To explore this question, WEC is working with Dr. Barbara Orser (University of Ottawa Telfer School of Management Deloitte Chair in the Management of Growth Enterprises) to report on a number of recent Canadian studies focusing on the growth of women-owned businesses.
 
Existing research tells us that Canada is a global leader when it comes to women entrepreneurship and that women-owned companies make a significant contribution to our economy. In 2000, women majority-owned companies:

• Represented 17% of SMEs
• Generated $72 billion in revenues
• Employed 570,000 people

 Despite this positive news, women-owned firms tend to be younger with smaller based revenue, equity and profitability, and grow less quickly than male owned companies. Only 37% of women-owned firms are considered high-growth compared to 63% for men. As well, 85% of women-owned firms are micro-businesses employing fewer than five people.

What are the primary challenges to growth?  Both men and women business owners cite the following:

1. Taxation
2. Government regulation
3. Finding qualified labor
4. Low profitability
5. Lack of/or unstable demand
6. Lack of financing
7. Lack of management experience

 Where women differ from their male counterparts is how they view growth. Women business owners view growth to be less important, less likely and of lower value than men. They view the personal demands related to growth as negative and adding stress to their lives.

An overwhelming 84 % of women feel their business has reached a size they are comfortable with and don’t want to grow.  This compared to 37% for men. They feel they lack the managerial experience, spousal support and peer support networks needed to grow.

 In addition, women are also more likely to operate businesses in the service sectors rather than in knowledge and manufacturing industries, which traditionally enjoy higher growth potential and profitability.

Click here to download a new paper authored by Dr. Barbara Orser at the Telfer School of Management, University of Ottawa: Canadian Women Entrepreneurs, Research and Public Policy: A Review of Literature, in association with Foreign Affairs and International Trade Canada

Gender Challenges of Women in the Canadian Advanced Technology Sector
By: Barbara Orser, Allan Riding, Michele Dathan, and Joanne Stanly

Survey of small business owners’ views on technology found 88 % believe technology is like a silent partner that helps their business be more efficient, deliver optimum customer service and close more sales.  Thirty-eight % would upgrade their software and 36 % would invest in mobile technology if they had the money.
 
The survey also looked at the gender differences in relation to technology adoption.  Women are more likely than men to recommend having the right technology in place before they start their own business. Both agree technology allows them to stay competitive with bigger corporations. Read more.
 
Download a summary of the Changing Face findings.
Download a summary of stats on the contribution women entrepreneurs are making to the Canadian economy.



Revisiting Portraits of Small Business Growth and Employment in Western Canada, Western Centre for Economic Research, Edward J Chambers, Wade Church, 2006
Women account for 45% of the labour force and represent one-third of the self-employed in Western Canada (BC, Alberta, Saskatchewan, Manitoba). The number of male self –employed grew at a faster rate than women.  Only in Alberta did the number of self-employed women show positive growth from 1999 to 2004.  In general, the self employed aged 55 and over is double the level in the labour force as a whole.  The older baby boomers are retiring early, but not necessarily leaving the workforce.
 
Full report http://www.wd.gc.ca/rpts/research/default_e.asp
 
 
Profit W100 Canada’s Top Women Entrepreneurs 2006
‘Only a small fraction of Canada's 800,000 women-owned firms are as large as the firms on the eighth annual PROFIT W100, which range in size from $2.8 million to $1.2 billion in revenue. That's what makes the 2006 PROFIT W100: Canada's Top Women Entrepreneurs so extraordinary.’ Kim Shiffman
 
2006 listing: http://www.canadianbusiness.com/rankings/w100/list.jsp?year=2006&pageID=list
 
 
 
Female Enterprise in the New Economy, Karen Hughes, University of Toronto Press, 2006
Professor Karen Hughes of the University of Alberta looks of the state of women entrepreneurship in Canada.  Canada has one of the highest growth rates of women entrepreneurship in the world. Non-traditional sectors are the fastest growing. Independence is the number one reason women become entrepreneurs. Four types of women entrepreneurs:  bosses or classic entrepreneurs, business moms, one-women-shows and necessity entrepreneurs.
 
Preliminary results http://www.ccsbe.org/jsbe/special/exploring_motivation.pdf
Presentation to Women Entrepreneurs of Canada, April 2006 Download (pdf)
Book available through University of Toronto Press
 
 
Women Entrepreneur Statistics, Royal Bank of Canada, 2006
Women entrepreneurs are one of the fasted growing segments of the Canadian economy and represent a growing economic force.  Four of 5 businesses are started by women.  There are more than 821,000 women entrepreneurs in Canada, who annually contribute in excess of $18 billion to the Canadian economy
 
Further statistics: http://www.royalbank.com/sme/women/statistics.html  
 

 
A Profile of Small Business in British Columbia, 2005, BC Stats, BC government
Ninety-eight % of businesses in British Columbia were small business and this sector grew 3.3 percent, the second highest rate of growth among the provinces and well above the national average of 1.9 per cent. .  Thirty-five % of the self employed are women, which is higher than the national average of 34 %.
 
Full report:  http://www.bcstats.gov.bc.ca/data/bus_stat/busind/sm_bus/sbp2005.pdf#search=%22small%20business%20profiles%20in%20bc%202005%22
 
 
 
Women Entrepreneurs:  Leading the Charge, CIBC Small Business Outlook Poll, 2004
In the past 15 years, there has been a 50 per cent increase in the number of self-employed women in Canada. By 2010, CIBC predicts that one million Canadian women will own a small business. This report takes a close look at the factors driving the growth in the number of women entrepreneurs.
 
Full Report http://www.cibc.com/ca/small-business/article-tools/women-entrepreneurs.html
 
 
Best Practices for Women Entrepreneurs of Canada, Foundation of Canadian Women Entrepreneurs, Business Development Bank, 2004
An update to the original report prepared in 2000, recent changes and trends related to women owned business are reviewed and an update on best practices from the private, pubic, private, non-profit and academic sectors.
 
Full Report:  Download (pdf)
 

Global Entrepreneurship Monitor, Canadian National Report, HEC Montreal, Sauder School of Business, U.B.C., 2003
Entrepreneurial activity in Canada is motivated more by the perception of opportunity than by necessity.  The western provinces lead Canada in entrepreneurship.  Government policies and the regulatory environment are the biggest weakness for entrepreneurship.  Government programs to support start-ups , education and training for entrepreneurship need improvement.
 
Full Report: http://www.gemconsortium.org/download/1166230842671/GEM%20-%20Canada%202003.pdf
 

Small and Medium Enterprise (SME ) Financing in Canada, 2002 — Part II: B - Demographic Factors, Female Entrepreneurs: Business Characteristics
Fourty-five % of all SMEs have at least one female owner.  Majority female-owned businesses tend to have fewer employees, accounting for 16 % of SMEs with fewer than 5 employees, and 4 % of SMEs with more than 100 employees. Fifty-eight % of SMEs that are majority-owned by female entrepreneurs are in a slow-growth stage of development; 9 % of report being in fast growth – significantly fewer than those majority-owned by males. In 2000, SMEs owned by women made fewer requests for debt and leasing than SMEs owned by men.
 
Further highlights: http://strategis.ic.gc.ca/epic/internet/insme_fdi-prf_pme.nsf/print-en/00649e.html
 

Best Practices for Women Entrepreneurs of Canada, Foundation of Canadian Women Entrepreneurs / Business Development Bank, 2000
 Tabled at the 2000 OECD meeting, this report highlighted best practices from the public, private, non-profit and academic sector. 
 
Full Report http://www.dfait-maeci.gc.ca/businesswomen/researchstats-en.asp#Best%20Practices%20for%20Canadian%20Women%20Entrepreneurs%20in%20Canada
 
 

Services To Global Markets:  A Profile of Canadian Women Who Export, Foundation of Canadian Women Entrepreneurs, 2000
Sixty-five Canadian women Entrepreneurs surveyed, who provide their services to global markets, attribute their success to patience and persistence, wide network of well-connected contacts, a willingness to adapt to local culture and innovative services that meet unmet needs.  Their main challenges are the time required to travel abroad, lack of well- connected contacts, funding, and finding suitable local partners.
 
Summary of Findings http://www.dfait-maeci.gc.ca/businesswomen/fcwe_eng1-en.pdf