the Same Political Party as the President; andRepresentatives of National Women’s Business Organizations, Including Representatives of Women’s Business Center (WBC) Sites.

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5STATUTORY AUTHORITY:WOMEN’S BUSINESS OWNERSHIP ACT OF 1988 (1994 Reauthorization, Public Law 103-403)Sec. 405. Establishment of the National Women's Business CouncilThere is established a council to be known as the National Women's Business Council, which shall serve as an independent source of advice and policy recommendations to the Interagency Committee, to the Administrator through the Assistant Administrator of the Ofce of Women's Business Ownership, to the U.S. Congress, and to the U.S. President.Sec. 406. Duties of the Council(a) In general – The Council shall advise and consult with the Interagency Committee on matters relating to the activities, functions, and policies of the Interagency Committee, as provided in this title. The Council shall meet jointly with the Interagency Committee at the discretion of the chairperson of the Council and the chairperson of the Interagency Committee, but not less than biannually.(b) Meetings – The Council shall meet separately at such times as the Council deems necessary. A majority of the members of the Council shall constitute a quorum for the approval of recommendations or reports issued pursuant to this section.(c) Recommendations –The Council shall make annual recommendations for consideration by the Interagency Committee. The Council shall also provide reports and make such other recommendations as it deems appropriate to the Interagency Committee, to the president, to the administrator (through the Assistant Administrator of the Ofce of Women's Business Ownership), and to the Committees on Small Business of the Senate and the House of Representatives.(d) Other duties: The Council shall – (1) review, coordinate, and monitor plans and programs developed in the public and private sectors, which affect the ability of women-owned business enterprises to obtain capital and credit;(2) promote and assist in the development of a women's business census and other surveys of women-owned businesses; (3) monitor and promote the plans, programs, and operations of the departments and agencies of the Federal government which may contribute to the establishment and growth of women's business enterprise;(4) develop and promote new initiatives, policies, programs, and plans designed to foster women's business enterprise; (5) advise and consult with the Interagency Committee in the design of a comprehensive plan for a joint public-private sector effort to facilitate growth and development of women's business enterprise; (6) not later than 90 days after the last day of each scal year, submit to the president and to the Committee on Small Business of the Senate and the Committee on Small Business of the House of Representatives, a report containing –(A) a detailed description of the activities of the council, including a status report on the Council's progress toward meeting its duties outlined in subsections (a) and (d) of section 406 [this note];(B) the ndings, conclusions, and recommendations of the Council; and(C) the Council's recommendations for such legislation and administrative actions as the Council considers appropriate to promote the development of small business concerns owned and controlled by women.(e) Form of Transmittal – The information included in each report under subsection (d) [of this note] that is described in subparagraphs (A) through (C) of subsection (d)(6), shall be reported verbatim, together with any separate additional, concurring, or dissenting views of the Administrator.Sec. 407. Membership of the Council(a) Chairperson – The president shall appoint an individual to serve as chairperson of the Council, in consultation with the administrator. The chairperson of the Council shall be a prominent business woman who is qualied to head the Council by virtue of her education, training, and experience.(b) Other members – The Administrator shall, after receiving the recommendations of the Chairman and the Ranking Member of the Committees on Small Business of the House of Representatives and the Senate, appoint, in consultation with the chairperson of the Council appointed under subsection (a), 14 members of the Council, of whom –(1) 4 shall be –(A) owners of small businesses, as such term is dened in section 3 of the Small Business Act [15 U.S.C. 632]; and(B) members of the same political party as the president;(2) 4 shall –(A) be owners of small businesses, as such term is dened in section 3 of the Small Business Act [15 U.S.C. 632]; and(B) not be members of the same political party as the president; and(3) 6 shall be representatives of women’s business organizations, including representatives of women’s business center sites.(c) Diversity – In appointing members of the Council, the Administrator shall, to the extent possible, ensure that the members appointed reflect geographic (including both urban and rural areas), racial, economic, and sectoral diversity.(d) Terms – Each member of the Council shall be appointed for a term of 3 years.(e) Other Federal service – If any member of the Council subsequently becomes an ofcer or employee of the Federal government or of the Congress, such individual may continue as a member of the Council for not longer than the 30-day period beginning on the date on which such individual becomes such an ofcer or employee.(f) Vacancies –(1) In general – A vacancy on the Council shall be lled not later than 30 days after the date on which the vacancy occurs, in the manner in which the original appointment was made, and shall be subject to any conditions that applied to the original appointment.(2) Unexpired term – An individual chosen to ll a vacancy shall be appointed for the unexpired term of the member replaced.(g) Reimbursements – Members of the Council shall serve without pay for such

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6 | National Women’s Business Council | Annual Report 2018membership, except that members shall be entitled to reimbursement for travel, subsistence, and other necessary expenses incurred by them in carrying out the functions of the Council, in the same manner as persons serving on advisory boards pursuant to section 8(b) of the Small Business Act [section 637(b) of this title].(h) Executive director – The Administrator, in consultation with the chairperson of the Council, shall appoint an executive director of the Council. Upon the recommendation by the executive director, the chairperson of the Council may appoint and x the pay of 4 additional employees of the Council, at a rate of pay not to exceed the maximum rate of pay payable for a position at GS-15 of the General Schedule. All such appointments shall be subject to the appropriation of funds.(i) Rates of pay – The executive director and staff of the Council may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and except as provided in subsection (e), may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classication and General Schedule pay rates, except that the executive director may not receive pay in excess of the annual rate of basic pay payable for a position at ES-3 of the Senior Executive Pay Schedule under section 5832 of title 5, United States Code.Sec. 408. DenitionsFor purposes of this title – (1) the term ‘Administration’ means the Small Business Administration;(2) the term ‘Administrator’ means the Administrator of the Small Business Administration;(3) the term ‘control’ means exercising the power to make policy decisions concerning a business;(4) the term ‘Council’ means the National Women’s Business Council, established under section 405;(5) the term ‘Interagency Committee’ means the Interagency Committee on Women’s Business Enterprise, established under section 401;(6) the term ‘operate’ means being actively involved in the day-to-day management of a business;(7) the term ‘women’s business enterprise’ means--(A) a business or businesses owned by a woman or a group of women; or(B) the establishment, maintenance, or development of a business or businesses by a woman or a group of women; and(8) the term ‘women-owned business’ means a small business which a woman or a group of women--(A) control and operate; and(B) own not less than 51 percent of the business.Sec. 409. Studies and Other Research(a) In general – The Council may conduct such studies and other research relating to the award of Federal prime contracts and subcontracts to women-owned businesses, to access to credit and investment capital by women entrepreneurs, or to other issues relating to women-owned businesses, as the Council determines to be appropriate.(b) Contract authority – In conducting any study or other research under this section, the Council may contract with one or more public or private entities.Sec. 410. Authorization of Appropriations(a) In general – There is authorized to be appropriated to carry out this title $1,000,000, for each of Fiscal Years 2001 through 2003, of which $550,000 shall be available in each such scal year to carry out section 409 [of this note].(b) Budget review – No amount made available under this section for any scal year may be obligated or expended by the Council before the date on which the Council reviews and approves the operating budget of the Council to carry out the responsibilities of the Council for that scal year.[Section 409 repealed, sections 410 and 411 redesignated as 409 and 410, and amended by Pub.L. 106-554, § 1(a)(9) [Title VII, § 703 to 705], Dec. 21, 2000, 114 Stat. 2763, 2763A-701.]LEGISLATIVE MILESTONESOCTOBER 1974 Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.)States that it is unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, religion, national origin, sex, marital status, or ageOCTOBER 1988 H.R. 5050 Women’s Business Ownership ActEstablished NWBC, the Women’s Business Center program, and the Ofce of Women’s Business Ownership (OWBO)Eliminated all individual state laws requiring women to have male relatives co-sign a business loanDECEMBER 1991 H.R. 2629 Women’s Business Development Act (P.L. 102-191) Authorized the SBA to provide nancial assistance to private organizations to conduct three-year demonstration projects for the benet of small business concerns owned and controlled by women; the projects shall provide nancial assistance, management assistance, and marketing assistanceOCTOBER 1994 S. 1587 Federal Acquisition Streamlining Act (P.L. 103-355)Established a federal government procurement goal of 5 percent of federal spending for rms owned and controlled by women.

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7OCTOBER 1994 Small Business Reauthorization and Amendments Act (P.L. 103-403) Changed the structure of NWBC to include four small business owners, two of the president’s party and two not of the president’s party, and ve representatives from national women’s business organizationsDECEMBER 1997 Small Business Reauthorization Act (P.L. 105-135) Expanded NWBC membership numbers from 9 to 15 individualsDECEMBER 2000 Small Business Reauthorization Act (P.L. 106-554) Established a women’s procurement program to assist the government in meeting its 5 percent women-owned small business contracting goalThe SBA created the Ofce of Federal Contract Assistance for Women Business Owners to implement the procurement provisions of the Reauthorization ActJANUARY 2013 National Defense Authorization Act for Fiscal Year 2013 (P.L. 112-239)Authorized sole source authority for the Women Owned Small Business (WOSB) Program and removed the limitations on contract values eligible for considerationDECEMBER 2014 National Defense Authorization Act for Fiscal Year 2015 (P.L. 113-291)Reinstated the limitation on contract values eligible for considerationNote: In October 2015, the SBA issued a rule to implement sole source authorityDECEMBER 2016 S. 2943 National Defense Authorization Act for Fiscal Year 2017 (P.L. 114-328) Required the Ofces of Small and Disadvantaged Business Utilization to provide small business contractors assistance in nding resources for education and training on compliance with contracting regulations after a contract is awardedAlso requires the SBA to provide, in print and on the SBA website, a list of resources concerning education and assistance for contracting regulation compliance to small business development centers and entities participating in the Procurement Technical Assistance Cooperative Agreement ProgramJUNE 2017 H.R. 2810 National Defense Authorization Act for Fiscal Year 2018 (P.L. 115-91)Improved reporting on small business procurement goals for concerns owned and controlled by womenStates that the Secretary of Defense shall establish procedures to ensure that any notice or direct communication regarding the registration of a small business concern on a website maintained by the Department of Defense relating to contracting opportunities contain information about cost-free federal procurement technical assistance services MAY 2018 House Passes H.R. 1680 Women’s Business Centers Improvements Act Revised the duties of the Ofce of Women’s Business Ownership and declared it is the Ofce’s mission to assist women entrepreneurs to start, grow, and compete in global markets by providing quality support with access to capital, access to markets, job creation, growth, and counseling

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8 | National Women’s Business Council | Annual Report 2018DATA2016 ANNUAL SURVEY OF ENTREPRENEURS The NWBC regularly provides stakeholders with snapshots of the women’s business ownership landscapes. One such snapshot is provided through the U.S. Census Bureau’s Annual Survey of Entrepreneurs (ASE) – an in-depth report providing the most current data regarding women-owned employer rms. The ASE began in 2014 through a public-private partnership between the Census Bureau, the Ewing Marion Kauffman Foundation, and the Minority Business Development Agency. It uses selected economic and demographic characteristics for businesses and business owners by gender, ethnicity, race, and veteran status for employer rms only. These rms play a vital role in the U.S. economy through sales and job creation. Information gleaned from the ASE has many uses. For example, government program ofcials can assess business assistance needs and allocate available program resources. Agencies can use the data to help plan, direct, and assess programs aimed at disadvantaged groups. Trade associations can assess women-owned businesses by industry and area and educate other industry associations, corporations, and government entities. Consultants and researchers can analyze economic and demographic shifts in ownership and performance. Individual business owners can compare their operations to similar rms, compute their market share, and assess their growth and future prospects.The ASE introduces a new module of questions each year to capture information on relevant business trends. The 2016 ASE featured questions focused on business banking relationships, practices in obtaining and using advice from professional and nonprofessional sources, as well as the effect of regulations on business growth. Below is a synopsis of just a few of the top ndings from this latest survey.EMPLOYER FIRMS BY BUSINESS OWNER GENDER, 2016In 2016, women-owned employer rms brought in over 1.45 trillion in sales. These rms represent 21 percent of all privately held employer rms.WOMEN-OWNED FIRMS1,118,86321.0%of Employer Firms12.0%Share of SalesSales: 1,451,115,521MEN-OWNED FIRMS3,434,78264.4%of Employer Firms79.2%Share of SalesSales: 9,404,455,679 EQUALLY OWNED FIRMS 779,79914.6%of Employer Firms8.6%Share of SalesSales: 1,018,131,621

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9EMPLOYMENT BY BUSINESS OWNER’S GENDER, 2016Women-owned businesses are generating more jobs than ever. In 2016, women created nearly 9.4 million jobs. This is an increase of nearly 10 percent since 2014.WOMEN-OWNED FIRMS9,359,56716%of employment8employees per businessPayroll per employee:$33,993MEN-OWNED FIRMS42,538,96572%of employment12employees per businessPayroll per employee:$43,018 EQUALLY OWNED FIRMS 6,836,99912%of employment9employees per businessPayroll per employee:$31,116PERCENT CHANGE OF WOMEN-OWNED EMPLOYER FIRMS BY RACE/ETHNICITY, 2014 – 2016From 2014 to 2016, minority women-owned employer rms grew at a rate that was nearly double that of all women-owned employer rms. Highest individual growth rates can be found in Hispanic and American Indian and Alaska Native businesses with increases of 16.3 percent and 14.7 percent respectively.From 2014 to 2016, minority women-owned employer rms grew at a rate that was nearly double that of all women-owned employer rms.Note. NHOPI = Native Hawaiian and Other Pacic IslanderPERCENT CHANGE OF EMPLOYER FIRMS BY VETERAN STATUS AND BUSINESS OWNER GENDER, 2014 – 2016From 2014 to 2016, there was a substantial increase in the number of employer rms owned by veteran women. Veteran women-owned employer rms grew at a rate that was nearly double that of non-veteran women-owned employer rms. Veteran-ownedCivilian-owned

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10 | National Women’s Business Council | Annual Report 2018POLICY RECOMMENDATIONSThe NWBC makes the following public policy recommendations to the U.S. President, the U.S. Congress, and the U.S. Small Business Administration in these issue areas:• Federal Procurement• Veteran Entrepreneurship• Crowdfunding• Data Collection by the U.S. Census Bureau• Rural Entrepreneurship• WBC Program• Interagency Committee on Women’s Business Enterprise• The White House Conference on Small Business (WHCSB)POLICY RECOMMENDATIONS RELATED TO FEDERAL PROCUREMENT1. Adopt Training for WOSBs on the WOSB Procurement Program.According to research presented in the NWBC report Understanding the Landscape: Access to Markets, the U.S. Government is the largest buyer of goods and services in the United States. On average, 20 percent of the country’s gross domestic product (GDP) is based on federal procurement.1 Women-owned businesses continue to lag in acquiring federal contracting dollars. According to NWBC’s rst ever annual report released in 1989, women-owned businesses received slightly over 1 percent of federal contracting dollars , which was signicantly lower than the percentage of available vendors represented by women.2 By 1994, the percentage of federal dollars awarded to women-owned businesses only increased to 2.8 percent.3 Despite the fact that nearly 40 percent of all U.S. businesses are currently women-owned, in 2017 women-owned businesses only received 4.7 percent of total U.S. federal contracts. While the SBA awarded 20.8 million contract dollars to women-owned small businesses that year, accounting for a more than $1 million increase from the year prior, the SBA ultimately failed to meet its procurement goal of 5 percent – falling short by 0.3 percent. To assist the federal government in meeting its 5 percent goal of contracting with women-owned companies, the WOSB Procurement Program, administered by the SBA, was implemented in 2011. In 2015, sole source authority, an option that allows federal contracting ofcers to expedite contracting with women-owned companies, was added to the program. It was not until 2015 that the Government reached its 5 percent WOSB goal for the rst time. In Fiscal Year 2017, only 4.7 percent of federal contracting dollars went to WOSBs.1 https://www.WhiteHouse.gov/omb/budget/Historicals2 http://Tiny.cc/NWBC-1989AnnualReport3 http://Tiny.cc/NWBC-ExpandingBizOpps1995

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11FY2017 Total Federal Government Prime Contract Spend4Total federal government achievements by dollars and percentages for all categories are as follows:Category Goal2013 2014 2015 2016 2017$(B) %SB$ (B) %SB $(B) %SB$ (B) %SB$ (B) %SBSmall Business 23% $83.1 23.4% $91.7 24.9% $90.7 25.7% $99.7 24.4% $105.7 23.8%Small Disadvantaged Business 5% $30.68 .6% $34.79 .5% $35.4 10.1% $39.17 9.4% $40.29 .1%Service Disabled Veteran Owned Small Business3% $12.03 .4% $13.53 .7% $13.83 .9% $16.34 .0% $17.94 .1%Women Owned Small Business 5% $15.44 .3% $17.24 .7% $17.85 .1% $19.74 .8% $20.84 .7%HUBZone 3% $6.21 .8% $6.71 .8% $6.41 .8% $6.91 .7% $7.31 .7%The above chart accounts for total federal spend.In order to achieve the 5 percent goal, NWBC recommends and supports a continued effort to educate WOSBs in navigating the federal market segment. An example of an effective public-private partnership that does just that – a longstanding partnership between the SBA and NWBC council member Women Impacting Public Policy (WIPP) – is the ChallengeHER program, which assists and educates women business owners on the process of becoming a federal contractor. Heavily supported by the SBA, ChallengeHER has reached almost 19,000 women business owners since its inception.2.Expand Reporting Requirements to Include Five, Rather Than Three, Years of Revenue for the Purpose of Assessing Small Business Program Eligibility. Set-aside programs allow government agencies to restrict competition for select contracting opportunities to specic subgroups of business owners. Federal procurements may be total small business set-asides – in which case the full value of the contract may only be awarded to a small business – or partial small business set-asides, meaning that a portion of the contract is reserved exclusively for small businesses. This system allows small businesses to compete for federal contracts among their peers without the challenges and obstacles of competing with larger and better resourced corporations. The denition of what is considered a “small business” varies by the North American Industry Classication System (NAICS) code. To determine classication, the SBA uses either three-year revenue averages or number of employees as a metric for determining whether a rm ts into the small business category for its industry. The SBA publishes a table of small business size standards matched to NAICS codes, which shows the varying notions of “small” relative to industry. In some industries, such as manufacturing, rm size is determined solely by number of employees.Yet, as small businesses begin to grow in employee numbers and revenue, many federal government contracts, which were instrumental in their past sustainability and growth, become out of reach. Firms that have over $38.5 million in revenue are often forced to compete in the federal market with rms that have over $500 million in revenue. According to research shared at the House Committee on Small Business’s hearing ‘No Man’s Land: Middle Market Challenges for Small Business Graduates,’5 contractors who outgrow their small business size often face undesirable options such as selling their business, attempting to stay small, or going out of business. Expanding the requirements to allow businesses to report their average earnings over a ve-year period rather than three would ensure that businesses are ready for more robust competition before they decide to expand past the small business category. This would also ensure that spike years in receipts, which are common in growth-oriented businesses, do not have an adverse effect on a company’s ability to bid on a small business contract. The current legislative proposal would also create a pathway to success for women-owned rms that outgrow small business size status and hence, their ability to utilize set-aside programs. This would allow larger sized small businesses more runway before transitioning out of the small business set-aside program and into full and open competition. This additional period should result in a higher likelihood of business growth and survival, which is benecial for the economy. 4 http://Tiny.cc/SBA-FedGovGoal5Years 5 http://Tiny.cc/HouseComm-NoMansLand

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12 | National Women’s Business Council | Annual Report 2018POLICY RECOMMENDATION ON VETERAN ENTREPRENEURSHIPIncrease Technical Support Regarding Access to Start-up Capital for Veteran Entrepreneurs.According to the NWBC report entitled Veteran Women & Business: A Data Resource,6 veteran women owned rms grew at a rate of almost 295 percent from 2007 to 2012. This population growth exceeds any other major demographic segment in the entrepreneurial economy. As of 2012, veteran women accounted for 15 percent of all veteran-owned rms in the United States. These veteran women owned businesses earn almost $18 billion in annual receipts, translating to over 102,000 jobs. The veteran entrepreneurial community supports programs created and fostered by the SBA’s Ofce of Veterans Business Development, which includes Veterans Business Outreach Centers (VBOCs). These veteran programs are available to veterans, transitioning service members, National Guard and Reserve members, and military spouses. VBOCs offer veterans and their spouses access to business counseling and training at 22 locations across the United States. Counseling and training are available specically to women veterans and military spouses looking to start or grow a business through the Women Veteran Entrepreneurship Training Program, as well as through three grantee groups – LiftFund, based in San Antonio, Texas; Bunker Labs, based in Chicago, Illinois; and Veteran Women Igniting the Spirit of Entrepreneurship, operated by the Institute for Veterans and Military Families at Syracuse University.The NWBC recommends that these groups work together to improve and expand entrepreneurial opportunities for veteran women and veteran spouses, specically as it relates to start-up capital and technical support.77 We also encourage the development of a federal program that assists veterans with the transition from military life to the business sector through locally offered training and mentorship. Coursework should focus on developing multi-year business growth plans, obtaining necessary capital, and securing federal contracts.POLICY RECOMMENDATIONS RELATED TO CROWDFUNDING1.OWBO Should Leverage Crowdfunding as a Key Tool for Women Entrepreneurs to Fully Engage Capital Resources When Starting or Growing a Business. Crowdfunding is an alternative nance solution through which a venture raises small amounts of money from many contributors – usually via online platforms. Particularly for women-led businesses and startups, crowdfunding could serve as a viable alternative or supplemental nancing solution, as female entrepreneurs have reportedly been underserved by traditional capital sources. NWBC research reports Crowdfunding as a Capital Source for Women Entrepreneurs: Case Study of Kiva, a Non-prot Lending Crowdfunding Platform8 and Crowdfunding as a Capital Source for Women Entrepreneurs: Case Study of Kickstarter, a Reward-based Crowdfunding Platform9 show that crowdfunding has signicant potential in reducing traditional barriers to women nancing business ventures, particularly from 6 http://Tiny.cc/NWBC-VeteranWomen20177 US Small Business Administration Oce of Veterans Business Development. (2017) Report to Congress on Alternative Use of Education Benets.8 http://Tiny.cc/NWBC-Crowdfunding20189 http://Tiny.cc/NWBC-Crowdfunding2018

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13angel investors and venture capitalists. NWBC research demonstrates that on crowdfunding platforms like Kickstarter, women are 9 percent more likely to receive funding than men. Yet, women’s participation rates on most crowdfunding platforms, including Kickstarter, are far below male participation rates. Low participation rates indicate a signicant need to educate the population – specically women business owners – about this platform, as crowdfunding appears to be a promising source of capital for female entrepreneurs. The success experienced by women having utilized crowdfunding as an alternative business nancing source, coupled with the low rates of women participating in the platform, highlights the untapped potential of crowdfunding as the change-maker for issues related to access to capital. Percentage of Employer Firms Receiving Assistance from Government-Supported Technical Assistance ProgramAnnual Survey of Entrepreneurs, 2016OWBO should consider launching a crowdfunding awareness campaign. NWBC’s analysis of the ASE has shown that women are more likely than men to look to the government for training and mentorship. For example, they are more than twice as likely to seek advice from a government technical assistance program when compared to male-owned rms. This leads us to believe that government-sponsored crowdfunding awareness campaigns that are geared toward women would not only be successful, but are essential to the future of female-owned businesses. This is particularly true for lower income female entrepreneurs, who may experience a higher level of difculty in raising capital through traditional sources.According to NWBC crowdfunding research, women would benet from awareness campaigns that educate about:• The various crowdfunding platforms currently available• Which platforms are best suited for specic industries and businesses• How to effectively plan a campaign for a strong launch• How to leverage social networking in relation to crowdfunding• How to set realistic goals NWBC recommends that OWBO utilize NWBC research when devising a crowdfunding awareness campaign for women pertaining to major determinants of success. Key educational components should include: • Coursework on how to select the right crowdfunding platform, as some are appropriate for varying stages of one’s business• Coursework on how to leverage one’s social network for an effective crowdfunding campaign • Coursework on understanding the importance of focused activity during the rst 30 days of a crowdfunding campaign • Coursework on how to develop realistic, but ambitious crowdfunding goals 2.Entrepreneurial Support Systems in Rural Areas Should Promote Crowdfunding as an Essential Resource to Women Entrepreneurs Who Often Lack Access to Mainstream Forms of Capital. Both awareness-raising campaigns and education programs should include tactics to reach underserved regions, which include rural populations. Research shows that crowdfunding investments and monies disproportionately flow to the same regions to which traditional nancing sources flow – regions such as California and New York. Previously, researchers found that a strong correlation exists between state-level venture capital and raising capital in crowdfunding. In this respect, awareness campaigns and programs with a specic target market of female entrepreneurs with small-scale businesses located in underserved regions are paramount. Given the importance of rural entrepreneurship to rural job creation and growth, NWBC is currently conducting an analysis of the challenges facing rural women entrepreneurs and the policies and solutions that should be considered as a result. Our research will explore issues such as access to technology and broadband – which is essential for launching a successful crowdfunding campaign – and work with the OWBO and other federal resource partners to better support rural entrepreneurs. 3.Continue to Monitor the Benets of Crowdfunding to Women in Science, Technology, Engineering, and Math (STEM). NWBC ndings show that even after controlling for fundraising goal amounts, women outperform men in raising money in the technology and gaming categories which are industries in which women are largely underrepresented. Regardless of the underlying

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14 | National Women’s Business Council | Annual Report 2018reasons for this phenomenon, these results suggest that crowdfunding may present a unique opportunity for women in the STEM elds. Previous studies have shown that women in STEM elds are less likely to start their own businesses. Other research suggests that women have been less likely to commercialize their STEM research or develop and launch products in companies they own compared to their male counterparts. While future research efforts are needed to further investigate the potential impact of crowdfunding on women in STEM, the initial results are promising.POLICY RECOMMENDATION ON DATA COLLECTION BY THE U.S. CENSUS BUREAUThe U.S. Census Bureau Should Implement the Annual Non-Employer Statistics by Demographics (NESD) Report to Ensure the Economic Contributions of Women-Owned Firms Without Employees Are Not Overlooked. NWBC supports U.S. Census Bureau business data collection efforts that will improve data validity, geographic specicity, and/or collection frequency. Prior to HR 5050, the Women’s Business Ownership Act, women business owners were essentially invisible to the federal business census, only accounting for sole proprietorships. In 1977, that changed when the U.S. Government provided the rst ever tabulations of business ownership by gender. The U.S. Census Bureau began a regular effort to ensure women-owned businesses were consistently reflected in the economic census. This data collection effort demonstrated that women-owned businesses were growing at rates that far exceeded male-owned businesses and thus growing in economic power as well as in sheer numbers. In the period between 1987 and 1992, sales and receipts of women-owned companies increased by an impressive 131 percent, reaching $643 billion. When C-corporations are included, that number increases to $1.6 trillion – more than the total GDP of all but a few countries on the globe.The recently released American Express 2018 State of Women-Owned Businesses report – which makes its projections based on data from the most recent Survey of Business Owners (SBO) – estimates that there are 12.3 million women-owned businesses. These entities account for 40 percent of all U.S. businesses and generate an estimated $1.8 trillion in revenue, with $386.6 billion in revenue coming from minority women-owned businesses. Undoubtedly, the economic impact of women’s business enterprise is still growing. Data estimates provided through the SBO allow for insight into probable growth trends and economic impact that may occur between SBO reporting years. That said, more timely and reliable data would increase validity and allow for more accurate analysis of women-owned rms. To address this concern, the ve-year SBO and the ASE – two business surveys traditionally leveraged by the NWBC – are being consolidated into a single new survey, the Annual Business Survey (ABS). The ABS has been funded by the U.S. Census Bureau and the National Science Foundation’s National Center for Science and Engineering Statistics. The ABS will provide yearly numbers, which will improve the accuracy of research data surrounding women-owned rms. The new ABS will function as a vital tool for generating policy recommendations for, and analyzing the impact of, employer rms by gender, race, ethnicity, and veteran status. Unfortunately, while the ABS will serve as the continued resource for employer statistics by business owner demographics, it will not cover non-employer rms. This leaves a clear gap in data, as employer rms are only one piece of a larger picture. For example, as of 2012, nearly 90 percent (or 8.8 million) women-owned rms had zero employees. Yet, these rms have contributed combined revenues exceeding $229 billion annually to the U.S. economy. Due to the limited scope of the ABS, these rms and their signicant contribution to the U.S. economy will not be counted. It remains critical to the continued success and advancement of women entrepreneurs and women business owners that all women-owned rms be counted, not solely employer rms.The U.S. Census Bureau is attempting to ensure non-employer rms continue to be counted by developing a new and innovative, yet currently unfunded, data product known as the Annual NESD Report. This survey will allow the NWBC and other stakeholders to analyze gender, race, Hispanic origin, veteran status, age, citizenship, and foreign-born status of non-employer business owners. Without the type of timely and accurate data the NESD could provide, research numbers from the NWBC would be projections and estimates at best, and would not provide the full picture of success of women’s business enterprise. The NESD would provide the necessary data to account for all women-owned businesses in the United States, the progress made by those businesses, and the barriers that remain to

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15their establishment and growth. The NWBC believes that this new survey will make a substantive contribution to the provision of critical insights for policy and programmatic decision making that will meet the needs of women business owners throughout the United States.WE CANNOT COUNT WHAT WE DO NOT MEASURE.In fullling its mission, NWBC is charged with, in relevant part, promoting and assisting the development of a women’s business census and other surveys of women-owned businesses. NWBC is aware of the vital role non-employer rms play in the U.S. economy and supports the U.S. Census Bureau’s efforts to develop and implement the NESD, which will improve data validity, geographic specicity, and collection frequency of non-employer rms.POLICY RECOMMENDATION ON RURAL ENTREPRENEURSHIPConduct Research on the Unique Challenges and Opportunities Faced by Women Entrepreneurs in Rural Areas, to Include Research That Denes Rural Entrepreneurship, Explores Access to Capital and Market Barriers, and Examines Access to Technology Such as Broadband. One in six of our nation’s entrepreneurs, including both men and women, live outside of coastal urban areas.10 According to the U.S. Senate Committee on Small Business and Entrepreneurship hearing discussing the challenges and opportunities of running a small business in rural America, rural rms face unique challenges that may inhibit growth.11 Research shows that rural rm owners indicate their location causes difculty in attracting outside equity investment due to the lack of a large concentration of investors. Specically, these individuals are not located in regions known for having larger amounts of traditional nancing resources such as those found in New York and California. Entrepreneurs with businesses based in rural areas, with limited access to support organizations and commercial or community banks, face an even greater challenge in accessing training, mentoring, and capital. Research investigating the challenges and opportunities rural entrepreneurs face by gender is still burgeoning, and research conducted to date does not differentiate between men and women entrepreneurs. As a whole, research does show that in comparison to the general population, there is a greater rate of decline in entrepreneurial activity in rural areas. For example, recent research completed by the SBA’s Ofce of Advocacy reveals that from 1988 to 2016, there has been a 20 percent decrease in the rate of entrepreneurship in rural areas.12 We know that rural rms have the potential to produce supplemental forms of income for individuals, reduce unemployment rates, and ultimately spur economic activity that may result in a more developed rural economy. Subsequently, these declining rates may have a profound effect on local rural economies as well as local innovation. Questions emerge as to why entrepreneurial declines are especially robust for rural business owners and how these declines are represented by gender. Inquiries should also be made concerning what policies, programs, or training may be initiated to curb decline and support the development and growth of rural entrepreneurs. To establish sound policy, research investigating women owned businesses in rural areas is required. The NWBC is spearheading this effort with original research on rural women entrepreneurs. POLICY RECOMMENDATIONS ON THE WBC PROGRAMPresident James E. Carter, Jr. issued Executive Order 12138 on May 18, 1979 establishing a National Women’s Business Enterprise Policy and prescribing arrangements for developing, coordinating, and implementing a national program for women’s business enterprise. Later that same year, led by the executive order and in an effort to fulll its goal of fostering participation by women entrepreneurs in the U.S. economy, particularly those who had been historically underserved or excluded, the SBA established the OWBO, which is currently housed within the Ofce of Entrepreneurial Development. Title II of the Women’s Business Ownership Act of 1988 directed the SBA to “provide nancial assistance to private organizations to conduct demonstration projects for the benet of small business 10 http://Tiny.cc/SBA-RetreatOfRural201711 http://Tiny.cc/SenateComm-RuralHearing1712 http://Tiny.cc/SBA-RetreatOfRural2017

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16 | National Women’s Business Council | Annual Report 2018ClientFY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017concerns owned and controlled by women.” Therefore, in 1988, the OWBO created Women’s Business Centers (WBCs), which have locations in nearly every state in America, to provide entrepreneurial development services designed to help women overcome barriers to business creation and growth. WBCs conduct outreach through a number of programs coordinated through SBA district ofces. These programs offer business training and counseling services – available in a number of languages and dialects – both in person and online. According to the SBA, businesses that receive technical assistance from WBCs have signicantly higher survival rates than those without similar support. These businesses also have a direct effect on their communities, as their success bolsters local economies.In Fiscal Year 2017, more than 100 WBCs nationwide provided technical assistance training services to 114,310 clients, and counseling services to 26,318 clients – well exceeding the target of 22,000. WBCs typically employ long-term training courses that target nascent entrepreneurs and address business and nancial planning subjects to help women entrepreneurs acquire nancial literacy. Counseling services assists clients with accessing loans, federal contracts, and exporting activities. WBC Clients ServedClients Trained 115,805 114,931 114,310 119,351 120,341 122,986 114,310Clients Advised 23,118 22,020 19,455 20,686 20,375 22,429 26,318Source: SBA, , 84.In 2013, the SBA surveyed WBC clients, drawing a return rate of 17.7 percent.Found Services from Counselors "Useful" or "Very Useful"Changed Practices or Strategies Based on Counseling5 Most Changed PracticesBusiness Plan Flow Analysis Financial Strategy Marketing Plan Management Style Cash A 2018 study conducted by the Association of Women’s Business Centers (AWBC),a member organization of the NWBC, examined organizational structure, board involvement, and strategic planning. This study built on research previously conductedby the NWBC on the internal and external factors that influence the capabilities and performances of WBCs. Results from the current study will also be used to provide guidance that will assist the OWBO in future decision making for WBCs pertaining to outreach efforts, support of new WBCs, and additional services for existing WBCs. The study applied a mixed-methodology approach, incorporating a survey, environmental scan, and in-depth interviews with WBC leaders discussing the most salient issues affecting the program. Survey results demonstrated that: • For many WBCs, there is a barrier between leadership goals and actual resources.• High pressure environments, coupled with limited staff and relatively high director-level turnover, create a perpetually challengedsituation that leads to signicant impacts on center sustainability and growth.• WBC leaders felt that the reporting requirements occupied more of their time than program delivery and noted complex grantspecications to be confusing and burdensome.• There was a common theme expressed by WBC leaders of being left without resources or direction during the center start-upphase. Leaders of centers that were either new or small in terms of staff noted a constant need to “reinvent the wheel” and felt thatmore established centers likely had programs and processes already in place that could be shared with and implemented at theircenters.• WBCs require additional funding and support commensurate with the economic benet and service they provide to thecommunities in which they are located.

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17Based on the results noted above, and the NWBC’s conversations with stakeholders, the NWBC supports the following recommendations to the OWBO and the AWBC for consideration:1.The OWBO should consider developing, and distributing to the WBCs, a complete and comprehensive guide to managing the SBA Grant process. This guide should include bifurcated information for “getting started” and maintenance of the grant, both to ensure quick and easy access to relevant rules, regulations, and common forms and to prevent duplication of effort when managing standardized processes. 2. The OWBO, in conjunction with the AWBC, should consider administering a WBC community network, where WBC leaders can post questions and receive answers from the community, as well as a formalized and well-advertised mentorship program. This would address challenges with SBA responsiveness and would serve as a centralized, easy-access resource for all WBC leaders and staff.3.The AWBC should also consider formalizing the mentorship program to include “matchmaking” among similarly situated centers. This formalization should consider the hosted paradigm, including accounting for differences in host structure and control when pairing leaders, and matching successful centers to sub-performing organizations and/or organizations that may be interested in, or currently starting, a new WBC.4.The OWBO and the AWBC have worked throughout the FY2018 to remove unnecessary reporting requirements. The SBA should continue considering information presented by the AWBC that encourages the re-evaluation of additional requirements WBC leaders nd burdensome, such as complex grant specications.5. The AWBC should consider developing guidelines for establishing a synergistic and symbiotic relationship between host organizations and WBCs, to include standardized host/WBC operating agreements and planning tools that clearly establish the role of both the host and the WBC leader in WBC operations. Some recommendations made above may provide implementation challenges for WBCs with controlled host relationships. To that end, in a hosted relationship, there may be additional considerations when implementing strategies designed to strengthen the WBC network and streamline WBC operations. This is a point requiring additional, related research. POLICY RECOMMENDATION ON INTERAGENCY COMMITTEE ON WOMEN’S BUSINESS ENTERPRISEReconvene the Interagency Committee on Women’s Business Enterprise.The Interagency Committee on Women’s Business Enterprise was established in 1979 as a means to coordinate, but not duplicate, the efforts of federal departments and agencies examining key issues of concern to women entrepreneurs. Over the two decades that followed, the NWBC worked diligently with the Interagency Committee to better solidify the partnership between women business owners and policymakers. A series of task forces, comprised of representatives from 10 relevant federal agencies and departments, were conducted to closely examine existing programs and policies with the intent of developing a resource-network for women launching new ventures. Federal efforts in the years following the establishment of the committee began to mirror its key goals, including ways to expand credit access, increase federal procurement opportunities for women entrepreneurs, and provide business training and assistance for women seeking crucial tools to help their businesses thrive. For example, the SBA and 11 other agencies initiated the Women’s Procurement Pilot Program in 1994, which worked alongside women’s organizations to educate members on conducting business with the government. The following year, the DoD notably sponsored its rst women-owned business conference, where more than 200 participants studied procurement practices and gained valuable facetime with DoD purchasing agents.

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18 | National Women’s Business Council | Annual Report 2018Advocacy for women-owned businesses must become a more integral part of the federal government infrastructure as it crafts policy and fosters business growth in the United States. A forum like the Interagency Committee ensures that women’s economic development is promoted in the policies and initiatives of every relevant federal agency. The NWBC supports reconvening the Interagency Committee on Women’s Business Enterprise, but does not consider a legislative reauthorization to be necessary at this time. The NWBC will initiate a forum that will convene representatives from across the Federal Government to concentrate and improve, but not duplicate, public sector initiatives that support women’s business ownership.POLICY RECOMMENDATION ON THE WHITE HOUSE CONFERENCE ON SMALL BUSINESSAuthorize a Fourth WHCSB. Women business owners were barely recognized in the 1980s despite growing data pools on their contributions to the U.S. economy. A groundbreaking effort to establish credibility on a national platform began with the White House Conference on Small Business. The number of women delegates participating in the 1986 WHCSB almost doubled that of the 1980 WHCSB – increasing from 16 percent in 1980 to 29 percent in 1986. The shift was a clear indication that women-owned rms comprised the fastest growing segment of the small business community.Discussions at the 1986 WHCSB paved the way for the passage of H.R. 5050 in 1988, which led to the establishment of the NWBC and the WBC program. Out of the hundreds of policies proposed to the Federal Government, 26 of 27 policy positions from the National Association of Women Business Owners (NAWBO) were included in the nal conference report. These priorities – including access to credit, training support, ofcial advocacy, and data expansion – became the foundation of this milestone legislation. Through participation in the WHCSB, small business owners across the country have the opportunity to deliberate on current and potential government policies that help businesses thrive. Each of the three previous conferences produced a list of 60 comprehensive policy recommendations for Congress and the Administration to consider. The NWBC would support the continued delivery of such a list as a product of a fourth conference.

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19STAKEHOLDER AND PUBLIC ENGAGEMENTENGAGEMENTS | PUBLIC MEETINGSEach year, the Council hosts public meetings where members announce updates on new priorities; share latest research and policy; and bring together policymakers, entrepreneurial development support staff, thought leaders, corporate partners, women business owners, and other stakeholders. First and foremost, these meetings are held to address critical barriers impacting women entrepreneurs and to begin the process of creating policy that addresses said barriers by engaging key stakeholders from throughout the entrepreneurial ecosystem. Additionally, public meetings serve as a forum to both identify opportunities for support and foster relationship building between all parties and stakeholders. DECEMBER 2017 PUBLIC MEETING RECAP: Accelerating the Future of Women Entrepreneurs Tiny.cc/NWBC-YouTubeDec2017MtgThe December public meeting served as the Council’s rst public meeting of the scal year. After opening remarks by then-Council Chair Carla Harris, Council Members Kari Warberg Block and Rose Wang presented updates on NWBC research, communications, and engagements conducted in 2017, which included the contribution of important information on private markets and women in corporate supplier diversity programs; the expansion of the denition of necessity entrepreneurship for business origination; the development of an original effective entrepreneurial ecosystem framework; the development of an NWBC survey; and the launching of a regional solutions lab model that allows stakeholders to help women business owners succeed in their local communities. The Council released research reports on supplier diversity programs; commercialization among women in STEM (Science, Technology, Engineering and Mathematics) elds; business incubators and accelerators; crowdfunding; social entrepreneurship; millennial, Black, and Hispanic women entrepreneurship; necessity as a driver of women’s entrepreneurship; and veteran women in business. Following the updates, the Council welcomed Allen Gutierrez, Associate Administrator of the Ofce of Entrepreneurial Development at the SBA. Allen noted the accomplishments of the SBA and women business owners, including another successful year of the InnovateHER pitch competition and the continued strengthening of resource partners like the WBCs. He also praised the Ignite Tour, a nationwide effort led by Administrator Linda McMahon to meet both with all SBA district ofces and with entrepreneurs to identify successes and opportunities for growth. During the meeting, Council Member Kari Warberg Block was recognized for her tremendous service and commitment to the Council and to women entrepreneurs as her three-year term was ofcially at an end.

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20 | National Women’s Business Council | Annual Report 2018MARCH 28, 2018 PUBLIC MEETING RECAP: Accelerating Access To Capital: Crowdfunding as a Solution to Fund HER Business #CAPITAL4HERBIZ | Tiny.cc/NWBC-YouTubeMar2018MtgThe March public meeting kicked off with a featured keynote from Kathy McShane, Assistant Administrator for OWBO at the SBA. McShane discussed the importance of the OWBO’s more than 100 Women’s Business Centers, which are located throughout the United States and are fundamental to the creation and growth of women-owned rms through the provision of comprehensive training and counseling. Following the keynote, Council Members Kimberly Blackwell and Deborah Rosado Shaw shared updates on NWBC’s second quarter communications, engagement, and research activities, which included improvements to the NWBC website, NWBC public comment on the U.S. Census Bureau’s business data developments and Annual Business Survey, and the release of several reports on crowdfunding and access to capital. NWBC’s Associate Director of Policy and Research, Dolores Rowen, then presented an overview of the Council’s two reports on crowdfunding, both of which shed light on lending and reward-based crowdfunding platforms for women entrepreneurs. Once the background and research on crowdfunding had been shared, Council Member Jen Earle – together with representatives from crowdfunding groups Kiva and Kickstarter – moderated a discussion on crowdfunding as a solution to Fund HER Business. During the discussion, speakers shared ways in which women use crowdfunding sources to meet their business capital needs and how NWBC’s research ndings relate to the broader impact of crowdfunding. The meeting ended with an acknowledgment of two departing Council Members, Dr. Marsha Firestone of the Women Presidents’ Organization and small business owner Deborah Rosado Shaw. FISCAL YEAR 2018 NWBC ENGAGEMENTS IN REVIEWOCTOBER 201711Research ReleaseNecessity as a Driver of Women’s Entrepreneurship: Her Stories1317AwardLuncheonFormer Director of Policy and Research Annie Rorem spoke at the Maryland Women’s Business Center’s award luncheon on behalf of NWBC. 18Roundtable EventNWBC Associate Director of Policy and Research, Dolores Rowen, spoke at the Youth Entrepreneurship Roundtable hosted by the D.C. Department of Small and Local Business Development’s Ofce of Innovation and Equitable Development. There, she discussed the NWBC’s report, Millennial Women: The Future of Entrepreneurship in America, which elevates current entrepreneurial trends related to millennials such as declining rates in entrepreneurship and the possible impact of student debt on millennial entrepreneurship. 20Award LuncheonFormer Council Chair Carla Harris spoke at the Connecticut Women’s Business Development Council’s 20th anniversary gala luncheon and awards ceremony. She also participated in a reside chat with the group’s president and CEO Fran Pastore to discuss entrepreneurship for women and the work of the NWBC. NOVEMBER 20171Research ReleaseVeteran Women & Business: A Data Resource1417 Twitter ChatThe NWBC hosted a ‘Necessity as a Driver of Women’s Entrepreneurship’ Twitter chat where NWBC staff shared tips on how women can learn about entrepreneurial opportunities, including the framework of necessity entrepreneurship. DECEMBER 20174 Twitter ChatCouncil Member Rose Wang spoke with foreign journalists about the Council’s work from a national perspective at the U.S. State Department’s Foreign Press Center Brieng held in support of the 2017 Global Entrepreneurship Summit, “Women First, Prosperity for All.” JANUARY 201817 Twitter ChatThe NWBC hosted an ‘Accelerating the Future of Women Entrepreneurs: The Power of the Ecosystem’ Twitter chat where NWBC staff discussed key highlights from the NWBC Fiscal Year 2017 Annual Report and noted insight on the future of entrepreneurship for women. This twitter chat was also used to share tips and insights to help women learn about opportunities to engage in the entrepreneurial ecosystem. 13 http://Tiny.cc/NWBC-NecessityDriver201714 http://Tiny.cc/NWBC-VetWomenBizData2017

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2118Roundtable EventThe NWBC hosted a roundtable event where members of the U.S. Census Bureau and others were invited to discuss the Bureau’s changing approach to data collection and relevant developments for its Annual Business Survey.26Panel EventCouncil Member Rose Wang spoke on the Wonder Women Tech Global Summit’s panel, “Towards Inclusive Tech: Building Ecosystems with Intentionality.” Wang shared the NWBC Entrepreneurial Ecosystem model and spoke about her experience as a business owner in the STEM eld.FEBRUARY 201821 Twitter ChatThe NWBC hosted a ‘Millennial Women Entrepreneurs: The Future of Entrepreneurship in America’ Twitter chat where NWBC staff shared tips and insights to help millennial women learn more about entrepreneurial opportunities. MARCH 2018 - Women’s History Month1Research ReleaseUnderstanding the Landscape:Access to Capital for Women Entrepreneurs1520 PodcastNWBC Associate Director of Policy and Research Dolores Rowen spoke on the “Get Found, Get Founded” podcast reviewing ndings from NWBC research on women entrepreneurs’ access to capital. 20Media InterviewTexas Public Radio show “The Source” held an interview with NWBC Associate Director of Policy and Research Dolores Rowen about her perspective on diversity and issues related to access to capital by women entrepreneurs nationally and in Texas. 27Research ReleaseCrowdfunding as a Capital Source for Women Entrepreneurs: Case Study of Kiva, a Non-prot Lending Crowdfunding Platform1627Research ReleaseCrowdfunding as a Capital Source for Women Entrepreneurs: Case Study of Kickstarter, a Reward-based Crowdfunding Platform1728 Twitter ChatThe NWBC hosted a Women’s Business Owners’ Access to Capital Twitter chat where NWBC staff revealed tips to help women learn about capital and entrepreneurial opportunities. APRIL 201810Media InterviewEntrepreneur magazine interviewed NWBC Associate Director of Policy and Research Dolores Rowen about topics discussed in the NWBC article “New Study Finds 5 Key Differences in How Male and Female Founders Raise Capital.”1813 Twitter ChatThe NWBC hosted a ‘Crowdfunding as a Solution to Fund HER Business’ Twitter chat where NWBC staff shared Council research on crowdfunding as a capital source for women entrepreneurs, noted success factors for women on such platforms and offered ways to strengthen a business via crowdfunding. MAY 20183BusinessConferenceNWBC Associate Director of Policy and Research Dolores Rowen attended the EnrichHER Spark D.C. event in Washington, D.C. She spoke about NWBC research on access to capital for women entrepreneurs and nding success on crowdfunding platforms. 9Research ReleaseUnderstanding the Landscape: Access to Markets for Women Entrepreneurs1915 http://Tiny.cc/NWBC-LandscapeCapital201816 http://tiny.cc/NWBC-Crowdfunding201817 http://Tiny.cc/NWBC-Crowdfunding201818 https://www.Entrepreneur.com/article/31130719 http://Tiny.cc/NWBC-LandscapeMarkets2018

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22 | National Women’s Business Council | Annual Report 2018MAY 201817Media InterviewEntrepreneur magazine interviewed NWBC Associate Director of Policy and Research Dolores Rowen about success factors discussed in the NWBC article, “Study Details Why Women Entrepreneurs Have Greater Crowdfunding Success.”2024 Twitter ChatThe NWBC hosted a Value of Access to Markets for Women Entrepreneurs Twitter chat where NWBC staff shared insights on navigating new markets and building or strengthening a business through expansion. JUNE 201827 Twitter ChatThe NWBC hosted an ‘Entrepreneurial Support for Her Business’ Twitter chat where NWBC staff discussed existing entrepreneurial development support resources, particularly those targeted for women. Staff also shared insights on the presence and best use of entrepreneurial resources and assistance across the ecosystem. JULY 201811Roundtable EventNWBC Executive Director Nina Roque hosted a roundtable on the state of women’s entrepreneurship – with a specic focus on women’s procurement opportunities. As part of the roundtable, local women business owners shared insight regarding challenges surrounding small business size standards, state and local regulations, and the burden of complying with federal contracting.SEPTEMBER 2018Sept 15 - Oct 15National Hispanic Heritage MonthThe Council recognized the tremendous contributions Hispanic women-business-owners have made to the U.S. economy, published statistics on Hispanic employer rms, and noted anticipation for the great accomplishments to come as these women continue to fulll their entrepreneurial potential. NWBC research revealed there are more than 1.9 million Hispanic women-owned rms in the United States growing in number, revenue and employment. NWBC is committed to supporting these rms from startup to scale-up. 20BusinessWorkshopNWBC and the U.S. Census Bureau’s Center for Administrative Records Research & Applications hosted the U.S. Government’s rst Demographics of the Entrepreneur & Self-Employed Workshop where Chair Liz Sara provided opening remarks and, on behalf of the NWBC, committed to a continued partnership between the NWBC and the U.S. Census Bureau. Approximately, 100 attendees joined this one-day workshop to discuss both research on business and entrepreneur demographics and areas for future collaborations.23 - 25Panel EventNWBC Executive Director Nina Roque moderated a panel at the National Association of Women’s Business Owners National Conference, held in Spokane, Washington. During the panel discussion, past Council Members Virginia Littlejohn and Dr. Terry Neese discussed the NWBC’s role in implementing H.R. 5050 and the continued importance of the Council’s role in furthering women’s entrepreneurship and business ownership.25 - 27Business ConferenceNWBC Chair Liz Sara welcomed women entrepreneurs to the Association of Women’s Business Centers Annual Conference, held in Tampa, Florida. NWBC members were privileged to work with current president Bonnie Nawara across the 2017 Fiscal Year as NWBC and the Association of Women Business Centers both strive for the same goal – to secure entrepreneurial opportunities for women.20 https://www.Entrepreneur.com/article/312964

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23OCTOBER 25, 2018 PUBLIC MEETING:CELEBRATING THE 30TH ANNIVERSARY OF H.R. 5050On October 25, 2018, the NWBC celebrated the 30th anniversary of the passage of H.R. 5050, the Women’s Business Ownership Act. Signed into law by President Ronald Reagan on October 25, 1988, H.R. 5050 was an unprecedented piece of legislation that eliminated all individual state laws requiring women to have a male relative or husband co-sign a business loan and established the NWBC, the SBA-run OWBO, and the WBC program. As a result, today there are 10 million woman business owners in the United States, accounting for nearly 40 percent of all businesses.The NWBC’s anniversary program included a reflection of the past 30 years of women’s entrepreneurship and an impactful discussion on the future of women’s entrepreneurship. The morning began with breakfast and coffee with the AWBC. Opening remarks were made by NWBC Executive Director Nina Roque and Assistant Administrator of the SBA’s OWBO Kathleen McShane.The highlight of the program featured a ‘Fireside Chat’ with NWBC Chair Liz Sara and SBA Administrator Linda McMahon. The Administrator provided insights into her experience as a once small business owner, who spearheaded the expansion and growth of her company before deciding to join the public sector. Administrator McMahon offered advice to audience members, “Know who your market is and what sets your product or service apart.” NWBC Chair Liz Sara, a small business founder herself, agreed, noting that “[women entrepreneurs] must think about what problem or what pain point in the market you are planning to solve.”As the program went on, the audience heard from two of the trailblazers that were crucial to the passage of H.R. 5050: Virginia Littlejohn and Phyllis Hill Slater, both of whom served as Council members of the NWBC and have dedicated their careers to advocating for women entrepreneurs. Facilitated by Loreen Gilbert, Chair of the NAWBO’s Institute for Entrepreneurial Development, Littlejohn and Hill Slater shared stories from their experiences as delegates to the 1980 and 1986 White House Conferences on Small Business, participating in the congressional hearings, and then leading the charge for passage of H.R. 5050.The nal panel discussion, ‘Blazing Trails for the Next 30 Years,’ was moderated by current NWBC Council member and WIPP board member, Rose Wang. Panel participants included Bonnie Nawara, president of AWBC and current NWBC Council member; Deloris Wilson, head of strategy and operations at BEACON: The D.C. Women Founders Initiative; Julia Westfall, CEO of Hera Hub D.C.; and Kelly O’Malley, D.C. Chair of The Vinetta Project. The panel provided insights into programming and policies that allow local organizations to help develop thriving entrepreneurial ecosystems for the next generation of women entrepreneurs. Panelists emphasized the value and necessity of mentorship and collaboration.Thanks to the passage of H.R. 5050, women in business have excelled, continually reaching new heights, and the next 30 years of women’s entrepreneurship is sure to be lled with momentous milestones for women founders. NWBC is committed to continued advocacy for women in business and to providing a platform to expand and improve opportunities for women business owners and their enterprises.

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24 | National Women’s Business Council | Annual Report 2018NWBC COUNCIL AND STAFFNWBC COUNCIL MEMBERSLiz SaraChair, National Women’s Business CouncilLiz Sara is the founder and president of Best Marketing, LLC, where she consults for more than 90 small businesses in the high-tech sector and serves as a chief business advisor to entrepreneurs in creating and executing go-to market strategies. Previously, she played a principal role as co-founder of SpaceWorks, an e-commerce software company, facilitating its startup and growth to nearly $25 million in revenue. Liz recently completed her term as the rst female Board Chair of the Dingman Center for Entrepreneurship at the University of Maryland’s Robert H. Smith School of Business. She is also an adjunct professor of marketing at the Smith School of Business. She is an angel investor, a mentor to startup CEOs through many incubators and accelerators, as well as a frequent author and conference speaker on many topics related to entrepreneurship and business.She holds her bachelor’s degree from the State University of New York and her master’s degree from the University of Maryland.Jen EarleCEO of the National Association of Women Business OwnersJen Earle has had the honor and delight of working with the NAWBO since 2008. Using her institutional knowledge and consistent drive to advance that organization’s mission, she has worked collaboratively with national boards of directors and past CEOs to help carry out the NAWBO board’s vision and navigate the organization to where it is today. Along with many skills, Jen brings to the table more than a decade of multi-disciplinary, high-level experience in operational and project management development, support and execution for a broad range of boards, business groups, entrepreneurs, CEOs and executives. She has successfully established operational infrastructures for her clients. Jen serves at the executive level, working with nonprot boards, meeting and event strategy and planning, partner outreach and relationship building. She currently serves as the CEO of NAWBO, the Executive Director of the NAWBO Institute, an Advisory Member for Enterprising Women, and a Council Member for the National Women’s Business Council.Dr. Marsha FirestonePresident/Founder, Women President’s OrganizationAn entrepreneurship expert, Dr. Marsha Firestone is founder and president of the Women Presidents’ Organization, as well as founder and president of the Women Presidents’ Educational Organization. Her accomplishments encompass numerous service projects and distinguished career positions, such as vice president of Women Incorporated and vice president of Training and Counseling at the American Woman’s Economic Development Corporation. Marsha’s rst term on the National Women’s Business Council came in 2003; her second term began in 2015. She is a renowned published author and speaker. Her honors include the Applause Award for breaking down barriers for women in business from Women’s Business Enterprise National Council, the Hall of Fame and Legacy Awards from Enterprising Women, and selection as a nalist for Entrepreneurial Supporter by Ernst and Young. Marsha graciously shares her professional knowledge by serving on boards and advisory councils, including the Women’s Business Enterprise National Council and the International Women’s Forum, among many others. She earned a master’s degree in communication from Teacher’s College of New York and a Ph.D. in communication from Columbia University.

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25Bonnie NawaraBoard Chair, Association of Women Business Centers Bonnie Nawara currently serves as the Board Chair for the AWBC and is the CEO of Grand Rapids Opportunities for Women (GROW) – a Women’s Business Center in Grand Rapids, Michigan. Using her deep understanding of business start-up, nance, operational growth, human resource management, and marketing matters, Bonnie is a key gure in fostering the economic development and growth of women-owned businesses in the Michigan area. She was recognized as an outstanding Volunteer for the Michigan Women’s Marketplace in 2012, awarded as the John H. Logie Neighborhood Business Champion in 2104, and recognized as one of the Top Fifty Most Influential Women in West Michigan by the Grand Rapids Business Journal in 2012, 2014, 2016 and 2018.Prior to joining GROW, Bonnie was the owner of a Sir Speedy printing center for 15 years. Before owning her own business, she was the American Cancer Society Planned Giving Ofcer – where she was named Top Fundraiser for the Great Lakes Division ve years in a row, and Parts Manager for Freightliner of Grand Rapids. At the time, she was the only female parts manager in the country. Pamela Prince-EasonPresident and CEO of the Women’s Business Enterprise National CouncilPamela Prince-Eason is the president and CEO of the Women’s Business Enterprise National Council (WBENC). This is her second appointment to the Council, following her rst in 2014. Before joining WBENC, Pamela held positions at Pzer, Texas Instruments, GSE Systems, Warner Lambert, and was co-owner of RMR Associates. Her career experiences honed her expertise in supplier diversity, strategic leadership, management best practices and cost ownership processes. Pamela has been a strong supporter of many organizations, including the Institute of Supply Management, the U.S. Hispanic Chamber of Commerce, the National Gay and Lesbian Chamber of Commerce and the National Minority Supplier Development Council. She is on multiple corporate advisory committees, such as the Ernst & Young Winning Women program, the Dell Women’s Entrepreneur Network, Wal-Mart’s Women Owned Business Advisory Council and others. Pamela holds a bachelor’s degree in accounting and a master’s in international business and nance. She received the Women’s Business Enterprise Hall of Fame Executive Leadership award in 2012. Together with her husband John, Pamela has three children and ve grandchildren. Rose WangRepresentative of Women Impacting Public Policy Rose Wang represents the Women Impacting Public Policy (WIPP). Wang is a highly regarded IT strategist and a technology entrepreneur responsible for numerous startups. She founded Binary Group in 1996, a company recognized many times throughout its 18-year history for the exceptional results it delivers. Fortune recognized her as one of the Most Powerful Woman Entrepreneurs in 2013. Early in her career, Rose was a pivotal engineering team member at Lighthouse Design, a Silicon Valley startup. After a successful acquisition by Sun Microsystems, she founded a boutique IT consulting company, securing contracts from Fortune 500 companies and organizations such as MCI, Fannie Mae and Sprint. She later led product development for a venture-backed startup called InLine Software and founded an online women’s business community. In addition to her successful entrepreneurial history, Rose is a recognized authority on small business issues and government procurement policies. A revered member of the National Women’s Business Council, she actively participates in the research and policy committee advocating for fairness in small business procurement practices.

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26 | National Women’s Business Council | Annual Report 2018NWBC STAFF MEMBERSNina RoqueExecutive DirectorNina Roque was appointed to serve as Executive Director of the NWBC in May of 2018. She recently served as Special Assistant to the Secretary of Labor, where her portfolio included apprenticeships and women in the workforce, among other policy initiatives. She was the Director of Programs and External Affairs for the Congressional Hispanic Leadership Institute, a nonprot, nonpartisan organization that focuses on youth development and leadership, public service and corporate responsibility. Previously, Nina was an associate attorney at a law rm in Raleigh, North Carolina, where she represented employers. She also served as a law clerk at the North Carolina Industrial Commission. She holds a bachelor of arts degree in political science and criminology from Florida State University and a juris doctorate from Hofstra University School of Law. Throughout her career in the public, private and nonprot sectors, Nina has dedicated herself to the advancement of the American workforce. She is a second-generation Cuban-American who is passionate about mentoring youth leadership, empowering the American worker to succeed and fostering an economy that allows women entrepreneurs to thrive.Dolores “Lori” RowenAssociate Director of Policy and ResearchFor nine years, Lori Rowen has devoted her efforts to research. Her passion—strong analysis as a springboard for change—started as a research assistant in her undergraduate program, which led to a research fellowship in graduate school, where she worked extensively on political and economic research in the eld of international relations. She also represented Caritas Internationalis, a civil society organization at the United Nations, in complex diplomatic negotiations. She also held an Executive Ofce Intern position at the U.S. Department of State in Honduras. Lori served as a public affairs intern in the ofce of Representative Maurice Hinchey (D-NY) and constituent services intern for Assemblyman Jeffrey Dinowitz. She graduated summa cum laude and Phi Beta Kappa from Manhattan College with a bachelor of arts in government and psychology. She holds a master of arts in diplomacy and international relations from Seton Hall. She is currently a participant in American University Women and Politics Institute’s WeLead Program. Committed to empowering and supporting women and children through mentorship and volunteer efforts domestically and abroad, Lori has served in Kenya, Honduras and the Dominican Republic. She is a deserving recipient of the Harold E. Hazelton Humanities Medal and the Ryan Medal for Government. Ashley JudahLegislative Aide Ashley Judah currently serves as the Legislative Aide to the National Women’s Business Council. Just prior to this role, she worked in the ofce of former U.S. Congressman Jim Bridenstine (OK-01), where she evaluated legislation pertaining to women and families, among other issue areas, and served as liaison to the House Values Action Team. Her enthusiasm for public policy grew during her time at the Susan B. Anthony List as the Executive Operations Intern. Ashley graduated summa cum laude from Marymount University with a bachelor of arts in politics. She received departmental honors for her senior thesis titled “Social Welfare Policy and the Effects on Family Structure and Poverty Rates.” She was actively involved in campus organizations that encourage political engagement among young people. As the daughter of small business owners, Ashley knows rsthand the trials and tribulations entrepreneurs must overcome to succeed. She is committed to developing a more favorable environment for women pioneers in the business world. Temren WrogeCommunications ManagerTemren Wroge serves as the Communications Manager for the National Women’s Business Council. She brings communications, policy, grassroots organizing and non-prot experience to this position. Previously, she worked at Americans for Prosperity, where she created, drafted and oversaw the communications strategy for long-term efforts to educate people on impactful policy. She also served as an associate delegate in California—an experience that taught her the benets of expressing a concise narrative on crucial policies. Prior to joining Americans for Prosperity, Temren worked with another nonprot organization that brings businesses and philanthropic leaders together to tackle challenges in education, economic growth and national security. She comes from a family of small business owners. Her grandfather migrated to California to provide a better life for his family and did so by opening up a small printing business. Her mother, who has been an entrepreneur most of her life and has started multiple businesses in printing and mailing, now works as a consultant to help others grow and maintain their businesses. Following her mother’s example, Temren is dedicated to advocating for entrepreneurial women. She attended college at California State University, Fullerton where she earned a degree in psychology with minors in political science and English.

NWBC 2018 Annual Report

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