Betting on Michigan Women

No longer content to pound against the proverbial glass ceiling, more and more businesswomen are constructing their own buildings these days. Whether it's private enterprise or public service, Michigan women are emerging as both dynamic leaders and entrepreneurs. One has only to look to the governor's mansion where the state overwhelmingly elected its first female governor –twice.

"Governor Granholm has incredible vision in that she secured Teri Takai as the state's CIO [chief information officer]," says Jane Sydlowski, founder and CEO of Farmington Hills-based AMI Strategies, a 30 employee IT and communications consulting firm. "Clearly women's initiatives are important to her and the state. If we could get the state standing behind entrepreneurial efforts in Michigan, as was done with life sciences and alternative energy, we could save this economy. Since women are starting businesses at twice the rate of men, focusing on women entrepreneurs is obvious."

And women are self-starters. From 1997 through 2006, the Detroit area saw a 59% increase in the number of majority women-owned privately held firms, compared to 32% growth in all such firms. This is in line with the national trend of women-owned firms growing at roughly double the national average for all firms, according to the Center for Women's Business Research.

Judy Johncox, director of the Office of Venture Development at Wayne State University, contradicts the age-old notion that women aren't as adventurous or aggressive in business, citing no difference in the goals and visions of male or female faculty in their technology commercialization efforts. "There are a number of women who are entrepreneurial at heart and interested in moving product into the marketplace," she states.   

Still, only three out of nearly 40 high-growth companies presenting to investors at the recent Michigan Growth Capital Symposium venture capital conference had women at the helm. Jan Gensheimer, president and founder of Saline-based Seracon, Inc., a firm providing consulting and turnaround services to small and start-up high-tech companies, says women are still a significant minority at the president and founder or board member level of such firms, opting for "lifestyle-type businesses."

So how can Michigan target more females to lead the creative and high-tech ventures it needs for a revival? It has to start with our young.

Lead by example

"There are lots of women fresh out of college who say they need a job. Well, starting a business is a job. It really is a career path at which younger people can be very successful," says Lizabeth Ardisana, co-founder and CEO of Dearborn-based ASG Renaissance, a 250-employee consulting, marketing, branding, and human resources firm. "There are new businesses of all kinds, and the best are the ones that come from creative ideas. Look at the examples in Crain's Detroit Business "20 in their 20s."

She suggests that part of the new $5 million Workforce Innovation and Regional Economic Development (WIRED) grant the Detroit Regional Chamber will be implementing over the next three years could be used to foster entrepreneurship in young women.

Gensheimer also believes that an early start to mentoring is critical. "My challenge to women is: who was the last college intern you hired between her sophomore and junior year to give her the experience and exposure needed for her first job out of college?" By the time students are close to graduating, she thinks many have decided to leave the state for jobs elsewhere.

However, women entrepreneurs and professionals from around the country are always welcome back. "One of the keys is to understand the importance of perspective gained from working outside of the state," Jackie Trepanier, senior vice president of project management – and one of two women in senior leadership – at Pleasant Ridge-based interactive promotions company ePrize, LLC explains. "Friends that have graduated from the University of Michigan and have moved away are always interested in coming back. Women in business are seeking to contribute back to their communities."

The 21st Century Jobs Fund – a $2 billion state-organized economic diversification fund – will attract more women entrepreneurs to the state, believes Cindy Douglas, vice president of technology development at the Michigan Economic Development Corporation. She says the fund is "actively advertising throughout the country and throughout the world that Michigan is open and ready for technology businesses."

Additionally, Douglas believes women investors in the venture capital industry should generate momentum. The 21st Century Investment Fund – a state-organized $109 million venture capital investment fund – is led by Kelly Williams of Credit Suisse, who is "out flying the flag for Michigan around the country, looking to make investments in venture capital and private equity funds that will in turn invest in the great companies here," she says. For instance, Arboretum Ventures, an Ann Arbor venture capital firm co-led by Jan Garfinkle, has been selected to receive one of the state's first investments.

Gaining ground

And women are making inroads into the types of young companies likely to attract venture capital funding. Douglas cites five small Ann Arbor companies, all employing the 21st century technologies – robotics, alternative energy, and life sciences – that are seeding Michigan's new economy. Cybernet Systems Corporation; T/J Technologies, Inc.; Adaptive Materials, Inc.; Accuri Cytometers, Inc.;  and Solidica all have women in either the top job or other executive roles. She says, "These women will be great role models for others, especially those exiting out of institutions such as the University of Michigan, with these companies now right in its backyard."

More, though, is needed to reach the top of a company or to start fresh with your own. Sydlowski, who found a boardroom-style training course to be very beneficial, says that universities should sponsor a similar course that teaches women to be more assertive and direct in their business dealings, thereby "simulating the business football field experience for women."

And it certainly helps to have acquaintances in the boardroom. "Join various women's business organizations and network, network, network," advises Sydlowski, an executive board member of the Michigan Council of Women in Technology.

Gensheimer, a board member of the New Enterprise Forum, agrees. "Women need to be very attentive to transitions in companies to be able to refer more quality candidates to people in a position to hire a CEO. They need to communicate with people on boards," she emphasizes. "The referral chain needs to become ours." She also recommends that women partner with co-founders to help buffer the life balance challenge.

After a network and mentors are in place, then you're finally ready to jump – but too often the pool of green is empty. "Women get less capital. I don't know if it's our perspective. We just start working and don't think about it," says Ardisana, who thinks Michigan can follow the lead of programs in other states by hosting events to connect women heading venture capital and private equity funds with women business owners.

With all the state's talk of investing in resources and technologies that will help evolve Michigan's economy, perhaps the time has come for us to nurture and develop the untapped talent of women. After all, they compose more than 50% of the graduates at Michigan's three largest public universities – the University of Michigan (U-M), Michigan State University (MSU), and Wayne State University. Not coincidentally, two of "The Big Three" have female presidents: Mary Sue Coleman at U-M and Anna Lou Simon at MSU.

Douglas is encouraged by two examples of their leadership in diversifying the economy – the University of Michigan's support of economic development organization Ann Arbor Spark, and President Simon's recruitment of a woman from out of state, Lisa Kuuttila, to head MSU's new technology transfer office.

While the challenge for capital is universal, Michigan is in the perfect position to empower businesswomen who are more than ready to meet that challenge. With women already leading its government and top research universities, the state could and should aim to be the national trailblazer for women-owned businesses and economic leaders.

For metromode's guide to resources, sites and organizations for businesswomen and entrepreneurs click here.