Canadian Women Entrepreneurs

“women entrepreneurs are one of the fastest growing segments of the Canadian Economy”

Presentation looks at:1.Why or what women need in starting or

running a business?2.What do women want as a reason for

starting or running a business?3.With the considerable challenges they face,

how is it that women again rise to the occasion of fighting adversity set before them?

Agenda 1 - Introduction

1. Needs2. Wants3. Challenges

Agenda 2 - Traits

These are …1. Highly Educated2. Average Age3. Professional Organization4. Trade Organization5. Not immigrant6. One-person7. BC, AB, or ON

Agenda 3 – Final Comments

1. Summary – Needs & Wants2. Summary – Traits3. Summary – Challenges4. Recommendations5. In Conclusion6. References7. Question Period

NeedsFlexibility

Stay-at-home – women recognize the benefits of working from home.

Lifestylers60% of lifestylers; balance work and family.

Age Economic; either poor working conditions or need for $ force

them into SBE.Education

Later in life; huge impact on the growing trend of women in SB.Employment Note following charts…

Income for Canadian Women Entrepreneurs(

Domestic (Childcare, Housecleaning, Retail, Food Services)

Career Professional (Management, Healthcare Providers, Educators)

Professional (Sales, Business, Financial)

Trades (Farming, Construction, Industrial)

Married Women – 40%1. 70% of CBW are married.2. 1/3rd have children under 12.3. “Sandwich generation” – have to

care for children and aging parents.

Income for Canadian Women Entrepreneurs (

Domestic (Childcare, Housecleaning, Retail, Food Services)

Career Professional (Management, Healthcare Providers, Educators)

Professional (Sales, Business, Financial) Trades (Farming, Construction, Industrial)

Single Women – 32%1. For single entrepreneurial women there

has been a 70% increase in income.2. This has been at a rate of 3 times faster

then men.

Reasons for differences Domestic (less likely to want to stay at

home; or they find themselves in outside career orientated jobs).

Career Professional (affected by age). Professional (affected by age; more

willing to try out options available). Trades (affected by age; higher

proportion of young women in trades).

WantsAccording to an RBC study, women are less

motivated by money then men.Women admit that they would on average make

more money working for others over working for themselves.

69% of women and 64% of men note that they own their own business because of love for what they do. Therefore the findings are pretty similar among the genders.

Women have less of a desire to be their own boss.

Women are still not taken as seriously as men in the business world. Look at next slide.

Income by Gender

Equality of revenue between women and men.

1.Still does not exist.2.Women make significantly

lower then men for the same job or profession.

3.Less than $50k – “traditional trades,” small sole proprietorship.

4.Women continue to make only 80 cents to the male dollar.

5.Although findings are showing that women are closing the gap.

Grand ChallengesThese challenges come from the article,

“Women Entrepreneurs and Access to International Networks,” by Susan Ward. Found on about.com website, where the Women Entrepreneurs of Canada Network exists.

1. Equality of $$2. Personal Debt3. Capital4. Lack of Access5. International Experience6. Inadequate business information7. Inadequate business technology

Basic ChallengesFinding clients1.International experience (a challenge)2.Finding clients (challenge)3.Being taken seriously.

Steady Workload4.If you don’t have clients then you do not have a

workload.

Working long hours5.Women on average work longer hours then men.6.Women traditionally and continually have more

demands of family.

Trait 1 – Highly Educated

1.Notable return of women to education since 1990.2.Annual rate of 25% of SBW have a university degree, which is double the rate of men.

3.According to CIBC’s 2005 report, as of 2004, 1 in 4 self-employed women were university educated.

4.With the rise of education for women this has put in reach higher employment quality and increased income for women.

5.Women do not want to be treated differently; even with the disparaging findings of the continuation of women being taken less seriously in comparison to men in the same job.

Educational Trends of Self-Employed Women

According to EmpoweredWomen.com’s findings.

Trait 2 – Average Age 96% worked for others before starting business Average age 41-years-old Over 55 – growth rate of 4% since 1989 “lifestylers” and “seniorpreneurs”

Education1. Women are getting degrees and certificates at a later stage in life.2. This plays an important role in starting their businesses at an older age, in

comparison to men.

Life3. Older women are more comfortable with themselves, as well as being self-reliant.4. Life experience influences better decisions.

Extenuating Circumstances5. Reasons for women being influenced to start their own business are the economy

and negative work conditions.6. Most women would rather return to paid work over starting their own business; the

aforementioned reasons influence their decision to start their own business.7. Rise in post-secondary education

Percentage of Self-Employed Women Rises with Age

According to the CIBC findings: Older women are more likely to start

their own businesses. This trend is going to play a huge role in

the future of business, as well as for women as the population ages.

“lifestylers” fit into the <35-55 age group.

“seniorpreneurs” fit into the 55+ age group.

According to EmpoweredWomen.com findings:

Sharp increase at age 35-years-old. Correlation between raising children and increased desire to start own business.

Also, confidence in women with age. Maintaining a high level of business

ownership past 50-years-old due to establishment of family and lifestyle.

Trait 3 – Professional OrganizationProfessional Organization

1.On average women as sole proprietors belong to more professional organizations than men.

2.40% women sole proprietors are members3.Twice the rate of men

4.Why? Because increased education leads to increased professional occupations leads to professional organization memberships.

5.Women belong because they need to increase their networking, international experience, and business experience.

Flip Side1. Unincorporated is unique to women.

Trait 4 – Trade Organization

1.40% of women who are sole proprietors are members of a trade organization.

2.Double rate of men3.These organizations, as with the professional ones, provide networking. This deals with the challenge women find in obtaining new clients and increasing their workload.

4.Business prospects – again a response to the challenges women face.

Self-Employment of Women in Occupation Categories

Domestic (Childcare, Housecleaning, Retail, Food Services)

Career Professional (Management, Healthcare Providers, Educators)

Professional (Sales, Business, Financial)

Trades (Farming, Construction, Industrial)

Farms are still the leading business for both women and men entrepreneurs.

Education plays a huge role in the growth rate of women in knowledge-based and new technology industries.

Notice: “traditional” occupations are being over taken by more professional occupations. This shows a direct correlation between the increase in education and occupation choices women are now making.

Trait 5 – Not Immigrant

1.1 in 5 not born in Canada.2.In comparison, men are 1 in 4.3.Women are outpacing business creation by men.4.30% outpace men.5.Tend to be younger/more educated.6.After 5 years – 9 in10 self-employed.7.Turn to self-employment after 5 years, income source dries up.

8.After 5 years – no different than born here.9.After 5 years, there is no notable difference between those born in Canada vs. those who have emigrated here.

Sources of Income for Immigrant Women

Less than 5 years

30% of income comes from “home” countries, governments, and family.

More than 5 years

Only 6% comes from “home” sources.

These women now become a part of the Canadian landscape.

Trait 6 – One-person

62.7% unincorporated sole workers

Growth less important

Personal services & retail sales sectors

Financially better off

Self-Employment: Women vs. Men

According to CIBC study and looking at the data from EmpoweredWomen.com, women have a tendency to respond more to the economic cycle.

1990 – Men and women self-employment very similar.

2000 – From the late 1990s as the economy fell there was an increase in women being forced to start their own businesses or to work on their own.

2001 – As the economy started to correct itself, women were forced back into working for others.

2005 – Again women are on the rise again, but this time it is primarily due to negative working conditions.

2010 – EW predicts that statistics will soon show women holding their own. Men’s statistics tend not to make drastic changes, while women gain at a fair pace. This reflects the improved working conditions that women face when starting their own businesses or working for themselves.

Trait 7 – BC, AB, or ONBritish Columbiao 6.1% annual increase in SBE womeno New Canadians from Far East

Albertao 4.8% annual increase in SBE womeno Booming economy

Ontarioo 40% of country’s women’s SBEo 30% negative working circumstances

Self-Employed Women by Province

Primary Growth (according to CIBC study, from 1989-2004)

BC – approx. 90% growth in women becoming self-employed

AB – approx. 75% growth in women becoming self-employed

ON – approx. 55% growth in women becoming self-employed

Problems in Eastern provinces primarily due to economy; for women it is a lack of skills and experience.

Summary – Needs & Wants1. Employment2. Flexibility3. Age4. Education5. Wealth6. Love7. Equality

Summary - Traits1. Highly Educated2. Average Age3. Professional Organization4. Trade Organization5. Not immigrant6. One-person7. BC, AB, or ON

Summary - Challenges1. Equality of $$2. Personal Debt3. Capital4. Lack of Access5. International Experience6. Inadequate business information7. Inadequate business technology8. Finding clients9. Steady workload10.Working long hours

Recommendations

Business Attitude

Networking

Thick Skin

Women in Business Their Recommendations From “Cracking The Corporate Market Difficult for Women Entrepreneurs,” from sbinfocanada.about.com.

Database (set it up)

Supplier Diversity Recognize organizations

that “have supplier diversity in place.”

Access to Suppliers Create a list of suppliers

companies could access.

Institution (set it up)

Government Support Government (all levels) to

support women by providing supplier diversity programs to help women market products and services.

Federal Contracts Federal contracts tendered

toward women.

In Conclusion

“It is clear from the latest census results that women represent the future of self-employment in Canada.”

Thank you