Supporting the success of women entrepreneurs in Canada is not just an important step toward gender equity—it’s also about unlocking untapped economic potential.
Research shows that increasing the number of women-led businesses could add billions of dollars to Canada’s gross domestic product. In 2023, revenues from women-owned businesses grew about 4 times faster than the national average (6.4% compared to 1.7%). The value that women bring to the economy is clear.
What’s more, these businesses often incorporate values like sustainability and inclusivity, making them a key part of the future business landscape.
Studies also show that women-led businesses often bring more value for each dollar invested and have strong loan repayment records. However, they still face barriers that limit their access to funding and chances to grow.
The current business landscape
As of 2023, only 18% of Canadian businesses were majority-owned by women, according to the Women Entrepreneurship Knowledge Hub. Of these, 99.8% were small and medium-sized enterprises.
Most women entrepreneurs are self-employed, rather than running an incorporated business with staff. They also earn less than male business owners on average, showing the broader gender pay gap.
If you have an entrepreneurial mindset, the potential benefits of starting a business are huge. Being an entrepreneur can offer financial independence, flexibility, a better work-family balance, and a way to bring your skills and passions to life.
So, how can we create an entrepreneurial environment that will make it possible for more women to turn their dreams into reality?
Identifying barriers
The first step is to recognize the barriers that women entrepreneurs face, especially when it comes to financing. Women often depend more on personal assets or credit cards to fund a business:
- 73% of women entrepreneurs self-fund.
- 24% use credit.
- Only 14% get business loans.
While loan approval rates are about the same for women and men, male-owned businesses are approved for about 2.5 times as much funding on average.
Many of the biggest funding obstacles are built into the system:
- Gendered stereotypes and systemic bias in policies, programs, and financial services make it harder for women to access capital.
- Access to credit requires tools that men have more often than women, like high income, a strong credit history, and collateral. This issue is worse for Indigenous entrepreneurs living on reserves, who do not own the land they live on. Because the land and assets cannot be seized, they cannot be used as collateral.
- Women-led businesses often operate in low-growth retail and service sectors where it can be hard to get financing.
- Women are much less likely to incorporate their business, which can affect its credibility with banks and funding agencies.
- Women have less access to networks that open doors to opportunities like venture capital pitch events. Only 4% of venture capital funding in Canada goes to women-owned businesses.
- Loan and grant application processes are labour intensive. Time is a scarce resource for women. Many are reluctant to invest the time and energy required to apply for funding that they don’t think they will get.
For Indigenous women and women of colour, these barriers are even more pronounced—particularly for Indigenous entrepreneurs in remote locations with less access to infrastructure, financial institutions, and reliable internet.
Overcoming challenges
The most important hurdle that women face in business is financing. This issue reflects a number of factors, including lower income levels and limited access to credit. Sometimes, even a desire for independence leads women to avoid taking on debt.
Women’s Enterprise Organizations of Canada (WEOC) offers the following advice:
- Be careful about depending too heavily on personal funding sources—Credit cards, in particular, carry the risk of high interest fees and damage to your credit score.
- Invest time in your long-term vision—Applying for external funding may feel like a headache, but it can pay off in the form of low-cost or free funding. And the work involved in the application process—like putting together a business plan—will help to test and improve your overall business strategy.
- Network to expand your options—Access to networks is key—not only for getting financing but also for finding mentorship, resources, and growth opportunities. Networking with fellow women in business can give you leads on funding sources and programs that other female entrepreneurs have had good experiences with.
Building business credit: A strategic move
To create a solid financial base for your business, it’s a good idea to build business credit separate from your personal credit. Your business credit score includes reports from suppliers and financial institutions.
The first step in building your business credit is to set up a business bank account and get a low-limit business credit card. As you use these tools responsibly, your credit score will increase. Later, you can expand to other financing options, like a business line of credit or a business loan.
Resources for women entrepreneurs
A growing number of resources are available to support women entrepreneurs in Canada. For example:
- Alberta Women Entrepreneurs offers financing assistance, networking opportunities, and learning resources.
- The Women Entrepreneurship Knowledge Hub provides a wealth of information and best practices tailored to women in business.
- The WEOC National Loan Program offers loans up to $50,000, with a wide range of eligible uses and no minimum credit score requirement.
- The Business Development Bank of Canada (BDC) inclusive entrepreneurship loan and Thrive Platform for Women offer financing options that target women.
- The Indigenous Women’s Entrepreneur Program connects Indigenous women with the training, resources, and capital they need to start and grow their businesses.
- #BeTheDrum is a Native Women’s Association of Canada program aimed at Indigenous women and gender-diverse people, providing business outreach and support.
The road ahead
As more women break through the barriers to entrepreneurship, Canada’s economic and social landscape will continue to shift. Supporting women entrepreneurs isn’t just about equity—it’s about smart, strategic investment in the future of business.
By working toward equitable access to funding, networks, and support, we can empower a new generation of women entrepreneurs to drive innovation, create sustainable businesses, and achieve lasting success.