Despite a growing focus on women’s entrepreneurship, studies show that women-led businesses still face many challenges. In Canada, only 10% of high-growth firms are owned by women and about 8% of women-owned businesses export. The numbers tell the story, for example, research from PayPal Canada and Barraza & Associates, shows that women-owned businesses “earn $68,000 less on average, than men who run similar businesses.”
While there is a growing understanding that full and equal participation of women in the economy is good for everyone, there’s no doubt that it’s a complex issue on multiple fronts. What is clear however, is that the stakes are high: the implications are that “across all small businesses in Canada, bridging the gap in earnings of women and men entrepreneurs could unlock an additional $88.2 billion for the Canadian economy.”
We wanted to find out more about how women entrepreneurs can overcome the barriers to success and grow their business. We put this question to a panel of experts in a live #TradeElite Twitter chat and uncovered plenty of valuable insights from multiple viewpoints: bankers, women in business, lawyers, consultants and international business experts.
Moderator: Nicole Chevrier, Content Marketing Specialist with FITT (@FITTNews)
The Panelists:
Shannon Pestun (@shannonpestun), Director, Women’s Entrepreneurship at ATB Financial, based in Calgary, AB
Sara Haq (@HaqCast), Founder & Principal of SH International LLC, based in Washington, DC
Jennifer Diaz (@CBPAttorneyJen), Board Certified Customs & Int’l Trade Law Expert. Founder of Diaz Trade Law, President of OWIT International
Frida Owinga (@FridaOwinga), OWIT International Vice President of Chapter Development, and founder of Passion Profit, business breakthrough coaching for small and growing businesses, based in Nairobi, Kenya
Marcela Mandeville, CITP (@MsBrightIdea), Alberta Women Entrepreneurs (AWE), based in Alberta
Audrey Ross (@tresAudrey), international business expert, Orchard Custom Beauty, based in Toronto, ON
Miriam Lopez Arbour (@MiriamLopezArbo), Global Affairs Canada, based in Ottawa, Ontario
What is different about women-led business or women’s entrepreneurship vs the status quo – are there differences?
A1: Some of the differences in women-led companies: size (most are smaller companies), industry (highest representation of women-owned businesses are in accommodation, food services, professional services) and less likely to engage in international trade. #tradeelite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
International trade often involves hoping on a plane to go overseas. Does family and motherhood responsibilities keep women out of this business field? #TradeElite
— ONSCREENinterpreters™ (@WCInterpreting) November 15, 2018
Yes! Great point. Not all barriers are around capital. Entrepreneurs with exporting companies have heavier travel demands and schedules.This can make it difficult for women who, in addition to running a business are often are the CEOs of their households!
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Women owned businesses are starting at nearly the same rate as men-owned but are not growing as quickly. In order to grow, access to capital, networks and international markets are needed but are still a challenge.
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
A1 – Women, generally, strive for perfection (which is unrealistic). As a women entrepreneur, being meticulous, detail oriented, and a massive planner, this has helped me immensely in business. But, I’ve had to learn, “progress over perfection,” and make it happen. #TradeElite https://t.co/TydzprJ8eS
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
A1 women are as varied as cultures/institutions that support them. Each has own set of challenges/strengths & must learn to leverage them for success. Ability to build global relationships is a strength many women entrepreneurs have that can overcome many challenges #tradeelite
— Sara Haq (@HaqCast) November 15, 2018
A1In recent years the word business and entrepreneurship have been used interchangeably but I would say the main difference is the women entrepreneur is more about solving a specific felt need as opposed to starting a business out of what one to school for. #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
A1 ….uh and aren’t we part of the status quo? Women entrepreneurs have been critical to economies for centuries…even if we’re underrecognized as part of that status quo. #tradeelite
— Sara Haq (@HaqCast) November 15, 2018
A1. A lot of women get started because they have family responsibilities / emotional labour demands & working a 9 – 5 can be unrealistic. Finding a company with flex time can be a challenge #TradeElite
— audrey ross (@tresAudrey) November 15, 2018
A1 Women start businesses to create their own destiny and have more control over their life. #TradeElite @weggtoday
— Laurel Delaney (@LaurelDelaney) November 15, 2018
Only 10% of high-growth firms are owned by women. According to Victoria Lennox, Co-Founder and CEO, Startup Canada, women-led businesses have high-growth ambitions but systemic gender barriers encourage women-led businesses to stay small – would you agree and why?
Q2: Women have high-growth ambitions now more than ever but there are systemic and attitudinal forces at play that often prevent them from growing their companies. The primary barriers women entrepreneurs face are: access to financial capital, information & networks. #tradeelite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Yes! Very hard to get finances from traditional models as entrepreneurial businesses often don’t meet the criteria. https://t.co/x7r0jHYXgu
— audrey ross (@tresAudrey) November 15, 2018
Q2: At the same time, growth & profit aren’t always the driver or motivator for women going into business. For some, it’s building a company that allows them to meet the holistic needs & wants of their lifestyles. For some sustainability over growth is a greater priority.
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
A2 Many women business owners have high growth ambitions and face challenges to getting the money, buyers, talent and support they need to fulfill their aspirations, especially if they are dong business in traditionally male-dominated sectors and markets #TradeElite
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
A2 – Women contribute 10 TRILLION to the economy in unpaid care & domestic work – add that to running and growing a business. It takes a huge support system and confidence to take the leap. #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
#womenexporters represented only 11.1% of exporting SMEs in 2014 while 15.7% of all SMEs were women owned. The gap can partly be explained by firm size and prevailing industry. Access the report https://t.co/aUkerUNIZX #TradeElite @weoc @awe @TCS_SDC @CanadaTrade https://t.co/MyfJXIVxB6
— Miriam Lopez Arbour (@MiriamLopezArbo) November 15, 2018
A2 From where I sit as a Business Breakthrough Coach, I somewhat disagree coz what I have observed as the greatest barrier is the mindset of the business owner. How one thinks about their business & the end they have in mind plays a greater role in what they achieve. #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
Curious if you find any noticeable correlation in risk aversion based on gender / upbringing / education opportunities? (as an aside to the chat )#TradeElite
— audrey ross (@tresAudrey) November 15, 2018
There is definitely a co-relation because our beliefs are drawn from our experiences, education and exposure which varies form place to place. For instance I am more open to opportunities coz I had the rare chance to live abroad which has given me broader world view. #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
For sure, you can see that people who travel or who have connections outside of their own family / cultural unit generally see & take on very different opportunities.
— audrey ross (@tresAudrey) November 15, 2018
A2 I don’t like to get lost in statistics. If you want to build a business as any kind of entrepreneur (m/f/x) you must learn to get around ANY barriers that hit you. But yes there is some truth to that. I like getting powerful men & women to support which helps a lot #TradeElite https://t.co/o6qD0iyuhc
— Sara Haq (@HaqCast) November 15, 2018
It does take a village. Having the right people in your corner to help you grow is a huge portion. #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
A2 Women can grow as big as their thoughts.There are no systematic barriers. As women we need more confidence, tools, resources, access to mentors (like here), networks, links to capital and more risk-taking tendencies. With all that, we can grow global @weggtoday #TradeElite
— Laurel Delaney (@LaurelDelaney) November 15, 2018
What resources are available for women who might be wondering if exporting is a viable option? Where should they start?
A3 @TCS_SDC, @WEOCanada partners across Canada including @AWEbusiness, Chambers of Commerce, @ExportDevCanada, @cme_mec offer various resources to explore new market potential #TradeElite
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
.@OWITintl has great resources as well
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
A3 Starting places can include chambers of commerce, ministry of international trade export councils (depending on a country’s structure) embassies of countries one wants to export to can also be helpful. https://t.co/KiV76OKrA2 is also a great info platform #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
Q3: Talk to your banker. They are connected with agencies such as @ExportDevCanada. Your banker can help you formulate your plan and test for readiness, explore payment options when dealing in different markets and provide you with risk mitigation tools. #TradeElite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Shannon, would you recommend making connections with your financial institution, building a relationship there even if you aren’t exporting now, but for later? #TradeElite
— audrey ross (@tresAudrey) November 15, 2018
Yes! It’s so much better to build that relationship early. That way your banker can help you get ready for exporting and all that goes with it. Planning is so important when it comes to going #global with your business. Great question, @tresAudrey
— A Girl’s Biz Banker (@shannonpestun) November 16, 2018
Absolutely! A strong relationship with your bank and a good solid deal team that understands your business is key to helping navigate needs that may be more complex than your local business needs; laying the foundation as early as possible will only help.#TradeElite
— Stacey Gordon (@StaceyCGordon) November 16, 2018
Q3: One of the biggest questions women ask is: How do i know if I’m ready to export? This quiz might help: https://t.co/oaMJ3XqMYz #TradeElite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
A3-At @OWITIntl we have various trainings & amazing partners like @FITTNews, @WEGG @EximBankUS @GroYourBiz and many others (listed here: https://t.co/XH8sSqG0ed). We have terrific webinars & experts available to assist with exporting (available in our member directory)#TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
#BWIT can help Canadian women owned biz navigate the complexities of international markets regardless of your size. If you are starting out check out the step-by-step guide to exporting https://t.co/1iFTzHYg1n @TCS_SDC @CanadaTrade #TradeElite https://t.co/KSEmqOHDFb https://t.co/ADVw931C6O
— Miriam Lopez Arbour (@MiriamLopezArbo) November 15, 2018
A3 – Also… Consider exporting to the U.S. market! At @DiazTradeLaw we provide numerous trainings and tutorials on tips to be ready for the U.S. market and offer a FREE “Top 10 Tips When Importing” cheat sheet at my home page https://t.co/lVq4hES2iI #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
A3 Start by taking ANY small action to start the snowball growing. Check out https://t.co/QHY0KrM7PZ. Reach out to awesome women on LI (@tresAudrey, @LeahGlobal, @weggtoday). Take our free intro to Multinational Entrepreneurship https://t.co/6I3MyklAjc #tradeelite https://t.co/jqJanRqOio
— Sara Haq (@HaqCast) November 15, 2018
A3: You have proven success locally and now desire to bust a border with your service or product offering. It’s that simple. @weggtoday #TradeElite
— Laurel Delaney (@LaurelDelaney) November 15, 2018
A3. Modelling & Mentorship are a factor – if you aren’t seeing other companies exporting successfully you are more likely to hesitate to export. #tradeelite
— audrey ross (@tresAudrey) November 15, 2018
A3. Could be knowledge or time or desire. In Canada a LOT of companies aren’t reaching their export / growth potential. Some still don’t even have websites or online sale options. Start with: @ExportDevCanada @OWITintl @USTradeRep @TradeHelpdesk #tradeelite
— audrey ross (@tresAudrey) November 15, 2018
Let’s talk about accessing capital: In an interview with Forbes, Vicki Saunders said that less than 4% of venture capital goes to women and that it doesn’t seem to be changing and could be getting worse – would you agree? And why?
A4 The stats aren’t pretty. But consider that venture capital isn’t the best way to grow many multinational ventures. Read more here (https://t.co/xSeoRSemtz). Many women value their time and flexibility- another reason VC might not be THEIR cup of tea #tradeelite https://t.co/XrOnRwPelF
— Sara Haq (@HaqCast) November 15, 2018
Check out CanExport – a GoC multi-year prog providing direct financial assistance to small and medium-sized businesses (SMEs) registered in Canada that are seeking to develop new export opportunities and markets @TCS_SDC @CanadaTrade #TradeElite info bwit@international.gc.ca
— Miriam Lopez Arbour (@MiriamLopezArbo) November 15, 2018
Each country will something for you, & gov’t programs have to help & have to distribute the money they have been given. They struggle w/ connecting. Part of networking has to be w/ local city Councillor, provincial / state rep as they need you too! #TradeElite https://t.co/WOorArDm3t
— audrey ross (@tresAudrey) November 15, 2018
Q4: The gender investment gap is real, and some reports are indicating it’s widening further. When it comes to supporting women entrepreneurs, the VC system isn’t effective. New models are needed. #TradeElite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Q4: The biggest contributors to this is the gender disparity in VCs firm, unconscious bias among investors, & the reality that investors are looking for fast growth, not long-term value creation which is often at odds with a women’s goals & motivation for business. #Tradeelite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Q4: In addition, Venture Capital is most commonly used in the tech sector, which doesn’t represent the sectors where the majority of women-led startups are prevalent. #TradeElite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
A4. Funding is hard for any business, Banks want reliablilty, “a proven track record” & most Micros don’t have that. VC’s have their own demands. Financing is a big hurdle & it forces you to get creative. #tradeelite
— audrey ross (@tresAudrey) November 15, 2018
A4: it’s not a case of agreeing or disagreeing, it’s getting on with the fact of doing whatever you can to grow. Be proactive, focus on your goal and do something extraordinary. When you go beyond, people will notice and offer support. #TradeElite
— Laurel Delaney (@LaurelDelaney) November 15, 2018
A4 Diversity in VC investors influences the decisions on where capital flows. There area few VC investments led by and focused on women. Any model to effectively support women-owned businesses should include people who represent diverse perspectives. #TradeElite
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
What about more traditional financing? Women entrepreneurs are less likely to seek debt and equity financing and are more likely to be rejected or receive less money. What might be driving that?
Q5: Studies would show this to be true. We need to keep focused on creating banking experiences that better serve the needs of women entrepreneurs – increasing access to capital, info and networks.
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
A5 – @WorldBank counted 104 countries with laws that prevent women from working certain jobs & in 15 of these countries a husband can object! Before 1975 a married woman couldn’t get her own credit card without permission! Even today, we still have a ways to go! #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
Q5: women entrepreneurs may be adverse to risking relationships for perceived self gain. Taking on debt = paying it back no matter what, a risk to family. Taking on equity means risking not paying back investors. Investors also need to be taught there is a strong ROI #tradeelite https://t.co/XXbgZyubQa
— Sara Haq (@HaqCast) November 15, 2018
A5 Check out the #BWIT website funding page https://t.co/MIlwb8XQiQ. Full of resources specifically targeted to women-entrepreneurs looking to expand globally. DYK #BWIT services are free? Check our partners @weoc #TradeElite @TCS_SDC @CanadaTrade
— Miriam Lopez Arbour (@MiriamLopezArbo) November 15, 2018
A5 From my context women start businesses with a relatively “narrow” end in mind – meet family obligations and enhance family lifestyle. So the amounts of money don’t call for equity financing. Again decisions driven by the woman’s vision and beliefs. #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
A5: risk adverse. Although external financing might be needed at some point, Women are reluctant to ASK for it. Banks are willing to finance women enterprises, the women need to go after it.
— Laurel Delaney (@LaurelDelaney) November 15, 2018
Yes – so true!!! A lot of people are discouraged by the first “no”. It shuts them down – but you have to keep asking, or ask different people, or ask a different way. You have to champion your idea / service. If you don’t fight for it, who will? #TradeElite https://t.co/ThmhMVsUra
— audrey ross (@tresAudrey) November 15, 2018
Beyond financing, one of the barriers seems to be confidence – do you think this is accurate?
A6 Strategic risk assessment and planning can be mistaken for a lack of confidence instead of appreciating how these entrepreneurs are looking for opportunities, understanding what the business needs, and connecting and making the most of resources and strengths. #tradeelite
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
A6 I say a BIG yes women tend to suffer more with self esteem issues causing them to feel not good enough and therefore undeserving causing them not to reach out for more. #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
Q6: It’s not that women aren’t confident – As a generality, women aren’t satisfied with a good decision, they want a perfect one and that can make the decision making process longer which sometimes gets mistaken as a confidence issue. #TradeElite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Best line I ever learned was “progress over perfection” by #PaulaBlack After hearing this I finally pulled the trigger and opened up my own law firm. If we wait for perfection, we’ll keep missing the boat! #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
I love that – thanks for sharing. And congrats for taking the leap!
— A Girl’s Biz Banker (@shannonpestun) November 16, 2018
Entrepreneur @MicheleRomanow has great advice (paraphrasing) – you need to start before you have all the answers or the perfect product. Hide away until it’s perfect – either someone already gets the idea out, or you miss out on collaborating. #TradeElite https://t.co/OR55vbIZU3
— audrey ross (@tresAudrey) November 15, 2018
A6 – 1/2 – Love this article on confidence – “One simple tactic is for workplaces to normalize the practice of self-promotion, so that when women talk about their achievements, they are less likely to face the well-documented backlash. #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
A6 – 2/2 – Start each meeting by asking everyone to share one thing they’ve achieved since you last met…” https://t.co/uhyTsvIjL3 #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
A6 Participate in #BWIT trade missions reach out to #weoc women orgs and network with like-minded business women. There are lots of resources available to help boost your growth plans. We are here to help @TCS_SDC @CanadaTrade @ExportDevCanada @EntrepreneursQC #TradeElite https://t.co/5tOYE945Hn
— Miriam Lopez Arbour (@MiriamLopezArbo) November 15, 2018
A6: confidence counts. You have to get out of your comfort zone or else you won’t learn and grow global. We @weggtoday are covering this 12/5. Anyone can join for free: https://t.co/9PReaCw0kb #TradeElite
— Laurel Delaney (@LaurelDelaney) November 15, 2018
How can women secure more access to resources such as mentoring, networking and skills building?
A7 Connect with people, ideas, initiatives and organizations you admire and want to work with in your local community and around the world. #tradelite
— Marcela Mandeville (@MsBrightIdea) November 15, 2018
A7 When the student is ready the teacher will show up. Having a desire, doing research on what is available that aligns with what one wants to achieve is critical. I often say when one is struggling its a sign support is lacking, and its time to get help! #TradeElite
— Frida Owinga (@FridaOwinga) November 15, 2018
Q7: Find a mentor. Identify a role model and build a community around you. Establishing connections with other women entrepreneurs open doors to networks, opportunities and learning. #TradeElite
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
A7 Connect with #womenbiz @weoc women associations, chambers of commerce, trade events. Attend #BWIT trade missions. Here are helpful organizations @ReseauRFAQ @AWEbusiness @nlowe @WESK306 @businesswomenbc #TradeElite @TCS_SDC @CanadaTrade
— Miriam Lopez Arbour (@MiriamLopezArbo) November 15, 2018
A7 – Join (&more importantly, take on leadership roles in) amazing organizations that assist in both building your network/skills & provide experts to ask questions of. There are so many amazing ones @OWITIntl, @WEConnection , @weggtoday, @GroYourBiz, @NCBFAA #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
Speaking of this @OWITintl actually needs volunteers for programming, social media, chapter support, and website/IT. Want to help a premier networking org that has experts in international trade? Contact president@owit.org today! #TradeElite #WomeninTrade #Volunteer
— Jen Diaz (@CBPAttorneyJen) November 17, 2018
A7: Proactively offer something of value to every person you want to do business with. Even your mentors need your return support and greatly appreciate it. Find communities of like minded professionals and hang out over the long run #tradeelite https://t.co/3bgEojTSdE
— Sara Haq (@HaqCast) November 15, 2018
For specifically women groups: I love the @MiraJoleigh #Ambitionista group, the @ChampagneDiet #SlayBaby group. For the trade community as a whole – the @FITTNews #TradeElite. https://t.co/nmytTh19Vd
— audrey ross (@tresAudrey) November 15, 2018
Couldnt agree more. Getting your network together – of people that push you to succeed, and consistently grow … it’s essential!!! #TradeElite
— Jen Diaz (@CBPAttorneyJen) November 15, 2018
Have a can-do attitude and the confidence to just go for it. Let’s never forget that. That will get you global @weggtoday #TradeElite
— Laurel Delaney (@LaurelDelaney) November 15, 2018
Closing remark: thank for the honor to be among such a prestigious group of experts. Remember, if you take away women consumers, buying power and production power of female entrepreneurs, economies of the world would collapse! #tradeelite
— Laurel Delaney (@LaurelDelaney) November 15, 2018
Great chatting. Thanks everyone!
— A Girl’s Biz Banker (@shannonpestun) November 15, 2018
Read the rest of the chat and join future discussions by following the #TradeElite hashtag. And stay tuned for the next #TradeElite chat, coming up Thursday, January 24th at 2:30-3:30 PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.
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