"It is critical that greater accessibility to venture capital be achieved for women and minorities, so that future generations can prosper"
Jakki L. Haussler, Esq., CPA, CEO of Opus Capital Management

Two years ago, women led 28 percent of all U.S. businesses and generated $1.5 trillion in sales. However, despite this statistic, female entrepreneurs historically have received only 4 to 9 percent of available venture capital, a disproportionately low share compared to their male colleagues.

According to Maribeth S. Rahe, president and chief executive officer of Fort Washington Investment Advisors, addressing women and minority entrepreneurs' accessibility to venture capital is critical for maintaining growth among small businesses and supporting local development efforts. "We understand the vital roles that women and minority small business owners play in the economy from the point of view of an investor and venture capitalist. However, nearly three quarters of women are more likely to receive financing from individual investors than venture capital firms. This is a startling fact since women-owned businesses parallel the average U.S. company in terms of financial strength, credit risk and longevity," said Rahe.

She went on to state, "At Fort Washington, we felt it was important to gain a deeper understanding of the issues facing women and minority entrepreneurs. Therefore, we invited more than 40 decision-makers and opinion leaders to join us for a roundtable discussion in Ohio."

On Aug. 19, Fort Washington Capital Partners, along with Peppertree Partners, LLC, co-hosted the "Take Action Ohio" roundtable. This forum sought to take a preliminary pulse of women and minority business owners and learn more about the issues that may be affecting them in Ohio. Rahe emphasized, "Our goal was to make the 'Take Action Ohio' roundtable a memorable forum for encouraging positive interactions, offering timely information and building continued enthusiasm for Ohio's women and minority entrepreneurs."

During the "Take Action Ohio" roundtable, participants dialogued on the challenges and opportunities facing women and minority-owned small businesses.

Key discussion points included:

1) There is a gender dominance in the venture capital industry. Research shows that male entrepreneurs secure significantly more venture capital than female small business owners

2) There is a focus on pre-existing relationships, or network connections. Women and minorities may not have access to these relationships or networks

3) Non-preferential treatment is given from women venture capitalists to women entrepreneurs.

Additional dialogue focused on the following points:

1) There may be a perception that women and minority small business owners do not have the required experience or management skills

2) Women, in particular, may lack sufficient personal financial capital since many times their businesses are started with funds gleaned from personal credit cards

3) Women are not inclined to have venture partners because they want full control of their companies.

According to one panelist, Jakki L. Haussler, Esq., CPA, chairman and chief executive officer of Opus Capital Management and a partner in Adena Ventures and Capvest Venture Fund, access to venture capital is a national issue that needs to remain in the forefront as states and organizations strive to assist women and minority-owned small businesses. "Data has shown that only 4.2 percent of $19 billion in venture capital went to women-owned businesses in 2003. Minority-owned businesses have seen an increase from several million dollars in venture capital during the early 1990s to more than $2 billion today," said Haussler.

She went on to state, "Women and minority-owned small businesses stimulate local economies, serve as catalysts for innovation, and provide much needed jobs. It is critical that greater accessibility to venture capital be achieved for women and minorities, so that future generations can prosper." Victoria Buyniski Gluckman, chairman, president and chief executive officer of United Medical Resources, was the keynote speaker. In addition to Gluckman and Haussler, other expert speakers and panelists at the roundtable were: Cynthia Booth, president and chief executive officer of COBCO Enterprises; De Asa Brown, president and chief executive officer, Greater Cincinnati-Northern Kentucky African American Chamber of Commerce; Karen Conrad, manager of the Office of Small and Developing Business of the Ohio Department of Development; Jo Ann Davidson, former Speaker of the Ohio House of Representatives and founder of JAD and Associates; and Thomas K. Mueller, district director for the US Small Business Administration.