Center Publication

Amy Wease or Juanita Weaver

Center for Women’s Business Research

Center for Women’s Business Research

Success Strategies for Women Business Owners Selling to Large Corporations and the Corporations Seeking to Buy From Them

(From the study: ACCESS TO MARKETS: Perspectives from Large Corporations and Women’s Business Enterprises)

The following success strategies were generated by the research study, Access to Markets: Perspectives from Large Corporations and Women’s Business Enterprisesconducted by Center for Women’s Business Research and commissioned by the Women’s Business Enterprise National Council, Women Entrepreneurs’ Connection at FleetBoston Financial and the Ewing Marion Kauffman Foundation. The nationwide study was conducted via two internet surveys during September 2002.

The corporate marketplace offers great opportunities for women business owners. The strategies of women who have successfully gained access to this multi-billion dollar market will help others increase their likelihood of success.

WINNING STRATEGIES FOR WOMEN ENTREPRENEURS

The following success strategies were identified by the women surveyed for this study. They are women business owners who have received certification or are seeking certification by a third party as a woman-owned firm, which is defined as51% or more ownership by a woman or women and demonstrated management and control of business operations by a woman. This group of women business enterprises pursued certification in order to increase their probability of obtaining corporate contracts.

• CULTIVATE RELATIONSHIPS Almost all of the women surveyed - 97% -- said that the key to success was having a good working relationship with the decision makers at large corporations. 70% rated relationships with purchasing personnel and end users as a success factor.
• GET ON THE CORPORATE DATA BASE Nearly two-thirds of women business enterprises said this was very important and 75% of corporations rely on their internal supplier database for leads.
• LEVERAGE REFERRALS Nearly half of the corporations rely on referrals from other corporate purchasing professionals regularly. One-third of corporations count on referrals from other suppliers. Women business owners agree: two-thirds consider referrals from other suppliers to be very important - and one in five say they are the single best point of entry into a large corporation.
• EXPLORE 2ND-TIER OR SUB-CONTRACTING OPPORTUNITIES 79% of corporations say they work with their 1st-tier suppliers to encourage diversity. 61% measure the use of women- and minority-owned business enterprise suppliers by 1st-tier contractors.2nd-tier contracts have increased over the past three years from 18% to 22%. Conversely, 1st-tier contracts have fallen over the same time period from 80% to 74%.
• PATIENCE AND PERSEVERANCE These two qualities were cited as a success factor by 94% of the women business owners who were successful in obtaining corporate contracts.

CORPORATE SUCCESS STRATEGIES

The following characteristics represent corporate policies, practices and rationale for doing business with women-and minority-owned businesses. The findings are from those corporations that gave their programs the grade of A or B. The percentages of firms that gave themselves a poorer evaluation typically had lower percentages in each category.

• BUSINESS RATIONALE Corporations with successful supplier diversity programs focused on working with diverse groups as a matter of good business practices, i.e. as a source of quality goods and services at a good price. The rationale of corporations with programs that were self-evaluated as less successful was that their supplier diversity program was the socially responsible thing to do.
• CLEAR OBJECTIVES 69%cited the importance of specific written goals Written accountability requirements 56% Written company policy that include women business enterprises 84%
• TRAINED AND COMMITTED STAFF 69%have a supplier diversity staff of at least two people Diversity supplier training required 64%
• CEO LEADERSHIP Active CEO involvement in setting and communicating policies and goals was cited by 80% of corporations as necessary for a successful supplier diversity program.

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Success Strategies for Women Business Owners Selling to Large Corporations and the Corporations Seeking to Buy From Them (From the study: ACCESS TO MARKETS: Perspectives from Large Corporations and Women’s Business Enterprises)

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