Federal Government of Canada Archives - LiisBeth https://liisbeth.com/tag/federal-government-of-canada/ ¤ Field Notes for Feminist Entrepreneurs Tue, 13 Apr 2021 19:07:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 $5.5 Billion Investment Required To Prevent Collapse of Emerging Women’s Entrepreneurship Sector https://liisbeth.com/task-force-says-5-5-billion-investment-required-to-prevent-collapse-of-emerging-womens-entrepreneurship-sector-in-canada/ https://liisbeth.com/task-force-says-5-5-billion-investment-required-to-prevent-collapse-of-emerging-womens-entrepreneurship-sector-in-canada/#respond Tue, 13 Apr 2021 12:05:54 +0000 https://liisbeth.com/?p=15900 "We weren’t offered a seat at the
table, so we created our own." — Nancy Wilson, Executive Director, CanWCC

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woman standing against a wrecking ball
Photo by Federico Caputo / Alamy Stock Photo

Monday, April 12: The Canadian Women’s Chamber of Commerce (CanWCC) released an emergency task force report calling for $5.5 billion to support women entrepreneurs — a sector disproportionately impacted by COVID-19.

“Let’s get real about this: women-owned and -led businesses are integral to Canada’s economic recovery,” says Nancy Wilson, CanWCC’s founder and CEO. “Forget leaning in — we need support to lean on as we start and scale our businesses.”

The independent task force calls for $5.5 billion in renewed funding in the 2021 federal budget for the Women’s Entrepreneurship Strategy; $500 million in recovery funding targeting Black, Indigenous, racialized and mature (over 40) women entrepreneurs; and the expansion of the Canada Recovery Benefit program for self-employed and startup founders left without basic income because of the pandemic.

The task force also recommends creating an inter-ministerial committee to better address the needs of all women in the economy and break down silos that currently exist between the Ministry for Women and The Gender Economy (WAGE); Industry Canada/Innovation, Science and Economic Development (ISED); Ministry of Small Business, Export Promotion and International Trade; and the Ministry of Finance.

The report, supported by leaders in the women’s entrepreneurship ecosystem, was developed as a response to lack of inclusion in the “Task for on Women in the Economy” and the cross-ministry feminist pandemic recovery budget process, as well as deepening concerns that the federal government “still doesn’t get” women entrepreneurs.

Who are Women Entrepreneurs?

The newly released State of Women’s Entrepreneurship in Canada (March 21) report by Ryerson’s Diversity Institute paints a clear picture of the women’s entrepreneurship ecosystem and the lives of its precarious income-based participants.   

In a nutshell, the sector’s enterprises are like a million atoms that are intricately networked. In some provinces, long established women’s enterprise institutions act as supportive lenders, skills educators and data gatherers for policy makers. Some find affinity in publicly funded incubators and accelerators. But the majority of women entrepreneurs are left to resource themselves. They have created more than 180+ unfunded, regional, grassroots, mutual-aid support networks.  

Women entrepreneurs tend to build businesses in care-economy sectors and operate them in relational, innovative, inclusive, generative ways that aim to lift up their communities — not just themselves. Their enterprises may be micro when measured in dollars, but powerhouses when full and indirect impact is considered.

On average, a woman entrepreneur, once established, earns $68,000 gross per year. Their male counterparts earn 58 per cent more — a truly cringe-worthy pay gap.

Only 15.6 per cent (114,000) of all small to medium incorporated enterprises in Canada are majority owned by women; more than 92 per cent of these enterprises are defined as “micro-firms” with less than 20 employees. Another 37.4 per cent (1 million+) of women entrepreneurs are self-employed.  

Though small, this sector can have financial clout. According to a 2017 McKinsey study, an investment in women entrepreneurs could result in up to $150 billion (or about 31 times what the task force calls for) in economic growth for the Canadian economy. The report noted that “This projected increase was 6 per cent higher than business-as-usual GDP growth forecasts over the next decade. Put another way, this figure is equivalent to adding a new financial services sector to the economy.”

Eager to boost this potential, the government invested $5 billion in a Women’s Entrepreneurship Strategy (WES) program in 2019. According to task force participants, this investment has had tremendous impact. However, those gains are in danger of being completely lost — not just set back — due to the pandemic’s disproportionate, multi-layered impact on all women.

Since COVID-19, more than a quarter of all women-owned firms laid off 80 per cent or more of their contractors, freelancers, employees.

Paulina Cameron, serial entrepreneur and now CEO of The Forum, a women’s enterprise support charity in Vancouver, says she is frustrated. 

“Government supports are still built around our understanding of the way men built companies in the 1990’s. The hard line between for profit, public and nonprofit policy no longer makes sense. Women entrepreneurs increasingly design enterprises that ignore these boundaries. We learned this past year that women entrepreneurs play a significant yet unseen role building social well-being and economic resilience — we are going to need a whole lot more of that in the coming decade.” 

Janice Bartley, Founder of Foodpreneur Lab

Why Were Women Entrepreneurs Left Out of Covid Relief?

Most small to medium enterprises (SME) COVID-19 relief programs focused on larger firms, which excluded the vast majority of women entrepreneurs.  Like women wage earners, women entrepreneurs were also crushed by shouldering the majority of unpaid care and home-schooling work during the pandemic.

According to a recent study on Black and Indigenous women entrepreneurs, 78 per cent face barriers to accessing financing in addition to racialized oppression by institutions including banks, incubator and accelerator programs.

Janice Bartley, a Black woman, serial entrepreneur and founder of Foodpreneur Lab,  took on side gigs to pay bills for the past two years, even though her enterprise was on the verge of providing her with an income. 

Then COVID-19 hit.

“We were in the process of negotiating some significant contracts including a college — which would have really helped us launch — but because of COVID-19, they fell through.”

Like many, Bartley’s enterprise was not big enough to benefit from small business COVID-19 support initiatives. Most of the loan programs are beyond reach for founders who don’t have net worth (say in home ownership) to fulfil the personal guarantee requirements.

“I think any founder knows that there’s going to be financial risk involved in starting and growing a business,” says Bartley. “And I think there’s a willingness for us to do that, as long as there’s some supports to help survive things like a pandemic.” 

two quotes, two women, purple background

Women Entrepreneurs Are a Good Bet — So Why So Little Money on the Table?

Preliminary research shows incredible returns on investments, says Wendy Cukier, Director of Ryerson’s Diversity Institute, “even in loan programs targeting women, whether measuring job creation or social impact.” She notes that the “WES initiative has strengthened the women’s entrepreneurship ecosystem and we are starting to see the results. However, if we allow these initiatives to wither and new seedling businesses to die, we should not be surprised to see negative economic and social consequences.”

So why are women entrepreneurs often overlooked by mainstream programs and financing? Cukier says it’s often because of how “innovation and entrepreneurship are framed.”

The CanWCC independent task force has put forward compelling evidence that a $5.5 billion investment in women’s entrepreneurship would go a long way to ensuring momentum gained in the past few years is not forever lost. 


Publishers Note: pk mutch, contributor and LiisBeth publisher is a board member at the Canadian Women’s Chamber of Commerce (CanWCC) and transparently supports their vision, mission and mandate. Mutch was also a task force member. 

Resources/Sources:

Download the full CanWCC report here

Access the State of Women’s Entrepreneurship 2020 report here. 

Read the Feminist Recovery Plan for Canada here. 

Related Readings

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Fearless Fashion Connects Community and Culture https://liisbeth.com/fearless-fashion-connects-community-and-culture/ https://liisbeth.com/fearless-fashion-connects-community-and-culture/#comments Tue, 02 Apr 2019 15:44:01 +0000 https://www.liisbeth.com/?p=6035 Lorna Mutegyeki’s clothing designs are bold, unique, and stunning. And she insists on treating her employees with the respect they deserve.

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Lorna Mutegyeki, 32-year-old founder of Msichana

In an industry notorious for unfair wages, waste, and horrible working conditions, 32-year-old Edmonton-based fashion designer and business owner, Lorna Mutegyeki stands out. Born in Uganda, she emigrated to Canada at the age of 18. In 2017 Mutegyeki launched Msichana, a sustainable luxury fashion label that is committed to advancing employment opportunities for women in Africa. The social enterprise employs and empowers women through every step of the production and sales process. Msichana ensures that textile makers are paid fairly, have great working conditions, and that each garment is unique and handmade using the highest quality fabrics on the continent.

Msichana cigarette pant, 2019 collection–you can find more images on Instagram.

“Each piece is a handmade, one-of-a-kind work of art with much love and attention put into it,” says Mutegyeki.

The creations are designed in Canada and proudly produced in Africa by weavers, dyers, and embroiderers. The company’s supply chain is completely transparent and ethically made for women, by women. Materials are meticulously sourced. That includes tracing the cotton all the way down to where the seed was grown. Ethical fashion is hard work.

From belts to dresses, jackets to jumpsuits, prices range from $80 to $600+. The enterprise appeals to a largely affluent segment of the North American women’s fashion market comprised of those supportive of environmental and social justice centred, artisanal scale enterprises. Benefits? Zero mass production. Zero waste. Assurance of thrive-level wages plus a progressive company culture for women in Uganda. Leveraging your economic power to advance women and gender equity. 

Msichana is also breaking stereotypes by providing new opportunities in traditionally male sectors for women in Africa. Mutegyeki told us that in Ethiopia, most weaving work is traditionally done my men. Her goal is also to unshackle women and show the impact that financial independence can have on their lives, families, and community.  Winnie Nabukera, one of Msichana’s artisans explains her point of view in a short interview supplied via iPhone video by Msichana, “African women sole-preneurs are not well supported in a male dominated society”. Nabukera adds that Msichana has created new income opportunities that also helps address the gender pay gap, plus provides an opportunity to upgrade skills, which in turn, helps her connect with other new clients of her own.

LiisBeth introduced Msichana in our February newsletter, and then spoke with Mutegyeki on the phone last week to ask more about her personal journey as an entrepreneur.


LiisBeth: What does Msichana mean?

Mutegyeki: It’s actually the Swahili word for young woman. Swahili is a combination of many languages, a coming together, an intersection. I thought it would be a great way to express the values of the brand.

Liisbeth: You invested in an expensive MBA degree, and successfully leveraged this to get a well-paying job in the finance industry. Why take a risk at becoming a fashion entrepreneur–a brutal industry for start ups– after just a few years?

Mutegyeki: I gave up my golden handcuff job because it was, for me, unfulfilling, and I felt I needed to get out before the handcuffs became tighter. I also wanted to have an impact in the world. I grew up in a strong feminist household. My mother was bold, strong, and not afraid to get emotional and assert herself. I noticed once how a respected local female politician, [the Honourable] Miria Matembe, was treated when she spoke out about rape, domestic violence, the need for Ugandan women to have an education, and equality. Because of her views, she was called unladylike. People said she was losing it. And didn’t take her seriously. I noticed how women as a gender were oppressed in my own country and have to say, was surprised to find out that a first world country like Canada still grapples with similar issues—just like Uganda back home. I understand the current conversation about rage. I myself feel rage, carry intergenerational rage, when I see how women are still treated and made to feel like they are never enough. I wanted to help create a world where the feminine, women’s bodies and women are truly valued for what they authentically bring to the table. A world where the ability to be soft is a sign of courage and inner strength.

LiisBeth: How did you fund your startup?

Mutegyeki: I thought I could save up and then jump in. So I’d been saving for [starting my business] for a long time. Five years. Just waiting until I had enough. I just eventually realized I was just never going to have enough money to do it. The up-front costs for what I wanted to do were far beyond what I could save within a few years. I not only had to buy equipment, I also knew I would have to make a big investment in training our women suppliers before we would have a product. I knew it would be a long time before we were ready to have anything to sell.

So saving enough was a no go. As an alternative, I thought I could start the business by working after hours, nights, weekends. That way, I could continue funding my startup through my earnings. But I failed. I completely failed. My job was too demanding and after one year of trying, I learned I could not do both. I had to commit to one or the other.

So finally, I quit. And jumped in. While it is tough not having that income, I don’t think I could have made the progress I made in a relatively short time if I had tried to do my full-time job at the same time.

LiisBeth: The Federal Government of Canada has recently made an historic investment in the advance of women entrepreneurs in this Country. Is it helping you?

Mutegyeki: I have been following the announcements and it is very interesting and exciting. And government here does a lot to help entrepreneurs. But I feel that most of the funding is tailored to help established enterprises. The funding is also project-based. So that means to qualify, you to have start a new project. For example, launch a new product line or service that augments your established business. But what if your entire business is a new project? As a startup, the last thing you need is to finance a new project when what you really need are the resources to grow the project you already started. What early stage ventures need is operational funds. Money for more people to scale what they are already doing—not just money for things the existing business is not ready to handle.

LiisBeth: Have you ever asked yourself the hard question—should I keep going or just quit?

Mutegyeki: That’s a hard question to answer. To be open, when I’ve had crushers, I do ask myself that question. And I’m always assessing all my options. The quit option has been on the list at least twice. Especially when I feel lost sometimes, because, if something’s too close to your heart sometimes you can’t see very clearly. But then, just in time, my mentors, my husband, and even clients many who act like mentors, reach in, pull me back to the centre, and ask me point blank the hands on hip “is that absolutely necessary?” kind of question? The biggest thing mentors do for me is ask the tough questions I work hard to avoid by being too busy to think about them. Their support and helpful ideas keep me going and fire me up to tackle the issue—rather than run from it.

LiisBeth: What’s next for Msichana?

Mutegyeki: Right now, I am doing a slight pivot by introducing accessories which are a lower price point than our garments. I also know I need to invest more in marketing. And that I can’t keep “D-Y-I-ing” everything. It’s starting to show. I need to hire someone. But am not at a level of cash flow where it is possible to do so. And I am nervous about raising outside capital. I don’t want to compromise my triple bottom line values. I would consider a loan—but I already have sleepless nights. A loan is just another thing to stay awake at night about. Ideally, I would find a strategic partner who is interested in achieving the same things.

LiisBeth: What is your word for the year?

Mutegyeki: Authenticity.

LiisBeth: What are you reading these days to keep you on track?

Mutegyeki: Anything by Eckhart Tolle, and Thinking Fast and Slow by Daniel Kahneman

LiisBeth: Lorna, you are fierce and very brave! It’s been a pleasure.

Mutegyeki: Thank you.


Find out how Msichana fashions are made!


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