Women At Forefront of Most Important Revolution in American Business: The Ascent of Entrepreneurial Leadership.

Business Editors

CHICAGO--(BUSINESS WIRE)--Nov. 20, 2002

     Research From The Committee of 200 Provides Insight into the
         Entrepreneurial Sector, Which Has Created Two-Thirds
                of All New Jobs Over the Last 20 Years

 Findings, Other Leadership Issues Shared Among Top Women Executives
                at C200's 20th Anniversary Conference

One of the most dramatic yet often overlooked changes in American business that has spurred incredible economic growth over the last 20 years is the unparalleled rise of women-operated entrepreneurial companies, a point recently underscored in a major new White Paper, "Women and the Entrepreneurial Revolution," issued by The Committee of 200 at its 20th Anniversary conference in New York City.

"The numbers are compelling," said Connie K. Duckworth, Chair of The Committee of 200. "While the tech sector captured most of the headlines during the last five years, we have an equally compelling story to tell: Over the last 20 years, some two-thirds of all new jobs have been with entrepreneurial firms, and 40 percent of these businesses are owned by women. Moreover, women are starting firms at twice the rate of men - which is certain to fuel much-needed job growth."

The Committee of 200 (C200) is the organization of leading women in business that focuses on fostering growth and increasing opportunities for women entrepreneurs and corporate leaders. C200 membership requires that women either be entrepreneurs with annual revenues of over $15 million or run a corporate division with at least $250 million in annual revenues. Members' companies generate over $100 billion in revenues each year.

Analysis of Economic Impact of Women Business Leaders

To mark its 20th anniversary, C200 analyzed and captured the dynamic growth of entrepreneurship among women and the effect it has had on the American business landscape. These insights were a cornerstone topic at the conference, the world's largest gathering of women business leaders.

Among the key findings:

    --  From 1997 - 2001, women-owned firms grew by 13.9 %, while the
        overall growth for new businesses was 9.1%.
    --  The fastest growing segments of women-owned businesses are
        firms with more than $15 million in revenues and also
        companies with more than 500 employees.
    --  These types of entrepreneurial companies are responsible for
        two-thirds of all new jobs over the last 20 years and more
        than two-thirds of the innovation in the economy.

Qualitative Insights Underscore Link Between Women and Entrepreneurship

The White Paper highlights qualitative studies that begin to explain why women gravitate toward and excel in leading entrepreneurial businesses.

"The way in which women business leaders approach management is very consistent with the essence of entrepreneuralism," said Sharon Whiteley, C200 Board Director. "That is, supporting a culture of individuality, collaboration and open dialogue. In addition, the risk-taking and boldness inherent in a new business venture demand greater flexibility, intuition and creativity -- characteristics that women have demonstrated an ability to sustain and foster."

The White Paper cites a study by entrepreneurship experts Barbara Bird and Candida Brush, "Gendered Perspective on Organizational Creation," which explores feminine and masculine organizational views. According to the study:

    --  Women's firms are horizontal networks, with policies often
        having relational or nurturing aspects.
    --  Women business owners tend to view the business world as a
        network or web of relationships.
    --  Decision-making is driven by consensus, guided by a desire to
        preserve connections.

"Entrepreneurial organizations clearly foster an environment that not only allows for, but in many ways requires, a more open, collaborative structure. We started this organization 20 years ago with the goal of building a network that would ensure that generations of women executives and entrepreneurs would have forums for open and honest discussion; the sharing of ideas, insights and advice resulting from in-the-trenches experience; creative ferment; mentorship - and fun," added Ms. Whiteley.

As Cissy Musselman, an early member of C200, summed up during her remarks at the conference, "Twenty years ago, each of us was already a leader of one kind or another in our businesses. But by being together, an environment was created conducive to camaraderie and exposing us to the challenges and resources of entrepreneurship for and among women. Now, we continue the commitment to deliver on our promise...to support, educate, and encourage entrepreneurism among women and to be leaders and a voice for future generations."

Women's Leadership Status in Entrepreneurial Sector Not Matched in Corporate World

The White Paper points out that women's entrepreneurial success far exceeds their acceptance in the hierarchical realm of corporations.

    --  In corporate America, less than 5% of CEOs are women, even
        though half of middle managers are women.
    --  Only about 12% of Fortune 500 Board seats are held by women.

In addition, traditional sources of funding have not been available to women.

    --  Of the nearly $90 billion of venture capital invested in 2000,
        only 5% went to businesses led by women.

"Access to capital and the top tiers of companies has been limited for women. Perhaps the silver lining is that the situation has forced them to be especially creative and resourceful - even if it meant building a company with credit card financing in the scrappy realm of entrepreneurship," said Ms. Duckworth.

Fulfilling The Promise

C200 is committed to fostering and increasing opportunities for women entrepreneurs and corporate leaders. The organization reaches out to women running their own businesses and who run divisions of large corporations. C200 programs target the next generation of women business leaders, including young women and female students in leading business schools. The programs focus on outreach, education, research and mentoring, and they include conference, scholarships, business forums, seminars and formal mentoring initiatives.

The C200/Marjorie Alfus Harvard Business School Case Study Program is the first initiative to addresses a deficit of case studies featuring women-owned businesses. More than 60 case studies, complete with teaching notes, have been completed and are used in MBA programs worldwide. The C200 Scholar Awards provides two $25,000 scholarships each year to outstanding women MBA students. And the Growing Entrepreneurs Mentoring Program works with selected women entrepreneurs whose businesses gross $3 million to $10 million per year. The annual C200 Leadership Index is the first statistically valid research report that benchmarks the comparison of businesswomen to businessmen.

C200 was founded in 1982. Early members included Muriel Siebert, the first woman to own a seat on the New York Stock Exchange; Lillian Vernon, the catalogue entrepreneur; the late Katherine Graham, publisher of the Washington Post; Sherry Lansing, Chairman and CEO of Paramount Picture Group, and Ellen Gordon, President and COO of Tootsie Roll Industries, Inc.

About C200

The Committee of 200 is the organization of preeminent businesswomen that capitalizes on the success, power and influence of women in the global economy. The mission of The C200 is to exemplify and promote entrepreneurship and corporate leadership among women of this generation and the next. The membership of C200 is comprised of an exclusive group of women business leaders from all industries. Each C200 member has attained or exceeded a specific level of success tied to revenues and industry recognition. The C200 executive offices are located at 625 North Michigan Avenue, Chicago, Illinois 60611-3108. C200's website address is: http://www.c200.org.

For More Information

To speak with C200 leaders about "Women and the Entrepreneurial Revolution," or other topics related to women leaders in business, please contact Elizabeth Case at Sommerfield Communications, Inc. at [phone], or [e-mail]