Beverlee Rasmussen CEC PCC This week, we celebrate Women Entrepreneurs Week—a time to recognize the incredible contributions women make to our economy and society as business owners. But it’s also an opportunity to shine a light on the systemic challenges that hold women back in entrepreneurship. The road to business ownership for women is paved with more than the usual challenges. It’s not a lack of talent, drive, or ambition—far from it. Instead, it’s systemic barriers, unconscious biases, and outdated systems that often make the journey tougher than it should be.
Consider this: only 19.6% of businesses in Canada are owned by women. Closing this gap isn’t just about equity; it’s about unlocking an incredible economic opportunity. Research shows that empowering more women to start and scale businesses could inject billions into Canada’s GDP. So why are women trailing so far behind their male counterparts in entrepreneurship?
Started my day bright and early with an exciting conversation on Global News with anchor Amandalina Letterio about Women’s Entrepreneurship Day, coming up on November 19th, 2024. With women owning less than 20% of businesses in Canada, there’s still a long way to go in closing the gap. Don’t miss the interview—tune in and join the conversation!
The Economic Realities of 2024
Starting a business is never easy, but in today’s economic climate, it’s riskier than ever. Inflation continues to tighten budgets, making startup costs feel out of reach for many. Supply chain disruptions linger, turning even routine sourcing into a logistical and financial challenge. And then there’s the ongoing labor shortage, which makes finding and retaining qualified talent increasingly difficult.
For women, the stakes are even higher. Balancing the demands of a startup with caregiving responsibilities, parenting, and household management means many women are essentially working multiple full-time jobs. If you’re trying to get a business off the ground while juggling daycare calls about a sick child, it’s no wonder burnout feels inevitable.
Systemic Bias in Funding
One of the biggest barriers women face is access to funding. It’s not that their ideas lack merit—the numbers tell a different story. Women consistently receive less funding than men, often facing bias when seeking loans or investments.
I’ve experienced this firsthand. On one occasion, a Women’s Entrepreneur Organization approved my $100,000 growth loan but added a frustrating stipulation: they would only release the funds in $5,000 increments, as if I were less capable of managing the full amount than a male entrepreneur. Another time, during the pandemic, I applied for a 10-year government-backed loan at 4%. Despite having perfect business and personal credit and meeting every requirement, my application was ignored until I called them out for what I suspected was gender bias.
What’s most frustrating is that women-owned businesses aren’t just beneficial for their owners—they’re vital to our economy. Women hire and promote other women at significantly higher rates than male business owners. In fact, 73.5% of women-owned businesses have female senior managers, compared to just 35.6% of male-owned companies. Women also tend to build more resilient businesses, with higher employee retention and less debt—not because they lack ambition but because systemic bias limits their access to capital.
A Healthcare Crisis Tied to Entrepreneurship
If we wonder why Canada faces a doctor shortage, part of the answer lies in the challenges female doctors face as business owners. It’s bad enough that doctor moms are given only 16 weeks of paid leave to have a baby, but many are also forced to step into business ownership immediately after, often with no business training.
What does a doctor know about running a business? Armed with clinical expertise but no formal business knowledge, they take on massive loans to build practices, juggle high overhead costs, and work in a relentless dollars-for-hours model. The result? Burnout, crushing debt, and an exodus of talented professionals from the field.
This cycle isn’t just hurting doctors—it’s hurting all of us. When doctors are pushed to the brink, patients suffer from a lack of access to care. Addressing this issue means recognizing that doctors are more than healthcare providers—they are business owners who need resources, training, and support to succeed.
The Opportunity Ahead
Supporting women entrepreneurs is not just the right thing to do—it’s smart economics. Women-owned businesses have a proven track record of building strong, sustainable companies that lift entire communities. They create jobs, foster innovation, and promote equity in leadership.
This Women Entrepreneurs Week, let’s commit to breaking down the barriers that hold women back. Whether it’s through better access to funding, improved business training, or simply recognizing and addressing bias, the time for change is now. Empowering women to succeed as entrepreneurs isn’t just about leveling the playing field—it’s about building a stronger, more resilient economy for everyone.
