Question Period Note: WOMEN ENTREPRENEURSHIP STRATEGY

How is the Government of Canada supporting women entrepreneurs?

• The Government of Canada understands that supporting the economic empowerment of women is not just the right thing to do, it’s necessary for a strong, inclusive economy.

• Over the next four years, the government is investing up to $146.9 million to strengthen the Women Entrepreneurship Strategy (WES).

• This strategy will invest more than $6 billion over the long term to support women entrepreneurs.

• These investments will provide affordable financing and increased data, and will strengthen capacity within the entrepreneurship ecosystem.

• As part of the WES, the Women Entrepreneurship Loan Fund will provide affordable financing in smaller amounts for women entrepreneurs, and address under-served, diverse women entrepreneurs. ISED will be selecting non-profit administrator(s) to manage the fund and distribute loans. It is expected that women entrepreneurs will be able to apply for loans in 2022.

• To build on the key role of its outreach, research and ecosystem support efforts during the pandemic, WES allocated an additional $5 million over three years to the Women Entrepreneurship Knowledge Hub, starting in 2021-22.

• The government will work with financial institutions to develop a voluntary code to help support the inclusion of women and other underrepresented entrepreneurs as clients in the financial sector.

On support for women entrepreneurs during COVID-19:
• The COVID-19 pandemic has disproportionately impacted women entrepreneurs and sectors where women entrepreneurs are most present, such as retail, hospitality and food services.

Women Entrepreneurs in Canada
Women entrepreneurs own fewer than 16 percent of employer businesses, but account for 37 percent if self-employed women are included. They are more likely to lead businesses that are young, small, in low-growth sectors and underfinanced. These factors make it harder to access and secure financing.

The WES was launched in 2018 and represents a “whole-of-government” approach to increasing women-owned businesses’ access to the financing, talent, networks and expertise they need to start-up, scale-up and access new markets. Overseen by ISED, the WES represents over $6 billion in investments and commitments from almost 20 different federal departments, agencies and Crown corporations.

Despite gains made through the WES in recent years, women entrepreneurs continue to face persistent barriers which are stunting the growth of women entrepreneurship, many of which were further exacerbated by the COVID-19 pandemic. Announced in the Speech from the Throne in September 2020, the government committed to accelerating the WES in the context of the Action Plan for Women in the Economy. Budget 2021 announced an investment of $146.9 million.

WES programs and initiatives
As part of the investment, WES is implementing a $55-million Women Entrepreneurship Loan Fund to provide affordable financing in smaller amounts for women entrepreneurs, and address under-served, diverse women entrepreneurs. The national call seeking applications from non-profit administrators to manage the fund and distribute loans of up to $50,000 to women-led businesses closed in Fall 2021. It is expected that women entrepreneurs will be able to apply for loans in 2022 once a selected administrator ramps up service offering.

Through Budget 2021, the WES Ecosystem Fund was renewed to further address gaps in the entrepreneurship ecosystem. On January 11, 2022, the government launched a call for proposals allocating $25 milion for new projects that are focused on responding to systemic barriers and gaps for diverse, intersectional and/or under-served women. Applications close on March 15, 2022. First announced in 2018, the WES Ecosystem Fund is designed to help non-profit, third-party organizations strengthen capacity within the entrepreneurship ecosystem and offer business supports such as training, mentorship and financial literacy for women entrepreneurs. Including remaining Budget 2021 Ecosystem funding that will be announced later in 2022, investment in the WES Ecosystem Fund totals $165 million.

Up to $8.6 million was allocated over three years to create a Women Entrepreneurship Knowledge Hub (WEKH). Led by Ryerson University, and supported by 10 regional hubs and a network of over 300 organizations, the hub serves as a one-stop source of knowledge, data and best practices. Under Budget 2021, the WEKH received an additional $5 million in funding, as announced August 3, 2021.

The Women Entrepreneurship Fund (2018-21) was a $30-million initiative that directly invested in women-owned and -led businesses across Canada, prioritizing diverse women entrepreneurs. This included $2.5 million allocated to Indigenous women entrepreneurs. All funding has been allocated and supported a total of 321 projects.

Select Participating Government Departments and Agencies (Initiatives since 2018):
• Business Development Bank of Canada:
o $1.4 billion over three years allocated to debt financing for women-owned businesses (target exceeded).
o $200 million over five years allocated to the Women in Technology Venture Fund.
o will seek to support 19,000 direct women-owned businesses in 2024, an increase of nearly 7,000.
• Export Development Canada:
o $6 billion in solutions and servicing 2,000 unique, women-owned and women-led customers with financing, insurance, and knowledge solutions by 2023.
o $200 million for Inclusive Trade Investment Program.
• Global Affairs Canada:
o $10 million over five years to the Trade Commissioner Service to connect Canadian businesswomen with expanded global export and trade opportunities.
o Financial assistance through CanExport to develop new export opportunities/ markets.
• Farm Credit Canada:
o $500 million in financing over three years to support women entrepreneurs in agriculture and agri-food (target exceeded).