Celebrating and Supporting Women Entrepreneurs
We’ll continue asking the question to continue moving the needle: How can Canada’s economy reach its true potential if 51 per cent of the population isn’t fully participating?
Ignoring the input and talent of half the population is neither wise nor sustainable.
Despite a worldwide lack of access to capital, women run one in three high-growth companies across the globe. Additionally:
Women are 1.5x more likely to be solo entrepreneurs than men
One in six women globally reported an intention to start a business in the near future, compared to one in five men
Between 8 million and 10 million small and medium-sized enterprises across the developing world have at least one woman owner
Yet due to systemic barriers and societal norms hindering a woman's path to starting her own business or unlocking opportunities, 50% of women’s entrepreneurial potential goes underused, compared with 22% of men’s.
But this isn’t just a call to action for more support to women entrepreneurs; it’s a celebration of what women entrepreneurs are achieving, the glass ceilings we’re shattering, and how we’re redefining success on our own terms.
Celebrating Women Entrepreneurs
The entrepreneurial landscape has seen a surge in the number of women at the helm of their own businesses. Some of the top findings in Women Entrepreneurship Knowledge Hub’s report ‘The State of Women’s Entrepreneurship in Canada 2023’ reported:
In 2022, 988,400 women in Canada were self-employed
The number of women-owned businesses is growing—despite the lasting impacts of the COVID-19 pandemic
Women-owned businesses focus more on innovation and are much more likely than men-owned businesses to put in place marketing innovations
From tech startups to sustainable fashion brands, women entrepreneurs are making their mark across diverse industries. Our resilience, creativity, and ability to navigate complex business landscapes inspire countless others to pursue their entrepreneurial dreams.
One of the standout features of women-led businesses is our emphasis on collaboration and inclusivity. Women entrepreneurs frequently prioritize building supportive communities, fostering relationships, and creating workplaces that champion diversity.
Proven to be a huge payoff, companies with more women in senior positions are more profitable, more socially responsible, and provide safer, higher-quality customer experiences.
To put a figure to those benefits, for every $1 of investment raised, women-owned startups generated 78 cents in revenue, compared to 31 cents from men-owned firms. Or how about, based on a McKinsey analysis, companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the bottom.
Women entrepreneurs not only contribute to the success of their ventures but also pave the way for a more inclusive and equitable business world.
Barriers and Challenges Women Entrepreneurs Face
While, of course, we should celebrate the remarkable successes, it’s impossible to ignore the persistent barriers and challenges we’ve confronted to get here. Think: gender bias, societal expectations, and limited access to funding—to name just a few.
Although it seems like gender bias should be a thing of the past, it is still a pervasive issue that’s unfortunately alive and well, impacting everything from investment decisions to day-to-day interactions in the business world. Stereotypes and preconceived notions about women's capabilities can hinder our progress, making it crucial to challenge biases and foster an environment that values merit over gender.
Closing the gender gap in business creation could add $1.6 trillion to $2.3 trillion to global GDP—an increase of about 2%–3%. Additionally, gender parity among entrepreneurs could create 288 million to 433 million jobs worldwide by unleashing an untapped pool of talent and innovation.
To no surprise (in fact, it’s the reason behind driving our mission), lack of access to financing is one of the biggest—if not the biggest—challenges women face when wanting to create a company. Putting this into perspective with venture capital: in 2022, women-founded startups raised 1.9% of all VC funds, which was a drop from 2021’s 2.4%.
Closing the gender funding gap requires a concerted effort from investors, financial institutions, and policymakers to create more inclusive funding opportunities for women entrepreneurs. More women VC investors need to be in decision-making roles to fund the diverse entrepreneurs (recall: when a woman is at the table, a fund is twice as likely to invest in a women-led start-up).
Supporting Women Entrepreneurs
To build a future where women entrepreneurs can reach their full potential, it’s essential to break down the existing barriers and actively support them. Easier said than done, though, championing women requires purposeful action and collaboration across all sectors.
Here are some key ways to foster an environment that champions women in entrepreneurship:
1. Accessible Funding Opportunities
As mentioned, there needs to be greater diversity around the table. Until we have a higher representation of women actively leading and participating in investment decisions and contributing broader perspectives in discussions, moving the dial will be incredibly slow.
At current rates of progress, the World Economic Forum estimated in 2021 that the gender gap in economic participation and opportunity would take 268 years to close.
Investors and financial institutions must actively work towards closing the funding gap. Creating and promoting funding opportunities specifically for women-led businesses can help address the disparities in access to capital.
2. Lean on Your Networks and Make Connections
By building a network of women that uplift, empower, and champion one another, new connections provide introductions and help raise company profiles.
You know what they say: it’s not what you know but who you know. Investing in the right relationships can have incredible payoffs. Supporters who work with women entrepreneurs can help to create connections structured to maximize their benefits—whether learning from other leaders, collaborating on projects, or building a stronger sense of community.
If you know a woman entrepreneur, make those introductions! It could make all the difference in her journey.
3. Advocate for Inclusivity
As women, we must be inclusive and explicitly invite others to the table.
Advocacy plays a crucial role in challenging biases, promoting inclusivity, and taking steps toward gender parity. Businesses, organizations, and individuals can actively champion the cause of women in entrepreneurship, creating an environment that recognizes and values their contributions and advocates for the opportunity that women-led businesses present.
4. Engage with Women's Entrepreneur Organizations
There are several networking communities with sole missions revolving around supporting women in business and entrepreneurs. Think organizations like:
Engaging, joining, sponsoring, volunteering, or donating to them supports that mission to help women navigate the entrepreneurial landscape.
5. Invest in Their Business
This doesn’t always have to mean writing big cheques. Where you choose to invest your dollars—large amounts or small—matters. When it comes to supporting and promoting woman entrepreneurs, one of the best things you can do is invest in their business.
Remember: women drive 85% of all consumer spending, so imagine if that went toward women-led businesses.
And if you are able to write those bigger cheques, whether through grants, loans, or equity funding, this can be a huge help for women starting their businesses. It gives them the resources they need to get started and shows you believe in their ability to succeed.
The51 as a BDC Thrive Lab Partner
On that note of supporting women entrepreneurs…
The51 is thrilled to partner with the BDC Thrive Lab, championing women founders and the global impact they are making with their companies.
The Thrive Lab is part of BDC’s $500M Thrive Platform. Announced in Fall 2022, it is the largest investment platform in the world supporting women-led businesses and includes three components: the $300M Thrive Venture Fund, a $100M Indirect Investment Envelope, and the $100M Thrive Lab.
The Thrive Lab will provide $100 million in equity and equity like investments to promising impact-driven, women-led companies and support them in pursuing their growth. The first phase of The Lab is co-investing alongside 25 partners from across Canada, up to $35 million in businesses at the earliest stages of development, where they face the most challenges fundraising. Phase two will build on learnings as they develop these new ways of supporting women-led businesses and ongoing feedback from partners and women entrepreneurs.
If you are woman entrepreneur reading this who is:
Building an emerging, innovative and scalable business
Trying to address a pressing social problem with your business that will have a measurable positive impact on society
Actively raising capital and have your pitch deck ready
We’d love to learn more about you. We invite you to read more about the Thrive Lab, find out if you're eligible, and reach out.
Celebrating and supporting women entrepreneurs is an ever-important issue, and it's all of our responsibilities to step up and support the women founders in our ecosystems and communities.
Join us in celebrating the women founders in our portfolio, become a Financial Feminist with The51 and surround yourself with bold, creative, intelligent, like-minded financial feminists to challenge the status quo, or become an investor in our funds to play a direct role in investing in women-led ventures.