Photo: Contributed
Kelowna-based Women’s Enterprise Centre has recommendations for those who offer funding to female entrepreneurs.
WEC conducted a survey in advance of International Women’s Day on Monday, and it found the major of women in business feel current funding models don’t fit their needs. Nearly 80% of the more than 400 women who took the survey indicated they will need funding in the next two years, but 61% believe the funding process could be improved.
“Our intentions are to understand the challenges faced by women as a result of the pandemic, highlight the opportunities that come with funding their business startup, recovery or growth, then provide actionable recommendations for ecosystem funders and champions to close the gap in access,” WEC chief executive officer Jill Earthy said in a press release. “In this report, we explore each step of the process, from marketing to funding models, applications, approval rates and support.
“Change doesn’t happen overnight, but we hope this framework will serve as the basis for long-term change in the BC funding landscape.”
Some of the tips from WEC are developing funding models that go beyond marketing, simplifying the application process, lowering eligibility criteria and partnering with organizations to offer long-term support. WEC says recently studies have shown the COVID-19 pandemic have been hitting female entrepreneurs harder than their male counterparts.
“As we look towards economic recovery, funding will play a critical role,” Earthy said. “Ninety-one percent of respondents say they’re optimistic about the future, and 77 per cent plan to seek funding to accomplish their goals.
“The need is there, and we have a unique opportunity to redesign the funding landscape so we can develop a stronger pipeline of diverse and thriving businesses.”
Other findings in the report are:
• 63% of women business owners request less than $50,000.
• 60% of survey respondents did not apply for funding pre-pandemic; many women thought they would get turned down.
• 63% of women business owners experienced revenue decline as a result of the pandemic; of those, 43% were forced to temporarily close their business, and 12% directly related to lack of child care.
• More than 60% of women have accessed business advisors, online education or mentorship since the pandemic started, the majority of which have approached non-profit organizations for support.
• 91% of women business owners are optimistic about the future.
• 77% of those surveyed anticipate needing funding in the near future, but 61% say current funding doesn’t fit their needs.
• More than 40% of women business owners suggest a simplified application form and say advisory support through the process could improve the experience.
• Since 1995, Women’s Enterprise Centre has provided more than $72.8 million in direct and leveraged financing to women businesses owners, and has created more than $2.18 billion in economic activity in the province since 1995, which helped create or maintain 3,378 jobs in the province (as of March 31, 2020). Its loan repayment rate is 96% and, due to proactive concessions made for loan clients early on, none has defaulted as a result of the pandemic to date.
• 75% of WEC-funded businesses are still in business past five years, compared to the national average of 65%.
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