Welcome to The Waterbury Talks. I'm your host, Grant Copeland. Today's conversation is with Fran Pastore. Fran is the founder and CEO of the Women's Business Development Council, a non profit organization dedicated to supporting female entrepreneurs. After helping a number of Waterbury businesses open and grow in the last several years, the Council has established offices in the city and is poised to deliver more capital and confidence, as Fran says, to women owned businesses. Hear Fran describe the biases that still exist in society, the reasons for starting her business in 1997, and why she thinks Waterbury has something special in store, as The Waterbury Talks with Fran Pastor. thank you for the conversation today, Fran. It's nice to be here. Thank you for the conversation. It's wonderful to be with you guys. tell us about the Women's Business Development Council, its goals, its mission, programs. we started out as a really small organization back in 1997, and our mission was to help, low to moderate income women start and scale small businesses. And over the years, That mission has grown and evolved in a lot of different ways, and so has the organization. we serve all women from all walks of life, all over the state of Connecticut, and our goal is to help women create jobs for themselves and others by launching and scaling their small businesses, making sure they have access to resources and capital, so that the playing field is level and we can compete with our male counterparts and get our fair share of the American pie. So what do you see are the most common needs, for lack of a better term, with a women owned business or at least in terms of business plan stage? The most common need is capital and confidence. And I say that because it wasn't until 1988. that a law was passed that allowed women to access capital in their own name for commercial purposes. until 1988, there were state laws that, limited women's access to capital for commercial loan. until then, a woman couldn't access capital in her own name for commercial purposes without having a male the age of 16 years or older, co sign a loan. One of the witnesses that testified in 1988 was a woman who had been in business for 20 years. She was a single mother. the laws usually required a father, a husband, or a brother to sign, but she didn't have any of those, and what ended up happening was that her 16 year old son who was a dependent of hers, did not have a job, had to co sign her loan. So that case actually inspired the legislation that was passed in 1988. Connecticut was one of the states that did not allow women to access loans for commercial purposes. the, The issue of accessing capital still remains probably the biggest obstacle that all women face regardless of their stage in business, regardless of the type of business. and there is residual bias since 1988. there is still bias that exists. And one of the reasons for that is because typically when you go to a bank, the person sitting on the opposite end of the table for you with whom you are negotiating for your loan or the case that you're making, your pitch, usually is not a woman. So that is going to be an issue until more and more women have leadership positions in financial institutions and who really are serious about having a commitment to see women's businesses advance and grow. The other issue, I would say, is confidence. The society that we live in has so many biases against women. this is not intentional, we're humans from the beginning of time. I don't know if, you saw the movie Barbie, but you might recall America Ferrara's monologue about, we're never thin enough, we're never smart enough, we have to be thin but not too thin, we have to be beautiful but not too pretty. And so those are the things that we are all indoctrinated with as we grow up. And so that really erodes confidence, and it erodes confidence not only, in one's appearance, but, in, in how we think. and so when you're making your pitch, to a bank, or you're thinking about going into business, you may not have the confidence that you need, and that's where WBDC, really comes into play. We have coaches and business advisors and a team of compassionate women who are so dedicated to advancing economic equity for women through entrepreneurship. and just this morning I received an email from a client that we've been working with for three years. She received a 10,000 infusion of capital two years ago, and she credits that 10,000 infusion of capital for helping her learn. how to articulate the financial position of her business and she's about to double the space that she's in expanding her occupational therapy business and her yoga business, So it's very exciting confidence and capital equals expansion. I love a term that you often use, the Women's Entrepreneurial Ecosystem Movement. What does that mean to you? the first thing that comes to mind for me with that is that, WBDC was a pioneer in that space. when that law was passed in 1988, H. R. 5050, it also included a provision to create educational organizations around the country to help women access more capital, launch more businesses, and be more successful in scaling their businesses. So nobody was thinking about women owned businesses. This is a tiny little, appropriation from Congress to, launch this pilot program to see what these very small infusions of capital, tiny, like 125, 000 grants, to start an educational organization in a few states. By 1992, during the Clinton administration, that program, blossomed into a several million dollar program. And by 1995, when I was trying to figure out what I was going to do with myself, I had two little girls, I was a single mom, two and four years old. That's when I learned that Connecticut was one of only two states in the country that didn't have one of those seed grants, to launch a women's educational organization. for me, at that moment, that's when my, interest in women's economic equality, my own passions that I didn't even know that I had around women's economic equality, came together. around the kitchen table with a bunch of, great women, from around the state, and a few good men. We started drafting a proposal to the federal government, with the help of, at the time, Joe Lieberman, Chris Shays, Chris Dodd, Rosa DeLauro, because when I shared with them, that Connecticut didn't have this resource, they were like, we didn't even know the resource was out there. This is fantastic. Yes, we should do this in Connecticut. So we had a lot of support. But still, even then, in 1997, when WBTC was born, first of all, nobody was using the word ecosystem. And certainly nobody was using the word women's entrepreneurial ecosystem. And so when I hear that word now, It evokes a feeling of a tremendous sense of pride because myself and my colleagues from around the country were really, pioneers in that space. And it was really thanks to a United States Senator, who was a man, and some very, effective, female advocates from around the country, of which Nancy Johnson, who was a congresswoman from this district, supported as well. We're here in the new WBDC offices in Waterbury. How did Waterbury come to be a key market for you? Waterbury became a key market for us a really long time ago. I would say probably fift... Easy 15 years if not more ago. We had our headquarters in Stanford. We wanted to expand. We were looking around the state to see where women were traveling to Stanford from. And we saw, of course, women mostly coming from the major cities in the state. And Waterbury was one of those cities. And it was also at the time, had one of the highest concentrations of poverty in one zip code in the entire state. And so it made me think that there was a case to be made, to open an office here. And I came to Waterbury, and We had a lot of conversations. So we set up shop over at the chamber. And then, we found some permanent space at Naugatuck Valley Community College. We did that with the hope that we could, harness some capital to become a permanent fixture in Waterbury. And after a few years of really trying to make this happen, we, were able to secure our funds, but not to open a place, not to open a shop in Waterbury and it became the New Haven area. fast forward. It's, 2021 2022. There are ARPA funds released through the federal government. The governor then released some of those funds to the municipalities. And I thought, Okay, some of those municipalities are definitely going to embark on a small business initiative. And we had already, been in touch with a few municipalities asking if they wanted us to help them, put their dollars on the street in the hands of small businesses. Why do this yourself, Mayor? When we've got 25 years of experience doing this, we can help you. It will cost you less money, and we can expedite the program to get funds on the street quickly. And, one of the first mayors to respond to us, we did a kind of a mass outreach. One of the first mayors to respond to us was Mayor O'Leary. And, I had always had a relationship with Senator Hartley. She is one of our biggest, proponents in, Hartford. And we always talked about, when can you come to Waterbury, and we need you. And I thought, okay, let me call Joan and see if she could help us out with this meeting. We came up, we had a meeting with economic development folks, Senator Hartley, Representative Napoli, and really within 10 minutes the mayor just said, this is just a no brainer for us. I've allocated X dollars, to help small businesses in this community. You guys are doing great work. We're going to make this happen. And so we, worked on that, figuring out how we're going to make it work on paper. And in practice, and the city was just amazingly helpful. the mayor's whole staff, economic development, it was really, a really terrific partnership. And then we had a little bit of a shortfall, in terms of the budget. And I called Webster Bank, and immediately Webster said, Yeah, we're going to fill that gap, no problem. So it's ironic that we ended up in the space that used to be a Webster Bank building. So you've got a fairly long history, actually, with Waterbury and the community. speaking of history, where did you grow up? Can't you tell? Brooklyn, New York. Tell us about your early days there. Oh, I'm an Italian girl from Brooklyn. Saturday Night Fever, my, family was huge, and, my dad was a small business owner, and, it was a very interesting childhood. I'm the only one in my family to go to college, and I always, was an advocate for people who didn't have a voice. I was always trying to raise money for somebody whose house burned down or somebody who was in a car accident and whatever. I was always doing that kind of work. I did that in high school and I did it in elementary school and I did it in college, but I never realized that I could actually make a living. In the nonprofit. I didn't even know what nonprofit was. And so it was just serendipity that I made my way to Connecticut and made the discovery about Connecticut not having a resource. And it's just been a labor of love. I love what I do and I love the women I work with and the women that we, we work for. Was there a particular moment as it relates to Women's Business Development Council? Was there a spark that allowed you to go from conversational level to really feeling like this is a substantive idea enough that I can make a go of this. I can actually build a business and now a fairly sizable business around an idea. I think I'll go back to the confidence issue. Because when you're a single unemployed mom with no resources, And no real job experience except for a very limited career on Wall Street. And you didn't like it. And now you are in this state that you just moved to two years ago, and you really don't know a lot of people. what that moment for me was when I realized I could do this was when I had those people around me, mostly women. Who believed that this was a need and believed that I was the person that could help make it happen. that for me gave me the confidence and those folks provided me with the resources that I needed and I'm not talking about money, I'm talking about the resources as in, this is the person to call, you call Nancy Johnson, you call Rosa DeLauro, you go here, we're going to go to D. C. and talk to these people at SBA and make the case for why Connecticut needs this resource, so those moments, those interactions with those people, not dissimilar to what WBDC does for its clients, it's that, Here are some resources. it's up to you to put those resources into practice. And, along the way, you build the confidence to believe in your vision, your idea, because other people are excited and believe in it as well. Comparing when you founded WBDC to now, what's the difference? Is there a difference in terms of how the world views women entrepreneurs? that's such a great question, how the world views entrepreneurs. As I said earlier, no one talked about a women's entrepreneurial ecosystem. Everybody's talking about it now. so there are so many facets to that question that I could answer. I can talk about the fact that, I can put my head on my pillow at night for the first time in 26 years and not worry about payroll for the first time in 26 years. I'm not, out on the street. Begging for support and trying to convince people of the importance of supporting, an economic development organization that helps women create jobs for themselves and others. corporations and individuals are coming to us to learn more about our work because they realize mainly as a result of the pandemic, but even prior to the pandemic. the whole concept of accessing women, for business development purposes, let's not kid ourselves. Everybody's interested in, women as consumers, and decision makers. But really, the pandemic really highlighted the disparities that women, and especially women of color, face, with managing not only their business, but all of the other socioeconomic issues that go along with that, whether it's elder care, child care, and so it's a whole different playing field now. When investors are coming to us saying we want to invest in women in Connecticut, we want to support the work that you're doing. and the complexion of our clients has changed. we went from women who were thinking they had an idea, maybe, I don't know, it's more of a hobby, to women in business generating, sometimes millions of dollars in sales. And some of those women are able to contribute back to WBDC. it's changed a lot. Your impact goes well beyond the bounds of WBDC. What are some of the other organizations and initiatives that you're actively involved in? one of the things that I am actively involved in is Connecticut Paid Leave.. it's a great source of pride for me, that I'm the chair of the board of Connecticut Paid Leave. I was appointed by, Senator Duff to serve on the board and then, the governor appointed me to chair it. it aligns so well with the work that WBDC does. We're one of just a few states in the country. We have the most progressive leave policy in the country. And I was honored because It's a new business for the state. It's something that the state has never done before. It was many years in the making, a lot of advocacy, a lot of lobbying on the part of my friends and colleagues to get it passed. It was the first law the governor signed into, into effect when he took office. it aligns so well with the work that WBDC does, because for women to have full participation in the workplace, full participation in the workforce, in the American economy, in our state's economy. It's not just about confidence in capital. It's about all of the, other resources that we need. It's recognition that family matters, that women, are the primary caregivers in their family for the young and the old. And so I'm really proud of that role and how it aligns so well, with the work of WBDC. And, I'm also part of the National Women's Business Council and, I served on that council under President Obama. I was appointed by the Connecticut Congressional Delegation. and lastly, other organizations that I'm involved in. are those, that do work internationally. And so I've taken a lot of the work that WBDC has built here in Connecticut and shared that with, genocide survivors in Rwanda, women who had businesses in rural Costa Rica, in Turkey, and in Ethiopia. And so that was just some of the really gratifying work that I've been, able to do and, as a result of running this amazing organization here in, in Connecticut. As a female CEO and community leader yourself, do you feel a responsibility to show younger generations of women what an empowered female looks like? Yeah, yes, I feel an obligation to share, what an empowered woman looks like. and I feel like I know that the entire WBDC staff feels exactly the same way and we model that every single day. I have two young daughters now that are thankfully economically independent and many members of the team have children. And I think it's, It's really important to show not only young women, but to show young men, the importance of what an empowered woman looks like and how that benefits families and communities and entire societies. and, men are an important part of this journey that women are taking right now at this moment in society because women need allies in every aspect of society, not just in small business development. And we're just really lucky to live in a state where we have progressive leadership. We have many women in positions of leadership and power. There's never enough. but we're lucky and very fortunate to live in a state where we have a lot of male allies who want to see women succeed. So I'm very grateful for that. You mentioned your daughters. How do your kids view you about what you're accomplishing? I know that they're very proud of me, and I know that, they have acquired, I think, a sense of, wanting to do good in their community. they both have. And, they always, makes me a little emotional because I know that they both, have a great sense of pride. but at the same time, they know that this is not something that stops here with WBDC. That there are so many other places in society that need leadership and, need. Women to take over and take charge. yeah, I know that both my girls are proud of me. And, Have taken a lot of what they have seen and put it into practice with their own personal passions. So let's bring it back to Waterbury. What's your view of the city, the community, the business community, the people, and for that matter, women in leadership roles? Waterbury is a really beautiful town with a very long and rich history. it seems like this community is so ready. For revitalization and so ready, an embracing of WBDC coming into this community. We've had a lot of grand openings over the years and The diversity in this space of people that came out from other organizations, whether it was from the Chamber, the Black Business Alliance, but the feeling of excitement that people had that there was something happening in this community that they were hungry for. So that made me feel really good. and then in terms of women in leadership in the community, who could be a better leader than Senator Hartley? And her passion for this community and, how she holds people accountable, I was in many meetings with her around launching this and she's tough. I think she epitomizes the kind of leadership that we need and the kind of leadership that really helps get things done. So I'm excited to be here and work more closely with her. Lynn Ward has been a friend of mine for many years. Very supportive, open, friendly, embracing. Those are the feelings that I have about this community, and I'm looking forward to, the organization becoming very much embedded in that fabric. What kind of impact has WBDC... Already created for businesses in Waterbury, feel free to go macro level over the years or even micro level as it relates to a particular business. Yeah, over the years we've served hundreds of businesses in the state, in the city. more recently hundreds of thousands of dollars in grants have been distributed. 70 percent of our clients in this city are people of color, women of color. The majority of the businesses that we've worked with in this town are child care businesses. We've actually helped launch 18 new child care centers in the last less than, say, less than two years. that is one of those drivers that I talked about earlier, that women need to fully participate. And we're looking forward to doing more. one of the, ways that the city has empowered us to help small businesses in this community is by setting up a special grant fund exclusively for Waterbury businesses. It's accessible to men and women. so we're excited about that. And, two of the businesses that we have funded actually, shared their story and how they grew their business with a simple and small infusion of capital. So it's been a really exciting time and I think that the community partners that we have, some of them are newer to us. Some of them we've been associated with and collaborated with over the years. But I think the feeling of being committed with a real physical space shows the real intention here. so I'm looking forward to working with more organizations that are going to help us spread the word. And just doing this with you today is just very exciting. And I'm sure we'll be impactful and hopefully reach many people. It's a loaded question, but what do you hope happens in Waterbury? What do you hope to see or influence and have a contribution within from your purview, having worked around the state, so many different types of businesses, so many different municipalities, even what do you hope happens in waterbury? one of the sad things that my colleagues and I see in so many communities, are a lot of empty storefronts in some really beautiful buildings in what once was a Very vibrant community. I was watching the other night, the Antiques Roadshow. And it was taking place in Hartford. And people from all over the state, brought their wares. And this one guy... had a pair of shoes that were made in the late 1700s, and he had three brass buttons along with those shoes. And he was talking to one of the experts, and, it turns out the shoes were made in Bridgeport, Connecticut. It was a big shoe manufacturing destination. I had no idea. I knew Waterbury, of course, was the brass city. Talked about those brass buttons being made in Waterbury, one brass button was worth like five cents. The other one was worth like maybe $10,000 because it was made at a certain time. But it made me think about the opportunity and the potential that is before us right now and the money that's being invested in the state, again, silver lining of COVID a lot of opportunity for growth, a lot of opportunity for development. And, so my wish is that we help fill a lot of empty storefronts and help drive some economic activity. It's not going to happen overnight. but I believe that the will of people to make their home and their community a better place combined with the resources to do so. I think that's a really positive mix, a really positive equation, so we hope to be part of that. Rough estimate. How many total women have you helped succeed over the past two plus decades? how many women have we helped succeed over the past two decades? Yeah, two decades. Wow. When you put it like that, it really makes me feel old. Accomplished. Yeah. Yeah. Accomplished. decades just sounds so crazy. So prior to the pandemic, we would see between eight and 900 women a year. Post pandemic to date we've seen over 2500 women. So in terms of success over those years, We know that of the roughly 200 and close to 220 grants that we've given out of our 10,000 grants in the last, just about two years, less than two years, we know that 80 percent of those businesses have increased their revenues, 60 percent have increased their profits, and 50 percent have hired at least one new employee. The big accomplishment there is that we estimate that about 20 percent of them have gone on to access over two million dollars in capital from a traditional source, a financial institution. That's what we're really trying to do is, like the story I mentioned earlier of the occupational therapist and yoga practice where 10,000 two years ago, has catapulted her to access bank financing so she can double the size of her physical space and increase her clientele, impact her bottom line. so that's a very big source of pride for us. I think what distinguishes us, what distinguishes WBDC from many other, organizations is that we have a dedicated staff and dedicated software to track our economic impact. So every client that walks through the doors is asked to fill out an evaluation. we follow up with them. We ask them every six months, every year, every two years. We follow them over a period of time. So we can track where they're going and what they're doing. That is part of their obligation to us for accessing nearly 100 percent free resources that are being paid with our tax dollars. and so reporting that data, we have two data specialists that are highly educated and highly skilled in data analysis and data, I would say, extraction, if you will, right? Getting information from people. A big part of that, the reason we're able to do that, is because people trust us. They trust us with their information. They know we're not reporting out information. They know I'm not going to see their information. Just our data people are going to see it. and we report it out in the aggregate, The federal government wants to know how we're spending their money. The state wants to know. And in order for us to keep, the business going and accessing the funds to support the work, we need to show results. we hold ourselves to a very high standard with reporting requirements. So it's something that we're able to do and produce really, excellent annual reports with that information. With all that you and the Women's Business Development Council have achieved, what's your mantra? What's your purpose? Oh, just being with my colleagues. And just their commitment to this organization. There's never a time when someone says it's not my job or I can't do that or I don't do that. everything from Friday afternoon I got an invitation to, go to a press conference with Lieutenant Governor and Rosa DeLauro in New Haven. visiting, female manufacturing businesses. And it was like almost five o'clock, and that's just so typical, when you get these invitations for Monday morning. So I quickly, emailed one of my colleagues one of the folks on the data team and I said, Hey, can you get me XYZ? And she's Oh, I'm going out for the evening, but I'll get it to you by, the end of the week until you'll have it in your hands. And I had it in my hands. So that's just an example, I think, of the willingness for people to feel like they're part of something bigger than themselves and a mission that they really care about. And, I think there are 33 of us, 34 of us and all women except for one. very strong man in that he works with all these women, Yeah, so my greatest sense of pride are working with my colleagues. Seeing their joy and, fulfillment and pride at working with women. And getting those testimonials from our clients, there's just nothing like it. Fran, thank you so much for the time today. Thank you. I hope it was okay. It was great. Listen to the full series from The Waterbury Talks, learn more about the programs and incentives to help business owners, and see all that the City offers at thewaterbury.com