Knock, Knock Certification of women suppliers opens procurement doors.
Opinions expressed by Entrepreneur contributors are their own.
In 1997, one-third of all U.S. businesses were owned by women,yet most major corporations had no concrete strategies for workingwith these entrepreneurs.
In fact, when the Women's Business Enterprise NationalCouncil (WBENC) polled 765 companies about their supplier programsfor women, only 7 percent of those surveyed responded, and only 55percent of that percentage reported how much business theyconducted with women entrepreneurs. Of that total, 65 percent spentless than 5 percent of vendor dollars with women; 13 percent spent5 to 10 percent; and 22 percent spent more than 10 percent.
More education will improve these numbers, says WBENC presidentSusan Phillips Bari, whose organization is one of those attemptingto change the status quo. WBENC was founded in 1997 to enlargeopportunities in major U.S. business markets for women'sbusiness enterprises. Two of its key achievements have been thedevelopment of a national certification program for, and a databaseof women business owners. Since its founding, the council hasgained pledges from 46 corporate members and amassed a list of morethan 245 companies and state and local government entities thataccept WBENC's certification.
Acutely aware of the possibility of duplicating services otherwomen's business organizations provide, Bari is keeping WBENCwithin its initial niche. In addition to developing and overseeingthe national certification process, the organization educates thepublic about supplier diversity practices. And as part of itsongoing campaign to increase the number of corporations andgovernment entities purchasing from women, WBENC unveiled tworecognition programs at its first national gala in March. TheApplause Award will recognize those companies promoting the use ofwomen suppliers. The organization also plans to publish a list ofthe top corporations that do business with women-ownedbusinesses.
Bari is confident WBENC, in partnership with otherorganizations, can achieve its ambitious goals. "Pooled poweris a very important resource in this effort," she says."The more women who get certified and knock on doors, thesooner the doors will open."
The Good, The Bad . . .
As women entrepreneurs become a greater force within thebusiness world, more companies are sure to create supplierdiversity programs. As with anything else in life, however, not allof them will be created equal.
Susan Phillips Bari, president of the Women's BusinessEnterprise National Council, offers these tips on identifying aneffective program:
- Does support for supplier diversity come from the very top ofthe organization? If not, there may not be much oomph behind theeffort.
- Does the program set goals regarding dollar amounts and/ornumber of businesses served? Does it review these goalsannually?
- Are the procurement goals part of the corporate strategicplan?
- Is there a clearly stated procedure for helping women get inthe door, as well as someone within the company who can directsuppliers to procurement officials and vice versa?
- Is the company a member of any local, regional or nationalwomen's business organizations? Does it participate inWomen's Business Enterprise-related events?
- Does the company actively seek women-owned businesses andcreate opportunities for networking between its prime contractorsand women entrepreneurs?
- Does the company provide feedback to unsuccessful bidders?
Contact Sources
Women's Business Enterprise National Council, (202)862-4810, http://www.womenconnect.com/wbenc
