MARION FRANCIS, Manager-owner, Francis Enterprises

Businesses owned by women employ more people than the entire Fortune 500, said a study issued last week by the National Assn. of Women Business Owners. California legislators are considering a bill, modeled on the national Women’s Business Ownership Act of 1988, to study this growing economic force. Marion Francis, owner of a small computer software company in Huntington Beach, recently testified before a state Senate committee on the need for such a bill. She spoke recently with free-lance writer Anne Michaud.

What did you say to the state Senate committee?

We pointed out that this bill would stimulate competition in the government sector, and would, in fact, reduce the cost of goods and services by the state, thereby reducing the drag on the state budget. One of the things the bill would do is look at how female business owners are faring in state contracts and recommend some steps that can be taken to improve the competition.

This bill calls for a staff member and funding. How are each of those coming along?

The money is coming along surprisingly well. People are calling in, wanting to know where they can contribute. At this point, (the bill’s proponents) are looking at how to set up a trust fund so those female business owners, or whomever, can contribute.

As far as the staff person goes, we’ve gotten part of an FTE. That’s government lingo for a full-time equivalent. The person works part time for the Department of Commerce.

How much money does the bill call for?

Approximately $25,000 a year.

This is a sunset bill, which means it would establish a council to convene for five years. What needs to be accomplished in those five years?

We need to hold hearings to hear from women what their situation is. The problem is we don’t actually know what the status of female business owners is in Orange County or California. We don’t know how many there are, or what kinds of businesses they have.

We also want to create a centralized data base. Originally, that was part of the bill. But (Sen. David A. Roberti (D-Los Angeles)) has a similar bill, and we will be able to add our specific questions to his research.

Why is it important to know how many female business owners there are and what they do?

Well, we know that there still is a glass ceiling when it comes to getting working capital and financing for female-owned businesses. To address that problem, we need to find out to what extent it is there. We have to have statistics or at least some feel for what’s really happening with women business owners.

One of the areas a council would investigate is the award of state contracts. Is there a quota for how many of those contracts should go to businesses owned by women?

There’s not a quota as such. There’s a goal (established in 1988) that 15% of state procurement should go to minorities, 5% should go to female business owners and 3% should go to disabled veterans. Currently, the state is seriously behind in that effort.

The latest figures come from August. Of the top five agencies that did the most procurement, they were giving women 2.4% of the contracts. Among all agencies, female-owned businesses are 1.9% of the total.

So, the program is not being policed well enough?

That’s part of it. But also women and minority business owners are not educated about how to gain access to this market.

What makes this project so important to you?

I’ve always worked in areas where there haven’t been a whole lot of women before me. When I worked in oil and gas companies in Houston, there weren’t many women at my level. And I don’t like being alone.

I feel that in doing this, I can help other female-owned businesses grow, and that’s important to me. But I can also grow my own business.

It’s also a sense of civic duty. The more competition we get into the government sector, the better the pricing and the better the quality of goods and services we’re going to get. Then we’ll have a better gross national product, and we’ll grow out of these bleak times that we’re in right now. I like to be at the top, and I like my country to be at the top, too.

When the state’s Select Committee on Small Business was eliminated last year, did that affect you?

In losing that committee, we lost a voice and a way of getting our needs heard.

Do you know what percentage of women-owned businesses are also small businesses?

I know there are approximately 900 women-owned businesses in California. How many are small businesses, I’m not sure. A large percentage of them are, because most women-owned businesses are new businesses.

What problems could the proposed council find when it hears from female business owners?

One of the first places there are problems is in getting loans.

Another area is going to be in competing on an even footing for government contracts. In many cases, there are established vendors, and bid specifications are written to exclude (competition). They try to tailor a bid to a company they’re familiar with. When that happens, taxpayers are paying more than they might in a competitive situation.

We’ve talked a lot about government contracts. What else are the bill’s proponents focusing on?

The other purposes of the bill are to review the progress that’s been made and the barriers that remain for women in business and to review the role of government in promoting women-owned businesses.

On the mood in Sacramento. . . .

“The legislators seemed interested in business in California. They said that their constituency is concerned that California gets back into economic health and that businesses stop leaving the state.”

On the origins of the bill. . . .

“This is modeled after a national piece of legislation. California would be the first state with this type of legislation. Other states are looking to see what happens here.”

On shared troubles. . . .

“The problems that women business owners are having are problems that all business owners are having.”

On the 1990 creation of the Orange County chapter of NAWBO. . . .

“We started NAWBO because women business owners in Orange County need the support, the interaction of other women business owners.”