Category: #CloseTheGap Blog

The Time is Now: Closing the Gap for Women Entrepreneurs in Saskatchewan

Oct 29, 2018

#CloseTheGap Blog WESK Announcements & News Releases

For Immediate Release: Monday, October 29, 2018

The Time is Now: Closing the Gap for Women Entrepreneurs in Saskatchewan

Regina, Saskatchewan Today, Prabha Mitchell, CEO of Women Entrepreneurs of Saskatchewan (WESK), called on the Saskatchewan Government to help close the gender gap for entrepreneurs in Saskatchewan and create an Action Plan for Women Entrepreneurs. Releasing the independent study commissioned by WESK: Women Entrepreneurship in Canada, Mitchell highlighted that only 13.7% of small and medium-sized enterprises (SMEs) in Saskatchewan are majority female-owned. Saskatchewan lags behind the national average of 15.7%. Mitchell believes “we can achieve parity with B.C and Ontario” who are the top two provinces at 17% “with a concerted effort to close the gap.”

“The key barrier for women entrepreneurs is financing,” said Mitchell, “undercapitalized businesses have high failure rates. Lending discrimination and barriers to venture capital for women business owners is still an ongoing challenge” added Mitchell. Also included in the top 5 barriers were access to networks, training and mentors. The study also noted that given that Saskatchewan has the second-highest Indigenous population in Canada, women entrepreneurs here may suffer more from additional cultural and business barriers.

Specifically, Mitchell called for a 5-step action plan to realize the economic opportunity presented by female entrepreneurs in the province. WESK’s findings include:

  1. Saskatchewan data is sparse and warrants the establishment of a comprehensive data base that would inform policy development.
  2. While both men and women are prompted by “opportunity based” factors to start a business there are some nuances and variations in the pursuit of their passion. Female entrepreneurs have a stronger desire toward work-family balance, which impacts scaling up and pursuing aggressive growth strategies.
  3. Access to networks is emerging as one of the most important drivers for entrepreneurial success; while participation in training, and access to mentors also impact access to capital.
  4. Given the fast paced digital revolution and its impact on the service sector, women’s entrepreneurial activity must expand into diverse sectors such as technology.
  5. Significant barrier to women entrepreneurs scaling up their business is access to capital and investment particularly. Primary reason cited for this is venture capital firms have too few women on the team and the existing bias amongst venture capitalists about women’s capacity for success.

Minister Tina Beaudry-Mellor (Minister of Advanced Education, Minister Responsible for Innovation Saskatchewan, Minister Responsible for Status of Women) was on hand for the announcement stating, “This is a good news story. Women are changing the face of business globally and right here at home in Saskatchewan, and I say, ‘It is about time!’”

“We look forward to Saskatchewan’s women entrepreneurs not only keeping pace with the rest of Canada but leading it,” said Beaudry-Mellor

Natasha Vandenhurk, CEO of Three Farmers shared her experience as a female entrepreneur stating, “We understand the challenges women business owners face and believe that creating a fertile environment for women to scale their businesses will have far reaching effects on not only the economic landscape of our province but also on the social fabric of Saskatchewan.”

“Closing the gender gap is not just a social and moral imperative. It is an economic investment,” concluded Mitchell.

 

Click here to view this document as a PDF.

Find the report full report here. 

 

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For more information, and interviews with Prabha Mitchell contact:

Katelyn Bruce
Marketing Officer, WESK
T 306.477.6286
C 306.260.2931
E: kbruce@wesk.rbdemo.site

 

ABOUT WESK

Women Entrepreneurs of Saskatchewan’s (WESK) vision is for all Saskatchewan entrepreneurs to have an equal opportunity to achieve success and recognition. Entrepreneurship is a catalyst for independence, economic development, employment, growth, innovation, and equality. For more than 20 years, WESK has worked with hundreds of women, helping them start, purchase and expand businesses. WESK is a non-profit, membership-based organization that provides business advisory and support services; start-up, purchase and expansion lending; mentoring and networking; and a variety of learning opportunities from seminars and webinars to events. Since 1995, WESK has provided more than $30 million in loans and professional advice to women across the province. Together, women entrepreneurs and WESK have shaped and enhanced the Saskatchewan economy. WESK is supported by Western Economic Diversification Canada.

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It’s Time to Close the Gender Entrepreneurship Gap

Apr 3, 2018

#CloseTheGap Blog

By Prabha Mitchell

A concept that needs more attention in Saskatchewan is: How women entrepreneurs can generate significant economic growth in the province.

It is an exciting time in Saskatchewan. Both the Saskatchewan Party and the New Democratic Party are in the middle of heated leadership campaigns. Come the spring sitting of Saskatchewan’s Legislative Assembly, there will be a new premier and leader of the Official Opposition.

There is a wealth of debate and discussion on many policy platforms, and initiatives amongst the candidates to ensure Saskatchewan remains strong into the future.

A great deal has been heard about how best to approach economic growth, fiscal policy, health care, even legalized marijuana. There is one concept, however, that needs more attention: How, under the right conditions, women entrepreneurs can generate significant economic growth in Saskatchewan.

Women Entrepreneurs Saskatchewan (WESK) wants to ensure that all Saskatchewan entrepreneurs have an equal opportunity to achieve success and contribute to the province’s economic development, employment, innovation, and equality.

In Saskatchewan, small business is BIG business — as small businesses account for almost 99 per cent of all business enterprises. In this province (and nationally), women own more than one-third of all small businesses.

Canadian women-owned businesses contribute $148 billion to the national economy, account for the fastest-growing segment of the small business sector, and outpace men when it comes to starting businesses.

While it is all positive news, there is a catch. Nearly two-thirds of women-owned small businesses are in industries characterized by slower growth and lower profitability. This discrepancy in representation in the entrepreneurship landscape is known as the Gender Entrepreneurship Gap. WESK believes the gap should be narrowed, if not closed entirely.

According to Closing the Gender Gap, a 2016 article in Municipal World, of all women-owned businesses, those that earn revenues between $100,000 and $1 million often grow the slowest. Comparatively, businesses owned by men are more than 3.5 times more likely to reach $1 million in revenue, according to a 2014 article in Women’s Entrepreneurship in B.C. and Canada. This disparity has created an economic gender gap.

Additionally, while women entrepreneurs are starting businesses faster and express growth intentions to the same extent or greater than their male counterparts, the reality is that their businesses are simply not growing to the same scale.

The segment of women-owned businesses with revenues between $100,000 and $1 million represents the greatest potential for economic growth.

A 2011 report from the Canadian Taskforce for Women’s Business Growth Action Strategies to Support Women’s Enterprise Development estimates that a 20-per-cent increase in total revenues of women-owned businesses would add $2 billion to the Canadian economy every year. Similarly, a 2013 RBC Economics article, Female Entrepreneurs Remain a Relatively Untapped Resource for Economic Growth, estimates that over the next decade, a 10-per-cent increase in the number of women-owned firms could result in an economic gain of $15 billion.

Accessing capital is the biggest barrier women entrepreneurs face — rejection rates for lending are significantly higher for female owners (66 per cent vs. 35 per cent for men). In 2013, men borrowed nearly 500 per cent more money than women. Other barriers include a lack of skills, knowledge and experience; not enough access to mentors; and women serving disproportionately as caretakers and having to square business growth decisions with family and personal responsibilities.

National and international studies have shown time and again that gender-based initiatives yield tremendous results and address many of the barriers faced by women entrepreneurs.

That is why WESK is calling for the creation of an Advisory Council to examine the economic gender gap in Saskatchewan. The provincial government needs to develop a Saskatchewan Economic Development Strategy for Women in Business that addresses barriers to growth and invests in strategic initiatives that help women entrepreneurs grow their businesses.

Closing the economic gender gap does not just benefit women and girls, it will also enhance the economic productivity of Saskatchewan as a whole and make policies and institutions more representative.

All candidates in both leadership races are encouraged to consider both of WESK’s recommendations. When women succeed in business, everyone benefits and Saskatchewan will be stronger as a result.

Prabha Mitchell, CEO, WESK

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