International Trade Committee on Oct. 30th, 2024

[Sonya Shorey]

On the technology side, it ranges anywhere from 15% to 30% or 35%. In technology, we do not see as much diversity. We also have a slower step forward in terms of the number of technology women founders [Inaudible—Editor]

[Chandra Arya, Liberal, Nepean, ON]

Thank you. I have another question, and I have limited time.

Programs like the women entrepreneurship fund are good; I fully support it, and it has been quite effective.

The federal government gives lots of subsidies and grants to various programs. For example, to support innovation and research and development, we have programs like SR and ED, and IRAP.

If we were to carve out a portion of the amount already given, instead of introducing new money, and use the existing money that is going to the corporate sector as grants and subsidies and increase the percentage to incentivize women entrepreneurs or the businesses where women play a key role, do you think that would be effective?

[The Chair, Liberal, Judy Sgro]

Can I have a very short answer? Mr. Arya is out of time.

[Sonya Shorey]

Incentives play a critical role as part of larger suite of policy levers to drive forward on that goal—one of many.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We're on to Mr. Savard-Tremblay for two and a half minutes.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot, QC]

Thank you, Madam Chair.

Most women-owned businesses that export tend to be smaller than comparable male-owned businesses. In addition, they are concentrated in the service sector, particularly in professional and technical services, as well as in retail trade.

How do you explain that?

My question is for anyone who wishes to answer.

[Sonya Shorey]

Within Invest Ottawa and within our technology-based venture development programming, as I noted earlier, we serve scale-up companies that generate anywhere from $500,000 to $2 million in revenue, and 77% of those companies have at least one woman co-founder and/or senior executive at the C-suite level.

When you work as a community to equip and empower and inspire more women to get into tech, we need to build that STEM pipeline. Today, only 29% of STEM jobs are held by women, and less than 18% are in senior management. If we start at younger ages, in the K to 12 school-age period, and inspire more women to pursue tech and entrepreneurship with the right programming support, expertise and investment opportunities, we absolutely see a difference and are driving that pipeline here in Ottawa for Canada. I'd love to share the data with you.

[Christine Nakamura]

I'd like to add to that, if I may, Monsieur Savard-Tremblay. That's why our project focused on tech women. Right from the outset, we sought out women with STEM backgrounds who had technologies to share.

I believe one of the reasons women tend to be more in the services, from what I heard throughout all the discussions we had in the round tables, is that a lot of their innovative services have been born out of a personal need, whether it's for child care, educating children or elder care. The first trade mission, as I mentioned, was on elder care. A lot of women who are burdened with the responsibility of looking after aging parents as well as child care come up with these innovations to help themselves, which translates into the needs of societies like Japan, for example, and the elder care technologies.

I think there are a lot of women in services there, truly, but the technology, too, is to develop something they are passionate about, something they came into and faced up to that they needed to find a solution for. Whether it's clean technology or health care technologies, that's where it almost always starts: at the root bottom.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Desjarlais, you have two and a half minutes, please, and that will be the end of this round.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

Thank you very much, Madam Chair.

Ms. Nakamura, I'll give you a bit more time to finish the statement you were making about some of the challenges to the last question.

[Christine Nakamura]

Indeed.

I looked after elderly parents. They lived with me, so I know a lot of the problems of women who have those home responsibilities. I raised two children as a single mother and had two aging parents, into their mid-nineties, whom I had to look after.

When I hear of these technologies coming out, I hear this type of story over and over again from women in technology, women with STEM backgrounds. I can tell you that some of the entrepreneurs we've looked after have scaled.... They have won awards around the world with Ph.D.s, master's degrees, scientists. They're incredible women. I'm so proud to take them abroad to Asia to show them off.

I can tell you, as I said to you earlier, that 41% of our women are women from minority groups—visible minorities. The reason we're going to Asia is that a lot of the diaspora who were born over here of immigrant parents started businesses and know what the markets need. They've come up with good businesses that align with the market needs, and 41% is a pretty good stat, I think.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

I would agree. That's a testament to your organization and many of the organizations across our country that are doing this work of supporting women entrepreneurs. I know projects that have made significant contributions to our economy, including the women-made and indigenous-made Jolly Jumper, something that I think Canadians right across the country, particularly women, find great pride in.

I think it's important to mention a really interesting fact that I think you mentioned several times now, which is that much of this incentive is borne out of need. I think we have to find ways to better support women, so that it's not a reaction to only economic or poverty circumstances for which they're accessing market solutions, but finding ways to support them before that point. That's for young women in particular, while they're in their places of education, school, post-secondary. We need to get access to those groups earlier, before it's too late.

Does either of you want to spend time on how we support young women before it becomes a situation of need, to give them the access, encouraging confidence before it becomes a dire situation?

[Sonya Shorey]

I love this topic. Inspiration in the schools. Role models. If you see her, you—

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

How do we get you in the schools?

[The Chair, Liberal, Judy Sgro]

Thank you very much. I think this could go on for much longer, but we have other witnesses.

I have to suspend for a few minutes while we do a sound check on our witnesses, so I will suspend.

Thank you very much for that valuable information. Maybe we'll have to have you back. We'll have to see.

[The Chair, Liberal, Judy Sgro]

I call the meeting back to order.

We have with us now, from the Canadian Women's Chamber of Commerce, Nancy Wilson, chief executive officer.

From the Fédération des agricultrices du Québec, Valérie Fortier, president, by video conference.

From the Organization of Women in International Trade, we have Nathalie Bradbury, president, OWIT Ottawa.

Welcome to you all. We will start with opening remarks of up to five minutes.

Ms. Wilson, you have the floor, please, for up to five minutes.

[Nancy Wilson, Chief Executive Officer, Canadian Women's Chamber of Commerce]

Thank you, Madam Chair and members of the committee.

My name is Nancy Wilson. I'm the founder and CEO of the Canadian Women's Chamber of Commerce, or CanWCC. CanWCC is the only chamber of commerce in Canada that specifically represents and advocates for the 1.2 million women and non-binary business owners across the country. We have over 1,000 members across all provinces and territories. We also have an extensive partner network of entrepreneur support organizations and corporations that sell products and services that business owners need. We provide connection, community and a national conversation to advance change.

The women's entrepreneurship strategy, or WES, while not without limitations, has provided essential support and visibility to organizations like CanWCC. To drive genuinely inclusive economic growth, I believe the government must commit to long-term, sustainable WES funding. Economic equity requires consistent and cumulative investment. Organizations like the Canadian Women's Chamber of Commerce deserve the same government backing as the Canadian Chamber of Commerce, especially when you consider that over the past decade, fewer than 5% of policies endorsed by the Canadian Chamber have even mentioned the words “women” or “female”.

Approximately 18% of SMEs in Canada are majority-owned by women, but, of course, only 11% of those businesses export. Women entrepreneurs often face limited access to capital, which hinders their ability to expand internationally. In addition to transportation, logistics and customs fees, there are foreign exchange gains, losses and expenses to navigate. While large corporations may mitigate currency risks through hedging, small and micro-businesses typically lack these resources and can suffer significant losses. Small businesses are more likely to pay higher fees when they exchange smaller amounts of currency more often. They are also exposed to unfavourable exchange rates and other fees when they pay U.S. dollar and other currency bills with credit cards.

Government policies, or perhaps a lack thereof, around procurement further signal a lack of commitment supporting women entrepreneurs. While the federal government set a 5% procurement target for indigenous suppliers starting in 2022, there is still no equivalent commitment for women-owned businesses, despite the women's entrepreneurship strategy being introduced in budget 2018.

My final comment relates to support for the self-employed: 80% of women entrepreneurs, 50% of Black entrepreneurs and 68% of indigenous entrepreneurs are self-employed. Many of these individuals will become the SMEs of the future. If we want them to be successful exporters, we need to support them in developing the skills and strategies that enable them to do so from day one.

CanWCC's advocacy is based on advancing economic equity for all Canadians. Our economy thrives when diverse perspectives are represented, valued and integrated. Long-term funding, meaningful procurement targets and accessible resources for self-employed and women-owned businesses are essential to building a fairer, more inclusive marketplace. We stand ready to work hand in hand with government, industry and community partners to break down barriers and to champion lasting, meaningful change.

Thank you so much.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Next we have Ms. Fortier, please, for up to five minutes.

[Valérie Fortier, President, Fédération des agricultrices du Québec]

Good afternoon, Madam Chair and members of the committee.

Allow me to introduce myself. I'm Valérie Fortier, and I'm a farmer and president of the Fédération des agricultrices du Québec. I am co-owner of a dairy farm in Saint-Valère, Quebec. I own 71% of the business, and my father owns 29%.

The Fédération des agricultrices du Québec is the only farm organization in Quebec dedicated exclusively to women in the sector, and the only women's farm organization in Canada that is so structured. It is made up of 10 regional farm women's unions that take part in decisions affecting the agricultural sector and the status of women. The federation is also a specialized group in the Union des producteurs agricoles, or UPA.

Thanks to an initial grant from Canada Economic Development for Quebec Regions between 2019 and 2023, we developed a women's agricultural entrepreneurship program called Dimension E. The program provides tailored services to women entrepreneurs in agriculture and forestry. It strengthens the potential of all women farmers by giving them tools and support for their entrepreneurial endeavours.

Through this program, women have access to a multitude of services, such as training, free consultation hours with experts, entrepreneurial mentoring and access to a support network for women entrepreneurs.

In 2023, we received a second grant, this time from Innovation, Science and Economic Development Canada, specifically from the Women Entrepreneurship Strategy Ecosystem Fund, which enabled us to roll out our program across Canada. Since the program launch, we've supported more than 700 Canadian women farmers in their entrepreneurial journey.

Canada has more than 75,000 women farm operators, who make up 28.7% of all farm operators. We also note that women get into agriculture in less traditional ways than men. Farm transfers between family members or others are the main entry point into agriculture. However, 44% of women start their own farms rather than receiving them through transfers, compared with 32% of men.

I'd like to make a recommendation to increase the number of women owners or co-owners of farm businesses. Our Dimension E program can equip women with leadership and management skills, but one major hurdle that women entrepreneurs encounter is access to financing. Research shows that, no matter what the field, women are less likely to apply for financing. When they do, they're judged by different criteria than men and are often subject to stricter standards. A December 2023 study by the Canadian Federation of Independent Business showed that 22% of women's applications are turned down, whereas the average is 15% for businesses as a whole. What's more, women generally receive less financing than men.

Women agricultural entrepreneurs face an additional financing hurdle, which is access to financing after age 40. Most current programs are designed to support the next generation of women entrepreneurs, but studies show that women farmers tend to start a business after the age of 40; that is, after having raised their family and worked for many years in the family business, generally for free. Adapting these programs or creating others to promote financing for women over 40 would increase the number of women farm owners and ensure their autonomy.

I'd like to make a second recommendation. We're very grateful for the funding we received from the Women Entrepreneurship Strategy Ecosystem Fund. Without this major assistance, we would not have been able to set up such a program and support so many women entrepreneurs. My recommendation would be that the government continue to fund women's agricultural projects. Given that, in 2024, women made up more than 50% of agricultural school students, supporting women agricultural entrepreneurs means supporting thriving, fair and sustainable agriculture. It means investing in Canadians' pantry, but also investing in the world's pantry, since Canada ranks eighth among the largest exporting countries of agri-food products worldwide.

Thank you for inviting me to testify.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Ms. Bradbury, you have up to five minutes, please.

[Nathalie Bradbury, President, OWIT Ottawa, Organization of Women in International Trade]

Thank you.

Madam Chair, members of the committee and distinguished guests, good afternoon.

I will give my remarks in English, but I invite you to speak to me in the official language of your choice.

I am speaking to you today from the unceded traditional territory of the Algonquin Anishinabe people, who have been here for millennia. Their culture and presence continue to nurture this land that we all benefit from and enjoy.

I am Nathalie Bradbury, president of the Organization of Women in International Trade, Ottawa chapter. OWIT Ottawa is a Canadian independent, non-profit corporation established in 2010 and run by volunteers. OWIT Toronto was established in 1999.

We are part of a growing international association of about 30 chapters worldwide and expanding steadily, with another dozen in the works around the world, thus demonstrating the continually growing recognition of the importance of women's participation in trade globally.

OWIT Ottawa members are trade professionals. They work in corporate finance, trade law, cross-border tax, defence procurement, freight forwarding, the foreign service and other areas. OWIT supports women entrepreneurs by facilitating trade through skills development and working with our partner organizations, such as the Forum for International Trade Training, an ISO-certified Canadian organization that provides professional trade certification worldwide.

OWIT also aims to contribute to trade policy development by conveying the concerns of women entrepreneurs to all levels of government, and also to the World Trade Organization, UNCTAD, the International Trade Centre and others.

OWIT Toronto also works with the Trade Facilitation Office of Canada, which helps SMEs from developing countries export to Canada. FITT and TFOC also partner with OWIT at the international level and provide services throughout their OWIT chapters overseas. We collaborate with local businesses, through Invest Ottawa and SheBoot, providing their members with insights, knowledge and guidance on international trade. We act as a bit of an international division or international conduit, to help them understand the difficulties of international trade.

We are grateful to be making our third appearance before this committee, and I want to take the opportunity to talk to you about what our members are saying about the important issue of trade and gender. The first time we spoke to your committee was in 2017, I believe, with the renewal of NAFTA.

I want to begin by recognizing and thanking the government for the WES and the groundbreaking policies, programs and funding it has provided. Annual share from the WEKH, the World Entrepreneurship Knowledge Hub, has already been mentioned, so I won't go into that. EDC also notes that women-owned businesses contribute more than $117 billion to Canada's economy. These are great indicators of progress.

We look forward to seeing the evaluation of the WES, so that direct results can be identified and next steps recommended. We also recognize that Canada has been a world leader in advancing women's interests through trade agreements, and we hope this will continue.

Since 2017, Canada has been advancing trade and gender chapters and bringing inclusivity more broadly throughout the trade agreements. Progress at the bilateral level, such as the Canada-Chile FTA and CETA with the EU, can often go further than at the WTO, but both tracks are needed to build awareness and to make progress internationally.

OWIT also acknowledges that the trade advisory services, the CanExport program and trade missions organized by the TCS, and the financial services offered by EDC have had positive outcomes for women exporters.

The whole-of-government approach to enabling women to become full participants in the economy of trade has been truly foundational. Several witnesses have already touched upon important domestic issues, so I will be focusing more specifically on trade issues.

The first important point I would like to make is that trade is complicated, and it's difficult. Professionals spend their whole careers working in trade fields such as those I mentioned earlier. Plus, there's a whole army of specialists working strictly on the chapters and non-conforming measures. We're talking about tariff lines, HS codes, TRQs, rules of origin, trade and services, SPS, TBT—the list goes on and on. It is no wonder business people are surprised when they look to trade internationally.

We recommend that new exporters look first to building connections with trade experts, such as with OWIT in Canada and our chapters overseas—some of our colleagues in the organizations that have presented have some knowledge—but also that they reach out to the government services that are there to help them on their journey.

I would like to highlight a few successful women exporters.

[The Chair, Liberal, Judy Sgro]

Ms. Bradbury, I'm sorry to interrupt. Your five minutes are up, and the committee members have lots of questions. If you could save your closing remarks and possibly be able to answer some questions, it would be appreciated. Thank you very much.

Mr. Martel, you have six minutes, please.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you very much, Madam Chair.

I'd like to thank the witnesses for being with us today.

I don't know who will be able to answer my first question, but it is for all of you, ladies.

We have to take into account the economic challenges that many Canadian women face and that make it difficult for them to save up to start a business.

What could we learn from the Swedish model, for example, where women rely more on their personal networks and savings rather than government funding, and where the percentage of women entrepreneurs is nonetheless 30%, whereas it's 19% in Canada?

[Nathalie Bradbury]

I'll begin by saying that all the studies show that women rely heavily on family support or other means to start their businesses. They like to borrow much less than men and rely more on their own financial means and on those close to them. That's what we're seeing in Canada as well.

The African chapters of our organization tell us that, too often, women are in the informal sector, and we can say that the same holds somewhat true in Canada. Many women are sole proprietors and are not considered businesses. They don't like to incorporate. In Canada, as in Africa, we're therefore trying to encourage them to become more involved in the formal sector, so that banks and other institutions will agree to lend them money, for example.

It's good to do business with your family's help and in a slightly more personal way, but it's also good to have a bigger presence in the more formalized system, to be able to take advantage of everything it offers.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Thank you.

Does anyone else wish to add something?