On May 20, I had the pleasure of speaking at a forum organized by the Kauffman Foundation. The event, titled “Access to Opportunity: Creating a Level Playing Field for Entrepreneurship,” provided a platform for researchers and practitioners to share research, insights, and experiences on entrepreneurship.
Our research shows that there are barriers for women entrepreneurs, despite women-owned businesses being on the rise. According to a report by the National Association of Women Business Owners, more than half of women business owners are the breadwinners in their families. And among women of color, it’s an even greater share — 65% — and these breadwinning entrepreneurs are being disproportionately affected.
United WE is committed to studying, educating and supporting occupational licensing reforms. We’ve seen that occupations primarily held by women are often among those that require licensure specific to state requirements. Today I’d like to share a few key takeaways with you to show why we are committed to understanding the challenges for entrepreneurs, and advocating for occupation licensing policy changes that address them.
Occupational Licensing Overview
For decades, occupations like nursing, dentistry, medicine, pharmacy, and cosmetology have required licensure as a means of protecting the public. Because occupational licensing regulations are enforced and controlled by each state throughout the nation, there are varying requirements and qualifications.
This makes reciprocity, the policy and process of accepting an individual’s license from another state, difficult due to significant disparities among state requirements.
Our Research
In 2016, the Ewing Marion Kauffman Foundation funded our research in partnership with the University of Missouri Institute of Public Policy to produce a report on occupational licensing. The research showed state licensing requirements have a disproportionate impact on women when their license can’t be transferred from state to state. We learned that:
Women have a higher proportion of professional licenses in healthcare, education and law.
In Missouri, women hold active professional licenses at a rate 3 times higher than men.
In the United States in 2015, 28.1% of employed women held a certification or license compared to 23.2% of employed men.
The Importance of Occupational Licensing Reform
Moving across state lines shouldn’t mean losing your ability to earn a living, but that’s the reality many families face as a result of licensing requirements.
Earlier this year we held a roundtable with a range of women entrepreneurs and experts in the field of entrepreneurship across Kansas and Missouri to understand issues facing women entrepreneurs and possible solutions.
Our research paired with what we heard from these women underscores the need for less red tape for women entrepreneurs and professionals. These changes will ease this burden on women and set the stage for a more economically powerful future.
United WE Commitment to Progress
United WE has had great success in achieving policy reform for occupational licensing, including reduced licensing fees barriers and licensing reciprocity for military spouses. More of our recent achievements are detailed here on our website.
More than ever, policymakers need to prioritize the needs of women and families in their recovery plans. Occupational licensing reform cannot be temporary or overlooked; it’s necessary for creating opportunities for prospective business owners, particularly those underrepresented in entrepreneurship today.
I encourage you to take action and visit our website to explore ways you can get involved and to view our full research report on occupational licensing.
Kindly,
