Chapter 21
Networking

IN THE UNITED STATES, WOMEN ENTREPRENEURS find support from a variety of different sources, but one in particular is professional networks.

Two programs illustrate the use of professional networks: Dell's DWEN, and Astia's Community of Experts.

Astia, a California company founded in 1999 in Silicon Valley as a nonprofit organization, has set up a Community of Experts committed to supporting women as entrepreneurs and leaders in high-growth businesses, fueling innovation and driving economic growth. Astia now raises funds to support women entrepreneurs.

Dell Women's Entrepreneur Network

Through the Dell Women's Entrepreneur Network (DWEN), Dell connects women entrepreneurs across the globe with networks, sources of capital, knowledge, and technology, giving them the power to do more.

DWEN unites top global women owners in an entrepreneurial community. By spotlighting women's entrepreneurial success and creating a supportive atmosphere, DWEN helps a group of like-minded women share best practices, build business opportunities through collaboration, explore international expansion, and access new resources that support business growth.

DWEN hosts an annual Network Event, which is an invitation-only gathering of women founders, CEOs, and thought leaders. They come together to discuss their most pressing business issues and consider how technology can help ignite growth in today's increasingly global economy. In 2013, DWEN launched an initiative (Pay It Forward) to mobilize successful business owners and leaders to help more than one million aspiring women entrepreneurs by the end of 2015.

DWEN is more than an annual event; it's a community of women entrepreneurs from over 11 countries collaborating to grow their businesses and connecting through social platforms including LinkedIn, Twitter, Flickr, and Storify. In between the annual events, intimate networking events are hosted by Dell and attended by women business owners in major cities around the world.1

Interview with Stéphanie Cardot, Founder and CEO of TO DO TODAY

Created in September 2001, TO DO TODAY was the first company in France to provide on-site Corporate Concierge and Well-Being services, designed to improve employee morale and engagement, as well as attraction and retention of talents. With a wide range of services, from on-site beautician, barber, hairdresser, dry cleaning, shoe repairs, errand running, TO DO TODAY has grown into other European countries and is now establishing a presence in the United States.

Could you tell us about your professional career? How did you decide to become an entrepreneur?

I started my career in the United States at Deloitte, first as Manager of Community Relations, then as Manager of International Business Development.

There I learned two things:

  1. A service provider is first and foremost a solution provider (i.e., being creative and innovative, but within the client's corporate culture and financial constraints).
  2. It's not about the idea, it's about how you deliver it (i.e., being process-oriented).

After five years, I returned to France and met an entrepreneur with a great concept, who suggested we started a business together, which I did enthusiastically, investing all my savings in the process. It turned out to be an amazing experience, especially after my partner ran away with the money, and I had to file for bankruptcy in three different countries and spend a whole year closing down the business.

By then, I was fully ready for entrepreneurship and launched TO DO TODAY, which has had two-figure growth every year, for the past 14 years.

In what program do you participate?

Among others, I have been a member of DWEN (Dell's Women Entrepreneur Network) since 2012. Every year, Dell invites DWEN members to a two-to-three-day program in a different location. The agenda is a mix between experience sharing, listening to visionary entrepreneurs who share their recipes for success (and warnings about failures), hearing about how technology can help us bring our businesses to the next level. Most importantly, it allows for strong international networking and business opportunities for those of us looking to expand internationally.

Every year, we pick up the conversation right where we left it the year before, and most of us continue sharing ideas in between events.

How did you hear about that program and why did you decide to participate? What were your needs?

I was approached by the DWEN team, which was looking to invite their first group of French entrepreneurs into the program.

I embraced this program for two main reasons:

  1. I had been an entrepreneur in France for 11 years, was losing myself in administrative and regulatory hassles, and had lost some of my energy. Reconnecting with female entrepreneurs from around the globe gave me the “second souffle” (second breath) I needed to reboot my ambition and my vision.
  2. DWEN is as much a collective mentoring program as an individual one, although each of us knows that we can reach out to our Dell business advisors and friends anytime if we need individual support.

Had you previously considered mentoring schemes?

I've always had mentors, but never in a formalized manner. My parents, both entrepreneurs and exceptionally caring parents, have been my first mentors in life and continue to be, every step of the way. In addition, every work experience allows for informal mentoring, whether with a boss, a more experienced team member, a long-standing client

Entrepreneurship is about making decisions every single minute, some you're certain of, some you're not. And you can't just follow your guts every time It's far more efficient to get advice from more experienced people than trying to reinvent the wheel every day.

How did your first meeting go? What did this experience bring you?

My first DWEN event was a real turning point for me: I was reminded that the sky is the limit! I revisited my growth strategy, assessed my skill set, and decided to focus on international development rather than remaining confined to a single market, however successful I was.

I heard some inspiring stories and decided it was high time to come out of my comfort zone and put myself at risk again.

The DWEN network really came through for me: Whether through IT or business advice, networking opportunities…everyone at Dell is available to help and support our new ventures.

Were there any difficulties?

No difficulty whatsoever. But also because I am very open to advice and constructive criticism. I have no problem admitting what my weaknesses are, and that makes for an even greater opportunity.

What advice would you give to a woman thinking about participating in the DWEN program?

In such programs as DWEN, one needs to be both on the receiving and the giving back end.

My commitment to the program includes helping and mentoring younger female entrepreneurs to the best of my abilities.

What qualities should a mentor and mentee have?

A mentor needs to be both benevolent and extremely demanding. Any mentoring process requires assessments at set dates to evaluate results within a given timeframe: the mentee needs to be committed to this process, hence recognizing the mentor's own commitment and efforts.

ASTIA: A Different Kind of Network Performing in a Different Kind of Way

Astia was founded in Silicon Valley in 1999 as a nonprofit organization dedicated to identifying and promoting best-in-class women high-growth entrepreneurs.2

Today, Astia operates globally with nodes in San Francisco, New York, and London.

Since its creation, Astia chose the companies and entrepreneurs to support. Concurrently Astia built a powerful network of more than 5,000 men and women around the world who shared its vision of female-male top teams as an investment strategy.

Astia's expert network is made of highly dedicated individuals who serve as reviewers, evaluators, and advisors. It includes serial entrepreneurs, angel investors, venture capitalists, corporate leaders, bankers, accountants, and lawyers, who donate thousands of professional hours annually.

The Astia Six-Step Company Engagement Process

Astia follows a six-step process (Expert SiftTM Process) as it identifies, evaluates, and partners with high-growth companies and their entrepreneurs and leaders

  1. Personalized Referral

    Astia advisors around the globe have their eyes open for high-potential start-ups with inclusive founding teams.

  2. Criteria Screen

    Applicants must meet Astia's criteria. Astia considers visionary companies at any growth stage beyond concept-only, within the sectors of high tech, life sciences, clean tech, consumer tech, and high-growth consumer products and services. At a minimum, start-ups must have at least one woman in a position of influence and equity.

  3. Industry Screen

    Experts with 15-plus years of industry experience review company materials and provide insight and feedback on the market opportunity.

  4. Operations Screen

    Corporate executives and serial venture-backed entrepreneurs screen applicants, providing critical operational and management feedback.

  5. Investor Screen

    Accredited investors, including Astia Angels, attend regular in-person presentations of applicant companies in San Francisco, New York, and London. Astia gathers feedback from investors.

  6. Astia Executive Team Screen

    Includes verification and update of company-provided detail, identification of community acceleration opportunities, review for potential conflicts of interest, advisee company mix, as well as analysis of potential intercompany synergies.

Astia Global Venture Lunches

Entrepreneurs meeting the Astia entrepreneur criteria have the opportunity to present at Astia Global Venture Lunches delivered monthly in San Francisco, New York, and London. Global Venture Lunches bring Astia Angels together with a contingent of nonaffiliated investors to give entrepreneurs wide access to expertise and investment.

Astia Angels

Launched in 2013, Astia Angels is a program under the Astia nonprofit legal umbrella. Astia Angels is a global network of accredited investors made up of women and men who individually consider and make investments in the Astia-qualified companies that are making their way through the Expert SiftTM Process.

The inter-relationship of the Astia nonprofit organization creates value. Astia executive staff directs entrepreneurs to the expertise, resources, capital, and development they need while the entrepreneurs prepare and pitch to Astia Angels for early-stage and follow-on equity capital. Feedback loops provide Astia staff with company referrals from Astia Advisors as well as refinement recommendations on the system itself. Companies move along the pipeline when they are ready to move.

Astia Impact (2003–2014)

Volunteer Experts

  1. 5,000 → Number of experts in the volunteer network
  2. 450 → Number of corporate executives in the network
  3. 950 → Number of experts actively advising Astia companies in 2014

Entrepreneur Firms

  1. 4,900 → Number of companies reviewed
  2. 1,960 → Number of companies enrolled in Astia training
  3. 810 → Number of companies presented to investment community
  4. 30 → Successful exits; 3 IPOs

The Engaged Public

  1. >2 million → Number of people touched with the Astia Message
  2. 21,000 → Number of people convened around the Astia Message

The Goldman Sachs 10,000 Women Initiative

Women entrepreneurs around the world are increasing in numbers—statistics from the Global Entrepreneurship Monitor (GEM) 2012 Women's Report show an estimated 126 million women starting or running businesses in 67 countries worldwide.

Launched in March 2008 by the Goldman Sachs Foundation, 10,000 Women was a five-year, $100 million global initiative to foster greater economic growth in developing nations by providing 10,000 underserved women entrepreneurs with business and management education, access to mentors and networks, and links to capital.

10,000 Women was designed to help women grow enterprises in the SME segment and was created to meet four main objectives:

  1. Educate 10,000 women
  2. Focus on underserved women SME owners
  3. Partner with local academic institutions to build capacity in the selected countries
  4. Rigorously measure results

Those participating received a comprehensive package of business training, with an average of 180 hours of classroom instruction covering themes such as marketing, accounting, business plan writing, strategic planning, and e-commerce. They also received support including mentoring, business advising, and, in certain countries, access to capital.

Half of the programs were in Africa (Egypt, Liberia, Nigeria, Rwanda, Kenya, Tanzania, and South Africa), three in Asia (China, India, Philippines), two in the Middle East (Turkey and Afghanistan), and three in Central and South America (Mexico, Brazil, Peru).

A report by Babson College3 analyzing the data collected over the first four years of the initiative demonstrated three main outcomes: revenue and job growth, personal leadership development, and value for the local economy.

Revenue and Job Growth

As Table 21.1 shows, the rate of growth of those participating was impressive.

Table 21.1 Goldman Sachs 10,000 Women Initiative

Revenue Growth IFC Country Data Job Growth IFC Country Data
Brazil 72.1 7.8 23.8 8.0
China 140.9 10.8 25.3 9.1
Egypt 163.4 n/a 34.6 n/a
India 37.4 n/a 23.2 n/a
Kenya 30.1 13.1 25.9 10.5
Liberia 32.6 n/a 14.8 9.1
Nigeria 365.7 11.5 229.7 10.7
Peru 32.5 8.2 11.0 9.3
Turkey 102.0 13.3 15.9 6.5

Source: “Investing in the Power of Women: Progress Report on the Goldman Sachs 10,000 Women Initiative.” Developed by Babson College (Candida G. Brush, Lakshmi Balachandra, Amy Davis, Patricia G. Greene).

Data was collected in terms of turnover and employee headcount, for a period of 6 to 18 months after graduation; the growth rates were then compared to the national averages for each country (IFC Survey). Though the initial size of the company should be taken into consideration, over one-third of those participating increased their sales by more than 100 percent and recruited an average of four members of staff in the 18 months following the end of the program. These statistics demonstrate the rapid and significant impact of the new skills acquired by the women entrepreneurs during the program.

In addition, it's worth noting that women from developed countries who were mentored also had above-average growth rates for their sector—or when compared to nonmentored women entrepreneurs. Eighty-nine percent of the women interviewed said that their mentor influenced the growth of their businesses, and a similar number (90%) considered that being part of this network of women also had an equally beneficial effect on the growth of their businesses.

Personal Leadership Development

Those participating also reported that their self-confidence, in terms of selling, negotiating and decision making, clearly improved during the course of the program.

Value for the Local Community

Those participating also reported stronger commitments to their local communities and felt inspired to mentor other entrepreneurs—in fact, 90 percent became mentors or advised other women. In this way, around 20,000 more entrepreneurs benefited indirectly from the program.

Conclusions

The outcomes from the 10,000 Women initiative show that the program was both efficient and effective: irrespective of the country, training, and mentoring works.

The outcomes also show the effectiveness and value of a program designed exclusively for women and for the promotion of women's entrepreneurship.

The authors of this report draw four key conclusions:

  1. Women can be exceptional entrepreneurs across a diverse array of countries and cultural contexts.
  2. 10,000 Women helps entrepreneurs grow their businesses and develop their business acumen.
  3. Mentoring, advising, and networks are highly valued in the growth process.
  4. Women grow their businesses despite a lack of external financing.

This last point raises another issue: women are more likely to finance their company's growth themselves. Although external financing is needed, women are often reluctant to ask for it—and this caution demonstrates women's aversion to risk. This is particularly regrettable since banks are often ready to finance women's enterprises; indeed, 73 percent of women participating in the initiative obtained a loan when they asked for it.4

Entrepreneurship is increasingly recognized as a broad-based driver of economic growth and societal well-being. For women who are primary caregivers, entrepreneurship offers a means to support their families as well. Training and business education for growth-oriented women entrepreneurs is a solution to closing the gender gap in employment, building more prosperous communities, and enabling the growth and development of nations.

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