women's business center | Idaho Business Review

Idaho women-owned businesses differ from national trends

photo of women's business center — A group of dignitaries held a formal ribbon-cutting on July 19 for the Idaho Women’s Business Center. Photo by Jeanette Trompczynski

A national survey about women-owned businesses is largely, but not entirely, in line with the experience of women-owned businesses in Idaho.

This is particularly significant now because the aftermath of COVID-19 may include more women-owned businesses, said Diane Bevan, executive director of the Idaho Women’s Business Center (IWBC).

“I think we’ll see women who worked in corporate America, who have enjoyed social distancing and working from home, jumping into the entrepreneurial space because they like that lifestyle,” Bevan said.

While some women business owners may end up going back into the job market because their businesses failed, “I think we’ll see more jumping in then jumping out,” she said.

Staffing an issue

The survey was performed by Guidant Financial, a small business financing company headquartered in Bellevue, Washington.

The Guidant report lists the top two challenges for women small business owners as lack of capital/cash flow and recruiting/retention of employees.

“This aligns with the feedback we received during the NWBC’s 2019 Women in Small Business Roundtable Series, in particular in the rural roundtables, which were held in Pella, Iowa, and in Nampa last fall,” said Jessica Flynn, CEO of Red Sky Public Relations and a member of the National Women’s Business Council (NWBC), in an email message.

In Nampa, for example, the president and CEO of a household cleaning company expressed frustration at the difficulty in locating and hiring new employees to grow her business, while the owner of an online floral distribution system said it was difficult to find technical talent, according to the NWBC report. Rural regions like Idaho must work harder to ensure their communities attract and retain a skilled and diverse workforce, the group concluded.

Financing

Guidant lists cash as the most popular financing method, with family and friends coming in fourth and Small Business Administration (SBA) loans coming in sixth.

“The feedback received during NWBC’s roundtables seems to support this trend,” Flynn said.

That’s something IWBC wants to change, Bevan said.

“Women tend to try to bootstrap it and don’t think of lending as an option,” she said. “I’m not sure if it’s not going to want to go into more debt or lack of business planning.”

For example, many women business owners don’t use business banking, which makes it more challenging later to obtain SBA loans, Bevan said.

Bevan noted the survey found 71% of women business owners were profitable. Even if COVID-19 ends up affecting that, those figures indicate that they would likely still be able to get funding, she said.

Rural nuance

However, because much of Idaho is rural and is more likely to have family-owned businesses, some nuances about Idaho women-owned businesses may not be reflected by the national survey, Flynn noted.

“The Guidant report lists ‘Ready to Be Your Own Boss’ as the top motivation for opening a business with 31% of respondents,” said Flynn, who chairs the NWBC subcommittee on rural entrepreneurship. “Only 4% answered ‘Life Event.’ NWBC’s research underscores different motivations or perhaps, different definitions of what is behind ‘Ready to Be Your Own Boss.’ We’ve seen and heard in our roundtables that motivations of necessity and flexibility to solve for work/life conflicts are strong drivers of being your own boss.”

For example, many women took ownership of their business to fulfill generational transfer of a family venture or continue operations after the death of a spouse, the NWBC report noted.

In addition, efforts to preserve a decades-old family venture can be financially complex, especially for firms in the farming industry, the NWBC report noted. In particular, it can be difficult for agricultural businesses to pencil out, even considering the value of the land, participants said. A representative from the SBA attending the panel noted many agricultural businesses are cyclical and that the best time to get a line of credit is when the business doesn’t need it, recommending owners preemptively fundraise to combat anticipated profit lulls throughout the year.

Women’s Business Center could receive more federal funding

photo of small business development center — The Boise office of the Small Business Development Center Incubator, which hosts the Idaho Women’s Business Center, could also receive federal funding. Photo courtesy of Small Business Development Center

This article was updated on April 22 to reflect that the IWBC has applied for the funding but not yet received it.

The COVID-19 coronavirus pandemic may have a silver lining for the Idaho Women’s Business Center (IWBC): The Boise-based nonprofit organization could receive up to $840,000 in grants from the federal government it could use to expand a planned program to help support rural Idaho women business owners.

The funds are being provided as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, said Diane Bevan, executive director of the organization. With the funding, which the organization has applied for but not yet received, the organization could hire up to three or four more staffers, she said.

“In rural Idaho, we already had those plans,” Bevan said. “Now we will have more people to do it faster.”

Rural program

The organization had already intended to launch its rural Idaho program, Idaho Rural Growth Initiative 44×22, “bringing small business education to all 44 Idaho counties by the year 2022.” Announced on March 10, the program consisted of three parts, the primary part of which was called the Accelerator. That program consisted of a four or six-week Accelerator business training workshop, Creative Framework, intended to cover the basic pillars of starting and running a business, according to the organization’s announcement.

The first round of Accelerators were intended to be led by identified local facilitators. They could be a member of a local Chamber of Commerce, an economic development agency, a library director or a local champion professional. Each facilitator could choose to be the presenter or to bring in local subject experts to teach their specific trade. In areas where the population is small, the IWBC would provide captured video content from professionals addressing the weekly topic.

In addition, Creative Framework would provide LivePlan business planning software to all attendees.

“The Idaho rural growth initiative was on our radar when we first proposed the IWBC,” Bevan said.

Six months ago, the organization started connecting with its rural partners including the Idaho National Laboratory, Idaho Power and the governor’s office.

“We were talking about how we could do this great momentum of initiative and outreach to rural Idaho,” Bevan said. “It was boots on the ground. The next stage was identifying local champions, setting dates and getting training and materials.”

COVID-19 setback

Then COVID-19 happened.

“We still are working with those who stepped up and said they would love to host entrepreneurial training. We haven’t canceled any,” Bevan said.

The organization set up a survey on its home page to capture its reach into rural Idaho.

“Some cities are so rural and small I had to look them up,” Bevan said.

Ultimately, the organization identified 177 women business owners across the state and is now partnering with daycare organizations and salons willing to host events, she said.

CARES grants

The CARES Act grants — each WBC around the country is eligible to apply for up to $420,000 per center, Bevan said — would launch a two-year effort beginning May 1 to connect with Idaho small businesses over COVID-19-related issues.

The organization would hire up to three to four more people to hold a statewide tour of listening sessions to connect with small businesses and create an extensive mentorship program, Bevan said.

“COVID-19 was a little bit of a setback,” Bevan said. “There’s strong women hanging in there, with some of them taking some pretty big pivots. It’s a little bit of a silver lining, having more women connect with us because of COVID-19.”

Idaho’s Small Business Development Center (SBDC), which hosts the IWBC, could also receive funding, Bevan added.

Bevan said she was relieved that the Small Business Administration had agreed to fund the IWBC in 2019 after two former IWBCs had shut down.

“If we were still in one of those years without one, we would have been left out,” she said.

Women’s capital conference seeks to improve status of Idaho women-owned businesses

photo of Speakers are Jesse Reese McKinney, CEO of @redaspenlove , Liza Roeser Atwood, CEO of @FiftyFlowerscom, and Jennifer Lastrow, founder of @360_Immersive. — Prominent Idaho businesswomen Jesse Reese McKinney, CEO of Red Aspen, at left, Liza Roeser Atwood, CEO of Fifty Flowers, center, Jennifer Lastra, founder of 360 Immersive, right. Photo by Sharon Fisher

A Salt Lake City-based conference intended to help support women-owned businesses will be coming to Boise in April.

The conference is Women Entrepreneurs Realizing Opportunity for Capital,from the Boise State University College of Business and Economics Funding Accelerator powered by VenutreCapital.org. It will be held in the Stueckle Sky Center at Boise State University on April 7, with a VIP reception the previous evening at The Grove Hotel.

photo of jolene anderson — Jolene Anderson

“It’s really to focus on educating the startup entrepreneur female-led company, as well as female-funded companies looking to scale that are further along and growth-stage companies,” said chair Jolene Anderson, who leads the all-volunteer planning team and also volunteered for the three previous Salt Lake City events. “The learning curve for female-funded companies is something we’re trying to address.”

The event, expected to draw 300 attendees, will include female founder success stories, as well as panel discussions about resources entrepreneurs need to start companies, such as a patent attorney, business attorney, and other infrastructure before seeking capital, Anderson said.

Another panel will cover alternative sources of capital, such as lines of credit, Small Business Administration (SBA) loans and factoring, loans based on purchase orders.

“Angel capital isn’t for everyone,” Anderson said.

The event will also include a Deal Forum, featuring six female-led early-stage companies presenting to a panel.

Idaho has several prominent women-owned startups, such as Lovevery, which received $20 million in Series B funding in October; Cheeky’s, an online clothing and accessories company; Saalt, a menstrual cup company; Fifty Flowers, an online florist and Red Aspen, a makeup company. The state also received a $300,000 grant in June from the SBA to help form a Women’s Business Center with multiple locations.

Opinions vary as to how well women-owned businesses do in Idaho. A study last fall by American Express found Idaho tied for third with Nevada in women-owned business “clout,” based on growth in the number of women-owned firms, jobs and firm revenues.

photo of Michael De Medeiros — Michael De Medeiros

However, a more recent study by FitSmallBusiness.com found Idaho ranked 25^th in its Best States for Female Entrepreneurs report. On the other hand, that’s an improvement from 2019, when Idaho ranked 46th, and from 2018, when Idaho ranked 37th, said Michael De Medeiros, special projects editor for the New York company.

The study had four components: Startup climate and opportunity, economic and financial health and, new this year, women’s health and safety and women’s business opportunity, De Medeiros said.

“It’s the first year we’ve doubled down and tried to dig in on issues specific to women,” he said. “If you’re in a state and you’re in the demographic that has the highest death rate in the country, it may be a great state to start a business, but it’s not great for you.”

In startup climate and opportunity, Idaho ranked 8^th, De Medeiros said, noting Idaho has startup discussion, outreach and opportunity.

“It’s a great place for people in and around California to base and be close enough to go back and forth to California,” he said.

For economic and financial health, Idaho ranked 19th.

“It’s a state that is very much middle of the pack,” De Medeiros said. “You can get ahead and make money but it’s not a state with a great corporate tax rate.”

In women’s health and safety, covering factors such as the female uninsured rate, political representation, homicide rate and reproduction rates, Idaho ranked 34th, De Medeiros said.

But it was in women’s business opportunity, including the share of women-owned businesses, economic clout, rates of unemployment and venture capital going to women, that Idaho scored particularly badly, at 41st.

“It would be great if Idaho and the people putting money into businesses in Idaho were looking for more women-owned and run businesses whenever possible,” De Medeiros said. “When you’re in the bottom 10 in a category that’s 35% of the total, you take a hit.”

Idaho ties for third nationwide in women-owned business clout

In good news for Idaho’s women entrepreneurs, the state ties with Nevada as third in the nation for the economic clout of women-owned businesses.

According to a recent survey by American Express, Idaho came in sixth in the nation for growth in the number of women-owned firms since 2014 with a 17.3% increase, third in growth of jobs created with a 12.7% increase and 11^th in growth of firm revenues with a 12.8% increase, for a total of third nationwide in economic clout.

“I’m not surprised with the growth statistics of women-owned businesses in Idaho,” said Jennifer Lastra, CEO and managing director for 360 Immersive, a Boise-based virtual reality training application, in an email message. “Women bring additional skills that every business requires to succeed such as thinking more holistically while prioritizing inclusiveness, creative problem-solving and effective team development. It’s exciting to see more and more women are finding ways to chase their entrepreneurial dreams.”

Growing resources for businesses

Idaho has an increasing number of resources for entrepreneurs, with Lastra noting that she had worked with Boise State University’s Small Business Development Center, Treasure Valley SCORE and the Small Business Administration’s Emerging Leaders Program. Madden has worked with Mission43, an organization for post-9/11 veterans, and the Boise State University Venture College Program.

“I am further encouraged with the recent re-funding of the Idaho Women’s Business Center offering services in a few other cities across Idaho,” Lastra said. “This will allow even more women access to free resources to help support them while they launch or fine-tune their business models.”

However, the survey results are not a panacea, particularly in funding, said Alexis Rankin of Boise, who is developing a roommate-matching application called Chillow. The app is being developed with Ventive and the company is looking for funding, presenting to investors in Salt Lake City later this month.

“As the founder of a woman-owned business in Idaho, I am ecstatic to see growth in these numbers,” Rankin said in an email. “However, I also know there is a long way to go when it comes to the growth in women-run businesses, as well as funding provided to them. It feels like we still have to jump through extra hoops and bounds when it comes to finding funding, but it gives me hope to see our numbers on the up and up.”

Where Idaho fits

Geri Stengel

Idaho is outperforming many other states, said Geri Stengel, research advisor for American Express, who noted that in a good economy, entrepreneurs frequently return to the workforce.

“The fact that Idaho has a strong rate indicates that you are more likely to have ‘opportunity entrepreneurs,’ in this case women, who see a need in the marketplace and feel they are uniquely qualified.”

That’s the case for Proximity Telehealth, which provides online health care to women who have recently had babies, said Anne Madden, founder, in an email message.

“Being a woman with a doctorate in physical therapy and three children myself gives me a distinct advantage with that group of patients,” Madden said. “I am a peer as well as a provider. I feel welcome as a woman owned business owner, especially in the women’s health care setting.”

‘Sidepreneurs’

Women are particularly likely to be “sidepreneurs,” where women have either a side business while also having a job, or a “flexibility” entrepreneur, performing childcare or elder care along with work on a part-time schedule, Stengel said.

This was the first time American Express has looked at sidepreneurs, and, nationally, the trend is growing much faster among women than among men, Stengel said. Three industries are particularly strong for women: services such as nail salons and pet care; health and social assistance; and professional, scientific and technical services such as lawyers, architects and consultants.

Women can also be “necessity” entrepreneurs when they either can’t find a job or the job they have isn’t paying well enough, Stengel said.

Women’s Business Center formally announced

A group of dignitaries held a formal ribbon-cutting on July 19 for the Idaho Women’s Business Center. Photos by Jeanette Trompczynski

The Idaho Women’s Business Center (WBC) held its official ribbon-cutting in the Idaho Statehouse on July 19, though that won’t be the location of any of the facilities.

“Today we had the inaugural ceremony for the reestablishment of the Idaho Women’s Business Centers,” said Diane Bevan, president and CEO of the Idaho Hispanic Chamber of Commerce and Idaho WBC executive director. “Part of that is starting out with three offices – in Twin Falls, Nampa and Boise; and, in a couple months we’ll have one in Idaho Falls. We are so excited to be able to reach out to all women and cultures and communities. We want to have a special focus on our women in rural Idaho. We know that they’re living their dream and they have struggles, and we want to outreach and go to where they are and help connect them with the resources they need to help their business thrive.”

The Idaho WBC will be hosted by the Idaho Hispanic Foundation under the direction of the Idaho Hispanic Chamber of Commerce, with the University of Idaho as a co-partner. The organization signed leases on July 2 to host the Nampa and Boise offices within the Small Business Development Center Accelerator locations.

“For the sake of Idaho’s economy, we need more women starting and scaling businesses,” said Jessica Flynn, National Women’s Business Council Member and Red Sky Founder & CEO. “These are the companies that bolster local economies and rural economies across our state. I’m thrilled to see that Idaho ingenuity and collaboration is bringing a WBC back to Idaho in this unique form to serve more women and more communities.”

Other featured guests and speakers at the ceremony included Amy Lientz, Idaho National Laboratory, stakeholder and education partnerships director; Ivan Castillo, Idaho Hispanic Foundation president; Sen. James Risch; Gov. Brad Little; Allen Gutierrez, U.S. Small Business Administration Office of Entrepreneurial Development associate administrator; Don Melendez, Wells Fargo Idaho regional president and Mike Satz, University of Idaho associate vice president.

: Jessica Flynn, Red Sky founder and CEO,speaks during the Idaho Women’s Business Center ribbon-cutting event at the Idaho Capitol.

: Diane Bevan, leader of the Hispanic Chamber of Commerce, speak during the Idaho Women’s Business Center celebration.

: The Idaho Capitol on July 19 before the Idaho Women’s Business Center celebration.

Women’s Business Center picks out its new locations

Idaho Women’s Business Center sites will be located across the state through 2020, according to more detailed information about the project from the organizer.

The Small Business Administration announced June 17 that it had agreed to fund two Women’s Business Centers (WBC) in Idaho, one in the Treasure Valley and one in the Magic Valley.

The Idaho WBC will be hosted by the Idaho Hispanic Foundation under the direction of the Idaho Hispanic Chamber of Commerce, with the University of Idaho as a co-partner.

But starting in 2020, the second grant will expand to other portions of Idaho as well, said Diane Bevan, president and CEO of the Idaho Hispanic Chamber of Commerce.

Grant 1 of $150,000 will initially cover the Treasure Valley and Magic Valley until October 2020, at which time the Magic Valley will transition to Grant 2 as a full grant, Bevan said.

Grant 2 will initially be a half grant of $75,000 and will start a slower initial growth area for Pocatello to Idaho Falls and Rexburg and some Idaho rural areas, Bevan said. Many training sessions will be hosted in University of Idaho extension offices, she said.

In addition, the organization signed leases on July 2 to host the Nampa and Boise offices within the Small Business Development Center Accelerator locations, Bevan said.

“They’re affordable and honestly, a great fit and partnership,” she said.

Bevan will work out of the Boise office on Idaho St., which will be open by appointment only. The Nampa location on East Terra Linda Way will host the director of programming with some set and some flexible hours, with occasional evening and weekend classes.

“In phase 2, we will add a client coordinator to the Nampa office,” she said.

The Twin Falls office will be located within the same building as the Twin Falls Area Chamber of Commerce and will have set walk-in hours and occasional evening and weekend classes, Bevan said.

The organization will also open an office in Idaho Falls in October and hire a full-time client coordinator with some set and some flexible hours.

With the locations settled, the organization is now working on staffing.

“We are starting the hiring process immediately for a director of programming that will be a statewide position until October 2020,” Bevan said. “Then a second one will be hired to cover the area serviced by Grant 2.”

The organization also formally announced its ribbon cutting ceremony on July 19 at 10 am in the second-floor rotunda of the Idaho State Capitol. Guests include Idaho Sen. Jim Risch, who served as chairman of the Senate Committee on Small Business and Entrepreneurship from 2017-2018 and was instrumental in having the grant awarded; Allen Gutierrez, associate administrator of the office of entrepreneurial development within the SBA; and Jessica Flynn, founder and CEO of Red Sky, who was recently named as a board member of the National Women’s Business Council (NWBC).

“Across the country we’ve seen how Women’s Business Centers help support increased participation by women entrepreneurs in the U.S. economy, particularly those who’ve been underserved or excluded,” Flynn said. “For Idaho’s economy to continue to grow for the benefit of all, we need more women starting and scaling businesses. These are the companies that bolster local economies and rural economies across our state. I’m thrilled to see that Idaho ingenuity and collaboration is bringing a WBC back to Idaho in this unique form to serve more women and more communities.”

In November, the NWBC is planning to partner with the Idaho WBC on one of a series of roundtable discussions nationwide to support the growth of women-owned businesses, Flynn said. The Idaho session is not yet scheduled but will be held in Boise, according to the NWBC. It will focus specifically on women entrepreneurs in rural areas and will be based on the organization’s Rural Women Entrepreneurs: Challenges and Opportunities Report, published on May 8.

Idaho to receive Women’s Business Center grant

photo of women's business center workshop — Attendees at last year’s Small Business Administration workshop on how to apply for a Women’s Business Center grant. From left, Katie Sewell, director of the Idaho Small Business Development Center; Jeremy Field, regional administrator for the Pacific Northwest Region of the Small Business Administration; Diane Bevan, president and CEO of the Hispanic Chamber of Commerce, and an unidentified attendee. Photo by Fiona Montagne.

Idaho is finally getting a Women’s Business Center — two, in fact.

The Small Business Administration announced June 17 that it had agreed to fund two Women’s Business Centers (WBC) in Idaho, one in the Treasure Valley and one in the Magic Valley.

The Idaho WBC will be hosted by the Idaho Hispanic Foundation under the direction of the Idaho Hispanic Chamber of Commerce. The University of Idaho will serve as a co-partner to the Idaho WBC.

“We’re so excited,” said Diane Bevan, president and CEO of the Idaho Hispanic Chamber of Commerce.

Bevan said her organization had identified two locations in Twin Falls and is looking at a couple of locations in Nampa, as well as one in Meridian.

“We would like to put it in Canyon County, but that is yet to be determined,” she said.

Sen. Jim Risch, R-Idaho, who served as chairman of the Senate Committee on Small Business and Entrepreneurship from 2017-2018, is scheduled to travel to Idaho on July 19 for a ribbon cutting, Bevan said.

Bevan hadn’t been told yet the exact amount the organization would receive, but said she had applied for the full $300,000 after a March announcement that the SBA would double the normal $150,000 grant so that two centers could be established in Idaho..

“We don’t anticipate not receiving the full amount,” she said.

Although the hosting organizations are for Hispanics, the programs will be for all women, Bevan said. They will include a leadership program and courses such as a three-part Business Basics and a 10-part Business Essentials.

“We will definitely put a focus on, not just Hispanic, but minority and underserved women,” she said. “If you look at the (request for proposal), it definitely did highlight that focus of minority, underserved and rural.”

The WBC will undertake a marketing program to identify Idaho women entrepreneurs and their “pain points,” such as marketing needs and access to capital, Bevan said. The Hispanic Chamber of Commerce held an event in April for female entrepreneurs and of the 450 women attendees, 400 were Latina, she said. Similarly, a March event in the Magic Valley had 80% minority attendees, she said.

The WBC will also take advantage of some of the University of Idaho’s entrepreneurship programs, as well as extended locations across Idaho, which will let the WBC host programs across Idaho using technology, Bevan said.

Previous Idaho WBCs have failed due to not being able to meet the program’s stringent financial match program, and Bevan admitted that would be a challenge.

“By year three, you have to match dollar-for-dollar,” she said.

The new WBC has already received some cash commitments, plus the Idaho Hispanic Foundation itself will be making a “sizable” donation.

“We’re very excited to have this opportunity to be first,” she said.

For the first two years, up to 50% of the match can be in in-kind donations, and the Hispanic Chamber of Commerce has a history of receiving a number of donations from organizations such as audio-visual companies and media partners, Bevan said.

Nationwide, Latinas own 44% of Latino businesses, according to the 2017 State of Latino Entrepreneurship Report from Stanford University. From 2007 to 2015, nearly half of the growth in new Latino businesses came from firms started by women. That compares to much lower growth rates for female white (13%) and black (20%) entrepreneurs, noted the Stanford Latino Entrepreneurship Initiative, which produced the report.

That said, firms started by Latinas tend to be small, the report continued, with only 30% of the Latino firms with $1 million or more in annual revenue owned by women.

SBA: Women’s Business Center would need to cover whole state

Information presented by the Small Business Administration (SBA) about a grant to bring a Women’s Business Center to Idaho was incorrect – the grant does require the center to service the whole state.

Attendees at a series of three workshops — held on Feb. 11 in Coeur d’Alene, Feb. 12 in Lewiston, and Feb. 13 in Boise — were told that the rules of the grant had been changed and the Women’s Business Center no longer needed to service the whole state.

That is incorrect, according to SBA representatives.

“The information on Grants.gov is the correct information with regard to the official criteria for a potential WBC in Idaho,” said Shannon Giles, public affair specialist for the SBA press office in the Office of Communications & Public Liaison.

The information presented that statewide coverage was not required was incorrect, she said.

Diane Bevan, president and CEO of the Idaho Hispanic Chamber of Commerce, based in Nampa, had said that the elimination of the statewide requirement was welcome news, but said she was still planning to partner with several other Idaho organizations on a grant application. The application is due March 28, according to the SBA.

“I am not sure that I would call it a hardship as we do represent our chamber as a state chamber with a statewide directory and statewide partners like the University of Idaho,” Bevan said. “It is our goal to be in eastern Idaho by year end and Northern Idaho by 2020 in the way of established chapters and governing committees. That said, we are putting together our grant application and identifying partners statewide that can help us in the statewide initiatives.”

The statewide requirement might even have a silver lining, Bevan added.

“Securing this grant would only escalate our ability to expand the IHCC faster through the efforts of the WBC proposed plan,” she said.

Idaho is one of just three states, along with Alaska and South Carolina, that doesn’t currently have a WBC, which provide business counseling, training and other resources to women entrepreneurs. The state has had several Women’s Business Centers over the years, but each has been shut down over time, typically due to lack of funding or inability to meet the stringent requirements of the grant, worth up to $150,000 per year.

Coalition plans to apply for Women’s Business Center grant

In another attempt to get a Women’s Business Center in Idaho, the federal Small Business Administration held a series of workshops in three Idaho cities, and at least one coalition is forming to apply for the grant.

Among the participants in the coalition will be the Idaho Hispanic Chamber of Commerce; Norris Krueger, founder of Entrepreneurship Northwest; and the Western Alliance Economic Development and Region 4 economic development in Twin Falls, according to members of the respective organizations.

“The Hispanic community is the fastest growing demographic of the state, and with the rising numbers of women starting business, the need for a Women’s Business Center has never been greater,” said Diane Bevan, president and CEO of the Nampa-based IHCC, who said she would be presenting this to the organization’s Board of Directors with a proposal that it apply. “We are looking at this grant as an opportunity to increase collaboration and resources with other partners in Idaho and see it as an enhancement to programs already in place and new ones to be formed.”

photo of norris krueger — Norris Krueger

Krueger said the Women’s Business Center “needs to be a connector itself and not territorial/imperialistic like too many prominent ecosystem players here.”

“I intend to work with Diane, but I’m happy to help others,” he said. “Idaho has left too damned much money on the table in past years. Time for that to change!”

The Coeur d’Alene Innovation Collective attended the Coeur d’Alene workshop but isn’t planning to apply for the grant, though the organization will continue supporting women entrepreneurs, said founder Nick Smoot. The other workshop was in Lewiston, the first time one has been held in that city, according to Kathleen McShane, assistant administrator for the SBA’s Office of Women’s Business Ownership, who led the three workshops.

In addition, the SBA is changing some of the requirements of the grant, which attendees said would make it more relevant to Idaho. These changes include no longer requiring the WBC to support the entire state, no longer requiring an audit, and adding 15 points in application scoring when serving rural and Native American populations.

“The most useful change is the non-requirement to be a statewide WBC,” Bevan said. “Although it is the mission of the IHCC to be a fully supporting state wide organization, we are not there yet.”

Cece Gassner, director of economic development at Boise State University, applauded the removal of the requirement to submit an audit, which can be quite expensive for a nonprofit, as well as the additional points for rural and Native American populations.

While public universities don’t appear eligible to apply, the university is willing to partner with others, she said.

Idaho is one of just three states, along with Alaska and South Carolina, that doesn’t currently have a WBC, which provide business counseling, training and other resources to women entrepreneurs. The state has had several Women’s Business Centers over the years but each has been shut down over time, typically due to lack of funding or inability to meet the stringent requirements of the grant, worth up to $150,000 per year.

photo of kathleen mcshane — Kathleen McShane. Photo by Sharon Fisher.

Organizations concerned about meeting the $150,000 cash match after the first year could apply for a smaller amount, but would be limited to that amount for the five-year period of the grant, McShane said.

Last year, Idaho Women in Leadership — a bipartisan nonprofit organization that advances Idaho women’s leadership in government and business through leadership training programs— applied for the grant, but was turned down due to a lack of longevity of financial reports to show sustainability.

The SBA had intended to hold the workshops in mid-January, but they were delayed due to the government shutdown.

It’s not that there isn’t a need for a women’s business center in Idaho. The state typically ranks dead last, or nearly last, in national research on economic opportunities for women.

Idaho women entrepreneurs look for support

photo of zions business resource center — Zions Bank’s Business Resource Center supports a number of women-owned businesses, such as Dandy Horse Bakes. Photo by Sharon Fisher.

A recent entrepreneurial event sponsored by the Idaho Technology Council was notable for what it didn’t say: all three entrepreneurs on the panel were women, and their businesses are geared toward women.

The ITC didn’t set out to have an all-female panel, said Karen Appelgren, vice president and director of the business resource center at Zions Bank, and moderator of the Capital Connecting panel. “You pick businesses that have a great story, a history of success and a trajectory of success,” she said. “That’s who you want to highlight, regardless of gender. There are similar challenges and opportunities that entrepreneurs face.”

Alison Johnson from Holland and Hart and Blake Hansen from Alturas Capital served as co-chairs.

photo of karen appelgren — Karen Appelgren

Participants were Amber Fawson and Cherie Hoeger, co-founders of Saalt, a menstrual cup company; Liza Roeser Atwood, CEO and co-owner of Fiftyflowers.com, and Jesse Reese McKinney, CEO of Red Aspen, a makeup and skin care company.

All three businesses were self-funded, and the women emphasized customer relationships, including branding and packaging, to attract customers.

How do women entrepreneurs in Idaho do? That depends on how you ask the question. Idaho came in second in a Frontier Business survey from last fall for the highest percentage of female-owned businesses. At the same time, a WalletHub study from a year ago ranked Idaho next to last for the percentage of women-owned businesses, but that study only counted businesses with employees. The 2014 State of Women-Owned Businesses Report, commissioned by American Express OPEN, also found Idaho in the penultimate spot, with 23.5 percent of firms owned by women. On the other hand, Idaho ranked 29^thin terms of growth in the number of women-owned firms from 1997 to 2014 with 46.3 percent.

In addition, Idaho women entrepreneurs lack some of the resources available in other states. For example, the state is one of just three in the country without a Women’s Business Center, a Small Business Administration-funded program that, in partnership with local nonprofits, provides resources and classes for women.

A year ago, the SBA held a series of workshops to encourage Idaho groups to apply for a grant to fund a Women’s Business Center, but ultimately decided not to award a grant.

“We were told our application, although strong in collaboration, lacked the longevity of financial reports to show sustainability,” said Lori Otter, CEO of Idaho Women in Leadership, a bipartisan nonprofit organization that advances Idaho women’s leadership in government and business through leadership training programs.

The SBA is trying again this year, though a series of workshops planned for mid-January had to be rescheduled due to the federal government shutdown. Otter said that while her organization wasn’t planning to apply again, it was working with another organization that is planning to apply.

“We will be supporting the economic development district’s grant application, and they look forward to our partnership to make it a success,” she said.

That effort is being spearheaded by The Development Company, also known as the East-Central Idaho Planning & Development Association. The organization did not respond to inquiries by press time.

In the meantime, some Idaho banks are filling the gap. Zions has its Business Resource Center, while Wells Fargo has Wells Fargo Works, part of the corporate office’s small business program. While neither is aimed specifically at women, both count a large number of women as clients.

“I think we are missing out on an opportunity to promote growth for women in business,” said Lindsey Brist, business banking relationship manager for Wells Fargo in Boise, which handles small business from Sun Valley to Weiser. “I’ve found that more women went into business when they were provided the guidance and counseling they needed. We have networking groups, which help, but it’s something that holds women back. As an organization, we see a need and are trying to fill that gap, but there is a gap.”

This post has been updated to correct Karen Appelgren’s role with the panel.

January workshops planned for an Idaho Women’s Business Center

In yet another attempt to create a Women’s Business Center (WBC) in Idaho, the federal Small Business Administration (SBA) will hold workshops in mid-January to teach interested parties how to apply for grants. However, the one group that applied and was rejected last year isn’t sure whether it’s going to try again.

“We have not determined if we are or not,” said Lori Otter, CEO of Idaho Women in Leadership (I-WIL), a bipartisan nonprofit organization that advances Idaho women’s leadership in government and business through leadership training programs. The organization applied last year for a grant to help start a Women’s Business Center and was rejected for reasons the agency would not make public.

Idaho is one of just three states, along with Alaska and South Carolina, that doesn’t currently have a WBC, which are intended to provide business counseling, training and other resources to women entrepreneurs. Attempts have been made a couple of times before, but they eventually shut down due to lack of match funding and the arduousness of the application process. The SBA didn’t say how much the grant would be for, but last year it was for up to $150,000.

Dates and locations for the workshops have not been released, and the SBA wasn’t able to respond to inquiries due to the federal government shutdown. Last year, the agency held bidding information sessions May 17 and 18 in Coeur d’Alene and Boise, respectively, for a July 2 deadline.

The WBC program is a national network of more than 100 locations that offer one-on-one counseling and training to women seeking to start businesses, grow their markets or expand through federal contracting opportunities or international trade, according to the SBA. During fiscal year 2017, the WBCs assisted nearly 150,000 entrepreneurs nationwide, including helping entrepreneurs start 17,000 new businesses.

Eligible applicants for the grant must be private, nonprofit organizations with 501(c) tax-exempt status from the U.S. Treasury/Internal Revenue Service and must provide services in Idaho. Centers, but not the host organizations, must be in the states where services will be provided. This may include universities, foundations, chambers of commerce or economic development institutions.

Idaho rejected for Women’s Business Center grant

photo of debbie field — Debbie Field, executive director of Idaho Women in Leadership, at the May Women’s Business Center grant workshop. Photo by Fiona Montagne.

Idaho will continue to be one of the only states in the nation without a Women’s Business Center.

None of the applicants for a Small Business Administration grant received a passing grade on the grant applications, said Christian Pennington, lender relations specialist in Boise for the SBA. Details on exactly in what areas the application fell short were not immediately available.

“Sad day indeed,” said Diane Bevan, president and CEO of the Idaho Hispanic Chamber of Commerce, in Nampa, which was involved with the grant application.

The primary applicant was Idaho Women in Leadership (I-WIL), a bipartisan nonprofit organization that advances Idaho women’s leadership in government and business through leadership training programs. The organization’s CEO is Lori Otter, wife of Gov. C. L. “Butch” Otter, and the executive director is Debbie Field, who has been involved with state government organizations. I-WIL representatives did not immediately respond to questions about the application.

This year marked the SBA’s third attempt in recent years to award a grant to help support a Women’s Business Center, after two previous centers shut down due to lack of matching funding from the community. After attempting to fund a third Women’s Business Center in late 2017, the agency announced on May 8 that a $150,000 grant was available for a nonprofit organization to provide business counseling, training, and other resources in Idaho. While the grants are intended to help support women entrepreneurs, the centers provide information to anyone who asks.

The deadline for the grant was July 2, and the SBA held bidding information sessions May 17 and 18 in Coeur d’Alene and Boise, respectively. Field and Bevan attended the May 18 workshop.

People involved in previous incarnations of the Women’s Business Center in Idaho criticized the grant’s daunting match requirements — 50 percent for the first two years, followed by 100 percent – and onerous paperwork. In response, the SBA said it had reduced the amount of paperwork required by 25 percent.

Like other federal grant applications, the Women’s Business Center grant application is complex, said Karan Tucker, executive director of Jannus Inc., a Boise-based nonprofit that ran the second Women’s Business Center. It requires a community needs assessment, in-depth background of the organization applying, qualifications, a description of the plan to operate, a detailed budget, and commitment letters from groups that are going to help the organization meet the match requirement, Tucker said. She was not familiar with the details of this year’s applications, she added.

“It’s a heavy lift to put together an application, and an even heavier one to operate it,” Tucker said. “It’s disappointing for Idaho to not have this resource, but it is a mighty complex program, and difficult to meet the compliance requirements and raise the match. $150,000 is a substantial barrier. We have to figure that one out.”

Idaho tends to show up dead last, or nearly last, in national research on economic opportunities for women. For example, in a recent WalletHub survey of Best and Worst States for Working Moms, Idaho ranked last in the country. In particular, Idaho ranked at 50 for its ratio of female to male executives, 49 in gender-representation gap in different economic sectors, and 43 in gender pay gap.

The SBA has 110 Women’s Business Centers nationwide, which it said helped 150,000 entrepreneurs, including 17,000 new business starts, in 2017. Idaho is one of three states, along with Alaska and South Carolina, without one. South Carolina also failed to receive a grant this cycle due to not receiving a passing grade on an application, Pennington said.

The SBA is determining whether it will open another grant solicitation for Idaho in 2019, according to Cecelia Taylor, an SBA spokesperson in the Washington, D.C. office.

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