Module two for review (draft 8)

A Tool Kit for Credit Union
Leaders and Lenders
Module Two

DRAFT FOR REVIEW - PLEASE
DO NOT CIRCULATE

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?

DO NOT CIRCULATE

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.
DO NOT CIRCULATE

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.

DO NOT CIRCULATE

Welcome to Module Two:

Women and Reasons for
Entrepreneurship

DO NOT CIRCULATE

In This Module We Will Explore
1. The three main profiles of entrepreneurs.
2. The reasons women give for becoming
entrepreneurs.
3. How those reasons can be different from
those stated by men.
4. How reasons for entrepreneurship are
linked to business growth and success.

DO NOT CIRCULATE

Introduction
• Why do women become entrepreneurs? Is
there a difference between why women
and men become entrepreneurs?
• In order to understand more about women
entrepreneurs, it is important to know, in
general, why men and women start
businesses.

DO NOT CIRCULATE

Facts
• Women have been starting businesses at a higher rate
than men for several decades in Canada.

• Women tend to own smaller businesses but are poised
to play a significant role in future job creation through
growth.

• In 2007, 81% of firms in Canada that had fewer than 5
employees were women-owned.

• In 2010, 36% of BC’s small businesses were owned by
women.

DO NOT CIRCULATE

Three Types of Entrepreneurs

1. Classic Entrepreneur
2. Lifestyle or Work-family
Entrepreneur
3. Forced or “necessity”
Entrepreneur

DO NOT CIRCULATE

Type One: Classic
• Motivations: Like Challenge, Seek Financial
Independence (53% of women, 71% of men)
• Classic entrepreneurs are more likely to
own an incorporated business and to have
employees.
• They are less likely to work in home-based
businesses, more likely to work full-time,
and more likely to work longer hours than
those in the other groups.

DO NOT CIRCULATE

Type Two: Lifestyle or Work-family
• Motivations: Work/Life Balance, Flexibility
(25% of women, 7% of men)

• Lifestyle or work-family entrepreneurs are
more likely to have home-based
businesses, to work part-time and to work
relatively shorter hours.
• Few entrepreneurs have incorporated their
businesses in this group.

DO NOT CIRCULATE

Type Three: Forced or ‘Necessity’
• Motivations: Unemployment,
Underemployment, Lack of Suitable Work
Opportunities (22% both men and women)
• Forced entrepreneurs are more likely to be
sole proprietors, work at home and keep
full-time hours.
• Many people in this group would chose to
have a conventional job if it were an
option.
DO NOT CIRCULATE

Reasons for Entrepreneurship

22%
Forced
22%

7% Men
Lifestyle
25% Women

71%
Classic
53%

0% 20% 40% 60% 80%
DO NOT CIRCULATE

Differences in why men and
women start businesses.
• “Greater freedom” is reported as the single
most important factor for self-employment
for both men and women.
• A significant number of all entrepreneurs
previously worked in the sector in which
their business operates.
• But more men than women say making
money was the main motivation for
starting a business.
DO NOT CIRCULATE


• Women more often than men launch
businesses to balance work and family
responsibilities.
• 27% of women surveyed say flexibility and
work-family balance was the motivation for
starting their business compared to 7% of
men.

DO NOT CIRCULATE

• According to a Women’s Enterprise Centre
survey in BC in 2011, 69% of women
surveyed mentioned “passion and self-
fulfillment” as a primary motivation.
• Many women say they identified a need or
niche that motivated them to start their
business.

DO NOT CIRCULATE

Different Reasons to Grow
Business
• Motivations change over time and the top
reason women cite to grow their business
is to increase their income.
• According to Industry Canada, in 2007
16% more women intended to grow their
business than men (44% vs 38%).

DO NOT CIRCULATE

In BC
• According to clients surveyed by the
Women’s Enterprise Centre in 2011, these
are the top three reasons given for
business growth:
– Higher income (66%)
– Passion, self-fulfillment, challenge (63%)
– Increased demand, business opportunity
(61%)

DO NOT CIRCULATE

Top 3 Reasons for Start-up vs Growth

Increased Demand/Business Opportunity 61%

Passion & Self-fulfillment 63%

Higher Income 66%

Growth
For the Challenge Start-Up
28%

Independence & Autonomy
53%

Passion & Self-fulfillment
69%

DO NOT CIRCULATE

Video

DO NOT CIRCULATE

Women entrepreneurs are more
likely than men to:
start out as lifestyle entrepreneurs motivated by a
desire for independence, self-fulfillment and flexibility
be relatively conservative when it comes to taking
risks
not require large amounts of start-up capital
have smaller, more manageable businesses with
fewer employees
be interested in business growth but approach it
differently than male entrepreneurs - preferring a
‘slow and steady’ rate of expansion

DO NOT CIRCULATE

“My single piece of advice to women
considering expanding their business
is be sure to dream big enough, no
dream is too big.”

Joyce Groote, President and Chief Executive Officer of
Holey Soles Holdings Ltd.

DO NOT CIRCULATE

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.

DO NOT CIRCULATE

NOTE TO REVIEWER
• The following three slides are an
infographic delivering a few key facts.
• It is difficult to see in this format but will be
readable in the final online presentation.

DO NOT CIRCULATE

DO NOT CIRCULATE

Resources
• Websites
• Articles
• Studies

DO NOT CIRCULATE

End Notes
Sources
• Hughes, Karen D. 2005. Female Enterprise in the New Economy . Toronto:
University of Toronto Press.
• Hughes, Karen D. 2006. “Exploring motivation and success among
Canadian women entrepreneurs.”
Journal of Small Business and Entrepreneurship. Vol.19, Issue 2.
• Small Business Profile 2011
• Small Business BC, www.smallbusinesbc.ca
• BC Stats, wwwbcstats.gov.bc.ca
• KPMG. October 15, 2012. “Women changing the face of Canadian
entrepreneurship”
• http://www.newswire.ca/en/story/1052491/women-changing-the-face-of-
canadian-entrepreneurship
• CIBC World Markets, 2004. “Women Entrepreneurs: Leading the Charge”.
• Caranci, Beata and Leslie Preston, January 2012. “The Venus Vs. Mars
Approach to Entrepreneurial Success in Canada.” TD Economics.

DO NOT CIRCULATE

Project Partners
Project partners:

This project was funded by

DO NOT CIRCULATE

Module two for review (draft 8)

More Related Content

What's hot

Viewers also liked

Similar to Module two for review (draft 8)

Module two for review (draft 8)