Women entrepreneurs: The time is now to support women founders

At this critical moment for our economy, Canada needs to fuel domestic growth by tapping into the potential of women entrepreneurs. Currently, just under 20% of Canada’s small- and medium-sized businesses are women-owned. This number is ticking upward, from 17.8% in 2023, but not fast enough. 

“Having more women in the workforce, particularly in roles where they’re making decisions and innovating, will help to close the wage gap and help our economy overall,” says Katherine Judge, Executive Director and Senior Economist at CIBC Capital Markets. 

Women-led businesses are a particular economic driver because they often identify underserved markets and hire more people from diverse backgrounds, which contributes substantially to GDP growth.  

‘Missing’ women entrepreneurs

There is an economic cost to leaving women entrepreneurs on the sidelines.  

The Canadian Chamber of Commerce’s Business Data lab estimates there are 710,000 “missing” women entrepreneurs in Canada—by which it means people who are not involved in entrepreneurship but could be. It estimates not having these 710,000 women entrepreneurs over the past 7‒8 years cost the country as much as 6% of GDP, between $150 and $180 billion in potential growth. 

Now could be the right time for women who are considering entrepreneurship to take the leap. Women can capitalize on structural tailwinds: their high levels of education, better access to subsidized daycare, and more flexible work arrangements. 

AI is also opening new opportunities for entrepreneurs to be more productive, while saving both time and money, Judge says. 

“Utilizing AI in business can lower costs over the longer term.” 

Launching women entrepreneurs

There are financial and non-financial barriers that hold some women back from launching businesses. Women may struggle to access capital. They are more likely than men to rely on financing from friends and family, and majority women-owned SMEs still have lower financing approval rates than majority men-owned SMEs, according to the Women Entrepreneurship Knowledge Hub.  

Furthermore, women have fewer role models to show them the way. In a Canadian Federation of Independent Business survey, 18% of women said accessing support networks and finding mentors was difficult, compared to 11% of men. 

We find women in business are looking for connection, they’re looking for mentorship, they’re looking for guidance—to help them be bigger, better, and achieve the goal that they have for their business.  

There are specific themes that come up in conversation with clients. For example, women entrepreneurs may want specific guidance on how to scale their businesses amid childcare responsibilities. They’re seeking information, peer connections, and resources. 

All of this motivated the creation of the CIBC Women Entrepreneurs Hub. It provides resources for women entrepreneurs, acknowledging the distinct challenges they may face. While the hub is tailored to women, it’s not closed to men; it’s meant to bring the broader Canadian business community together. 

Looking forward

Canada has built a solid foundation to launch more women entrepreneurs, thanks to investments in higher education and subsidized childcare programs. These investments pay dividends with a more resilient, inclusive, innovative economy. 

Statistics Canada found that majority women-owned businesses reported a higher proportion of women in other management positions (66%) compared with all private sector businesses (44.8%). Furthermore, the proportion of women in all other positions within majority women-owned businesses (67%) was significantly higher than that for all private sector businesses (42.1%).   

The CIBC Women Entrepreneurs Hub arrives at the perfect time, offering networking opportunities and mentorship; thought leadership; and tailored resources for every stage of the business journey. Future plans include podcasts on relevant topics such as business planning and financial management, and outreach to business students may one day aspire to be entrepreneurs.  

Let’s build on this momentum and position all business leaders for growth. Canada can’t afford to leave women entrepreneurs on the sidelines any longer.