Since 1989, the Women’s Economic Self-Sufficiency Team, or WESST, has provided loans, training, and consultation services for entrepreneurs. However, WESST must navigate through the same uncertain economic uncertainties that beset the businesses they serve.
In June, the organization announced it would close two of its offices in October and relocate its Roswell operations to Hobbs, leaving open its offices in Albuquerque, Farmington and Las Cruces, in the face of federal funding uncertainties. President Lindsey Kay told the Albuquerque Journal WESST was facing a funding loss of $2 million from federal agencies and would also cut eight staff positions.
WESST recently hosted a stop on a national tour presented by the Association of Women’s Business Centers to highlight the importance of the resources it provides. The Aug. 21 Albuquerque event concluded the tour, which visited centers in Florida, California, Alaska, and Missouri earlier this summer. Corinne Goble, Association of Women’s Business Centers CEO, said during the Albuquerque event that the tour succeeded in its goal of raising awareness.
“When national attention comes in with these women's business centers, it elevates them in their communities.,” Goble said. “And the communities are finding out new things about them they didn't already know.”
For example, some might presume that a small business center like WESST is a place where startup businesses can apply for loans. While that’s true, the consultation and training services that small business centers provide can end up proving even more valuable than a loan.
“When small business owners come in, they might think a pile of cash is what they need to solve the problem, but once a counselor takes a look at the business, often, that's not actually the problem.” Goble said. “Often it's something with the product development, or it's a marketing issue. It could be pricing … It's usually that women's business center who's telling them, ‘look, that pile of cash is a short term solution. If you want to fix the root cause of the problem, you need to make this product development change or attract a different market,’ or whatever the tweak is.”
Kay took the help of the organization less than a year ago, and since then has had to lead WESST through the austerity resulting from cuts to federal funding sources like the Small Business Administration and the Minority Business Development Agency.
While addressing the Aug. 21 audience, which included Speaker of the House of Representatives of New Mexico Javier Martinez and U.S. Rep. Gabe Vasquez, Kay emphasized the essential role of small businesses in the New Mexico economy.
“Ninety-nine percent of economic activity in New Mexico is small businesses,” Kay said. “I will say that statistic over and over and over again. Every single client that we work with in our Women's Business Centers has a direct impact on the lifeblood of New Mexico.”
A little fewer than one-quarter of New Mexico businesses are women-owned, according to the New Mexico Department of Workforce Solutions.
Federal support for women’s business centers remains very much in question. A document published in May by the U.S. Office of Management and Budget Director Russell Vought called for eliminating funding for women’s business centers. However, this summer the U.S. House of Representatives put $27 million for women’s business centers in its proposed budget.
Gobles said one theme remained consistent from coast to coast during this summer’s national tour.
“So many cases of businesses saying, ‘if not for this Women's Business Center, I wouldn't be here,’” Goble said. “‘My business would have failed for one reason or another.’”
