Research Summary
Growth of Women-Led Businesses in Canada
Washington, D.C. -- Women-led firms are creating new jobs in Canada at four times the national average and are increasing in number at twice the national average, a new Canadian study reveals. The Canadian report’s findings echo the results found in a similar study conducted last year in the U.S.
Echoes Increases in the U.S.
The National Foundation for Women Business Owners, a research and leadership development organization based in the Washington, D.C. area, participated in the research team which conducted the landmark Canadian study. “Myths & Realities: The Economic Power of Women-Led Firms in Canada” was commissioned by the Bank of Montreal’s Institute for Small Business. Dun & Bradstreet Information Services, North America also collaborated on the study.
The Canadian study includes the first cross-border comparison of women-led firms, revealing remarkable consistency in the experience of women-led firms in Canada and the U.S. Notable similarities included the distribution of firms by size, bill payment patterns, increasing diversification into all industries and strong survival rates.
Three significant differences emerge: a greater percentage of Canadian women-led firms are older; they are more heavily concentrated in the retail sector; and women own a slightly smaller share of firms in Canada compared to the U.S. (30% compared to 36%).
“These differences suggest that the growth and diversification trends may be at an earlier stage in Canada,” says Geoff Cannon, Executive Director of Bank of Montreal’s Institute for Small Business.
For the U.S.-Canada comparison, the Canadian research team used data from the National Foundation for Women Business Owners’ and Dun & Bradstreet Information Services’ 1995 report, “Women-Owned Businesses: Breaking the Boundaries -- The Progress and Achievement of Women-Owned Enterprises.”
“As the global economy becomes increasingly interdependent, it is important to increase the recognition and understanding of how women-led businesses contribute to economic health and competitiveness in countries around the world,” observed NFWBO Director of Research Julie R. Weeks, who consulted on the Canadian project. “This study is an important contribution toward increasing that understanding.”
Among the report’s findings:
There are more than 700,000 women-led firms in Canada, providing jobs for 1.7 million Canadians;The number of women-led firms is increasing at twice the national average (19.7% compared to 8.7%);These firms are creating jobs at four times the average rate (13.0% compared to 3.1%), and collectively provide more jobs than the Canadian Business Top 100 companies combined (1.7 million compared to 1.5 million);The number of women-led firms involved in non-traditional sectors (i.e. agriculture, construction, manufacturing) is on the rise. Currently, one out of every four (24.8%) women-led firms is in an industry other than retail trade and services.
According to the study, the findings “shatter, once and for all, the negative myths about women-led firms in Canada by illustrating the financial strength they already possess, the economic power they already wield, and their growing importance in an increasingly service-based economy.”
Charts
There Are Currently Over 700,000 Women-Owned Firms in Canada
The Number of Women-Owned Firms Has Increased At Twice the Rate of All FirmsEmployment In Women-Owned Firms Has Increased At Four Times the National AverageCanadian Women-Owned Firms Have Similar Record of Bill Payment as the Average Firm
A summary of “Myths & Realities: The Economic Power of Women-Led Firms in Canada” is available from the Bank of Montreal’s Institute for Small Business on the Internet at http://www.bmo.com. A limited number of copies of the report are available from the National Foundation for Women Business Owners: call (301) 495-4975 or fax (301) 495-4979.
The Institute for Small Business was created by the Bank of Montreal in 1994 to act as a catalyst in creating and sharing new knowledge about entrepreneurs and entrepreneurship in North America. The Bank of Montreal has a wholly-owned U.S. subsidiary, Harris Bank, which is headquartered in Chicago, Illinois.
Dun & Bradstreet Information Services, North America is a company of the Dun & Bradstreet Corporation, the world’s leading marketer of information software and services for business decision-making.
The National Foundation for Women Business Owners (NFWBO) is a non-profit research and leadership development foundation focusing on women entrepreneurs, affiliated with the National Association of Women Business Owners (NAWBO). NFWBO supports the growth of women business owners and their organizations through gathering and sharing knowledge. For further information on women-owned businesses in the U.S., contact the NFWBO at (301) 495-4975, fax (301) 495-4979, or via e-mail.
Citation
Center for Women’s Business Research. “Growth of Women-Led Businesses in Canada.” Research Summary. December 2, 1996. Washington, DC.