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New Study Finds Disparity for Women-Owned Businesses

Wednesday, February 3, 2016   (1 Comments)
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New Study Finds Disparity for Women-Owned Businesses

As part of WIPP’s advocacy on the WOSB Procurement program, the sole source legislation included a requirement that the Small Business Administration (SBA) move expeditiously to revisit eligible NAICS codes for the program. Recently, the Department of Commerce completed the study for the SBA. The study found that women-owned businesses are 21% less likely to win federal contracts than similarly situated competitors. The New York Times cited the yet to be released study, which found that “even when controlling for firm characteristics, including firm size and age, women-owned businesses are less likely to win contracts.” Senate Small Business Committee Ranking Member Jeanne Shaheen (D-NH) stated that numbers in the study, "show a real, unfair disadvantage for women entrepreneurs.” 

The Commerce Department’s study reviewed data from over 300 industries and 600,000 companies to identify this disparity. The New York Times article also highlighted the recent addition of sole-source authority to the Women-Owned Small Business (WOSB) Procurement program, but stated that this change is so recent that its effects would not have been shown in the research. 

WIPP’s Government Relations team will provide a full analysis of the study once it has been released to the public. For now, it seems apparent that what we knew anecdotally has been documented by research--women-owned businesses continue to face barriers to entry into the federal marketplace. We urge the SBA to include additional NAICS codes identified by the study into the WOSB program. 




Gigi Walker says...
Posted Monday, February 8, 2016
urging the SBA to include more NAICS codes is a joke they cant even help those NAICS business codes that are underutilized in the index as it is....this whole thing has been a pain to deal with ....I speak to deaf ears daily about this and all I get is-> oh I cant help you I don't know what your talking about, what study ?.....the procurement system with in GSA is broken !!

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