Posted June 22, 2007 to Career News | Section Home | Print

Low Tech Skills Cost Women and Black-owned Businesses $200 Billion a Year

By Heather Faison
Special Correspondent

As entrepreneurs commonly invest in and search for tools to boost profits, a study by the Urban Institute has revealed that many minority and female business owners are missing out on maximized profits because they are behind the technology curve.

The Urban Institute reported that underutilizing Internet tools is costing these businesses $200 billion in earning potential each year.

In response to the 2004 report the U.S. Department of Congress' Minority Business Development Agency and Microsoft has created a task force to launch Biz-Tech Connect, a Web portal developed especially for women and minority entrepreneurs. The task force is administered by the Information Technology Association of America (ITAA).

"Women-and minority-owned businesses are among the fastest growing companies in the U.S., and are doing incredible work in all sectors of our economy," says Reed Overfelt, general manager of Microsoft's mid-Atlantic small and medium business division. "However, many of these companies are not fully utilizing technology and are unaware of the potential impact it could have on their business success."

The website features business resources, including seminars and training courses hosted by business experts and articles on financial management, marketing and advertising. The free service which launched in May also gives users around the clock business news through Small Business TV provided by AT&T.

Overfelt says that The Technology Partnership for Small Business Task Force hopes this online resource will make women and minority business more profitable and give business owners a balanced playing field. "Having a Web presence and being able to take advantage of the strength of the worldwide Web enables me to be able to compete with larger corporations," said Ginger Johnson, owner of New York-based Ginger Luxe. "Women-owned businesses have a lot to offer, and I think there's still a stigma that we can't do the job as well as a man. It's a challenge to be taken seriously -- which is important if you're passionate about your work and love it."

When Johnson started marketing her line of beauty products she did not have a website and took orders mainly by phone. Frustrated by limited growth, Johnson created a website for her New York-based business which receives 4,000-5,000 visits per month and is her primary source of marketing and profit.

Faye Lone, an award-winning artist in Washington, D.C., who sells quilts and stitch work to collectors and museums, says Biz-tech Connect gives entrepreneurs easy access to solutions and expert advice.

She says, "This new resource will help as my business grows, by just being able to talk to other people and not have to rely on commercial reviews, but get real validation from real people and be able to trust the information I'm getting."