Women entrepreneurs more affected than men

The report highlights that the disruptions of the COVID-19 pandemic have exposed inequalities and exacerbated barriers faced by women entrepreneurs in Canada. Some have even called it a “women’s recession.”

This vulnerability is linked to several factors. Their role in family responsibilities and the lack of financial resources cannot be denied, but there is also the fact that women-owned businesses are generally recent and smaller (92.7% of women-owned businesses employ fewer than 20 people). The sectors of activity favored by women also correspond to those that have been more affected by the pandemic, namely retail, accommodation, education and services.

“Women are playing a leading role in our shift toward a service industry. They are not all Bill Gates! They are more committed to a social and sustainable economy, and that is what we need to encourage,” said Wendy Cukier, Director of Studies at the PFCE. Measures to support their growth efforts have social benefits that go beyond the profitability of the companies they run.

“Those looking to start or grow their businesses still struggle to access networks and capital, especially in the form of microloans. But these systemic barriers are not new; they existed before the pandemic.”

Resilience and innovation: the arrival of unicorns!

Despite being particularly affected during this difficult period, women entrepreneurs have proven their great resilience and capacity for innovation. More than half of them have introduced new methods of relating to their customers. They have also been more successful in leveraging digital technologies than majority-male-owned businesses by increasing virtual connections for internal purposes and developing e-commerce. In addition, a large share of women-owned businesses (34%) have reinvented themselves by making adjustments to their products and services.

Notable fact: the number of new, fast-growing, young companies valued at more than US$1 billion (“unicorns”) founded in Canada by women has almost doubled since 2019.

The report also estimates that immigrant-owned businesses in Canada are 8.6% more likely to create new products and 20.1% more likely to implement innovative production processes or methods.

But Wendy Cukier, who is also the founder of Ryerson University's Diversity Institute, stressed that women entrepreneurs are not a monolithic group. The journey for women in entrepreneurship is more complicated for those who belong to marginalized subgroups. Thanks to her work, the government is now taking an intersectional approach that takes into account the general experience of women, overlaid with the specific experiences of Black and Indigenous women entrepreneurs, those living in rural and northern areas, and entrepreneurs with disabilities.

Data for financing

The Minister said there is an opportunity to build back better: “In keeping with the adage that what gets measured gets done, the Women Entrepreneurship Knowledge Hub plays a critical role for the government in providing a better understanding of the information and data that informs its policymaking. Diverse participation in the economy is in everyone’s interest,” said the Honourable Mary Ng, who has nearly 20 years of experience in education, women’s leadership, job creation and entrepreneurship.

The government is now considering intersectionality and gender-based analysis in its policymaking. It has legislated pay equity, enhanced the Canada Child Benefit, provided one-time financial support to women entrepreneurs during the pandemic, and established a $10-a-day child care program. The federal government is creating the optimal conditions for underrepresented businesses to grow.

Involving women entrepreneurs in the big economy

In Canada, the vast majority of businesses are SMEs, which represent a significant source of innovation and job creation. As of December 2017, the Canadian business community included :

• 97.9% (1.15 million) of small businesses (99 employees or less)

• 1.9% (nearly 22,000) of medium-sized companies (100 to 499 employees)

• 0.2% (2,939) of large companies

SMEs employ more than 10.6 million Canadians, or nearly 90 per cent of the private sector workforce. “Compared to the United States, where half of the jobs are in large companies, 90 per cent of our jobs are in SMEs,” said Wendy Cukier. They are the backbone of the Canadian economy. In other words, the structure of our economy is based on SMEs. For Minister Ng, they are the “engines of innovation, and they are essential to Canada’s prosperity and global competitiveness.”

That is why, the minister said, her two portfolios have been combined since 2019, that of international trade and export promotion, with that of small business and economic development. "Canada's brand is diversity," said Wendy Cukier, recalling that our growth comes from our plural and naturally international identity.

Notes on the Government of Canada's inclusive approach to trade

To ensure that the benefits and opportunities of international investment are equitably shared, Canada has adopted an inclusive approach to trade and is integrating gender-related provisions into all of its free trade agreements. The government has also co-signed the Global Arrangement on Trade and Gender —an initiative that other economies are encouraged to join.

Resources for Women in Entrepreneurship

The Women Entrepreneurship Strategy , which represents an investment of more than $6 billion, includes:

• the Women Entrepreneurship Loan Fund , a program that facilitates existing loan programs focused on women entrepreneurs to give them greater access to affordable microloans;

• theSFE Ecosystem Fund , which aims to remove barriers within support networks and provide women entrepreneurs with the resources they need to start their businesses, expand them and access new markets;

• the Knowledge Portal for Women Entrepreneurs , which brings together 10 regional hubs, more than 300 organizations and 1,000 women entrepreneurs to create a more inclusive and supportive environment for the growth of women entrepreneurship in Canada.