CFIB Report: Women Entrepreneurs Face Barriers Despite $150B Impact

A recent analysis from the Canadian Federation of Independent Business (CFIB) shines light on the continued obstacles encountered by women entrepreneurs in Canada, despite their significant contribution to the nation's economy of around $150 billion. The research, titled "Empowering Women in Business: Insights and Recommendations," is sponsored by Scotiabank and marks the fifth anniversary of The Scotiabank Women Initiative®, which aims to promote women-owned and -led enterprises.

According to the CFIB survey, 51% of women company owners have challenges in obtaining financing, with 22% of financing applications from women-only owned enterprises being denied outright, above the national average of 15%. Furthermore, as compared to their male counterparts, women entrepreneurs have 45% more difficulty identifying and 38% more difficulty applying for and qualifying for government support programs.

The survey also shows that women-specific government initiatives, such as the Women Entrepreneurship Loan Fund and the Inclusive Women Venture Capital Initiative, are underutilized, with just 3% of women entrepreneurs participating.

CFIB economist Laure-Anna Bomal stressed the need of improved marketing and accessibility of assistance programs, encouraging financial institutions and governments to streamline application processes and raise awareness.

To overcome these issues, the CFIB suggests that governments raise program awareness, streamline application processes, and provide more assistance. Financial institutions are encouraged to develop thorough mentoring programs and to assess loan approval processes. Women entrepreneurs in need of assistance are encouraged to look into programs like The Scotiabank Women Initiative®, which