Female Ownership Matters

Patricia Karter, Dancing Deer Bakery CEO, thinks a better gender balance in the business world could improve society as a whole

The Entrepreneur: Patricia Karter, 51

Background: An artist with an MBA, Patricia Karter is the co-founder and CEO of Dancing Deer Baking. Based in Roxbury, Mass., the little bakery with a strong social mission aims to grow into a $50 million business—without sacrificing its core values and practices: community philanthropy, employee development, and the use of only natural ingredients. Today, Karter, who has received a round of institutional capital, is pursuing another equity capital round—this time using women angel investors.

The Company: Launched in 1994, Dancing Deer Bakery has clung to a simple yet unconventional business philosophy (BusinessWeek.com, 5/19/07): If bakers love what they do, it shows in the food. More than a decade later, that guiding principle has helped propel the all-natural baked goods outfit into a fast-growing business) (BusinessWeek.com, 8/21/06).

Sales: Dancing Deer Bakery had about $10.5 million sales in the fiscal year ended June, 2007, and projects $14.4 million next year.

Her Story: I'm frequently asked whether Dancing Deer's social mission gets in the way of its profitability. That's easy. We are a consumer brand. Our social activism builds consumer loyalty and attracts highly motivated employees. It's a win-win proposition. Plus, being committed to making all-natural products and making the world a better place is way more fun than being wound tight around the tyranny of a single bottom line. We've got a second one. How much good did we do? Of course, we don't get to declare victory on the second bottom line approach unless the business succeeds on conventional measures of profitability and asset value.

Not all of our fans know about our dual mission. Some just love the Molasses Clove cookies. But to the extent that people are aware of our progressive practices and philanthropic commitments, they get it.

When Title IX opened up the boy's track team to me when I was a junior in high school in 1973, it was my first awakening to gender disparities in the power structure of our society, not just the athletic complex. I was also awakened to how bad that system is for everyone, including the boys.

I've been hoping our society could have a better balance ever since. That's where the female ownership comes in. Dancing Deer wants to advance the role of women in the male-dominated business world by being not just women-run but majority women-owned.

Time to Diversify

It is my belief that more women controlling assets in the private sector will yield a net gain in performance and ultimately a better society for all. This is not a zero sum game. Ownership chooses management and therefore sets the agenda. If you believe that diversity leads to better decision-making, then it is logical to pursue it at the ownership level. So that's what I'm trying to do with our next fund-raise.

We all know that women are underrepresented in the executive suite and in the boardroom. Women are also minor players in the world of private equity and venture capital. While women constitute one of the fastest growing segments of entrepreneurs—they start 54% of new businesses—there are fewer women investing in growth businesses, and there are fewer women entrepreneurs receiving funding (less than 4% of venture funds go to women entrepreneurs, less than 14% of angel investors are women), according to the Center for Women's Business Research.

Today, what started as a $20,000 hobby investment is a prominent national brand in the natural foods market.