It is time to break down the barriers standing in their way
As the federal government looks to use every tool at its disposal to reshape and strengthen the Canadian economy, it must not overlook one of its chief assets – women entrepreneurs.
Their ingenuity, perseverance and know-how can help drive the economy forward.
Which is why it was refreshing to find a firm commitment in the recent federal budget to stabilize and strengthen the Department for Women and Gender Equality(WAGE). It shows the government was listening.
Now we need similar commitment to the Women Entrepreneurship Strategy (WES).
There’s plenty of work to do.
There are still barriers that prevent women-owned and run businesses them realizing their full potential. Through the right combination of policies and investments, the federal government can unleash the full economic power of women entrepreneurs to build a more robust economy.
Women entrepreneurs employ over 1.5 million Canadians and contribute more than $150 billion annually to Canada’s economy even though majority-owned women businesses account for only 19.5 per cent of all private-sector businesses in the country.
Moving up the dial even a few notches to 25 per cent would add another $150 billion to Canada’s gross domestic product, create jobs and help propel inclusive growth throughout Canada. But this will require removing the obstacles standing in their way.
Like other business owners, women entrepreneurs are grappling with tariffs, interest rates, supply chain issues and global economic uncertainty. While the federal government is tackling these macro economic problems, solving them alone will not eliminate all of the barriers that impede women’s entrepreneurial success.
The government must also break down systemic financial and social barriers.
Because they generally have smaller businesses with lower revenues than men entrepreneurs, women entrepreneurs often find it difficult to get credit or qualify for loans through financial institutions.
Studies show that over half of women entrepreneurs face hurdles when trying to obtain financing for their business and that, compared to their male counterparts, their applications are more often rejected.
When women entrepreneurs do get funding, they often receive significantly less — on average about 150 per cent less — than men-owned businesses.
Women entrepreneurs also report more difficulty than men in finding, applying for and qualifying for government support programs.
Despite progress on women’s equality, social barriers remain. Women still do the bulk of the housework, childcare and eldercare — often forcing women entrepreneurs to put their business on the backburner to tend to family responsibilities.
These challenges — combined with a lack of networking and training programs — make it difficult for women entrepreneurs to expand their businesses.
The problems are even more pronounced for those who are Indigenous, racialized, recent immigrants, 2SLGBTQ+, living with disabilities, single parents or who live in rural, northern or other underserviced communities.
Eliminating the barriers begins with recognizing the vital role that women — whether entrepreneurs, self employed, employees or unpaid caregivers — play in Canada’s economic health.
Without adequate supports for women and children, Canada’s economy will not thrive.
Women have shown time and time again that they will step up to help in times of crises.
During the Second World War, women flowed into factories and other essential jobs, keeping Canada’s war economy running.
More recently, women were front and centre at the height of the COVID-19 pandemic — working not only as nurses and caregivers, but also as public health, business and community leaders — helping to guide the country through a perilous time.
Now, as the federal government works to steer the economy through volatile global political and economic headwinds, it again needs all-hands-on-deck.
Women entrepreneurs have the skills to lead. The federal government can leverage their talents to reshape and grow the Canadian economy by better supporting them.
PARO Centre for Women’s Enterprise Canada is currently holding cross-country roundtable discussions — including Whitehorse, Vancouver, Calgary, Toronto, Ottawa and St. John’s — with women entrepreneurs and solopreneurs (self-employed individuals) to find solutions to fuel business growth.
From these meetings and other research, we will be issuing an updated report on women entrepreneurship in Canada.
Our work so far has identified several key measures that the federal government should take.
It must commit to permanent, multi-year funding to stabilize and strengthen its Women Entrepreneurship Strategy (WES) and Department for Women and Gender Equality (WAGE).
It must also provide increased loan capital for the Women’s Enterprise Organizations of Canada National Loan Fund to meet the needs of women entrepreneurs, especially for solopreneurs and early-start businesses.
Additionally, the government must invest in targeted programs and flexible supports to bolster Canada’s care economy and address eldercare responsibilities – recognizing that without adequate supports for children and elders, women entrepreneurs cannot succeed.
Other needed actions include expanding inclusive lending, creating a federal loan-loss reserve for women entrepreneurs, providing micro grants to promote digital adoption, piloting supplier diversity targets and increasing support for training and trade missions.
Investing in women entrepreneurs is an investment in the Canadian economy. It is time for the federal government to take action to unlock their full potential.
Photo courtesy The White House, Public domain, via Wikimedia Commons
