Women only, please: businesswomen still need their own networking groups

South Florida CEO, Nov, 2004 by Patricia A. Thorp

Women entrepreneurs have made huge strides in business during the past decade. Many rub shoulders with key players, move within the inner circles of power, and close major deals. Still, the largely male-dominated sectors of law, commercial real estate and financial services remain closed to women, though those areas are some of the most potentially lucrative for them.

Mentoring programs have helped crack the door a bit and, without a doubt, men can be excellent mentors, but sophisticated women entrepreneurs realize that successful women can best help them sidestep the potholes they will encounter on their way to the Fortune 500. That's why women still need their own dynamic networking groups.

Some of you may ask, "Why should I care?" The answer is simple: because the success of South Florida will be affected by the success of women-owned businesses, and a recent study shows just how true that is. Women pump billions of dollars into Florida's economy each year and make up one of its fastest growing demographic segments. This year, the estimated 460,981 privately held, majority women-owned firms in the state will generate nearly $79 billion in sales, according to the Washington-based Center for Women's Business Research. In Greater Miami alone, the number of privately held, majority women-owned companies jumped 36.5 percent, from 56,234 in 1997 to 76,738 in 2004, according to CWBR. Women entrepreneurs made similar gains in Fort Lauderdale and West Palm Beach, and they have the potential to achieve even more.

What keeps businesswomen from reaching their full potential? Marketing, cash flow and the ability to expand are the top three issues, according to the 2004 CWBR survey, Networking with other women entrepreneurs is one solution to all of these challenges.

Networking groups formed by women for women can help connect them with those who have "made it" and teach them how to reach their goals. But these groups need to fit the lifestyle of today's busy executives, who cannot spend hours handing out business cards to people who may not be interested in them personally or professionally. The best of these networking groups use peer mentoring for women CEOs in a confidential, small-group setting. They reach women leaders during the critical stages of business and provide them with tools and resources necessary for growth.

University of Miami President Donna Shalala summed up the potential and significance of women's networking groups in her speech during a recent luncheon hosted by The Commonwealth Institute, a networking organization that recently established a South Florida chapter. Shalala outlined how South Florida's future is tied to creating first-class jobs and how businesswomen are an integral part of the region's growth.

During the past decade, women across South Florida have helped the region to grow by starting their own payrolls after leaving someone else's--whether voluntarily or involuntarily. Some found entrepreneurship the best option for an ambitious career path. Others were downsized at large corporations or burned out and decided it was time to strike out on their own after years in corporate America. Still others hit the proverbial glass ceiling and wanted to see their own names etched on the front doors.

These women, too, have helped to continue the diversification of South Florida's business base, and networking groups can further that movement. Women entrepreneurs are represented in nearly all industries now. Construction, manufacturing and transportation have seen the largest recent increases, although services and retail still make up the largest share of women-owned companies. The workforce of women-owned firms shows more gender equity than that of companies owned by men. Women business owners, overall, employ a roughly gender-balanced workforce (52 percent women and 48 percent men), while men employ, on average, 38 percent women and 62 percent men in their businesses, according to the CWBR.

Some men may argue that women can join most men's groups now and network through traditional means without having to start their own organizations. Certainly, that is true, and one is not mutually exclusive of the other. Many women have made lasting business connections through mixed-gender groups and informal business relationships with men. However, many have found that it was a woman who helped them land the big contract, meet the right venture capitalist or ramp up their marketing. Those who have received help often feel obligated to give back and help others, which has contributed to the increasing popularity of women's networking groups.

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Collectively, women entrepreneurs help the South Florida economy by the sheer size of their payrolls. In Miami, for example, privately held majority women-owned firms employ more than 75,000 people and generate more than $13 billion in sales, according to CWBR. South Florida's proximity to Latin America and the Caribbean opens doors to even more opportunities for businesswomen who make the right connections. Women's networking groups help make those connections. They nurture and grow start-ups so they can expand and contribute to the economy, which, in turn, helps the entire region. The future of South Florida depends on the collaborative energy of all business leaders who have something valuable to contribute.