WOMEN’S ENTREPRENEURSHIP IN BC & CANADA Fall...

Operating Plan 2012‐13 Page 0

WOMEN’S ENTREPRENEURSHIP IN BC & CANADA Fall 2014

Kristine Theurer, Java Music ClubWEC Loan Client

“Investing in women is not just the right thing to do—it is the smart thing to do.”

UN Secretary General Ban Ki‐moon at the Investing in Women and Entrepreneurship Forum,

New York, NY, March 8, 2011

“At a time when the world needs high‐growth entrepreneurs more than ever, the Kauffman Foundation has declared this to be the Decade of the Woman Entrepreneur to pursue opportunities that will inspire women to seek advisors, training, and networks that will help them unleash their potential and fundamentally change lives.”

The Kauffman Foundation Thoughtbook 2011, Decade of the Woman Entrepreneur

Copyright® 2014 Women’s Enterprise Centre Reproductions not permitted without prior permission of the copyright holder. Published by: Women’s Enterprise Centre Suite 201, 1726 Dolphin Avenue Kelowna, BC, Canada V1Y 9R9 Toll Free: 1.800.643.7014 Financial support provided by:

Women’s Entrepreneurship in BC & Canada Page | 1

Women’s Entrepreneurship in BC & Canada September 2014

Table of Contents

Executive Summary ............................................................................................................................................ 3

1. Economic Growth and Women’s Entrepreneurship: Background .............................................................. 4

2. The Global Context .................................................................................................................................. 4

3. The Canadian Context .............................................................................................................................. 5

3.1 Opportunities for Growth .................................................................................................................................. 6 3.2 Women Entrepreneurs: Strengths and Weaknesses ......................................................................................... 7 3.3 Barriers for Women Entrepreneurs ................................................................................................................... 8

4. WEC Research into BC Women Entrepreneurs: Results ............................................................................ 11

4.1 Motivations of Women Entrepreneurs ............................................................................................................ 12 4.2 Definitions of Success ....................................................................................................................................... 12 4.3 Satisfaction Level .............................................................................................................................................. 14 4.4 Barriers to Success ........................................................................................................................................... 14

5. Assistance to Overcome Barriers ............................................................................................................. 16

6. Strategies for Program Delivery .............................................................................................................. 18

7. Women’s Enterprise Support Ecosystem in Canada ................................................................................. 19

Appendix 1: Selected International Best Practices ............................................................................................. 23

United States .......................................................................................................................................................... 23 China ...................................................................................................................................................................... 25 Europe .................................................................................................................................................................... 26 Brazil ....................................................................................................................................................................... 29 Australia ................................................................................................................................................................. 29 India ....................................................................................................................................................................... 29 Canada ................................................................................................................................................................... 30

Appendix 2: Opportunities for Economic Growth ............................................................................................... 31

1. Supplier Diversity Initiatives ....................................................................................................................... 31 2. Training for Business Growth and Linkages to Tech Support Organizations .............................................. 31 3. Expanding the Pool of Women Investors .................................................................................................... 32 4. Support for Women in Trades, Including Self‐Employment Training ......................................................... 32 5. Financing Support for Young Women and Immigrants ............................................................................... 32 6. Expanded Mentoring Resources ................................................................................................................. 32 7. Enhanced Training, and Industry‐Specific Training (eg Agri‐Food and Tourism) ........................................ 33 8. Leadership Training for Women ................................................................................................................. 33 9. International Trade Support for Women .................................................................................................... 33

Works Cited ...................................................................................................................................................... 35


Executive Summary

A strong entrepreneurial sector is essential to a thriving economy. Economic development initiatives,

particularly those aimed at women, help increase the number of businesses being started and help

those businesses grow and create more jobs. New businesses create more new jobs than any other

sector of the North American economy.

While women own over one‐third of all the small businesses in BC and Canada (<50 employees), their

sales and employment are below the provincial and national averages. Over the past 15 years, women

are increasingly starting businesses; however, they need help to grow their business. Other jurisdictions

have recognized this opportunity, and women’s enterprise development has become a major economic

development priority around the world since 2010.

There is no disputing the fact that many of the barriers women face in starting or growing a business are

the same as those often faced by any start‐up, small business or growth–oriented enterprise. However,

research shows that women are exposed to special challenges in the growth phase of their business.

These barriers can be personal, firm‐related and external.

A review of the existing literature on the barriers affecting women entrepreneurs, combined with BC‐

focused surveys conducted by WEC and its partners, reveals that women entrepreneurs encounter

barriers with regard to self‐confidence, financial literacy and access to capital. In order to overcome

these barriers, experience‐based training is needed that is strategic, specific and cognizant of women

entrepreneur’s time constraints.

Identifying women‐owned businesses with growth intentions in their start‐up phase is crucial. Early

support allows women business owners to position themselves for growth. Strategies to maximize

women business owners’ economic contributions include encouraging them to enter non‐traditional

industries, supporting them in exporting initiatives, and educating them about financing options and

appropriate risk‐taking behaviour.

While BC leads the way in Canada in economic recovery, there is still much work to be done to support

women’s enterprise growth. Studies show a ‘missing middle’—businesses with $100‐$999K in revenue—

that has below‐average growth. This represents a section of women entrepreneurs poised for growth,

and an untapped economic driver for the province of BC and the country.

As the Canadian Taskforce for Women’s Business Growth indicates, “a 20 percent increase in total

revenues among majority female‐owned enterprises will contribute an additional $2 billion per annum

to the Canadian economy” (2011). In order for government to consider gender‐based programs, funding

and policies, it is essential to view women’s entrepreneurship as an economic issue, not a gender equity

issue.


1. Economic Growth and Women’s Entrepreneurship: Background

Enhancing and supporting entrepreneurs is essential. To illustrate, 98% of all businesses in the

province of BC are small businesses that together employ over one million people, representing

57% of the province’s private sector employment. The province of British Columbia prides itself on

its entrepreneurial spirit, and boasts the second‐highest rate of women business owners of all the

provinces, at 37.7% (BC Stats, 2013).

A healthy small business sector is essential to a robust, dynamic economy and strong, vibrant

communities. Economic development initiatives to help small businesses and entrepreneurs grow

and conduct business internationally contribute to BC’s economic growth in a way that is consistent

with the BC Jobs Plan and recommendations by the BC Small Business Roundtable, as well as other

similar national programs.

Entrepreneurs provide the majority of new jobs. When people have jobs, society thrives both

economically and socially. Entrepreneurship plays a major role in job creation—it is high‐growth

entrepreneurs who provide the majority of net new jobs in developed economies each year.

While start‐ups of high‐growth companies have the largest impact on the economy, fewer women

than men are building high‐growth companies (Mitchell, 2011). Encouraging women‐owned

businesses to grow represents an economic development opportunity. In fact, it is an opportunity

being seized by both developed and developing economies around the world. It can be the third

piece of a three‐pronged approach to economic growth, complementing the other two growth

strategies of international trade development and innovation/tech commercialization support.

The discrepancy between women’s actual economic contributions versus their potential to be more

engaged in the economy is increasingly referred to as the “economic gender gap”—the gap in

economic growth caused by the less‐than‐optimum participation of women in the economy.

Successfully addressing these barriers and improving the alignment between women’s education

levels, entrepreneurial talents and economic outcomes will result in significant new economic

activity and growth.

It is well‐documented that educated, income‐earning women are especially powerful catalysts for

development because they tend to invest more of their money in their families’ health, education,

and well‐being than their male counterparts around the world. The countries most successful in

narrowing gender equality gaps consistently achieve the strongest economic performance. There is

clear evidence of a critical link between women’s roles in the economy and economic prosperity at

the local, national and global levels. While Canada leads in many ways, there is more to be done.

2. The Global Context

"Entrepreneurship makes a difference to economic prosperity, and a country without high business

start‐up rates is risking economic stagnation,” says Michael Hay, project director of the Global


Entrepreneurship Monitor (GEM) and professor at the London Business School. The 2010 GEM

report estimates that over 187 million women are starting and running businesses in the 59

economies it studies.

GEM reports that most firms are still started and operated by men, with peak entrepreneurial

activity among those aged 25‐44. Overall, men are twice as likely as women to be involved in

entrepreneurial activity worldwide.

Women’s enterprise development has become a major priority in many nations around the world

since the beginning of 2011. At the March 2011 Investing in Women and Entrepreneurship Forum in

New York, the UN Secretary General, Ban Ki‐moon remarked that “investing in women is not just

the right thing to do—it is the smart thing to do.”

In September 2011, the APEC countries held their first‐ever APEC Summit on Women and the

Economy in San Francisco, where the 21 member nations unanimously agreed to focus on women’s

economic growth as an economic strategy in their countries. The San Francisco Declaration (2011)

commits to four focus areas to develop and implement initiatives to improve women’s:

1. access to capital;

2. access to markets;

3. capacity and skills building; and

4. promotion to leadership.

The Women’s Enterprise Initiative, of which Women’s Enterprise Centre (WEC) in BC is a part,

participated as part of the Canadian delegation to this APEC summit, and both are founding

members of Women’s Enterprise Organizations of Canada, the national association of business

support agencies which provide services to women entrepreneurs.

These national and international organizations recognize that entrepreneurship thrives when

women are actively involved (Women entrepreneurs are key to long‐term economic growth, n.d.).

3. The Canadian Context

A 2013 BMO Financial Group survey reveals that 36% of women in Canada are interested in starting

their own business within the next ten years. Of those, 57% say one of the primary reasons for

doing so would be to do something they love. The study also shows a healthy interest in

entrepreneurship for women under 35, with 19% reporting that they are very likely to start a

business within the next five years.

According to Colleen McMorrow, Ernst & Young’s Entrepreneurial Services Leader in Canada,

“Canada’s ideal environment and proactive frame of mind are setting the standard for

entrepreneurial culture. In fact, 88% of survey respondents agree these qualities are putting the

country on the map as a startup paradise” (Calgary Herald, 2011). Omnibus survey results from

research conducted by the Mustel Group for WEC with 502 men and women in British Columbia in


March 2014 show that 87% feel successful women entrepreneurs and the contribution of women‐

owned businesses are recognized and accepted by society. This illustrates that the social landscape

is primed for further growth in women’s enterprise development.

There are numerous opportunities to promote economic growth through women’s enterprise

development, because in Canada, women‐owned businesses tend to have fewer employees and

lower sales than male‐owned businesses. On average, women‐owned businesses generate only

50% of the revenues of male‐owned businesses. However, their net profit before tax is 89% of

male‐owned firms (Jung, 2010). This shows a strong contribution to the economy in terms of

profitability, and indicates that women entrepreneurs are promising prospects for economic

growth.

Barbara Orser, who holds the Deloitte Professorship in the Management of Growth Enterprises at

the Telfer School of Management in Ottawa, states that it is a misconception that women do not

want to expand their businesses (Eichler, 2012). This misconception is not borne by the reality of

the explosion of female entrepreneurs in Canada and the United States, and the world at large.

The reality is that BC women do want to expand their businesses, and there is evidence from the US

that they may have fared above‐average over the last 15 years in terms of employment and

revenue growth rates (albeit from a smaller base). Since women‐owned businesses in Canada tend

to have higher profitability levels than their male counterparts (Jung, 2010), the potential for this

subset of the SME market to contribute to economic growth and job creation is that much greater.

However, some specific barriers need to be overcome in order to realize this potential.

Contrary to the assumptions often made about micro‐business ownership in Canada, the

proportions of male‐ and female‐owned businesses with fewer than five employees are almost

identical, at 79% and 81% respectively. Yet, there is often a presumption that only the majority

women‐owned businesses are micro‐businesses.

3.1 Opportunities for Growth

Research suggests that high‐growth companies help the economy the most through job creation

and leadership in new industries (Mitchell, 2011). In the US, women‐owned firms have fared better

than their male counterparts over the past 14 years (American Express Open Report on the State of

Women‐owned Businesses, 2011). Male‐owned firms grew by only 25% in the US between 1997

and 2011—half the rate of women‐owned firms. Employment in male‐owned firms has actually

declined by nearly 5% over the past 14 years, while revenues grew by just 33%, both well below the

growth seen among women‐owned firms and the national average. Some of the improved results

for women business owners can be attributed to targeted US federal, state and municipal

government supplier diversity programs to assist women‐owned businesses to access corporate

and government procurement opportunities, where they have historically been under‐represented

in both Canada and the US.


According to the American Express “State of Women‐Owned Businesses Report” (2011), women‐

owned firms with sales less than $100,000 and those generating $1 million or more have seen

above‐average revenue growth since 1997; however, women‐owned firms with sales between

$100,000 and $999,000 in revenue have grown at a below‐average rate. This ‘missing middle’ needs

focused assistance to be stimulated to grow. This same phenomenon is likely to exist in Canada as

well, where working capital remains difficult to attain, and many women business owners note

barriers such as difficulty in business planning and the need for more training (Women’s Enterprise

Centre Discussion Paper, 2011).

In order to maximize the potential of entrepreneurial women, women need to be encouraged and

supported in more profitable and higher‐wage industries. Only 6% of women firms in Canada are in

knowledge‐based industries or manufacturing sectors (Pregel, n.d.). Furthermore, a 2011 study

released by the Kauffman Foundation states that “women have managed to break through the

glass ceiling in engineering and technology, but not through the glass walls to break out and start

their own companies” (Kauffman, 2011). This represents an opportunity to help women create

larger and more profitable businesses in the technology sector.

Another real driver of economic benefit is exports. Only 10% of Canadian firms export and “fewer

than 10% of Canadian women entrepreneurs are exporting now, so there are huge opportunities

for women to grow and expand their businesses internationally,” says Josie L. Mousseau, Canada’s

Trade Commissioner for Women in International Trade with DFATD.

The million women‐owned businesses in Canada represent $117 billion per annum of economic

activity. A 20% increase in total revenues by these firms would contribute an additional $2 billion

into the Canadian economy (Taskforce for Women’s Business Growth, 2011). The economic

argument is clear that helping women grow their businesses is a strong economic stimulus strategy.

3.2 Women Entrepreneurs: Strengths and Weaknesses

In Canada, women‐owned firms tend to be more profitable as a percent of sales than male‐owned

firms, according to the 2010 Industry Canada “Small Business Financing Profile: Women

Entrepreneurs.” The same report states that 6% more women had growth intentions than men

(44% vs. 38% respectively) in 2007. Furthermore, women’s intentions to grow their business

increased by 13% between 2004 and 2007. This is a positive trend; however, despite these plans to

grow their business, only 37% of women’s businesses in BC are considered high‐growth, compared

to 63% of male‐owned firms.

Research conducted in BC in 2011 determined that 57% of growth‐oriented women business

owners are uncomfortable with carrying debt. In 2007, BC male‐owned firms borrowed an average

of 141% more than female‐owned companies (Women’s Enterprise Centre Discussion Paper, 2011).


3.3 Barriers for Women Entrepreneurs

The challenges that exist for women entrepreneurs can be classified into personal, firm‐related and

external barriers. Following is a discussion of the recent literature on the barriers affecting women

entrepreneurs in terms of these three categories.

3.3.1 Personal Barriers

The role of women in society has a significant impact on the types of businesses women start

and the sectors of the economy in which they operate. Most developed countries have already

created, developed and continue to successfully implement programs to help women

entrepreneurs overcome some of these personal barriers. Appendix 1 outlines selected

international best practices and programs that have resulted in positive social and economic

impacts.

There has been a positive change in BC with regard to certain personal barriers. In 2008, 40% of

women entrepreneurs listed bias against women as well as time and family responsibilities as

their #3 and #4 barriers. In 2011, only 27% of respondents listed family responsibilities as a

barrier, it was ranked #5 on their list of top barriers. Increasingly, women are choosing business

ownership and finding ways to make it work with their family responsibilities (Women’s

Enterprise Centre Research).

Women report more than men that personal and entrepreneurial skills are an issue impacting

their business success. This can be a reflection of their confidence level. Women’s Enterprise

Centre 2007 mentoring research on early stage entrepreneurs indicates that confidence plays a

big role in how women perceive their ability to promote their products or services. Confidence

levels impact how women present themselves, set prices, and negotiate on behalf of their

business—whether that be with a financial institution, supplier, staff, customer, peer, or even a

family member.

In addition, more women than men reportedly suffer from the ‘imposter syndrome,’ which is

characterized by a lack of confidence and uncertainty about whether they are entitled to be in

their position. This syndrome is found to be particularly common among women who are

successful in their given careers (Kets de Vries, 2005). Additionally, while there are sufficient

business networks to help entrepreneurs, women business owners face challenges in accessing

those networks. This is partially due to a lack of knowledge or experience forming new networks

and capitalizing on existing contacts to bring in new business.

The 2012 Global Entrepreneurship Monitor Women’s Report found that while fear of failure is a

top concern for all entrepreneurs, it plagues women business owners more than their male

counterparts. "Even though women may have more years of education, it may not relate to self‐

perceived confidence in their entrepreneurial capabilities," says Candida Brush, a professor of

entrepreneurship at Babson College and one of the researchers for the GEM report. "In

developed economies, entrepreneurship is opportunity‐driven and women, who are well‐


schooled in other disciplines than entrepreneurship, may question their ability to identify, assess

and act on an opportunity" (Mielach, 2013).

Personal Barriers for Aboriginals and Immigrants

Higher levels of business support are typically needed by Aboriginal women to realize their goals

of self‐employment and entrepreneurship. In addition to business support, aboriginal women

require extended support addressing other challenges that occur in their communities that can

impact their success such as: confidence to engage and participate in mainstream activities,

valuation of personal strengths and talents not traditionally recognized, and limited resources

for childcare and transportation (Baxter, 2011).

In addition, on‐reserve aboriginal women face a greater challenge when applying for financing

due to the fact that financial institutions may not use reserve land [or other assets held on

reserve] as collateral (Baxter, 2011).

One‐fifth of women‐owned businesses are run by women who have immigrated to Canada.

Immigrant women tend to start their business within five years of arriving in the country and,

after five years, there is very little material difference between the characteristics of businesses

run by immigrant women and those run by Canadian‐born women (CIBC, 2005).

Despite their entrepreneurial tendencies, immigrant women need extra support in specific

areas. Their understanding of the Canadian licensing requirements, taxation, health and safety

rules, credit rating systems and other business practices may be limited. They may experience

language barriers which affect their ability to create a compelling business plan. Accounting

standards may differ in their home country, and their professional designation may not be

recognized in this country. They may experience a lower level of confidence due to these issues.

In addition, newcomers may lack social and professional networks, as discussed in an article by

Women Entrepreneurs Community:

All business owners face challenges, but women entrepreneurs often have additional

challenges and obstacles that their male peers are less likely to encounter. […] With

such great demands on their time, energy and resources, they struggle to balance family

life and work. As a result of all these issues, entrepreneurship within the newcomer

community is still a primarily male‐dominated field. (n.d.)

Personal Barriers for Youth

In a report on National Youth Social Entrepreneurs Social Attitudes conducted in British

Columbia and Ontario published in 2011, the female participants note that there is little support

available to women to help them succeed in male‐dominated fields of work. Young women who

are building businesses in non‐traditional areas indicate they would like to have access to female

mentors who have experienced success.


3.3.2 External and Firm‐Related Barriers

The primary firm‐related barriers that women entrepreneurs encounter relate to financial

barriers. A lack of confidence and a need for business skills and training, stemming from women

business owners’ personal barriers, can compound their firm‐related barriers and hinder the

growth of their business.

Start‐up training tends to ignore planning for future growth, focusing instead on business start‐

up planning, marketing advice, and personal budget planning to ensure the new entrepreneur

has enough cash to carry her until the business gets going (Hadary, 2010). Starting a business

requires a different set of skills than running and succeeding in business, and women know they

need management expertise to run a larger or growth‐oriented company. If the idea of growth

planning is not introduced early enough into the business start‐up planning process, planning at

a later time becomes a barrier when women are thinking about, or trying to, grow their

business.

According to a report from BDC entitled “Women Entrepreneurs and Access to Financing,”

… businesswomen are more cautious than men when it comes to financing their

business; in fact, they are less inclined to turn to a financial institution. They take on less

debt and are more likely to use their personal savings to start their business or their

own capital to run it. However, because their businesses are often small,

businesswomen also have more limited financial needs. (n.d.)

Women business owners experience limited access to angel networks and other sources of

equity, insufficient collateral (RBC Economics, 2013), confusion about terms and jargon, limited

understanding about types of equity and debt capital and a lack of understanding regarding best

practices in structuring deals and utilizing financial information. For some, the line between

commercial and personal credit is obscure, while others assume that loan security and co‐

signature requirements are gender‐related. BMO’s 2013 study notes that 42% of Canadian

women surveyed who would start a business if given the opportunity, consider access to capital

to be their biggest challenge.

Economic barriers include access to growth capital, but also women entrepreneurs’ ‘investment

readiness.’ Investment readiness is defined as the capacity of a small business or an

entrepreneur to understand and respond adequately to the concerns of banks, business angels,

or venture capital funds who are providers of the external financing the business is seeking.

A 2011 survey of BC women entrepreneurs found that while credit histories and collateral levels

may not affect how women think about growth, they may affect whether they choose to pursue

a growth strategy (WEC). Women may assume (based on past experiences and history) that they

will not be able to obtain financing and, therefore, they do not consider pursuing it. This

impedes the growth of the economy because a business that does not grow does not create

more new jobs (not to minimize the jobs and economic activity it has already created).


Industry Canada reports that women are significantly more likely to be turned down for a loan

due to insufficient security and poor credit histories than their male counterparts. It is not clear

from the data whether the security and credit histories of women are worse, or whether they

simply get turned down more for these reasons. Regarding the reasons for business

discontinuance, it was found that in USA and Israel, the lack of access to finance impacts women

more than men (GEM, 2012).

External and firm‐related barriers can partially be attributed to financial literacy challenges.

Women entrepreneurs often cannot see or understand the realities of their financial situation

due to their relative lack of management experience and business training (on average, men

have ten years more management and business experience). This lack of understanding affects

not only how a business owner thinks about or pursues growth, but it may also lead to poor

decisions such as attempting growth when it is not appropriate (WEC, 2011). It may also lead to

the decision not to grow, which inhibits the growth of the economy.

The next section presents an overview of the results of recent research conducted by WEC into the

barriers that BC women entrepreneurs encounter in their business, including a focus on the specific

struggles of growth‐oriented women business owners, which demonstrates that barriers still exist

for women entrepreneurs in BC.

4. WEC Research into BC Women Entrepreneurs: Results

Three significant pieces of primary research into BC women‐owned businesses have been carried

out since the fall of 2011. While the research summarized in this section is BC‐focused, the results

can be considered representative of the rest of the country, given similar levels of women’s

entrepreneurship across Canada.

In October 2011, WEC was commissioned by Vancity Community Foundation to survey growth‐

oriented women‐owned businesses and summarize the findings related to barriers. The research

targeted growth‐oriented businesses, and a total of 131 women were surveyed, of which 97 were

WEC clients and 42 were members of the Forum for Women Entrepreneurs (FWE). Respondents

identified a number of personal, firm, and external‐related barriers to growing their business.

In the spring of 2012, a more general cross‐section of WEC clients was surveyed (n=245) regarding

the same barriers. Their responses were somewhat different, as they comprised both growth‐

oriented and non‐growth‐oriented companies.

In 2013, Dr. Lynn Sparling, Professor at Okanagan School of Business carried out research for WEC

to compare male and female entrepreneurs’ barriers, self‐confidence, and use of mentors. A

telephone survey was conducted by Mustel Group with a sample obtained from a Dun & Bradstreet

database. The sample, comprised of 50% male and 50% female, and had a total of 240 respondents.

This study was partially funded by the Social Sciences and Humanities Research Council of Canada

(SSHRC) and WEC.


WEC’s 2011 survey found that the intention to grow a business generally occurs in the early years

of business, and this presents an opportunity to identify these businesses in order to support their

growth. The timing of growth intentions is crucial—88% decide to grow during their first five years

in business (WEC, 2011). Identifying women‐owned businesses with growth intentions early in their

business cycle and giving them the support they need to overcome their barriers will have the

greatest economic impact.

The 2011 survey also found that non‐growth firms are much more likely to be B2C than the high‐

growth firms (86% vs 39%). Using the 2011 WEC Loan Portfolio Analysis as a base for this

information, a significantly higher number of high‐growth firms (61%) are in the B2B space. Among

the 2011 WEC survey respondents, 63% are in the service sector, and 72% have fewer than five

employees. This is consistent with previous studies that find as many as 80% of women‐owned

firms are in the service sector in Canada. According to Orser, Riding and Manley (2006), “women‐

owned firms are smaller, less likely to grow than counterpart firms owned by men, and

disproportionately represented among firms in the retail and service sectors.” The retail and

personal service sectors are also mature industries with a high degree of competition, resulting in

lower profit margins. These issues pose barriers to profitability.

In order to understand the barriers to success for women entrepreneurs, it is important to

recognize their motivations as well as their definitions of success and resulting satisfaction level.

4.1 Motivations of Women Entrepreneurs

Women start businesses for different reasons than men, and their motivations for starting a

business may affect whether or not they choose to grow. WEC’s 2011 study finds that 56% of

women business owners surveyed choose not to further grow their business. Of those who do

intend to grow their business, their reasons are: higher income, self‐fulfillment, and meeting

untapped consumer demand.

4.2 Definitions of Success

Definitions of success differ for women as opposed to men. In particular, women entrepreneurs’

idea of success involves:

Increasing importance of contribution to community

Higher importance for women for work / life balance and professional autonomy

Lower priority of personal disposable income, compared to men

The figure below presents the findings from WEC’s 2012 study. It illustrates that women generally

rate both personal and firm aspects to be equally important aspects of success (financial, work‐life

balance, operational, and relational). Aggregating these responses into categories, the top‐ranked

indicators of an accomplished entrepreneur are financial success of the business, professional

recognition, contribution to society, and work/life/relationship issues. The highest ranked criterion


was the quality of customer relations and the success criterion of lowest importance was the

acquisition of personal goods. It is possible that lifestyle choices to achieve work/life balance or

other family responsibilities create a barrier for the number of hours a woman entrepreneur can

devote to her business. However, depending on their definition of success, they may still perceive

themselves to be successful due to their ability to work fewer hours and achieve work‐life balance.

In this study, women rank their actual success against these criteria at only 78% of their perceived

importance. They perceive themselves as having relatively higher success with the autonomy and

quality criteria, and relatively lower with the financial criteria.

Figure 1: Business Success: Importance vs. Performance for Women Business Owners

Orser & Dyke similarly find in a 2008 study that women rate non‐financial criteria higher as

indicators of success, which leads them to an important point:

Because of the emphasis on financial criteria in the traditional view, it is generally reported that

women achieve lower levels of success than men. This may serve to bias discussions about

entrepreneurship, where traditional male values are thought of as the norm, and women’s

values considered the exception.

In recent years, corporate social responsibility and social ventures have become much higher

profile. The turbulent economic times have contributed more awareness of community needs (e.g.

homelessness among the working poor), which may be the reason why contribution to community

is also highly valued in the 2011 study.

1 2 3 4 5

Acquiring personal goods

Maintaining professional autonomy

Community relations

Pursuing intellectual activities

Operating performance

Maintaining relationships

Personal sense of accomplishment

Quality of products or services

Quality of customer relations

Market acceptance

Balancing work‐life demands

Profitability

Financial stability of the business

Generating personal income

Mean Rating

Success Criteria

Mean importance rating

Mean success rating


4.3 Satisfaction Level

Women’s satisfaction with reaching business goals is generally high among women business

owners. However, interpreting this can be a challenge due to the ‘paradox of the contented female

business owner’ whereby, in spite of lower growth, they are satisfied because they have reached

their business goals. This paradox is reflected in the WEC research, which finds that 64% of

respondents of the 2011 WEC study report being satisfied in reaching their business goals.

4.4 Barriers to Success

Based on the framework used in previous research in the area, the surveys conducted in 2011 and

2012 classify women entrepreneurs’ barriers to success into three categories: personal, firm‐

related and external‐related barriers.

As noted in the table below summarizing the 2011 and 2012 studies, the ranking of the barriers

between growth‐oriented entrepreneurs and general WEC clients are very similar with the

expectation that ‘limited management experience’ and ‘finding qualified labor’ were recognized as

much stronger barriers by the growth‐oriented entrepreneurs. This difference might be due to the

fact that 65% of the growth‐oriented businesses (those polled in the 2011 WEC survey) had

employees but only 45% of the 2012 study respondents had employees.


Table 1: Barriers Encountered: Growth‐Oriented Entrepreneurs & General WEC Clients

A review of these findings shows that women business owners feel they encounter personal

barriers with regards to management and business skills training, a need for mentors and struggles

with time management. They also cite family responsibilities, which leads to timing issues—both in

terms of when business growth is feasible and in terms of availability for training. Finally, financial

strength, financial literacy and overall confidence levels are issues for all, especially for aboriginals

and immigrants. Other notable barriers encountered by respondents in the 2012 study include poor

credit history (14%) and shortage of peer support networks (14%). In the 2011 WEC survey, women

identify a number of firm‐related barriers to growing their businesses. However, these can be

aggregated into the top three barriers, namely financing and profitability issues (69%), HR issues

(46%), and skills and training issues (37%).

4.4.1 Barriers to Accessing Financing

Financial barriers consistently rank high in these studies. In the 2012 study, the top firm‐related

barriers are both financial—challenges accessing financing and low profitability—although it is not

possible to establish a causal relationship. Similarly, 45% of respondents in 2011 identify obtaining

financing as their biggest barrier. In fact, of the past five studies conducted by WEC, financial

barriers are the only consistent barriers listed in each of the five research studies.

Personal Barriers

Limited management experience 31% 18%Limited business training / education 30% 26%Difficulties with business planning 30% 26%Lack of mentoring 28% 20%Lack of time due to family responsibilities 27% 14%Limited understanding of financial

statements26% 12%

Firm Related Barriers

Obtaining financing 45% 32%Finding qualified labour 30% 11%Low profitability 24% 27%Management capacity / ability 20% 9%Lack of market research 17% 9%Staffing issues (high staff turnover) 16% 7%Difficulties finding suitable space 15% 9%Remoteness of business location 7% 6%

External Barriers

Instability of consumer demand 26% 27%Legal requirements 13% 8%Government regulations 11% 12%Taxation levels 10% 11%Insurance rates 10% 5%Lack of infrastructure (high speed internet,

phone, roads)4% N/A

Inability to access affordable shipping 3% 6%

Barriers Women Entrepreneurs

Encounter (WEC Survey 2011)

Growth Oriented

Entrepreneurs (n=131)

WEC Clients

(n=245)


The challenges in obtaining financing are complex, and include several aspects. They include:

Lower perceived need for financing

Smaller amounts borrowed

Level of comfort with outside financing

Different financing patterns at start‐up

Different financing patterns for business growth

Lower approval rates for short‐term credit

Barriers to accessing financing

More declines due to poor security and credit histories

Higher documentation requirements

The barriers identified in these studies highlight an opportunity to help women business owners

identify their business growth potential and develop the skills to realize it. The next section

identifies some specific opportunities to deliver programming that helps women entrepreneurs

overcome these barriers.

5. Assistance to Overcome Barriers

Women entrepreneurs recognize their challenges and are clear about the type of assistance they

need. 2011 WEC survey respondents identify 18 different types of information or services to help

overcome their barriers. The top ten are as follows:

Table 2: Services Identified to Overcome Barriers to Success

Information or services to overcome barriers and create success Frequency

Business advising services 39%

Mentoring 34%

Financial management training 34%

Marketing training 31%

Market research data for my industry 29%

Assessment / evaluation of my entrepreneurial skills 25%

Access to debt financing 25%

Management skills training 24%

Access to equity financing 23%

Leadership training 22%

These requests are consistent with the APEC San Francisco Declaration (2011), and the Canadian

Action Strategies to Support Women’s Enterprise Development, as well as several of the priorities

outlined by the 2011 BC Small Business Roundtable, including the call for the Province to:

• Focus on factors that stimulate small business growth

• Support training and labour market development

• Leverage technology and competitiveness


• Continue to instill consumer and business confidence

• Continue to reduce regulatory burden on small business

• Further enhance the entrepreneurial culture in BC

These results are all quite consistent with the results from the 2010 WEC roundtable on women’s

business growth, hosted by WEC in partnership with the UBC Sauder School of Business and the

Vancouver Board of Trade Women’s Leadership Circle. At that event, growth‐oriented women

business owners worked with academics and service providers to identify the priorities in BC. The

results of that interactive symposium include:

Table 3: Priority Mention ‐ Programs to Support Growth Strategy

Growth Support Strategy Frequency

SME Programs 100%

Market Development 100%

Access to Capital 87%

Advisory Boards and Industry Sector Councils 76%

Technology Commercialization and Adoption 75%

With regards to financing barriers, thirty‐four percent of the women in WEC’s 2011 survey report

that financial management training would help them overcome their barriers to growth; 25% say

access to debt financing is needed and 23% identify a need for access to equity financing. This is

understandable, since only about 7% of venture capital in Canada goes to women‐owned ventures.

The results of these studies clearly indicate opportunities to assist women entrepreneurs in

overcoming their barriers with four strategic programming areas:

1. business advising;

2. mentoring;

3. business training; and

4. access to financing.

Given these suggestions, Women’s Enterprise Centre and its partners across Canada (members of

the WEOC network) are clearly targeting its services at most of the key interventions requested to

help women business owners, through business advisory services, mentoring, training in financial

management, marketing, management skills and leadership and financing opportunities. WEC’s

commitment to continuous research into the issues affecting women business owners accounts for

its relevant information and services that specifically target these areas. The Western Canadian

members of the WEOC manage their own lending program, which has been identified by the

Taskforce for Women’s Business Growth as being a benefit for the rest of the country’s women’s

enterprise agencies to offer as well.


6. Strategies for Program Delivery

There are two generic approaches to growing a business: increasing sales and/or increasing profits.

Both provide economic benefits to a country or province. When approaching what can be done in

partnership with the existing Canadian women’s enterprise support network to assist women

business owners, both approaches should be encouraged; however, the appropriate approach for

individual business owners depends on the other aspects explored in this paper (motivations,

definitions of success, current satisfaction levels, and their particular set of barriers).

There is strong justification to provide extra support to help address the personal and firm‐related

challenges that growth‐oriented women business owners face. This support includes increased

access to capital, assistance to envision and plan for growth in the first 5 years of the firm’s

operation, plus the information services, advice, and training and mentoring, and initiatives to

assist with financial literacy and confidence‐building that have been identified in this report.

Training in financial literacy and financial management strategies for growth are particularly

needed for women business owners to better understand business opportunities and business

potential. WEC’s 2011 study finds that the main reason women business owners do not apply for

funding from traditional lenders is that the respondents feel they don’t need it (61%). To address

this and related issues, additional training would assist women in envisioning how they could

strategically use external financing to grow their business.

The 2011 report by the Taskforce for Women’s Business Growth demonstrates that financial

literacy enhances enterprise growth:

Canadian women seek structured learning opportunities to increase their understanding about

small business financing. The need for financial training is evidenced in Canadian studies that

report that women business owners are significantly less likely to seek equity capital compared

to male counterparts.

The report recommends that women entrepreneurs want to talk about risk, and education is

necessary for women to understand which risk‐taking behaviours are appropriate to grow their

business (2011).

This support will be most effective if delivered to women business owners by business support

organizations which specialize in this market, and understand their learning styles and behavioural

characteristics. In terms of how women best receive support, women focus on intrinsic outcomes

such as improving strategic management skills and building self‐confidence, while men tend to

prioritize operational skills, such as identifying opportunities for growth (Orser & Riding, 2006).

Research also finds that women approach leadership with a different perspective than men.

Women relate more easily to the experience of other women (Hadary, 2010). This has implications

for training delivery, where women need to hear from role models and focus on practical learning

to provide the greatest impact.


An outline of the women’s enterprise support ecosystem in Canada, and the resulting social and

economic impact in the province and nationwide, is outlined in the next section. Appendix 2 offers

an expanded view of opportunities to develop additional programming to address the gaps

identified by women business owners in BC.

7. Women’s Enterprise Support Ecosystem in Canada

The Taskforce for Women’s Business Growth first documented the women’s enterprise support

ecosystem in Canada. The following infographic is based on that initial work. In describing the

government‐funded support organizations that work directly with women entrepreneurs across

Canada, many of the members of Women’s Enterprise Organizations of Canada (WEOC) have been

identified as international best practices in women’s enterprise development by the Chair of the

Taskforce, Dr. Barbara Orser. WEOC’s mission is to build a strong national network that strengthens

the infrastructure of support for women entrepreneurs across Canada. The figure below illustrates

the relationships between the various bodies that support women entrepreneurs in Canada.

Figure 2: Canadian Women’s Entrepreneur Support System ‐ Overview

Detail on the main players in each of these categories can be found in the tables below. The two

types of groups in this support ecosystem that interact directly with women entrepreneurs are the

publicly‐funded Women’s Enterprise (WE) Support Organizations, and the many private (for‐profit

and non‐profit) Women’s Business Networks (WBN’s) across the country. The WE Support

Organizations also interact with these WBN’s regularly, as the members of these associations

include women business owners, which will turn to the support organizations for support. The WE

Support Organizations are also the primary contact point for the government and research

agencies, both national and international, which develop research and policies to help this sector.

More detail follows in Figure 3 below:

Women Entrepreneurs

Women’s Enterprise Support Organizations

Government Agencies

International Agencies

Canadian SME Policy & Status

Reports

International SME Policy & Status

Reports

National and Provincial WBN’s


Figure 3: Canadian Women’s Entrepreneur Support System – Detailed on Components

7.1 About Women’s Enterprise Centre

A non‐profit organization founded in 1995 as an initiative of Western Economic Diversification

Canada, Women's Enterprise Centre is BC's leading resource for women who are starting,

purchasing or growing a small business. From our offices in Kelowna, Vancouver, and Victoria, we

serve the 150,000 women business owners across the province, providing essential resources and

services designed to build business capacity and fuel success.

We provide business loans of up to $150,000 and this direct financing, plus the additional funds our

clients leveraged from other lenders through our loans, amounts to $44 million in direct and

indirect financing so far. Our loans have helped create and maintain hundreds of jobs in BC and

over $1 billion in economic activity in the province. Our loan clients attribute a significant portion of

their increased sales to the help they have received from Women’s Enterprise Centre, and the loan

care they receive helps increase their success rate significantly. After 5 years, 75% of our loan

clients are still in operation, compared to the provincial average of 51%.

Every year, WEC business advisors provide over 3,000 business advisory appointments, our client

service staff respond to over 3,500 requests for business information, and our Skills Development

department enhances the business skills of almost 1,000 women in our workshops and mentoring

program in over 20 communities in BC.


As a provincial economic development organization, Women’s Enterprise Centre works closely with

partner organizations throughout the province to deliver our services in local communities. WEC’s

different services each have a different set of partners and other players that we interact with,

some of which are publicly funded and others which are for‐profit. The WEC approach is to fill gaps

in each area. It achieves this by conducting regular research on gaps and barriers, and working

closely with service delivery partners.

Figure 4: Women’s Enterprise Centre Services in Context

In 2013/14, WEC hosted 160 workshops in 31 communities, with 55 partners, including Community

Futures Development Corporations, Chambers of Commerce and Small Business BC, as well as

many Women’s Business Networks such as the Forum for Women Entrepreneurs (FWE). WEC also

works closely with BDC, Community Futures, Futurpreneur Canada, credit unions and traditional

lenders on joint loans and referrals. WEC’s unique offering, in terms of the combination of financial

access and business resources, compared to other service providers in the women’s space in BC is

summarized in Figure 5, below.


Figure 5: Women’s Enterprise Centre Service Offering

WEC’s unique combination of skills development, business loans and professional guidance,

including coaching and mentoring programs, position us as the premier resource for BC women

who want to gain the essential tools and capital they need to succeed in their business. We have

developed a strong reputation as a quality training provider for both start‐up and established

businesses. We have also developed a comprehensive community‐based referral and service‐

delivery network that helps our partners reach this important client base. With these attributes,

Women’s Enterprise Centre and our fellow WEOC members across Canada are ideal partners for

the Province of BC to assist the province’s women business owners to stimulate the BC economy by

growing their businesses.


Appendix 1: Selected International Best Practices

In response to the opportunities that the growth of women‐owned businesses presents for all

stakeholders, many countries have developed a number of innovative and creative programs, with

positive social and economic impacts. These programs support women to start and grow their

enterprises, improve skills, expand into new markets and find role models, all of which have been

requested by BC women entrepreneurs to help them grow their businesses. A selection of these

programs has been summarized below, to serve as ideas for future enterprise development programs.

United States

Supplier Diversity and Access to Supply Chains

Federal, state and even municipal governments in the US have had targets in place related to the

percentage of their own purchases they will make from women‐owned businesses (as well as

minority, veteran and disabled businesses). These targets have existed at the federal level since

1987, and a recommitment was made in 2010. State governments that are committed to supplier

diversity include California, Florida and Massachusetts. This has created a culture in the US which

supports supplier diversity initiatives in the corporate sector as well.

According to the UN, 90% of Fortune 500 companies have a supplier diversity program, under

which they actively seek to source from women. The UN points out that supplier diversity programs

go beyond socially responsibility and deliver well‐documented benefits through cost savings,

innovation and risk reduction from an expanded supplier pool.

In 2012, the Women in Trucking Association (Heavy Duty Trucking) launched a program to

designate women‐owned businesses on the truckstop.com load board. This assisted US companies

in meeting internal diversity goals as well as government requirements when working on publicly‐

funded projects.

A large‐scale example of supplier diversity in action is Walmart’s Global Women’s Economic

Empowerment Initiative, which was announced in September 2011. Over five years, Walmart

intends to source $20 billion from women‐owned businesses in the US, and double what it buys

from women suppliers internationally. Walmart’s supplier diversity program started in 1994, and in

2010, they spent more than $2.5 billion with 1,880 women‐owned businesses.

This commitment to supplier diversity is the driving force behind the success of the Women’s

Business Enterprise National Council (WBENC), which has certified over 11,000 women‐owned

businesses in the US, and has hundreds of the largest corporations in the US as members. WBENC

hosts an annual National Conference and Business Fair, which was attended in 2012 by 3,000

delegates and over 300 exhibitors. Attendees include top procurement executives from leading

corporations and government departments in the US.


Note: In Canada, both WBE Canada and WEConnect International certify women‐owned businesses

to access these supplier diversity programs. WEC and its WEOC partners work with both

organizations to help certify the women’s business enterprises (WBE’s), provide them with access to

programs and resources to grow their businesses through supplier diversity opportunities, and to

promote diversity procurement practices in government and corporations. Affiliation with WBE

Canada, WEConnect International and its US partner, WBENC, provides business‐to‐business (B2B)

firms the opportunity to sell to major buyers, whether as Tier 1 suppliers selling to them directly, or

as Tier 2 or Tier 3 suppliers to other firms selling into major corporations and government buyers.

Training for Business Growth

In the US, there are numerous organizations that provide excellent training to help accelerate

women’s business growth, including entrepreneurship think‐tank and training organization, The

Kauffman Foundation, which is the largest private foundation dedicated to promoting

entrepreneurship, with over $2 billion in assets. This organization provides training for women

business owners and also conducts in‐depth research into the challenges and opportunities for

launching women entrepreneurs on a high‐growth trajectory.

In the fall of 2011, the Kauffmann Foundation’s report “Overcoming the Gender Gap: Women

Entrepreneurs as Economic Drivers” provided a number of recommendations to encourage

women’s business growth. These recommendations included increased support for non‐profits that

support high‐growth women entrepreneurs, encouragement for women to invest in women‐owned

businesses, and support for networking and collaboration, which they point out “are critical for all

entrepreneurs, but even more critical for women and underserved minorities that do not have the

same access to networks that can provide them their first customers.”

Kauffman provides licensed FastTrac® training programs for growth‐oriented entrepreneurs, and

they also recommend supporting women’s enterprise support organizations such as Astia (San

Francisco), NewMe, Founder Fridays, Women 2.0, and other not‐for‐profits focused on providing

education and networks for high‐growth women entrepreneurs.

Expanding the Pool of Women Investors

In the first half of 2011, only 12% of U.S. angel investors were women. Furthermore, only 5% of

venture capital in the US goes to startups run by women. The Pipeline Fellowship trains women

entrepreneurs to become angel investors. The organization graduated its first class in New York in

2011, and has since expanded into nine additional cities across the US.

Examples of other successful programs include “Make Mine a Million $ Business”—a program of

“Count Me In for Women’s Economic Independence”—which intends to inspire 1 million women

entrepreneurs to reach annual revenues of $1 million by 2020.

Other successful programs have led to the creation of networks of women angel investors and to

the creation of women’s venture capital, such as Springboard Enterprises, which hopes to expand


into Canada in partnership with the CATA Alliance WIT program. Another organization known as

Golden Seeds operates in several US cities, and has focused on helping female entrepreneurs to

access venture capital for at least a decade. New firms, such as the Women’s Venture Capital Fund,

based in Palo Alto, California, demonstrate that the appetite for diversity at the startup stage is

catching on (Eichler, 2012).

Women in Trades Organizations

The US boasts a number of non‐profit organizations to help women who are exploring a career in

the trades. Some examples of these organizations include Women in Construction Company;

Women in Construction; Oregon Apprenticeship; Tradeswomen, Inc; Oregon Tradeswomen; Wider

Opportunities for Women; Women Building Futures; and Women Unlimited.

China

China could quickly become the world’s largest trade nation and the largest overall economy by 2030,

according to the World Bank. At the same time, a new entrepreneurial era in China is coming, and

women entrepreneurs are playing an increasingly important role in the Chinese economy. An example

of this emergence is the 2007 Forbes list of the richest Chinese business people, which showed that the

proportion of women listed grew from 4% to 7% from 2004 to 2007.

Women entrepreneurs in China are fairly successful, although most of their businesses are still clustered

in retail and personal services (Alon et al., n.d.). Approximately 90% of Chinese women entrepreneurs

focus on sectors that include restaurants, wholesale, retail, information services and other traditional

industries with lower technology barriers to entry (Entrepreneurship Research Centre of Tsinghua

University, 2006).

A 2002 study by the Chinese Society of Women Entrepreneurs found that women‐owned enterprises

generally performed better than did similar enterprises owned by men; however, women entrepreneurs

represent only 20% of all Chinese entrepreneurs. Ultimately, 98% of these women are successful.

In September 2011, the UN‐ITC jointly organized the Women Vendors’ Exhibition and Forum in

Chongqing, China. This was the first international event in the 10‐year strategy ‘Global Platform for

Action on Sourcing from Women Vendors,’ which had been launched at the annual World Export

Development Forum in September 2010. The exhibition was attended by more than 250 women

entrepreneurs and 55 large corporations from around the globe. While part of a longer‐term strategy—

the hope being that the contacts made and the knowledge acquired will lead to lasting and mutually‐

beneficial economic relationships—the initial commitments made at the forum were also impressive,

with many business transactions already taking place.


Opportunities for Young Women and Immigrants

Organizations in China encourage women to take advantage of transitional economic opportunities

to start new ventures, relying on specific programs designed for women. Recently, a series of

entrepreneurial policies specific to motivating female entrepreneurial activity have been

formulated and carried out by the Chinese government. Programs include: the Women’s Successful

Career Program, the Women’s Innovation and Entrepreneurship Program, and the Outstanding

Women’s Entrepreneur Program.

Economic policies to motivate Chinese female entrepreneurship include subsidies for professional

training, small‐loan guarantees, and preferential tax treatment. Soft entrepreneurial support

programs include incubators for women entrepreneurs and an entrepreneurial training certificate.

Once a woman has gained this entrepreneurial training certification, new bank loans can be

guaranteed without the requirement of providing collateral on personal property. Women

entrepreneurs who own larger‐scale enterprises can get loans by means of property

collateralization and government guarantee. This helps younger women in particular, who often

have ideas for businesses but lack the collateral needed to secure financing.

WEC has been approached by representatives from a major city in China requesting input regarding

WEC’s programs to support women entrepreneurs, which shows that country’s active priority in

supporting further growth in their programming to support this sector.

Europe

In Europe, estimates indicate that there are more than 10 million self‐employed women (including both

European Union countries and other European countries) (Europa, 2013). Compared with men, fewer

women are self‐employed in the EU, and fewer women start businesses or have the ambition to do so.

Women generally choose to start and manage firms in industries such as retail and services—areas often

perceived as being less crucial to economic development and the knowledge economy. In France, the

ratio of male to female participation is twelve‐to‐one.

The European Entrepreneurship and Innovation Program targets Small and Medium Enterprises—

ranging from high‐growth potential micro‐businesses to family firms—that comprise a large majority of

European enterprises. The program facilitates SME’s access to finance and investment during their start‐

up and growth phase.

The European Network to Promote Women’s Entrepreneurship includes female ‘ambassadors’ (mentors

and role models) and a women’s entrepreneurship portal. The portal acts as a gateway of information

for national and international organizations and networks of women entrepreneurs, and offers

information regarding projects and events related to and promoting women’s entrepreneurship

(European Commission, n.d.). In addition to these EU programs, several European countries have

introduced their own programming to support women’s entrepreneurship, some of which are very bold

and expansive.


United Kingdom: Mentoring and Training

The UK is another example of a jurisdiction that consulted WEOC members for information on best

practices during the development of a program to support women entrepreneurs. In November

2011, funding was announced to recruit and train 5,000 mentors as part of a package of support for

female entrepreneurs, bringing the total number of government‐supported business mentors

available through the mentoring portal www.mentorsme.co.uk to around 26,000. Government

grant funding of £1.2 million supports the Small Firms Enterprise Development Initiative’s (SFEDI)

Get Mentoring scheme which recruits 10,000 business volunteers from SMEs.

Business bootcamps (intensive training programs) are also available to help entrepreneurs with key

skills and insider knowledge required to manage their business successfully. Each camp focuses on a

sector of the economy, such as retail or biotechnology.

Ireland: Learning from Experienced Women Entrepreneurs

The Going for Growth initiative holds roundtable discussions for women entrepreneurs, led by

female mentors who have successfully grown their businesses.

Germany: Increasing Visibility of Entrepreneurs and Supporting Women in Technology

In Germany, the National Agency for Women Start‐ups Activities and Services (BGA) is focusing on

business succession to encourage more women to become company owners and increase their

interest in family business. It works to recognize the potential of female employees and daughters

to take over family businesses and facilitate MBOs.

It has also introduced a program to support female entrepreneurship in science and technology.

This ‘Power for Female Entrepreneurs’ program funds research and innovative pilot projects to

unlock the potential of women entrepreneurs in science and technology. Particularly interesting

projects are: NANO4Women, to stimulate business ideas from women scientists in

nanotechnologies; SWITCH, to encourage women to develop business ideas; and P8 ‐ Success Is

Female, to develop accompanying measures for women starting their business.

Swedish Industry‐Specific and Non‐Traditional Industry Training & Mentoring

The Scandinavian countries believe that women’s entrepreneurship is a pre‐requisite for

sustainable economic and regional development, especially in rural and sparsely populated areas

(Pettersson, 2012). Small enterprises with less than five employees make up 90% of all Swedish

companies.

Women’s entrepreneurship in Sweden has a top position on the political agenda: 25% of

entrepreneurs in Sweden are women and 32% of new businesses are started by women (Swedish

Agency for Economic and Regional Growth, 2009). Although women entrepreneurs are found in

most sectors of the Swedish economy, women more often work in professions where the


opportunities and conditions for entrepreneurship have been limited, such as healthcare, nursing

and education. This clearly affects the proportion of women who run companies today.

Women’s entrepreneurship programs in Sweden focus on business development and meeting the

needs of women entrepreneurs. They can range from customized advice with a focus on business

planning and networking to establishing a marketing plan. The efforts vary in different parts of the

country, but one common factor is that the projects are mainly conducted in group form. This has

proven to provide the best opportunities of business development, new business and rewarding

networks (Swedish Agency for Economic and Regional Growth, 2009). Other Swedish programs

include:

Coachor (A coach + mentor, plus a bit more): Participants are innovators and entrepreneurs,

and the objective is to offer advice on profitable business done through advice, in‐depth

seminars and active networking.

100 Percent Boost Science Park: This project is directed at women entrepreneurs in specific

municipalities who want to grow by 100 per cent. This can be a question of higher sales,

more customers or more employees. In the beginning, the focus of the program’s efforts

was accounting, organization, market intelligence and marketing. Now, the focus lies on

combining interesting seminars with individual follow‐up of action plans. ‘External boards’

have been formed by the participants to jointly help and encourage each other.

Business Woman: This project is aimed at offering Start Your Own Business programs for

women who want to start or take over companies. Special focus is placed on the tourism

sector and export issues. Besides business development, the program also comprises

personal development, individual advice and coaching. The objective is for 40% of the

participants to have started or be on their way to starting companies after the project.

Start‐a‐Business‐Day: In 2008, 38 Start‐a‐Business days were held in 18 towns and cities in

Sweden. More than two‐thirds of the participants were women, with just over 2,400

women participating.

Norway: Increasing Entrepreneurship Among Women

Norway executed an action plan for increasing entrepreneurship among women for the years 2008‐

2013. At the outset, only 4.3% of women versus 8.6% of men were involved in early‐stage

entrepreneurial activities. Women were barely 33% of the new business startups of sole enterprises

and 18% of entrepreneurs of private limited companies. The goal was to raise women's

entrepreneurship to 40% by 2013. Economic programs included: enhanced rights to maternity leave

and parents’ relief for self‐employed persons and increased grants to micro‐credit projects.

Finland: Focusing on Logistics

In Finland, the pilot project NaisWAY ‐ Female into Transports and Logistic Sectors, provides

training and business skills to aspiring women entrepreneurs and women who have recently started

a business in the transport and logistics sectors.


Brazil

Brazil ranks second only to China in its number of entrepreneurs, and 53% of its entrepreneurs are

women, while 47% are men. A staggering 15.3% of the population owns their own business (Women

Entrepreneurs Grow Global, 2010).

Women Entrepreneurship in the Americas (WEAmericas) is a program run jointly by Brazil and the US

Department of State to provide access to training, networks and financing (US Department of State,

2012). Walmart Foundation and the US Department of State are partnering to provide training to

women entrepreneurs at the SME level throughout the region. Women entrepreneurs participate in an

exchange program, where they connect with their American counterparts to create lasting networks and

business relationships. As part of the program, Kauffman FastTrac hosts workshops on strategic planning

and entrepreneurial trends. With Walmart support, the highly‐respected US non‐profit Vital Voices

provides follow‐up leadership and enterprise development training to build the capacity of women

entrepreneurs to grow their businesses and succeed as leaders in the business community and society.

The IDB’s Structured and Corporate Finance Department (SCF) and Multilateral Investment Fund (MIF)

are partnering to launch women entrepreneurship Banking (weB), an initiative to work with financial

intermediaries in the region to help them establish lending models that support growth in women’s

businesses. The MIF, through its Line of Activity for Promoting Small Enterprise Financing, will provide

up to $5 million in technical assistance grants to transfer knowledge of effective lending models for

women‐owned SMEs and to train loan officers and credit managers in these products and services.

Australia

The Small Business Entrepreneurship Program and Building Entrepreneurship in Small Business support

a new culture of entrepreneurship by providing grants focusing on the ongoing improvement of

Australia's small business operating skills. Grants are available for incubation, training and mentoring

and succession planning (Pacific Economic Cooperation Council, 2007).

Funding themes within these programs include women entrepreneurs, young entrepreneurs and the

development of skills in the use of information and communication technologies (ICT) to conduct

electronic business transactions with clients and suppliers.

India

Small and Medium Enterprises play an important role as a growth engine of the Indian economy. SMEs

produce 40% of the total industrial output, contribute 40% of total exports and provide 70% of the

employment opportunities. SMEs are the driving force behind a large number of innovations and

contribute to the national growth through employment generation, investments and exports.

The Indian government offers a wide range of programs, including: Trade‐Related Entrepreneurship

Assistance and Development for women (TREAD) to encourage women in setting up their own ventures

(non‐farm activities); a credit guarantee fund for micro and small enterprises; support for


entrepreneurial and managerial development; and Exhibitions for Women, assisting women to

participate in international trade shows with a 100% subsidy on space rental and airfare.

The 10,000 Women Entrepreneurship Program by Goldman Sachs has also sponsored an initiative in

collaboration with the Indian School of Business. The objective of the program is to provide under‐

served business women with a business and management education and thus help them grow their

business.

Canada

International Trade Support for Women

Due to their lack of experience in this area, women business owners often need support and path‐

finding to assess their export readiness combined with extra support to take the first steps. The

business women in international trade initiative at the federal Department of Foreign Affairs and

Trade Development is an excellent service for women across Canada. There are other initiatives

across the country, including Trade & Invest BC, the SBBC and WEC’s own export programs which all

provide very relevant and useful assistance to potential and existing exporters. In Atlantic Canada,

this is taken further. Newfoundland is an example of a jurisdiction where additional international

trade support is successfully provided. In that province, the provincial government works closely

with the equivalent organization to WEC, the Newfoundland and Labrador Organization for Women

Entrepreneurs (NLOWE). Through this partnership, training is provided to women entrepreneurs to

become export ready and to access specific opportunities through financial support to attend trade

missions and attain certifications.


Appendix 2: Opportunities for Economic Growth

Below is an outline of numerous strategies that can be implemented to create further economic growth

through supporting women’s entrepreneurship. These recommendations all build on and complement

many organizations and programs already in existence. They are options to fill gaps and add meaningful

economic development value, based on international best practices. These ideas are not exhaustive, but

serve as a starting point for new programming discussions, and address nine opportunity areas, namely:

1. Supplier diversity initiatives

2. Training for business growth and linkages to tech support organizations

3. Expanding the pool of women investors

4. Support for women in trades, including self‐employment training

5. Financing support for young women and immigrants

6. Expanded mentoring resources

7. Industry‐specific training in agri‐food and tourism

8. Leadership training for women

9. International trade support for women

1. Supplier Diversity Initiatives

There is an opportunity for all levels of government to show leadership in the supplier diversity arena

in three meaningful ways.

Adopt a supplier diversity policy for government purchases, acting as a role model for the

corporate sector to follow.

Provide funding to WEC to help the diversity procurement certifying bodies and other groups to

roll out a program to encourage corporations develop supplier diversity programs in their own

companies.

Support the local women’s enterprise organizations in assisting Women’s Business Enterprises

by providing financial support for the delegations of women business owners attending Trade

Missions. An example of this is the group of 120 Canadians which attended the June 2012

WBENC National Conference and Business Fair. This approach is being taken by the Nova Scotia

Business Inc., whose Trade Division provides support to participate in Trade Missions and to

follow up with the contacts made during those missions, through their Trade Mission and Go

Ahead programs.

2. Training for Business Growth and Linkages to Tech Support Organizations

With the explosion of organizations targeting women tech entrepreneurs, there is an immediate

opportunity to link BC women to those organizations—particularly in Silicon Valley—similar to the

successful Metabridge program. The WEOC advantage to deliver on this opportunity comes through

several of its members’ existing relationships with US organizations, such as Astia. In the West, the


WEOC members are already working in this space, consistent with their primary funder, WD’s

priority on tech commercialization.

3. Expanding the Pool of Women Investors

Women are under‐represented as angel investors in BC. A program to help women in BC become

angel investors would expand the pool of investment available to fuel the innovation agenda of the

BC and federal governments. Investor training for women and opportunities for these women to

invest in women‐run growth‐oriented businesses would complement the existing federally‐funded

Women’s Enterprise Initiative loan program to start, grow or purchase a business.

4. Support for Women in Trades, Including Self‐Employment Training

The Province of BC supports numerous women in trades training programs, and other provinces

support similar initiatives. In BC, WEC has successfully provided introductory self‐employment

workshops to participants of one of the organizations that delivers the provincial trades training

program. Many women in trade turn to self‐employment in order meet their needs for flexibility and

work‐life balance. Targeted funding to extend the training to all participants of the ITA women in

trades programs in BC and similar programs across the country would give these women higher

chances of success through stronger business skills and knowledge of the resources available.

5. Financing Support for Young Women and Immigrants

The WEOC members in Western Canada already deliver a successful loan program funded by

Western Economic Diversification Canada. This program, which in most cases, provides loan care

support of a dedicated Business Advisor through the course of the loan along with access to training,

has been proven to increase clients’ chances of staying in operation after 5 years by 50% over the

national average.

However, loans to specific groups, such as young women and immigrants present specific challenges

due to a lack of equity, collateral and, on occasion, a lack of credit history. Best practices could be

adapted in BC to assist WEC to serve these specific groups, either through loan guarantees or an

additional fund to provide security for youth and immigrants so they can meet the requirements to

qualify for a WEC loan.

6. Expanded Mentoring Resources

Mentoring has been identified as a key ingredient to business success. Since women learn best

through direct access to role models, mentoring should be a key priority for women’s business

support programs. In BC, WEC operates a successful mentoring program for women in the first five

years in business, utilizing volunteer mentors who have successfully run their businesses for over five

years. Expanded support for women’s business mentoring across the country would create even


more positive results and would allow WEOC members to help more women grow and succeed in

their business.

7. Enhanced Training and Industry‐Specific Training (e.g. Agri‐Food and Tourism)

While WEOC members already deliver business training across Canada through funding from federal

and provincial partners, the cost of delivering this content in all areas of each province is high. Each

province has its own unique challenges in providing enough needed training. Some of these

challenges are caused by the strong need women express to receive training in person. Some

provinces have many medium‐sized communities which increases the cost of travel to deliver the

relevant training. The urban / rural divide creates different training requirements in different types of

communities.

Other challenges are more industry‐specific. For example, certain locations across the country have

emerging ‘clusters’ of industries where women play a predominant role and where training could

enhance profitability, and access to new markets. Examples of these include the agri‐food and

tourism sectors.

8. Leadership Training for Women

Research, including the April 2014 article in The Atlantic magazine entitled “The Confidence Gap,”

continues to validate the need for leadership training and confidence‐building activities to help

encourage women to take risks and negotiate effectively while growing their business. Numerous

best practices exist among WEOC members which could be expanded across the country to address

this issue, through peer‐based learning programs, such as the one used by WEC in BC called Taking

the Stage®, which is available under license from The Humphrey Group.

9. International Trade Support for Women

Many women exporters report that fear of the unknown initially inhibited them from exporting. They

were simply overwhelmed by the prospect of learning about the rules, regulations, permissions and

approvals required. Given their lack of confidence and propensity to be risk‐averse, women are

particularly intimidated by the prospect of exporting.

Enhanced services to help women become export‐ready, and to provide path‐finding support to the

many resources available to support Canadian exporters have been requested, as noted at the 2010

Roundtable on Women’s Business Growth in Vancouver. Opportunities exist to encourage and

support new exporters to participate in women’s trade missions and matchmaking events. Additional

services could include support for the translation of marketing materials, access to international

certification for products, seminars and educational events, and market research. To maximize its

impact, the program would focus on new‐to‐market opportunities in the countries targeted by the

Jobs Plan, specifically China and India. WEOC members have experienced FITT‐trained staff who have


worked directly in the import/export business in some of these target markets, as well as linkages to

partner women in business organizations in the US, India and China.

As this report indicates, there are many advantages to be gained from a coordinated strategy to support

women’s enterprise development. WEC in BC, and WEOC members across Canada, look forward to

working with policy makers, industry and other business support organizations to contribute to this

initiative across Canada.


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