Internet Regulation Hurts Instead of Helps

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by Barbara Kasoff, WIPP President

EarlieInternetr this year, the FCC voted to adopt overbearing “Title II” regulations that have already led to legal battles which will likely extend for the next several years.  What is Title II?  Title II of the Communications Act of 1934 would grant the FCC additional regulatory authority; this is the authority they utilize over telecommunications services currently. Plenty of experts and economists, as well as the small business community, warned  against the consequences of applying outdated Title II regulations on our country’s Internet infrastructure.  For small telecom providers especially, it’s quickly becoming clear that Title II is detrimental to growth and investment in their businesses.

According to U.S. Census Bureau data, small businesses are the overwhelming majority in the telecommunications sector.  And in his dissent, FCC Commissioner Ajit Pai pointed out that “today there are thousands of smaller Internet service providers…that don’t have the means or the margins to withstand a regulatory onslaught. Smaller, rural competitors will be disproportionately affected, and the FCC’s decision will diminish competition.”

The FCC’s new regulations would subject those small businesses to uncertainty and costs, slowing innovation and leading to decreased investment.  A new policy memo from the Progressive Policy Institute highlights the investment issue, stating the FCC’s decision to adopt Title II regulations could undermine the FCC’s broadband adoption and expansion goals, as well as cost the economy billions in lost investment—a reduction in annual investment of $4 to $10 billion.

These damaging effects are not mere speculation: As of last week, many of these small broadband operators have gone on record, stating under penalty of perjury that these regulations are forcing them to cut back on investments.  These Internet providers include wireless Internet service providers, small-town cable operators, and others, from all across the country.  These different businesses are united, because they have been directly affected by regulations.  As a result, they are forced to cut back on network upgrades, expansion plans, capacity upgrades, and investment in rural and underserved areas.

For consumers, these cutbacks in investment will cause slower speeds, service delays, and coverage gaps.  Reduced investment means that expansion plans will be scrapped or at least delayed, especially in rural and underserved communities where increased broadband deployment is critical.  Consumers have been clear in their desire for faster speeds, expanded coverage, lower prices, and increased competition—but Title II regulations will result in the opposite, hurting small businesses along the way.

There’s a way out of this mess, one that doesn’t involve legal limbo: bipartisan legislation.  Congress can design bipartisan solutions that will protect the Open Internet and consumers, as well as provide light-touch regulation that prohibits blocking and throttling.  This approach will pave the way for increased investment, innovation, and competition—benefitting American consumers and relieving small businesses and entrepreneurs from an overwhelming regulatory burden.  These legislative efforts are currently underway, and we certainly look forward to a real solution, one that does not harm small businesses or consumers.

Spectrum is vital for wireless – and more is needed! [GUEST POST]

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by Robert Shrum, myWireless.org

Earlier this week, The Brattle Group released a study highlighting the essential value of licensed spectrum to America’s economy, job creation, technological innovation, and most specifically, the wireless sector and consumers.

For a quick refresher, “spectrum” refers to the radio frequencies that allow hundreds of millions of people to use wireless service across the country. Only a finite amount of those frequencies are usable for mobile broadband service today, creating heavy demand for access to this critical resource. The spectrum used by your wireless provider is licensed (meaning dedicated for specific network use.) This licensed spectrum is the crucial highway that all wireless network information travels on – without it, your service wouldn’t exist. Chances are the phone you are using is dependent upon spectrum sold at auction in 2006 and 2008.

Not surprising, the licensed spectrum currently being used by providers is incredibly valuable. In the report, The Brattle Group reveals, “We estimate that the economic value of the 645.5 MHz of licensed spectrum is almost $500 billion.” Even more shocking is the finding that the current value of social welfare from the benefits of wireless services generated by licensed spectrum is 10 to 20 times that of its direct market value (between $5 trillion and $10 trillion).

Additionally, this licensed spectrum has a huge positive impact on the national economy, resulting in over $400 billion in economic activity per year throughout the country due to wireless companies and industry employees. This figure does not even include the economic benefits from innovations in mobile education, mobile health, and other similar business and services now reliant on licensed spectrum. That additional impact is especially evident in states where the booming app economy is a key driver of economic activity and job creation.

As more of these wireless-reliant industries emerge and wireless devices such as smartphones and smart devices continue to advance in functionality, larger amounts of licensed spectrum will be required to operate networks and transport information.What is being done to meet this rising demand? In the paper, the Brattle Group notes that a net of 98.5 megahertz of licensed spectrum has been reallocated for commercial use since the 2010 release of the Federal Communications Commission’s National Broadband Plan, which called for an additional 300 MHz of spectrum to be made available for licensed use by this year and a total of 500 MHz by 2020.

To help meet these targets, the FCC has scheduled an incentive auction for next year where television broadcasters will be able to voluntarily sell their spectrum to the FCC, which will then repackage and auction it off to wireless providers. A similar auction resulted in more than $40 billion in proceeds last winter.These auctions are significant steps forward, but unfortunately won’t meet the full demands of American consumers. It is urgent that Congress, the FCC and NTIA work in collaboration with the private sector to identify a future pipeline of additional spectrum for licensed use before it’s too late and the looming wireless traffic jam brings your smartphone to a screeching halt. We have no plan for after 2020 as a nation to address our mobile needs. It is time to start that dialogue.

 

It’s Here! WIPP’s National Directory of Women Federal Contractors

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WOSB Directory

WIPP is excited to announce the launch of its National Directory of Women-Owned Small Businesses (WOSB) in the federal contracting arena. This directory is a great resource, which allows you to find qualified women contractors across the US. In order to be listed, you must first be a WIPP member and complete the WIPP Federal Contracting Certificate Program, a step-by-step training program for women business owners ready to become more involved in federal contracting or are already an experienced contractor with past performance. If you are looking to fill contract opportunities or are seeking a teaming partner, WIPP’s National WOSB Directory can help you find the highly qualified WOSB contractors with credible past performance to fit all of your contracting needs.

The goal of this directory is to build and promote a list of qualified WOMEN contractors so that at least 5% of federal contracts will be going to women-owned businesses. There are currently over 110 women-owned small businesses in the federal contracting arena listed in the WIPP National Directory. Help us reach our goal and complete the Certificate Program or check out the list today.

Also don’t forget to check out WIPP’s other federal contracting education resources:

For more information about the WIPP Federal Contracting Certificate Program or WIPP’s National WOSB Directory please contact Lin Stuart, WIPP’s Procurement Manager at lstuart@wipp.org.

Share WIPP’s Directory on Twitter: WIPP Launches National WOSB Directory n the Federal Contracting Arena http://bit.ly/1FnlxKp #WOSB #WIPP #FederalContracting #WomeninBizBlog

Sole Source Marches Forward

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by Ann Sullivan, WIPP Government Relations

Just a few days ago, the Small Business Administration announced a proposed regulation that puts in motion sole source authority for the WOSB procurement program.

SBA did a very wise thing—it separated out the sole source authority piece from the certification portions of the law. Why? Because sole source authority is standard language included in the HUBZone and Service-Disable Veterans programs. It is not a heavy lift to basically cut and paste the language into the WOSB program.

The certification piece, on the other hand, is not standard language. Each small business program administered by SBA has different certification requirements. The law also reads that SBA doesn’t have to put in place a certification program for WOSBs. SBA can choose to accept other federal agency, state certifications or 3rd party certifications. Or, SBA could establish its own certification for WOSBs if it so chooses.

This determination will require a thorough examination of resources SBA can devote to establishing and policing the certification and whether it could launch a program without significant delays as have been experienced in other programs.

Yet another consideration SBA will have to make is what to do with the tens of thousands of women who self-certified for the program. Without a proper transition, the program would be thrown into chaos.

For these reasons, the certification part of the law needs much more consideration and public comment than does the sole source portion of the law.

Now you need to take action. If you agree with SBA’s expeditious implementation of sole source, you need to let your voice be heard. Go to www.regulations.gov. Keyword: SBA. Click on the regulation and you will see the opportunity to comment. Let the SBA know that women business owners are waiting excitedly on this change.

In case you are not familiar with sole source authority, it allows contracting officers to award a sole source award through the WOSB procurement program, given the contracting officer does not have a reasonable expectation that two or more businesses will submit offers. Sole source contracts through the program are limited to $4-6.5 million depending on the industry.

SBA has taken the first step toward putting the WOSB procurement program on equal footing with other SBA programs. We expected no less.

“Dream Big” This National Small Business Week, May 4-8

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MCS Photo

By Maria Contreras-Sweet
Administrator, U.S. Small Business Administration

With apologies to baseball and your mother’s apple pie, nothing is more American than National Small Business Week.

Our country was founded by risk-taking pioneers in search of new horizons. More than two centuries later, what sets America apart in the world is the willingness of our entrepreneurs to take risks. Small businesses allow Americans to be their own boss and improve their lot in life through hard work – a core American value.

Every year since 1963, the President of the United States has issued a proclamation declaring National Small Business Week to recognize the critical contributions of America’s entrepreneurs, who create nearly two out of every three net, new U.S. jobs each year. Federal Reserve Chair Janet Yellen said it was our small businesses that powered our recovery after the Great Recession.

National Small Business Week, themed “SBA: Dream Big, Start Small,” will be held May 4-8. Special events will take place in Miami/Boca Raton, Los Angeles, San Antonio, New York, and Washington. D.C.

Tune in all week for live-streaming, beginning at 1 p.m. ET Monday with a panel discussion on small business financing followed by a conversation with Joyce Rosenberg of the Associated Press. Or join me @MCS4Biz at #DreamSmallBiz. I promise you’ll learn a lot.

America is one of the few countries that give entrepreneurs a seat at the President’s cabinet table. This allows the U.S. Small Business Administration (SBA) to speak with one voice on behalf of 28 million small businesses with divergent interests.

The SBA also offers an extensive national network of small business lenders and counselors that’s unmatched anywhere in the world. Many entrepreneurs with great ideas and great potential do not begin with great wealth, so they need a great government partner to support their success.

The SBA offers the “three Cs” to help the best and brightest start or grow a business, secure capital, and commercialize their ideas to benefit society:

  • Capital: SBA fill gaps in the commercial lending marketplace so success in the small business sector is based on merit, not family wealth. To inquire about a small business loan, click here.
  • Counseling: SBA provides free consultation and advice to help businesses on Main Street succeed. To find a small business counselor near you, click here.
  • Contracts: SBA levels the playing field with big business by helping small businesses capture new revenue and new customers by winning government contracts, joining corporate supply chains, and exporting beyond our borders. To learn about contracting opportunities, click here.

This year, during National Small Business Week, we recommit ourselves to those fearless entrepreneurs who plan well, work hard, and dream big. Every business starts small. Nike, Apple, FedEx, Ben & Jerry’s, Under Armour and Outback Steakhouse were all once small businesses, until they found an SBA lender or investor to work with them.

I came to this country as a 5-year old immigrant who didn’t speak a word of English. Today, I serve in the cabinet of the President of the United States. My story is possible only because of the entrepreneurial spirit.

Success in business comes one small step at a time. So dream big, but take that next small step today, because the next great American success story could be staring back at you in the mirror.

SBA Administrator Maria Contreras-Sweet started three businesses in Los Angeles, including a community bank, before joining President Obama’s cabinet in April 2014.

More Taxes? No Taxes? How About Fair Taxes

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By John Stanford, WIPP Government Relations

WIPP recently submitted testimony to the House Small Business Committee on comprehensive tax reform. This blog gives an overview of WIPP’s advocacy efforts. For more details, I encourage you to read the testimony. Our government relations team strives to make official communications as easy-to-read as possible, but should you have questions please reach out to WIPP.   

 

Women entrepreneurs deserve a tax system that rewards the effort, tenacity, and risk it takes to start and grow a business. Moreover, they deserve a system of revenue collection (because that’s what taxes are) that is simple and fair.

In testimony submitted to the House Small Business Committee, WIPP said just that. Citing reports from the IRS National Taxpayer Advocate as well as the SBA Office of Advocacy, the testimony documents what women business owners already know: the tax system is broken, failing under the weight of complexity, uncertainty and outdated policies. But more importantly, the testimony addresses the impact of possible reforms – and the need for any overhaul to be comprehensive.

What does that mean? It means that the idea to lower the corporate tax rate, favored by the White House and some in Congress, must not happen independently of adjusting individual rates in a similar manner. This distinction matters because so many businesses, including almost 9 in 10 women-owned businesses, are structured as “pass-through” entities paying taxes as individuals (including S-Corps, Sole-proprietorships, partnerships, and LLCs).

Corporate-only reforms would be unfair to these businesses – and for that reason WIPP has always supported comprehensive (corporate + individual) reform. The testimony underscored this important point.

In addition, WIPP identified tax policies that, absent major reforms, would benefit women entrepreneurs. This includes making more small business tax credits and deductions permanent. In recent years, these tax “extenders” have been extended (hence their name) at the last minute, or even retroactively – not a good way for business owners to plan their budgets.

WIPP also asked Congress to consider tax credits that benefit new businesses, helping offset the costs of launching a new company. Another policy request was to avoid changing the Employee Stock Ownership Plan (ESOP) provisions in the tax code, as these have proven to be both popular and good tools to incentivize productivity and long-term business health.

In agreement with the idea that simple businesses (sales – costs = income) should have simple taxes, WIPP also supports simplifying the cash accounting method and expanding its optional use to more small businesses. Finally, with healthcare costs an always-growing burden on employers, WIPP continues its support of expanding the Small Business Health Care Tax Credit so more women entrepreneurs minimize the cost of providing healthcare to employees.

More ideas for reforming the tax system to incentivize entrepreneurship and innovation are out there. WIPP will continue working to identify policies that let women business owners focus more on their business and less on complex tax requirements. At the end of the day, all of these decisions should be made with the basic principles of simplicity and fairness in mind. And that’s exactly what we asked Congress to do.

Growing Women’s Representation in the STEM Fields

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By Louisa Brown, WIPP Intern

STEM

Science, Engineering, Technology and Mathematics, known collectively as the STEM fields, are some of the fastest accelerating areas in the U.S economy today. Innovations seem to be springing up all around us, and with them new career opportunities that offer high wages and ample areas of growth. When we look to who are filling these jobs, however, the results are troubling. According to the new report from the American Association of University Women, titled Solving the Equation: The Variables for Women’s Success in Engineering and Computing, only 12% of engineers are women, and women make up only 30% of computing professionals.  Although women are gaining ground in the science and mathematics fields, they are still falling behind in engineering and technology, the fields which have the highest number of opportunities and offer the highest return on investments.

So, why is this happening, and what can we do about it? In a virtual Town Hall meeting today, hosted by the AAUW and STEMconnector®, experts from higher education, industry and nonprofits had the chance to engage with the results of this important report, and discuss the many ways that organizations are already working to advance women in the STEM fields. Christianne Corbett of the AAUW and co-author of the report, started the discussion by advocating for an intersectional perspective which recognizes the ways in which women of color are even more underrepresented in the engineering and computing fields than their white counterparts. Women of all ethnicities, however, are subjected to gender biases and stereotypes that inhibit their ability to obtain and retain jobs in engineering and technology. Such biases and stereotypes are often implicit and culturally ingrained, making them that much harder to confront.

Acknowledging these biases is an essential first step towards equality, for both educators and employers. Rob Denson, of Des Moines Area Community College, highlighted some important ways that colleges and universities are already working with the STEM Higher Ed Council to address biases and better align educational and industry goals. Emphasizing workplace-learning through paid internships and early research experiences are important to retaining women in computer science and engineering majors, while underlining the social impact of such fields helps women commit to these majors and gain access to the career opportunities that come with them.

The virtual Town Hall meeting also included important input from women in the manufacturing, telecommunications and defense industries. Esra Ozer of the Alcoa Foundation, Anne Wintroub of AT&T Aspire and Betty Smith of Lockheed Martin all emphasized the importance of diversity and partnerships in the workplace. A range of educational pathways is essential to creating a representative work force, and strong mentorships give women the professional support they need to succeed in their careers.

Finally, Linda Hallman, the executive director of AAUW provided insight into the Million Women Mentors program which aims to provide women entering the STEM fields with meaningful mentor relationships. This program is just one of the many ways in which organizations across the country are taking tangible steps to improve representation from women in the technology and engineering industries. What are some solutions that you believe can help attract more girls and women into STEM careers?

Why it is Important to Recognize Equal Pay Day

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Equal PayToday, April 14, 2015, we recognize Equal Pay Day. This day marks how far into the year American women must work to earn what American men earned in the previous year. The National Committee on Pay Equality put Equal Pay Day into place in 1996 as a public awareness event to alert people of the gap between men and women’s wages.  The White House estimates that full-time working women only earn 77% of what their male counterparts earn. This means women need to work about 60 EXTRA days to earn what men have earned in the previous year! In short, it is important to remember this day each year, as long as this gap continues to exist.

Please check out this list of resources on Equal Pay Day:

A Big STEP for Small Business

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by Abby Ware, WIPP Government Relations  

Thinking about exporting, but have no idea where to start? Take a look at the Small Business Administration’s State Trade and Export Promotion (STEP) program. As state governments receive funding from the STEP program in coming months, small businesses will have increased access to emerging trade opportunities and export support initiatives. Utilizing the STEP program is what JM Grain of Great Falls, Montana did when it decided it wanted to export lentils and chickpeas. The STEP grant allowed JM Grain to attend a Gulfood Trade Show in Dubai, exposing the small business to new markets and an estimated $600,000 in additional export sales.

The STEP program is a federally funded pilot program with two objectives: 1) increase the number of U.S. exporting small businesses, and 2) increase export value for small businesses that already export. State governments apply and match the funds with a federal to state ratio of 75% to 25% (65% to 35% for high exporting states). STEP activities are then provided and managed at the local level by state government organizations.

Small businesses in the State of Washington in particular have benefitted from STEP, better equipping Washington to incorporate trade-promoting programs such as Export Voucher. The Export Voucher program provides up to $5,000 to small businesses for export-related expenses for companies that want to export.  Washington has also provided financial counseling and targeted support for women, veteran and minority-owned businesses through STEP funding. More information on Washington’s efforts can be found here.

To see if a state already participates and receives STEP grants, go to this link and talk to them about their small business assistance.  Every state deploys its federal STEP program in different ways, so it is important to contact the office listed on the map.

A Women’s Place is On the Money

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Women on 20sIt seems ironic that while women control as much as 80 percent of the consumer buying decisions in this country and increasingly are taking the helm at businesses large and small, they are not represented on the bills in our wallets. There’s one woman who’s on a mission to change that — WIPP member Barbara Ortiz Howard and her nonprofit Women On 20s.

This week, in conjunction with the start of Women’s History Month, Barbara and her team hope Americans everywhere will visit the website, www.womenon20s.org to have them vote on their choice for the woman to replace Andrew Jackson on the $20 bill. Treasury code requires that portraits on paper currency be of individuals of great stature, but they have to be deceased. Changing one of those faces can be ordered by the Treasury Secretary or the President without an act of Congress. Last August, President Obama tipped his hat toward the idea of featuring more women on U.S. currency in an off-the-cuff remark during a speech in Ohio. Barbara’s strategy is to encourage him to take the next step with a public mandate achieved through this online referendum. Barbara believes that having a woman’s portrait on our paper money “can become a symbol of greater changes to come.”  Recognizing women’s historical accomplishments and contributions to our society by “elevating them to their rightful place alongside men on our money,” she says, “is something that’s long overdue.”

Part of the Women On 20s mission is to have the new “woman’s bill” issued in time for the 100th anniversary in 2020 of the passage of the 19th Amendment giving women the right to vote. While no Congressional approval is required, the process of producing a new issue can take several years, from commissioning to design to minting. The organization believes the $20 bill is ripe for change. It’s due for a redesign in keeping with efforts to prevent counterfeiting.

Barbara, owner of All County Restoration, a roofing company outside of New York City, is no stranger to the challenges of working in a male-dominated business. She has long been irked by the absence of a woman’s image on our paper money. About a year ago she decided to try and do something about it by launching the Women On 20s campaign. She took her inspiration from her daughter and her athletic, “sporty-girl” friends. She explained, “as they grew up I wanted to honor their individuality, pride and expectations that they’ll be valued as women who can and will succeed on a level playing field with men.”

Women On 20s Executive Director Susan Ades Stone says she shaped the campaign not only to achieve the goal of getting a woman’s portrait on the $20 bill, but to educate and stimulate conversation, “not just a national conversation, but conversation at every dinner table in America.” By recognizing the accomplishments of the 15 women on the slate of candidates, she said, “we hope to honor all women. The idea is to give as many Americans as possible a chance to take part in something so much larger than just changing a face on a bill.”

WIPP supports the Women On 20s mission and we hope our trail-blazing members will cast their votes beginning March 1st and take to Facebook, Twitter and other social media to spread the word. As the campaign’s slogan states — and we wholeheartedly agree, “A Woman’s Place is on The Money.