Category: Women Entrepreneurs

Entrepreneurs and Attorneys: Communication in the Midst of High Stakes

By: Anne Horissian

As attorneys, effective communication with a client, or lack thereof, can make a huge difference in representation. In my experience as a law student interning in public interest law, the recognition that clients are often experiencing trauma in their lives when they seek legal counsel is important when approaching their cases. A client’s mental health and emotional state can be key pieces to the puzzle of representation, and can particularly impact communication. However, this dynamic is not limited to tumultuous custody battles or contentious divorces. Anytime a person is experiencing stress, it can be expected that such stress will impact their ability to articulate and understand communications.

An article titled Communication Under Stress explains, “The process of forming speech is actually quite complex…while this process is generally smooth under normal circumstances, stress and duress can significantly interfere with the process… When it comes to getting your words out and even how you interpret the words of others, your mental and emotional state is quite significant.” Put simply, stress complicates communication.

Although a hyperbolic juxtaposition of legal specialties may consider representing an entrepreneur to be “only about money,” or in some way a field where client emotions play less of a role than others, the stakes to the entrepreneurial client often also require an awareness of their mental health to adequately represent their interests.  As Kerri Nottingham writes, “Certain legal entanglements are overtly stressful – being sued, being the victim of a crime, being responsible for high-stakes contract negotiations – but even seemingly ordinary tasks with very low levels of complexity can induce negative mental health outcomes for some clients.” Simply meeting with an attorney can cause stress for some clients, and if the client is already facing many stressors, it is important as an attorney to recognize this and the obstacles it may present.

The stress and high stakes for many entrepreneurs correlate with mental health outcomes. A Forbes article by Dan Murray-Serter, Why Entrepreneurs Need to Talk about their Mental Health, discusses a study by the National Institute of Mental Health which found that “72% of entrepreneurs are directly or indirectly affected by mental health issues compared to just 48% of non-entrepreneurs.” Despite all the confidences presented by an entrepreneurial client, they may be struggling. As an attorney, it is not only important but also potentially required by the Model Rules of Professional Conduct, to be aware of such considerations.

ABA Model Rule of Professional Conduct 1.4 lays out some very basic rules for communications between an attorney and their client. Among these, 1.4(b) maintains that “A lawyer shall explain a matter to the extent reasonably necessary to permit the client to make informed decisions regarding the representation.” This rule requires that attorneys explain legal matters so that a client can make informed decisions. Even without a formal mental health diagnosis or questions of capacity, the client’s mental health or emotional state may need to be considered while explaining legal options.

One specific example to consider is imposter syndrome. Ann Vertel has written in this area.

“Imposter syndrome is real. It tends to affect high-achievers more than any other psychographic — especially women — and includes creatives like inventors, founders and entrepreneurs. When it hits new business owners, the effects are both subtle and powerful, causing them to doubt their accomplishments and preventing them from taking necessary risks.”

While the role of the legal profession is not to provide mental health services to clients, recognizing potential obstacles for clients, such as imposter syndrome, can help when explaining legal options for their business. Especially in difficult times, such as now, when 43% of businesses have closed at some point largely due to COVID-19, an entrepreneur needs an attorney who can explain complicated legal options through the stress and pressure so that those business owners can make an informed decision. (The impact of COVID-19 on small business outcomes and expectations | PNAS). One article discusses that even when an attorney cannot alleviate a client’s stress, they can help not add to it by practicing clear communication, setting expectations, practicing responsiveness, and having a welcoming environment. (Seven Ways Lawyers Can Reduce Clients’ Stress – Attorney at Work).

No matter how much money a client has, it is always a good idea to know a mental health services provider in your area that you can tell a client about if their specific situation potentially necessitates such resources.

In conclusion, practicing with an awareness of the client as a whole is important in all fields of law, and can have potential consequences ethically and legally as an attorney. While being an entrepreneur can be difficult, it is also important to remember that work is often an exciting passion for that client and that an awareness of these issues does not mean walking on eggshells or coddling a client; rather, it means overcoming the communication obstacles presented by mental health and emotional challenges, enabling the client to pursue their goals with a full understanding of their options, and sorting through and simplifying the legal stresses of their passion.

Inspired by my peer reviewer, Aaron Holland’s key takeaway section…

Key takeaways for entrepreneurs: Being an entrepreneur can be exciting and fulfilling…it can also be very stressful and correlates with mental health challenges. Take care to reach out to a healthcare professional as needed and if you don’t understand something that your attorney explains, always ask for clarification. Not only is this important for you as a person, but also can have drastic impacts on the success of your business!

Key takeaways for attorneys: Don’t assume your entrepreneurial client is an emotionally void case – the stakes can be extremely high for the entrepreneurial client, and it is your ethical duty to explain things so that they understand their options. Make sure you are keeping your client informed and updated effectively, and be aware that no matter how sophisticated a client may be, mental health and stress can pose a barrier to communication with anyone.

Not a lawyer,

Anne

This post has been reproduced with the author’s permission. It was originally authored on March 28, 2021, and can be found here.

Anne Horissian, at the time of this post, is a third-year law student at Penn State Dickinson Law. She is from a big family in the very small town of Meadowview in Southwest Virginia. She will graduate with a JD and certificate in Health Law in May 2021.

 

 

Sources:

Bartik, Alexander W., et al. “The Impact of COVID-19 on Small Business Outcomes and Expectations.” PNAS, National Academy of Sciences, 28 July 2020, www.pnas.org/content/117/30/17656.

“Communication under Stress.” HPRC, www.hprc-online.org/social-fitness/teams-leadership/communication-under-stress.

Murray-Serter, Dan. “Why Entrepreneurs Need To Talk About Their Mental Health.” Forbes, Forbes Magazine, 9 Oct. 2020, www.forbes.com/sites/danmurrayserter/2020/10/04/why-entrepreneurs-need-to-talk-about-their-mental-health/.

Nottingham, Kerri. “Lawyers as Counselors: Preparing Law Students and Practitioners to Face Clients’ Mental Health Concerns.” Campbell Law Observer, 15 June 2019, campbelllawobserver.com/lawyers-as-counselors-preparing-law-students-and-practitioners-to-face-clients-mental-health-concerns/.

“Rule 1.4: Communications.” American Bar Association, www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_4_communications/.

“Seven Ways Lawyers Can Reduce Clients’ Stress.” Attorney at Work, 24 June 2019, www.attorneyatwork.com/seven-ways-lawyers-reduce-clients-stress/.

Vertel, Ann. “Don’t Let Imposter Syndrome Derail Your Business.” Entrepreneur, Entrepreneur, 11 Sept. 2019, www.entrepreneur.com/article/337342.

Manar Morales | Entrepreneur of the Month | October 2020

By: Elikem Tsikata

Ralph Waldo Emerson famously said, “To be yourself in a world that is constantly trying to make you something else is the greatest accomplishment.” In today’s world, we all feel external pressures to assimilate and to change who we are. We are taught that if you want to be accepted to A school, B and C is required. If you want to be in the X profession, you have to dress and act a certain way.  For Manar Morales, a professional opportunity at the cost of compromising one’s individuality is an unacceptable proposition. The former litigator-turned-CEO not only personifies Emerson’s mantra but actively creates it for others.

Manar is the founder, President, and CEO of the Diversity & Flexibility Alliance. The membership-based think tank partners with organizations to promote diversity and inclusion within the workplace. The company consults and provides tangible plans for workplace flexibility and diversity initiatives, creating unique avenues that challenge traditional theories of various sectors.

Family matters 

Manar and I quickly bonded over similar upbringings. We both had parents who immigrated to the United States and instilled in us a pride of our heritage. Both of our parents molded paths into their professional fields that were not considered the norm for people who looked like us at the time. For Manar, this instilled a natural belief that she could achieve what she wanted, but she knew that a conscious determination and effort was necessary.

Manar grew up in Long Island, New York. The daughter of Egyptian immigrants, she had an early interest in employment and labor law. Simultaneously, she gained early exposure to tangible business experience. After graduating from Cornell’s Industrial and Labor Relations School, Manar worked as an Assistant Buyer at Saks Fifth Avenue in New York City. This could be considered her first entrepreneurial work experience as she managed sales and purchase orders. She then went to Catholic University’s Columbus School of Law, where she refocused her studies on employment law. After graduating, Manar became an employment law litigator.

professional path maker 

I asked Manar what influenced her transition from practice to starting the company, and she quickly responded.

“I had my first son.”

Smiling, she admitted than an experience with a less than stellar nanny made her reconsider staying on as a full-time employment litigator. She knew she wanted to continue the work she loved, but that it may have to be reduced to a part-time basis. Manar proceeded to switch firms in order to work a part-time schedule and became of-counsel, while simultaneously starting work as an adjunct law professor at Georgetown University, teaching employment law and entrepreneurship. As she adjusted to her new life, women in the legal field and some who had left it, reached out to her. They expressed their appreciation for her professional course and wished they had done something similar. This made Manar question why women in the legal field were not getting the opportunities she had experienced to this point.

“I don’t think I had a proven path. It was really about me creating a path. For all the people who said, ‘Oh there’s no way you can be a litigator and do part-time’,  there was a part of me that said, ‘No, actually I think I can.’ I may not be able to in one given environment, but I know that I can find an environment where I can.”

This premise opened Manar’s eyes to the possibilities of where the legal profession could go. The crucial question she asked at that point was how can we take the profession to the next level, providing opportunities for people to have more choices?

core principal: flexibility 

The Diversity & Flexibility Alliance is classified as a Benefit LLC. Their goal is to create a community of members who value diversity and inclusion by looking at ways to leverage workplace flexibility to increase top talent.

“For us, it’s important that when people consider flexibility, that they de-parent, de-gender, and de-stigmatize flexibility. Our goal is to emphasize that flexibility is something that’s available to everybody, and everybody needs it for a variety of reasons.”

The company’s primary membership consists of law firms and corporations. They also work with associations, non-profits, professional service organizations, and tech-companies. As membership grew, Manar saw great value in the exchange of best practices over various sectors. The company could provide organizations of varying functions the opportunity to learn from one another. For the legal industry, Manar emphasized the importance of this. Notoriously stuck in its ways, Manar discussed how our profession needed to avoid the “echo-chamber” of only listening to itself, and embrace the other industries’ proven methods of effective workplace flexibility.

operating a business in the wake of two pandemics 

Manar and I discussed how the COVID-19 pandemic has affected her operation of the business. Operationally, Manar said they were lucky and well-prepared for COVID. The Diversity & Flexibility Alliance has always been a hybrid organization. They ran virtually in many aspects, with some team members being fully remote already. In terms of providing services for their members, Manar says one of the biggest challenges they faced prior to COVID was the status quo regarding working environments. COVID’s natural effect has been the changing of how the world views a working environment and what that future will look like. For Manar and her team, this uncharted future provides a new opportunity to consider how to further the ideals of diversity and workplace flexibility moving forward. Additionally, she notes that while her team has been accustomed to hybrid styles of work, many members have not. She appreciates how this has created avenues for more (virtual) face-to-face with members, a more conscious engagement through technology. She is hopeful this time can be leveraged to further improve her client’s approaches to the future workplace.

We also discussed the other pandemic plaguing our country: systemic racism. As an agent of change in her own capacity, Manar shared how the heightened focus on social and racial injustice has affected her approach. She began by reflecting on the widespread acts of companies who made public statements denouncing racism. While she believes these statements can be important, she knows the actions that follow are truly the key.

“You have to create change internally. Public statements without internal reflection and change…  I don’t think are effective. So for us, it was really about asking our members ‘What are you doing internally? Where can you create change? What are systemic changes you will be making moving forward?’”

Manar was encouraged by the greater sense of urgency among members, but she was more than aware that these issues cannot be fixed without continued focus and effort.

“Everybody can have it all … all is defined by you”

Manar’s leadership as an agent of change extends beyond her role at the Diversity & Flexibility Alliance. She frequently speaks on the topics of diversity, inclusion, woman’s leadership, and individual success. When I asked her about the importance of educating others about these topics, she reemphasized her core mission of giving others options.

“There’s a lot of debate on whether or not women can have it all. I think that everybody can have it all because I am a big believer that ‘all’ is defined by you. My ‘all’ may look different than your ‘all’ or someone else’s, but it’s my strong belief that we need to create opportunities for people to be able to have what they define as their ‘all.’”

This quote really stuck with me. Manar’s ‘all’ includes her family, the work she loves and creating positive change for others. I think often we find the task of juggling our priorities to be daunting. Careers, family, social life, fulfillment; some would call the pursuit of all at once unrealistic. And yet, as I think about Manar’s words and mindset, it actually seems simple. Determine what you want. Make action steps to have it. Work hard.

what do diversity and inclusion mean to you? 

“Not just creating opportunities, but creating opportunities where people feel valued for who they are. People want to go where they are valued, not just tolerated. We always have to ask ‘Are we creating opportunities where people can feel proud of who they are and show up as that?”

Manar lives and breathes every bit of Emerson’s words, fighting against societal norms that we must suppress aspects of our identity for professional success. Our differences enrich professional environments and make them better. Instead of changing herself, she’s made it her mission to change the environment.

advice for entrepreneurs

“Do what inspires you. I’m a big believer that mindset drives so much of our respect. People should do what they love. Once you make that commitment, you’ll figure out the path from there.”

Manar’s passion is undoubtedly at the core of her success. She encourages entrepreneurs and professionals not to negotiate against themselves. She notes that often we say we want something but immediately create a barrier for why we can’t have it. She implores us to reject this mentality, set our sights on what we want, then begin to act.

For more information on Manar and the Diversity & Flexibility Alliance, including details to their Annual Conference, you can click here.

Elikem Tsikata, at the time of this post, is a third-year law student at Penn State Dickinson Law. He is a Ghanaian-American from McLean, Virginia, and a graduate of Miami University (OH). Elikem is pursuing a certificate in Entrepreneurship Law with a Transactional concentration. Elikem serves as President of Dickinson Law’s Student Bar Association. He is also a Research Assistant to Professor Samantha Prince.

 

 

Photo Sources:

https://twitter.com/manarmorales

https://www.facebook.com/dfalliance/

http://mondayswithmooney.com/2018/04/creating-your-path/

https://dfalliance.com/solutions/

https://dfalliance.com/solutions/diversity-framework/

 

Dr. Roshawnna Novellus | Entrepreneur of the Month | September 2020

By: Ashli Lyric Jones

The key to running any successful business begins with access to capital. Capital can come from a variety of sources such as friends, family, financial institutions, online lenders, credit card companies, insurance companies, and federal loan programs. According to research done by American Express, although Black women are starting businesses at the fastest rate of any racial group, Black women are more likely than their non-minority peers to identify access to credit as a challenge.

Dr. Roshawnna Novellus, Founder & CEO of EnrichHER, saw the lack of economic power of women as one of the biggest issues plaguing the United States. She founded EnrichHER, a platform that allows funders to provide capital to underinvested, small business owners across the United States, such as companies led by women, Black founders, and people of color.

Dr. Novellus holds a Doctor of Science in Systems Engineering from George Washington University, a Master of Science in Information Technology emphasizing Information Systems Engineering, a Bachelor of Arts in Business Management Economics, and a Bachelor of Science in Computer Engineering, achieving Summa Cum Laude in all. She decided to use her skill sets powering solutions to decrease the gap in power that exists. Dr. Novellus’s goal to reduce the gap in power has led her to transition from working in the financial advisory side of business to leading community engagement and advocacy, and now creating solutions for access to capital.

After seeing the gap in the marketplace for women business owners, Dr. Novellus decided she wanted to be not only a part of the community that highlights attention to this problem but also a part of the community that provides a solution. EnrichHER is a combination of everything that Dr. Novellus has learned over the past ten years from her corporate and entrepreneurial endeavors.

“Everything you do is based on your past experiences and I model what we do based on what I feel makes people the most comfortable, safe, and the most creative.”

As a company, EnrichHER is flexible and provides a work-life balance to employees. Dr. Novellus runs EnrichHER with an understanding of the outside factors that may occur in her employees’ lives because the team is about 90% women, and about 50% of them have children. When it comes to training, Dr. Novellus leads her team through developing skills such as being a leader in every situation, despite the circumstances. Find more about the opportunities through EnrichHER.

What challenges do you face as a black woman entrepreneur?

“When you have a job at a consulting firm with a big title people assume that you have something going for you, whereas an entrepreneur, most people think you’re an entrepreneur because you can’t do anything else or you can’t get a job.”

As a Black woman entrepreneur, Dr. Novellus often must deal with marginalization. The level of trust and faith that she receives when she is interacting with people individually is reduced significantly than when she was leading teams at big organizations. Despite her impressive credentials, people rarely give her the benefit of the doubt because she is a Black woman. People often assume that she needs someone else on her team to validate her. Such experiences have driven Dr. Novellus to help people in underrepresented communities.

Is there anything in your background that shaped who you are today as an entrepreneur? 

“Often we are not provided options that are really made for us.”

Both of Dr. Novellus’s parents were entrepreneurs, which allowed her to become familiar with the concept of entrepreneurship. While working as a consultant, Dr. Novellus would often have conversations with her mother about her goals and visions for the future. Her mother would often tell her that she is supposed to become an entrepreneur. After discovering that she did not have the continued desire to work for anyone else, Dr. Novellus decided to follow in her mother’s footsteps and start her own business.

While working in both corporate and academia, Dr. Novellus realized that most of her co-workers all had the same issues when it came to their finances: lack of understanding and lack of empowerment. She would help her co-workers with their 401(k)-retirement plan investing, assist them with the closing of their houses, and help build their confidence so they could make critical financial transactions. These interactions helped her form the idea to help people when it comes to financing and raising capital.

In the past, Dr. Novellus has had experiences where she felt excluded or felt like things weren’t designed for her as a Black woman. For example, while working for a technology company in New York, she was one of the few members on her team that only spoke English. Since the other team members solely spoke another language, that was not English, she was told that she didn’t have to come to team meetings because she didn’t speak or understand their language. Because of these experiences, Dr. Novellus endeavors to ensure that no one she works with feels excluded. Ultimately, such experiences inspired her to start EnrichHER with a narrow focus to assist underrepresented groups such as women, Black women, and people of color.

Do you have any advice for someone interested in becoming an entrepreneur?  

“Do a self-reflection on if you can grow in all the ways you need to grow in order to be the type of entrepreneur that you want to be.”

It is important to do a self-reflection to make sure entrepreneurship is right for you. Although entrepreneurship doesn’t have a safety net, Dr. Novellus believes a successful entrepreneur can come up with an impactful solution that people value, and that will generate revenue.

Each day Dr. Novellus is challenged with figuring out the best use of her time to have the biggest impact on her target audience. She starts her day with words of affirmation and journaling to make sure she is in the best mindset to envision, brainstorm, and execute the tasks of the day.

Specifically, for Dr. Novellus, it took her a long time to transition into the entrepreneurial mindset because she was used to the academic way of doing things. While pursuing her Ph.D. at George Washington University, Dr. Novellus worked a full-time job at John Hopkins University and later practiced as a management consultant until she completed school. In school, Dr. Novellus was used to repeating what the professor wanted to hear and not encouraged to think more creatively. Dr. Novellus feels some of her educational experience stifled her entrepreneurial thinking, but once she broke free of that way of thinking, she was able to adjust her mindset to become the successful entrepreneur that she is today.

More advice: As an entrepreneur, you must be able to pivot quickly based on customer feedback. You have to have the ability to learn from others and make modifications quickly to thrive.

What is your favorite part of running enrichher? 

“My favorite part is that it is all up to me to decide what to do to fulfill this goal that I have.”

Dr. Novellus enjoys waking up every day and getting to reflect on the decisions that she makes for EnrichHER. She appreciates the fact that she decided to live her freedom in a way that positively impacts others.

Dr. Novellus has a weekly newsletter The Secret, the Significant, the Successful: Profiles of Women-led Businesses, which showcases the profiles of women-led businesses and her commitment to empowering women.

It was a pleasure getting to interview Dr. Novellus, and I cannot wait to see the continued work Dr. Novellus and EnrichHER continue to do.

For more information on EnrichHER or to sign up to become a member, click here for further details.

Ashli Jones, at the time of this post, is a third-year law student at Penn State Dickinson Law. She is from Long Island, New York, and is a graduate of Spelman College in Atlanta, Georgia. Ashli is pursuing a certificate in Entrepreneurship with an Intellectual Property and Technology concentration. She is interested in intellectual property within the entertainment law field. Ashli is the President of the Sports & Entertainment Law Society, Mentorship Chair for the Women’s Law Caucus, and Social Chair for the Black Law Students Association.

Sources:

https://enrichher.com/

https://www.cnbc.com/2020/02/25/underfunded-female-demographic-is-launching-the-most-start-ups-in-us.html

http://www.thewealthyyogi.com/about

https://s1.q4cdn.com/692158879/files/doc_library/file/2019-state-of-women-owned-businesses-report.pdf

 

Photo Sources:

https://www.startupfunding.co/episodes/dr-roshawnna-novellus

https://helloalice.com/resources/funding/enrich-her-funding

 

 

The Unique Challenges Women Entrepreneurs are Facing in the Pandemic

By: Allyson Lonas

Women entrepreneurs are facing unprecedented challenges during COVID-19. In this pandemic, women may not only be faced with the challenge of running a business from home but could be simultaneously in charge of their children’s care and maintaining the household. These women have been given the task of adapting to a new business environment, developing out-of-the-box thinking, and using their skills to conform to this new era of entrepreneurship. They have had to in order to keep their business afloat. So, we must prioritize these women and focus on providing capital to female business owners.

Why are women entrepreneurs suffering more than their male counterparts? 

The COVID-19 global crisis has revealed that our daily lives are built on the unpaid work of women. Although women have outpaced men in college attendance and degrees, the number of women engaged in unpaid work continues to outpace that of men. Crises tend to reinforce the idea men are responsible for putting bread on the table while women should take care of the children. In the United States, statistics from 2019 reveal that the average hours per day parents spent caring for their children within the home was higher for women, even when these women worked outside of the home. In fact, a woman employed full-time spends an average of 2 hours on household activities and caring for family members.

According to the Bureau of Labor Statistics, the percentage of women engaging in household activities is 84.9% compared to 71.4% of men. Women spend three times as many hours as men in unpaid care and domestic work, limiting their access to opportunities in the workforce. This leads to women entrepreneurs being at the heart of the COVID-19 response.

As the formal and informal supply of childcare declines, the demand for unpaid childcare provision falls on these women. According to UNESCO, 1.37 billion students (80 percent of the world’s student population) are back home as COVID-19 closures expand. Overwhelmingly, this constrains a parent’s ability to work-from-home with children back in the household. According to the National Bureau of Economic Research, working women bear the brunt of the COVID-19 recession, unlike previous downturns that hit working men the hardest. In the aftermath of the global financial crisis, men suffered the majority of job losses because males dominated the manufacturing and construction industries which suffered the biggest blow. But, Sociology Professor Aliya Hamid Rao, at Singapore Management University, found women took longer to return to work even after the last downturn as a result of women taking care of their families.

COVID-19 provides different challenges; now, the hardest hit industries are those where workers cannot telecommute. And evidence suggests that working women are more likely to have jobs that do not allow them to telecommute. The majority of women-owned businesses are hair salons, nail salons, and hospitality/food service industries. Additionally, with women taking on the role of household maintenance, those hours spent at home taking care of their children are hours that could be spent on income generation. This burden is at the heart of the motherhood penalty in the workforce. It is devastating for women who have spent their whole life building their businesses, both economically and from a mindfulness standpoint. Their business is their livelihood, their success, and years of hard work.

What can women entrepreneurs do…

Even though many women entrepreneurs are overwhelmed with business operations and are worried about keeping their doors open, there is a solution to their problem. The solution involves support: on the governmental and community level.

  • On March 27th, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. The relief package was a $2 trillion economic relief package to protect people from the public health and economic impacts of COVID-19.
  • The Women’s Business Enterprise National Council provides a variety of options for women: funding options, grants, and financial resources, and business support tools. The coronavirus relief options include the Paycheck Protection Program, EIDL Loan Advance (providing $10,000 of economic relief to businesses experiencing temporary difficulties), SBA Express Bridge Loans, and SBA Debt Relief.
  • For small business owners, the Paycheck Protection Program resumed accepting applications on July 6 and is a crucial loan program providing loan forgiveness for retaining employees during the pandemic. On the Women’s Business Enterprise National Council website (link above), there is a “learn more” button to take you to a particular funding option where you can access additional program information, frequently asked questions, and view a direct application.
  • In Pennsylvania, we are fortunate that the Pennsylvania Department of Community and Economic Development has specific programs and funding to ensure that financial assistance reaches minority-owned and woman-owned businesses. So note: if you are a woman entrepreneur in another state, check and you may have similar assistance waiting for you!

With so many options available, the process might seem overwhelming and difficult. To help, here is a quick guide to help point women entrepreneurs in the right direction.

Even the playing field for obtaining financial help for female entrepreneurs is far from level. A recent study found that men were significantly more likely to secure funding than women when presenting the same business concept. Fortunately, there are non-traditional ways to obtain funding. The Capital Access Lab is a national initiative that aids to find, promote, and provide new kinds of capital to underserved entrepreneurs, including women. It will provide capital in the range of $250,000 to $1 million into three to five investment funds.

In addition, there are other programs to provide support for women. The company, EnrichHer, helps fund small businesses created by women. Their mission is to focus on social change for women and create opportunities for women-led businesses.

Verizon is even launching a mentoring program for women entrepreneurs affected by COVID-19. This program will connect women entrepreneurs and business owners with a network of women business leaders to guide them through the pandemic’s challenges. The goal is to help women entrepreneurs in a variety of ways.

The Women’s Bureau also helps women by developing policies to protect the interests of working women, promoting equality and economic security, and promoting quality work environments.

…and how can we help? 

Women entrepreneurs need us.

First, policymakers should consult women in economic planning and policies. Policies that do not consult women are less effective and create more harm. Before the pandemic, women struggled for equality, something that now seems to be further out of reach. The government and investors should refocus their attention once more on gender equality. Across the United States, 55% of the 20.5 million jobs lost in May were held by women. As the government shifts to rethinking its economy, it could aid the goals of equality. For example, improving the balance of women in companies’ leaderships.  Government subsidies could be used to replace pay for workers who need to provide childcare during the crisis due to school and daycare closures and are therefore unable to work, conditional on a continued employment relationship (where they can return to work immediately). Then they could partner with investors to channel funds into companies led by women. It is important we prioritize women entrepreneurs and help provide capital to them.

Second, we need to spread the word and promote women-owned businesses. If you know a local vendor, maybe try her restaurant for lunch instead of a mainstream establishment. If you are going for a morning coffee, visit your local barista. A simple share on Facebook can increase the business’s advertisement reach.

Lastly, we need to show support. Evidence suggests the impacts of the COVID-19 global recession will result in a prolonged dip in women’s incomes and labor force participation. Although these women have conquered the challenge of developing online strategies, revisited their business plans, and adapted to the customers’ needs in a time of crisis, they still need us. Women entrepreneurs are at the heart of this crisis and they need to know we are here to help!

Allyson Lonas, at the time of this post, is a rising second-year at Penn State Dickinson Law. Originally from Johnstown, Pennsylvania, Ally attended The Pennsylvania State University for her undergraduate degree and has interests in corporate law, antitrust law, and government law. In her free time, pre-COVID-19, she enjoyed traveling.

 

Sources:

https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf

https://www.nytimes.com/2020/05/20/us/women-economy-jobs-coronavirus-gender.html.

https://home.treasury.gov/policy-issues/cares

https://www.wbenc.org/covid19/#financial

https://www.enrichher.com/about

https://www.usatoday.com/story/money/2020/06/16/verizon-launch-mentoring-program-women-small-businesses/3194324001/

https://www.un.org/sites/un2.un.org/files/policy_brief_on_covid_impact_on_women_9_apr_2020_updated.pdf

https://www.bls.gov/charts/american-time-use/activity-by-parent.htm

https://www.bls.gov/charts/american-time-use/activity-by-emp.htm

https://www.bls.gov/charts/american-time-use/activity-by-hldp.htm

https://www.bls.gov/news.release/pdf/atus.pdf

https://www.forbes.com/sites/maggiegermano/2019/03/27/women-are-working-more-than-ever-but-they-still-take-on-most-household-responsibilities/#33f131bb52e9

https://economictimes.indiatimes.com/magazines/panache/looking-at-the-pandemic-through-gender-lens-women-are-facing-the-brunt-of-covid-19-with-more-job-cuts-less-pay/articleshow/75735303.cms

https://www.cnbc.com/2020/05/07/how-covid-19-is-impacting-women-owned-small-businesses.html

https://www.dol.gov/agencies/wb/about

https://www.kauffman.org/capital-access-lab/

https://www.kauffman.org/wp-content/uploads/2019/12/capital_access_lab_exec_summary_FINAL.pdf

https://www.kauffman.org/our-grants/

Photo Sources:

Image 1: https://www.cnbc.com/2020/05/07/how-covid-19-is-impacting-women-owned-small-businesses.html (this link is above too)

Image 2: https://www.forbes.com/sites/janicegassam/2020/04/17/7-companies-offering-covid-19-relief-funds-for-diverse-business-owners/#5455887e591b

Image 3: https://www.wabe.org/women-are-losing-more-jobs-in-coronavirus-shutdowns/

 

From Passion to Non-Profit: Building A Non-Profit Organization

By: Ashley Javitz

Here are the basics on how to build your own non-profit organization like three phenomenal women: Eunice, Malala, and Reshma.

EUNICE KENNEDY SHRIVER

After witnessing the mistreatment and the exclusion of people with intellectual disabilities, Eunice Kennedy Shriver envisioned a world where people with intellectual disabilities were given the same opportunities as everyone else. In her world, sports and physical activity would serve as a common ground where all people could be united. In 1962, Eunice organized a summer day camp for people with intellectual disabilities. Camp Shriver served as the foundation for the Special Olympic Games, first held in 1968.

MALALA YOUSAFZAI

When she was 11 years old, Malala Yousafzai began writing a blog about her life during the Taliban occupation of Swat under the pseudonym Gul Makai. Her blogging along with a New York Times documentary about her life lead her to rise in prominence. Her fame, however, was not positively received by all as it caused her to be targeted by the Taliban. On a bus ride home from school, Malala was shot by a Taliban gunman in retaliation for her activism. Malala survived this attack and became an activist for the right to education. She founded the non-profit organization, the Malala Fund. Through her organization, Malala fought for a world where every girl could learn and lead.

RESHMA SAUJANI

As a part of her run for the United States Congress in 2010, Reshma Saujani visited local schools. and saw the need to close the gender gap in technology. In 2012, Reshma founded Girls Who Code, a non-profit organization which aims to deepen the computer science skills of high school girls, to clear pathways for them into the computing workforce, and to “build a supportive sisterhood of peers and role models who help [them] persist and succeed.” In just a short period of time, Reshma made great strides in achieving gender parity in computer science.

TOGETHER

What do these three ladies have in common? They were passionate about a cause. They were resilient, battling the forces against them. They were confident they would succeed. Under their leadership, deeply ingrained societal norms were tackled and incredible, life changing organizations were launched. Above all, their drive pushed their missions forward and created a widespread impact on countless people.

WHAT IS A NON-PROFIT ORGANIZATION?

A non-profit organization is an organization formed to provide a public benefit or to further a particular social cause. A non-profit organization is a tax-exempt group under the Internal Revenue Code Section 501(c)(3) and is classified in one of three ways: a public charity, a private foundation, or a private operating foundation.

HOW DO YOU START A NON-PROFIT ORGANIZATION?

STEP 1: DO YOUR RESEARCH

First, decide if starting a non-profit is the right decision. To make this determination, ask, “Is there a demonstrated need for my organization’s service in the community I intend to serve?” An answer can be established from a thorough investigation of the “demand” and the current or potential “supply.”

STEP 2: DEVELOP A PLAN

Next, build a strong infrastructure to support your organization.  To do so, develop a detailed business plan. Your business plan should include an executive summary, a description of your company, a description of your products and services, a market analysis, a sales and marketing strategy, an outline of your company’s organizational structure, and a financial plan.

After your business plan is complete, create a timeline that is practical and calculate startup costs.

STEP 3: INCORPORATE AND ESTABLISH GOVERNANCE

This is the paperwork step. To incorporate your non-profit organization, you must:

(1) Choose a name for your non-profit organization;

(2) Appoint a Board of Directors;

(3) Draft your initial governing documents and policies;

(4) Decide on a legal structure (i.e., Nonprofit Corporation,                     B-Corporation, Nonprofit LLC,  L3C, Unincorporated Nonprofit Association, Trust);

(5) Prepare and file your non-profit organization’s Articles of Incorporation in the state of  choice;

(6) Apply for an Employment Identification Number; and

(7) Apply for federal 501(c)(3) tax-exempt status.

STEP 4: FILE FOR 501(c)(3) TAX-EXEMPTION STATUS

Tax exemption is the right of a charitable organization to exclude money from their annual taxable income. The excluded amount may be equal to or less than the total amount of taxes due. Tax exemption may also come in the form of a reduced tax rate. 

The Internal Revenue Service (IRS) grants tax exemption status. To receive 501(c)(3) tax exemption status, a qualifying entity must apply to the IRS using Form 1023 or Form 1023-EZ, an Application for Recognition of Tax Exemption.

Provided by the U.S. Small Business Administration, the following is a list of items you will need when filing for 501(c)(3) status:

  • Certified copy of the certificate of formation from your state
  • Copy of your bylaws
  • Detailed pro forma financial statements, including revenue and expense statement for the current year and the three preceding fiscal years
  • Proposed budgets for the next two fiscal years; including a list of anticipated financial support
  • Narrative description of past, present, and future planned activities with an emphasis on broad public benefit of organization’s activities
  • Names and addresses of director and officers
  • Annual accounting period
  • Statement as to whether the organization is claiming status as a private foundation or public charity
  • Employer Identification Number
  • Fee of $400 or $840

Once the IRS reviews your application, a Determination Letter officially recognizing or denying your exemption status will be returned to you.

STEP 5: REGISTER FOR CHARITABLE SOLICITATION AND FUNDRAISING 

(If Applicable)

STEP 6: MAINTAIN COMPLIANCE

Unfortunately, the road does not end once the IRS grants tax exemption status. An entity that receives 501(c)(3) status must then, on an annual basis, file a report with the state government, file a Form 990 with the IRS, and re-register any required items.

Now that you know the basics of how to build a non-profit organization, you are ready to turn your passion into a profit and starting building your own!

*This post was authored on January 21, 2019 and has been reprinted with Ashley’s permission.  The original post can be found here.

Ashley Javitz is a second-year law student at Pennsylvania State University, Dickinson Law. She is from Scranton, Pennsylvania. She holds a Bachelor of Science Degree in Biochemistry, Cell, and Molecular Biology with a minor in Psychology from the University of Scranton. Faith and service to the community are an integral part of her life.

 

Sources:

www.specialolympics.org

www.malala.org

www.girlswhocode.com

www.sba.gov/blogs/how-start-non-profit?leavingSBA=http://nonprofit.about.com/

www.thebalancesmb.com/non-profit-4161501

www.councilofnonprofits.org/what-is-a-nonprofit

www.501c3.org/what-is-a-501c3/

www.nfib.com/content/resources/start-a-business/7-essential-sections-of-a-business-plan-49946/

www.harborcompliance.com/information/how-to-start-a-non-profit-organization-in-pennsylvania

 

Leveling the playing field for the woman entrepreneur; Steps in the right direction

 By: Bakri Fustok*

Small businesses can be challenging. Historically, even more challenging for women entrepreneurs. Today, we take a break from all the tax talk and focus on some of the less spoken areas of business, like the awarding of government contracts to firms operated by women.

In 2017 the government awarded $25.4 billion in federal contracts to women owned businesses Despite being a record high for these businesses, this only made up 5% of the $508.4 billion in federal contracts awarded that year. Although the number of women owned businesses awarded such contracts is up 44.3% in the past nine years, poor oversight still leaves a significant number of businesses to be largely dominated by men. It is important for women entrepreneurs to know that the government provides incentive programs in order to expand federal contracting opportunities to Women-Owned Small Businesses (“WOSB”). The WOSB Federal Contract Program is one of the newest Small Business Administration’s set aside programs within the government. Created in 2011, the purpose of the program is to magnify federal contracting opportunities for women entrepreneurs. Furthermore, the program includes Economically Disadvantaged WOSB’s (“EDWOSB”) for the purposes of competing for and receiving contracts and awards in industries where women are often underrepresented. The North American Industry Classification System provides a list of eligible industries.

Who Is Eligible for WOSB Federal Contract Program?

The eligibility requirements to qualify as a WOSB or an EDWOSB are defined in Title 13 Part 127 Subpart B of the Federal Regulations (CFR). Among other requirements, some of the main qualifications is that your business must be a “small business.” 51% of the ownership and control must be by women who are U.S. citizens. Women must be responsible for the management of the day-to-day operations of the business and be in charge of making the long-term decisions.

There are additional requirements to be eligible under the EDWOSB. Not only must you meet all the requirements of the women’s contracting program but you must also be owned and controlled by one or more women, each with a personal net worth of less than $750,000. The business must be owned and controlled by one or more women, each whose average adjusted gross income for three years is $350,000 or less. Also, the business must have $6 million or less in business assets.

If your small business sounds like it meets these requirements, it might be a good idea to review the CFR and consider participating. Before you can join the program however, you must either be self-certified or third party certified as a woman-owned small business on the Small Business Administration website.

A Work In Progress

Although the program sounds very hopeful and is a great way to help change the historical difficulties for women entrepreneurs, data shows that we still have a long way to go. The women led companies that are being awarded these contracts are not receiving the most expensive contracts. Of the top 50 most expensive contracts in 2016 and 2017, none were awarded to a woman-led business.

It has been argued that because of low government oversight and inadequate monitoring, many businesses that do not qualify as WOSB are sneaking through under the guise because of lax certification methods. For example, a top Women Owned Business contractor, M1 Support Services LP, was registered as a WOSB, yet only two of the six members of the executive team are female. On the company’s Texas government records show co-owners William Shelt, and Kathleen Hildreth, the managing director, are listed as the “registered agents” of the company.

Remaining Optimistic

In 2015, Congress directed the Small Business Association to get rid of the current certification standards that are allowing companies that are not eligible to reap the benefits of the Federal Contract awards. The Small Business Administration would replace these standards with their own classification procedure. Although nothing has been executed yet, the Small Business Administration is likely to make these changes in the coming year. Nevertheless, women that own small businesses should not be dissuaded from utilizing these programs. Despite the current shady loopholes that some businesses are using, women entrepreneurs should continue to apply for such programs in hopes of leveling the playing field in the long run.

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* This post was checked for currency on August 10, 2018 and reproduced with permission by author Bakri Fustok. Original post can be found here.

Bakri Fustok, as of the date of this post, is a third year law student at Penn State’s Dickinson Law.  Originally from California, he now seeks to practice in the areas  of business and tax law in either Pennsylvania or Washington DC.  A more complete bio can be found here:

Sources

Photo: PeopleImages / iStockphoto.com

https://www.opensecrets.org/news/2018/04/women-owned-biz-receive-fraction-of-fed-contracts/

https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-contracting-program

https://www.sba.gov/document/support–qualifying-naics-women-owned-small-business-federal-contracting-program

https://www.business2community.com/small-business/challenges-remain-women-starting-small-business-02045935

http://about.americanexpress.com/news/docs/2017-State-of-Women-Owned-Businesses-Report.pdf