A Tool Kit for Credit Union Leaders and Lenders Module One
A Tool Kit for Credit Union Leaders and Lenders
Module One
Vancity Community Foundation undertook
Women Entrepreneurs: Financing
Opportunities for Growth
project between 2011 – 2013.
The project included extensive
research and a pilot project for women
entrepreneurs.
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.
Welcome to Module One:
Why Should Credit Unions Support
Women Entrepreneurs? Does Gender Matter?
In This Module We Will Explore
1.The national and international economic context for Canadian women.
2. Nine important lessons we learned from this project.
3. How using a ‘gender lens’ and ‘impact investing’ can help women grow their businesses.
4. The benefits of investing in women entrepreneurs.
Where We Started
• 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?
“If we want a real recovery, the next cohort of high-growth entrepreneurs cannot just be people with
names like Thomas and Henry, or Bill and Steve. We need the women to get involved. The American growth engine can no longer afford to
run on half of its cylinders...
The first step to a solution is to re-frame the problem statement. Instead of asking "Why
aren't women becoming high-growth entrepreneurs?“ start asking "What will it take?”
Lisa Mitchell of the Kauffman Foundation:
Where We Stand on The World Stage
Have women in Canada achieved full equality withmen? No.
Canada is ranked 21st among countries in theGender Gap Index of the World Economic Forum.
Countries higher on the list include the Philippines,Cuba, South Africa, Ireland and most otherNorthern European countries.
� In 2006 we were ranked 14th. � In 1990 we were ranked 11th.
Women in Canada:
An Economic SnapshotIncome (2008)• Women’s average annual income in Canada is $30,000 • Men’s is $47,000• In BC it’s $29,000 to $48,000
Daycare (2007-2008)• 77% of women with children between 3 and 5-yrs-old work outside the
home• There are only regulated daycare spots for 20% of children under 6
Poverty• 52% of single mothers with children under 6 • 36% of Aboriginal women• 35% of visible minority women • 26% of women with disabilities
live in poverty
What We Learned From This Project
1. Women start businesses at a higher rate than men but are less likely to expand as a result of – a disconnect from available services
– anxiety about risk
– the uniqueness of their business venture
– the desire for flexibility in life
– business start-up mindset may not be focused on business growth and wealth creation
2. New immigrants often become entrepreneurs
– to avoid discrimination in the workplace
– out of necessity (e.g. unrecognized professional credentials)
– because they have business experience in country of origin
– because they have business ties to country and region of origin
3. For particularly marginalized communities such as
• refugees,
• low income people, and
• people with disabilities
entrepreneurship through co-operative or social enterprise models are important tools for economic inclusion.
4. Aboriginal and First Nations entrepreneurs face barriers in entrepreneurship that are often based more on ethnicity than gender.
– Aboriginal women may seek support from their community before women-serving organizations but do share many gender-based challenges as well.
5. Younger entrepreneurs are
– more likely to build social and environmental values into their business
– more likely to turn to entrepreneurship to create fulfilling and meaningful employment
– less likely to display gender‐specific differences in their approaches to entrepreneurship
This suggests that gender-based
programming for this group may not be as
high a need.
6. The value of organizing deliberate networking
opportunities for similar-stage entrepreneurs.
7. The value of one-on-one business coaching
focused on business growth.
8. The value of targeted initiatives for women to
set specific business-growth goals that include
identifying realistic financial needs.
9. The important role of philanthropy as part of the ‘path to success’ for lower-income or isolated women entrepreneurs. Including:
• Grants to groups that support women’s leadership and entrepreneurship.
• Targeted programs and services that reach specific groups of entrepreneurs through community partnerships (e.g. Aboriginal women and immigrant women).
• Business education and support programs (e.g. network development, one-on-one coaching or skills training).
So... What Next?
Current State
• For a number of reasons, many women entrepreneurs are not growing their businesses and are not accessing available services and financing.
Desired State
• Through business growth, women entrepreneurs assume a greater role in economic development; providing leadership and employment.
Using a Gender Lens in the Credit Union Sector: Impact Investing and Women
Entrepreneurs
• Promotes gender equity and women’s
leadership in organizations.
• Provides access to capital for women - from microenterprises to high growth companies.
• Develops products and services that benefit women and therefore helps to create a more
equitable and just society.
What does “gender lens” mean?
Using a “gender lens” means examining socially constructed roles, behaviours, activities and attributes that a society considers appropriate for men and women.
What does “impact investing”mean?
“Investments intended to generate
measurable social and environmental impact
along with a financial return.”
“Investments” can take the form of private
equity/venture capital, debt and fixed
income.Global Impact Investing Network www.thegin.org
Informed by a gender lens, investments in each of these three areas not only promotes equity but can
also enhance a credit union’s business performance.
Access to CapitalAccess to Capital
Workplace EquityWorkplace Equity Products and
Services
Products and
Services
Applying a Gender Lens to Workplace Equity
We’re on the right track!
• In Canadian banks, women have gone from 2.6% of senior management in 1987 to 32.4% today and are 65% of the entire workforce.
• In credit unions, 80% of the overall workforce is female, with 25% of executive management and 65% of management being female.
What we know:
• Gender diversity improves business performance.
• Gender and racial diversity increases a company’s market share.
Applying a Gender Lens toWorkplace Equity
Tools for assessing best practices and success in diversity include:
– Diversity Audits
– Gender Audits
– Affirmative Action Programs
– Leadership Development Programs
– Hiring Targets
– Disability Accommodation Programs
– Strategic Diversity Planning
Identify existing resources and
solutions available
Applying a Gender Lens toProducts and Services
• Impact investing is an emerging concept and practice responding to the interests of both values-based investors and entrepreneurs.
• Developing unique approaches to serving women and other historically disadvantaged communities is an important area of impact investing.
• This project illustrated the enormous value of learningmore about what women entrepreneurs need to grow their businesses and then providing support through one-on-one business coaching.
Are you speaking to me?
• If I believe you are seriously interested in knowing me, helping me, respecting me and my needs – not only because you want to sell me something
today, but because you value my business in the long term – I will be yours for life and recommend you to my friends, family, and community.
What does “wealth” mean to me?
• Independence
• Control over life choices
• Freedom from discrimination in the workplace
• Ability to provide for well-being of children and community
Do you know what I need?
• Reaching out to women and asking them what services and products they need, want and may be getting elsewhere.
• Don’t wait for me to walk in the door.
• Women entrepreneurs who participated in this project were seeking relationship-focused services from their financial institution.
• They had a high level of interest in understanding more about financing, in general, and specifically accessing targeted supports to help grow their businesses (e.g. business coaching).
Applying a Gender Lens to Accessing Capital
• Access to capital is about removing barriers to ensure capital is being accessed for the best opportunities without discrimination.
• This means deliberate, proactive strategies to understand, engage and ultimately serve women and other historically disadvantaged groups “where they are.”
What are the outcomes when we invest in women?
For women:• Increased economic independence.
For credit unions:• An increase in the credit union’s market share with
women entrepreneurs that is more fully aligned to co-operative values.
For society:• Increased economic development that includes the full
potential of entrepreneurial creativity, rather than excluding potential talent – talent often historically ignored.
Is investing in women more of a risk?
No, women business owners tend to be:
– More frugal with spending
– More cautious with expanding their businesses
– Grow their businesses slowly
Why? – Because historically disadvantaged groups are
inherently risk averse.
– Typically they do not have assets to lose and are more inclined to
– protect family resources.
The Opportunity is There
Targeting women entrepreneurs who want to
grow their businesses is smart and strategic.
Many women entrepreneurs are ready to take a
larger role in economic development but need
to be connected to the financing, education and
networks to do so.
Resources
• Websites
• Articles
• Studies
End Notes
Sources
Project Partners
Project partners:
This project was funded by