Culture 10 May 2018
After twenty years as a woman in STEM, Catherine Barba knows a thing or two about diversity and inclusion.
The French native, who has been based in New York since 2015, is running her third Women In Innovation Forum this May 21st, and touts this year will push beyond the gender aspect that its predecessors have focused so heavily on. “My event is evolving from women to diversity," she notes. This year's one-day forum will center on how a culture of diversity, whether ethnic, sex, age or otherwise, will benefit not only STEM in the future, but the entire workforce.
Her familiarity with this necessity of inclusion stems way back to when she was beginning her entrepreneurial journey as a young woman in an extremely male-dominated industry. The dot-com boom was just beginning, and Barba had to go out of her way to get a seat at the table. While that same industry has since opened itself up to more women, tech sector pay gaps remain to be some of the worst in the world, and seeing little to no advancement in recent years.
It was in this knowledge that Barba, now a serial entrepreneur and investor, launched the first W.IN. forum in 2016. “I've heard the statistics, it's like 2.2 percent of [VC funding] going to women. That's crazy!" she emphasizes, knowing the uphill battle these female entrepreneurs are facing in order to make it here. “Here, there are very, very few female investors," she comments, making it difficult for burgeoning female talent, because male investors, “tend to invest in people like them."
"Fear is a very, very bad advisor, Don't do things out of fear, because when you fear something you can't think, it blocks everything."
-Catherine Barba[thb_image full_width="true" alignment="center" image="9774" img_size="full"]
This is something Barba counteracts daily when female entrepreneurs present her with their decks. Having started her first business in 2001, Barba now invests in digital retail among other projects, and recommends that when women set out on their entrepreneurial journey and are looking for investment, to start with female investors first, not because it will guarantee them funding, but because they will be more receptive to providing feedback.
"Whenever I receive a deck from a woman entrepreneur, I read it, and I take the time to give feedback," she says. "Whether it's negative or not, I think it's useful, it makes them feel valued."
While feedback will certainly help any female entrepreneur on the path to funding, Barba notes that there is also a collective responsibility from everyone, including the media, to get these stories told so representation and thus imitation can occur. "It's hard to be what you haven't seen before," she comments. "If we highlight those kind of women who show us the way, and tell younger generations, 'you belong here.' Well I guess more and more girls will go that way." She uses the major impact her daughter's computer science teacher is having on her school life as a small example of this, but one that will have a lasting impression on both her daughter's future and all girls in the class that might have previously shied away from the male-concentrated field. "I'm very grateful that she has that female teacher and [that] she's so good," says Barba.
"We have to take this to the next level, we have to go beyond gender. I'm not sure it's a good thing to do events, by women, for women,"
Catherine Barba. “There are less female entrepreneurs, less female investors, but I am very optimistic about the future."
This year the forum won't simply be focusing on girls and women however, with Barba realizing that to completely welcome innovation and inclusion, the workforce must be as diverse as it can possibly be, and that indeed goes beyond gender gap.
"We are at a tipping point today,"
-Catherine Barba“The last few years, I was very much supporting and promoting women, women in tech, women in business, women entrepreneurs, but I think that now we have to take this to the next level because of what happened last year with #metoo and everything," she notes. "I think we can all agree that things have to change, now we have to include men in the conversation and we have to think broader and think of diversity, difference of gender, age, culture, ethnicity."
In light of this, the dynamic of the event has shifted, in order to move away from the traditional focus of a 'woman's conference' to incorporate a larger audience and a bigger message. "The theme this year is 'Diversity powers innovation," says the CEO. "Diversity increases our ability to innovate. If we surround ourselves with people who are different, that's the only way to survive and [feed] the innovation economy."
Speakers this year include a broad range of talent from across the traditional sectors like Beauty, Fashion, Finance, Politics, Media, and newer frontiers like Blockchain and AI, and indeed are representative of the diversity Barba is pushing for. "They are women, or people of color, or people who are actually different kind of leaders," she comments. "When you see them and they share their learnings with you, you [will] understand that you too can make it, and that's the main message."
Having personally hand-picked the speakers for this year's line-up, Barba is assured of their lasting impression on the audience. A quick skim of their titles and profiles prove a different tone and nature to the litany of conferences that head up New York's stages every year. Executives and personalities from all walks of life and different sectors are to be seen, from the President of Vera Wang, to a research scientist from Facebook's AI lab, to multicultural media leaders and beyond. And what's perhaps the forum's most enticing bait, is that it's all neatly packed into a one-day spectacle. Barba knows we're very busy.
The 2018 W.IN. forum will take place on May 21th at Parsons New School. You can find the agenda and a list of the speakers here. Register here for discounted rate with code SPECIALOFFERSWAAY for 60% off.
Business entities can be defined as the corporate, tax and legal structures which an organization chooses to officially follow at the time of its official registration with the state authorities. In total, there are fifteen different types of business entities, which would be the following.
- Sole Proprietorship
- General Partnership
- Limited Partnership or LP
- Limited Liability Partnership or LLP
- Limited Liability Limited Partnership or LLLP
- Limited Liability Company or LLC
- Professional LLC
- Professional Corporation
- Nonprofit Organization
- Cooperative Organization
As estates, municipalities and nonprofits do not concern the main topic here, the following discussions will exclude the three.
Importance of the State: The Same Corporate Structure Will Vary from State to State
All organizations must register themselves as entities at the state level in United States, so the rules and regulations governing them differ quite a bit, based on the state in question.
What this means is that a Texas LLC for example will not operate under the same rules and regulations as an LLC registered in New York. Also, an LLC in Texas can have the same name as another company that is registered in a different state, but it's not advisable given how difficult it could become in the future while filing for patents.
To know more about such quirks and step-by-step instructions on how to start an LLC in Texas, visit howtostartanllc.com, and you could get started with the online process immediately. The information and services on the website are not just limited to Texas LLC organizations either, but they have a dedicated page for guiding fresh entrepreneurs through the corporate tax structures in every state.
Sole Proprietorship: Default for Freelancers and Consultants
There is only one owner or head in a sole proprietorship, and that's what makes it ideal for one-man businesses that deal with freelance work and consulting services. Single man sole proprietorships are automatic in nature, therefore, registration with the state is unnecessary.
Sole proprietorships are also suited to a degree for singular teams such as a small construction crew, a group of handymen, or even miniature establishments in retail. Also, this puts the owner's personal financial status at jeopardy.
Due to the fact that a sole proprietorship entity puts all responsibilities for paying taxes and returning loans, it directly jeopardizes the sole proprietor's personal belongings in case of a lawsuit, or even after a failed loan repayment.
This is the main reason why even the most miniature establishments find LLCs to be a better option, but this is not the only reason either. Sole proprietors also find it hard to start their business credit or even get significant business loans.
General Partnership: Equal Responsibilities
The only significant difference between a General Partnership and a Sole Proprietorship is the fact that two or more owners share responsibilities and liabilities equally in a General Partnership, as opposed to there being only one responsible and liable party in the latter. Other than that, they more or less share the same pros and cons.
Registration with the state is not necessary in most cases, and although it still puts the finances of the business owners at risk here, the partnership divides the liability, making it a slightly better option than sole proprietorship for small teams of skilled workers or even small restaurants and such.
Limited Partnership: Active and Investing Partners
A Limited Partnership (LP) has to be registered with a state and whether it has just two or more partners, there are two different types of partners in all LP establishments.
The active partner or the general partner is the one who is responsible and liable for operating the business in its entirety. The silent or investing partner, on the other hand, is the one who invests funds or other resources into the organization. The latter has very limited liability or control over the company's operations.
It's a perfect way for investors to put their money into a sector that they are personally not experienced with, but have access to people who do. From the perspective of the general partners, they have similar responsibilities and liabilities to those in a general partnership.
It's the default strategy for startups to find funding and as long as the idea is sound, it has made way for multiple successful entrepreneurial ventures in the recent past. However, personal liability still looms as a dangerous prospect for the active partners to consider.
Limited Liability Company and Professional LLC
Small businesses have no better entity structure to follow than the LLC, given that it takes multiple good ideas from various corporate structures, virtually eliminating most cons that are inherent to them. Any and all small businesses that are in a position to or are in requirement of signing up with their respective state, usually choose an LLC entity because of the following reasons:
- It removes the dangerous aspect of personal liability if the business falls in debt or is sued for reparations
- The state offers the choice of choosing between corporation and partnership tax slabs
- The limited legalities and paperwork make it suited for small businesses
While more expensive than a general partnership or a sole proprietorship, a professional LLC is going to be a much safer choice for freelancers and consultants, especially if it involves risk of any kind. This makes it ideal for even single man businesses such a physician's practice or the consultancy services of an accountant.
B, C and S-Corporation
By definition, all corporation entities share most of the same attributes and as the term suggests, they're more suited for larger or at least medium sized businesses in any sector. The differences between the three are vast once you delve into the tax structures which govern each entity.
However, the basic differences can be observed by simply taking a look at each of their definitive descriptions, as stated below.
C-Corporation – This is the default corporate entity for large or medium-large businesses, complete with a board of directors, a CEO/CEOs, other executive officers and shareholders.
The shareholders or owners are not liable for debts or legal dispute settlements in a C-Corporation, and they may qualify for lower tax slabs than is possible in any other corporate structure. On becoming big enough, they also have the option to become a publicly traded company, which is ideal for generating growth investments.
B- Corporation – the same rules apply as a C-Corporation, but due to their registered and certified commitment to social and environmental standards maintenance, B-Corporations will have a more lenient tax structure to deal with.
S-Corporation – Almost identical to a C-Corporation, the difference is in scale, as S-Corporations are only meant for small businesses, general partnerships and even sole proprietors. The main difference here is that due to the creation of a pass-through entity, aka a S-Corporation, the owner/owners do not have liability for business debt and legal disputes. They also are not taxed on the corporate slab.
Cooperative: Limited Application
A cooperation structure in most cases is a voluntary partnership of limited responsibilities that binds people in mutual interest - it is an inefficient structure due to the voluntary nature of its legal bindings, which often makes it unsuitable for traditional business operations. Nevertheless, the limited liability clause exempts all members of a cooperative from having personal liability for paying debts and settling claims.
This should clear up most of the confusion surrounding the core concepts and their suitability. In case you are wondering why the Professional Corporation structure wasn't mentioned, then that's because it has very limited applications. Meant for self-employed, skilled professionals or small organizations founded by them, they have less appeal now in comparison to an LLC or an S-Corporation.