June 27, 2001

  Remarks by Karen Kerrigan
Chairman
Small Business Survival Committee

The Impact of Higher Energy Costs on Women-Owned Businesses
Press Conference
June 27, 2001
2:30 p.m.
Senate Swamp


Attendees:
Senator Frank Murkowski (R-AK)
Senator Craig Thomas (R-WY)
Karen Kerrigan, Chairman, Small Business Survival Committee
Joan Major, President and Co-Founder, It's in the Box (New Jersey)
Joan Murray, CEO and Founder, Murray Enterprises, Arlington, VA.
Suzanne Tufts, CEO and President, American Women's Economic Development Corporation, New York City

Kerrigan:

Let me first thank Senator Murkowski and Senator Thomas for their perseverance in keeping this important issue before the United States Senate.

Higher energy costs are squeezing small business owners nationwide. For women business owners - many of whom are in the early stages of development - or as we call it...the first five fragile years...these higher costs are likely more acute for their firms because there is less flexibility in managing fixed expenses.  Of course, economic uncertainty and the slowing economy overall only exacerbates the situation.

The explosive growth of women-owned businesses over the past five years means that a great number of these businesses are young enterprises.  Unlike mature and viable firms, these businesses do not have credit lines or access to capital to help them weather slow business cycles let alone the prospect of a future nationwide energy crises. But already, higher energy costs are having a consequential impact on the operation of these businesses.

That is why it is so important that the Congress - that the Senate - take immediate action to address this issue.  The lessons from California should be abundantly clear - wishing, spinning, blaming, delaying and politicizing the issue only hurts consumers.  And unfortunately, there will be many women-owned businesses, as well as those who wish to start a business, where higher energy costs, the instability of future prices, and the reliability of supply affects their very survival, and prevents women from seeking the path of entrepreneurship. We certainly do not want to add costly and unreliable energy to the list of government-imposed barriers that women face in becoming successful, independent business owners - that list is already too long.

I urge the Senate Democrat leadership to make this issue a priority and begin to work with Senate Republicans and the Administration on a plan to avert a nationwide crisis.  The viability and survival of thousands of women-owned businesses is at stake effecting the health and vitality of the U.S. economy.