Business-Plan-Preparation for capacity buildibg program
Module four for review (draft 7)
1. A Tool Kit for Credit Union
Leaders and Lenders
Module Four
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2. Why do more women than men start
businesses in Canada but more men grow
them?
What barriers do women face in growing
their businesses?
How can credit union leaders and lenders
better support women to grow their
businesses?
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3. Vancity Community Foundation undertook the
Women Entrepreneurs: Financing
Opportunities for Growth
project between 2011 – 2013 to address these
questions.
The project included extensive
research and a pilot project for women
entrepreneurs.
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4. The content of this tool kit reflects what we
learned from project participants, service
providers and advisors about how credit
unions in Canada can better support
women to grow their businesses and, by
extension, support greater economic
activity and job creation.
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5. Welcome to Module Four:
Ways Lenders and Credit
Unions Can Support Women
Entrepreneurs
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6. In This Module We Will Explore
• Ways Credit Union leaders can support
women entrepreneurs to overcome
business growth challenges.
• Ways branch leaders can support women
entrepreneurs to overcome business
growth challenges.
• Ways lenders can support women
entrepreneurs to overcome business
growth challenges.
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7. Introduction
Strategies identified in this module are
divided into three groupings.
1) Credit union leaders including board and
executive-level strategies.
2) Branch leaders including managers and
assistant managers.
3) Lenders including business lenders and risk
analysts.
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8. Another way to think about these strategies
is what can be done through
• leadership,
• policy, and
• action.
The size and unique profile of your credit
union will require you to think about who can
lead these strategies in your organization.
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9. Strategies for Credit Union Leaders
• Encourage senior leadership (at the board
level) to participate in community
organizations focused on women and
women and business.
• Prioritize women entrepreneurs as an
important growth market.
• Profile diverse women entrepreneurs in
marketing and brand promotion.
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10. • Establish women business champions
within credit union organization.
• Establish internal targets to increase
lending to women entrepreneurs.
• Link targets in applicable employee
performance evaluation.
• Develop or partner on loan-guarantee
funds to collateralize women’s business
loans.
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11. • Consider and implement alternative credit
evaluation procedures and/or have community
liaison loan officers handle individual loan
evaluations outside the credit scoring system.
(recommendation to U.S. banks and financial
community from Ewing Marion Kauffman Foundation,
July 2006)
• Repackage and market existing loan products
aimed at women business owners positioned to
grow their businesses.
- e.g. Women Entrepreneur Business Growth
Loan
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12. How Important is Target
Marketing?
• Vancity credit union successfully grew
their market share with the gay and
lesbian community in the early 2000s by
deliberately including images of same-sex
couples in advertising, along with clear
welcoming messages.
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13. • This strategy proved the institution was
willing to ‘show up’ – through member
services not just with sponsorships.
– No new products or services were required
– The campaign changed the conversation with
existing members
– The campaign attracted new members
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15. Strategies for Branch Leaders
strategy challenges addressed
• Create community - Knowledge of
create opportunities for Financing Options
women entrepreneurs to Lack of Assets,
network. Business Skills &
• Make space - create a Confidence
resource area in your Connection to Networks
branch and/or on your & Business Supports
website with targeted • Setting Business Goals
information and
resources for women • Accessing New Markets
entrepreneurs.
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16. strategy challenges addressed
• Ensure your suite of Knowledge of
financial services Financing Options
effectively reach • Setting Business Goals
women business Lack of Assets,
owners through Business Skills &
advertising and Confidence
marketing channels Connection to Networks
& Business Supports
(i.e. face-to-face,
signage, ads, • Accessing New Markets
brochures).
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17. “Specialized clinics for women
entrepreneurs who don’t have a
business/finance background, who want to
grow their businesses would be a highly
valued, much needed member service. This
would create loyalty and attract new
members”
Clare Cullen, Eco-retailer, Social Entrepreneur
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18. strategy challenges addressed
• Establish strategic • Setting Business Goals
partnerships with women- Knowledge of
serving community Financing Options
organizations and
Lack of Assets,
business networks to
Business Skills &
reach under-served
Confidence
women entrepreneurs.
Connection to Networks
• Organize agenda specific
& Business Supports
member events
(seminars) for women • Accessing New Markets
entrepreneurs (e.g.
lending, marketing, social
media).
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19. strategy challenges addressed
• Provide women Setting Business Goals
entrepreneurs with Knowledge of
targeted skills training Financing Options
or business coaching Lack of Assets,
on Business Skills &
– developing business Confidence
growth plans Connection to Networks
– setting financial goals & Business Supports
– business financing • Accessing New Markets
options: how, when
and why to use credit
– making cash flow
projections
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20. Skill-building is Important
• Many studies have found a clear
connection between business success and
access to applicable skills training and
mentorship.
• Women entrepreneurs, in particular, are
eager to take advantage of educational
opportunities when they are offered.
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21. Strategies for Lenders
strategies challenges addressed
• Use active listening • Setting Business Goals
strategies. Knowledge of
• Avoid trivializing or Financing Options
dismissing women’s Lack of Assets,
business needs. Business Skills &
• Ask strategic questions to Confidence
understand financing • Connection to Networks
needs. & Business Supports
• Tailor communication to • Accessing New Markets
meet and serve their
unique needs.
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22. strategies challenges addressed
• Establish an ongoing • Setting Business Goals
relationship. Knowledge of
• Find opportunities to Financing Options
educate women business Lack of Assets,
owners about your credit Business Skills &
union’s lending policies Confidence
and requirements.
• Connection to Networks
and Business Supports
• Accessing New Markets
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23. Strategies challenges addressed
• Develop a resource list of • Setting Business Goals
local business networks, • Knowledge of Financing
training and mentorship Options
opportunities. • Lack of Business Skills &
• Connect and refer women Confidence
to those resources. Connection to Networks
and Business Supports
• Accessing New Markets
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24. strategy
challenges addressed
• Be open to creative • Setting Business Goals
strategies to finance
women’s business growth • Knowledge of Financing
(i.e.: targeted business Options
growth loan program, Lack of Assets,
cash-flow based lending Business Skills &
or guaranteed loan Confidence
funds). • Connection to Networks
& Business Supports
• Accessing New Markets
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25. Growing into Growth
Don’t make assumptions about ‘life-style’,
mission-driven or home-based
entrepreneurs – they may start small, but
want to grow later and need support and
guidance to do so.
Some examples include: Fairware, Indigo
Natural Products, Lunapads, Robeez and
Natural Pod [links here]
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26. Strategies for Leaders and Lenders
Learn More!
Bring together female business members in
focus groups to hear where they need help with
growing their businesses – e.g. financing
coaching, network building and advice.
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27. Learn More!
Track and measure financing requests received
from different women entrepreneurs - sole
proprietors, women only partnerships,
husband/wife teams - to deepen understanding
of this market segment (wants, needs and
opportunities).
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28. Quiz
• Please click on this link to review the
points covered in this module.
• Note to Reviewer:
– Modules will include an optional, online quiz
(5 to 6 questions) that will reinforce some of
the key points made in the module.
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30. End Notes
• The Urban Institute. July 2006. “Capital Access for Women; Profile and
Analysis of U.S. Best Practice Programs.” Ewing Marion Kauffman
Foundation.
• Hadary, Sharon G. May 2010. “Why Are Women-Owned Firms Smaller
Than Men-Owned Ones?”, The Wall Street Journal
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