International Trade Committee on Oct. 30th, 2024

[The Chair (Hon. Judy A. Sgro (Humber River—Black Creek, Lib.)), Liberal, Judy Sgro]

I call the meeting to order.

This is meeting number 124 of the Standing Committee on International Trade.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Monday, September 16, 2024, the committee is resuming its study of Canadian women in international trade.

Before I introduce the witnesses, I just have to mention to the committee that we have a photographer booked for November 4, which is Monday's meeting, if that's okay with everybody. Come looking as great as you always look.

[Mona Fortier, Liberal, Ottawa—Vanier, ON]

Do we have to smile, too?

[The Chair, Liberal, Judy Sgro]

It helps.

We'll have a photo. It's something that's usually done once a year, so we'll have that done.

On November 4, which is Monday, we have the softwood lumber study. November 6 will be draft report consideration of the supply chain study and the seafood study.

We have two informal meeting requests that the clerk sent out to all members of the committee for your thoughts. NASCO—which is the North American Strategy for Competitiveness Network—is visiting Ottawa. They've asked to meet with us for an hour on November 18.

There's a delegation from Colombia that has asked to meet with the committee on November 20 for an hour.

Is it okay with the committee if we have them come to the committee for the second hour on November 18 and the second hour on November 20?

[Chandra Arya, Liberal, Nepean, ON]

Chair, may I?

Again, as we mentioned to the delegation from Ecuador, the committee time is limited. If it is of strategic value for the committee in the near to medium term, then we should give the committee hours. If not, there can be an informal meeting elsewhere.

[The Chair, Liberal, Judy Sgro]

What's the feeling of the committee?

Mr. Savard-Tremblay.

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

Personally, I agree that we should hear from these people, despite the topics we had already agreed to study. It's not every day that delegations tell us they are interested in coming to talk about certain subjects. They will be visiting Ottawa before going back to Colombia. I think it makes sense.

[The Chair, Liberal, Judy Sgro]

Mr. Desjarlais.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

I agree with my colleagues that if they're going to be present here.... We've heard that they have important issues. If they're requesting to meet with us, I'd say it's quite imperative.

Of course, I do take into consideration Mr. Arya's concerns about timing.

Madam Chair, I'd leave it to you and your recommendation to suggest whether or not we have time.

I'd imagine, since you're posing the question, that we would have time.

[The Chair, Liberal, Judy Sgro]

It's been worked into the calendar with the clerk, if the committee wants to go forward.

[Blake Desjarlais, NDP, Edmonton Griesbach, AB]

That's very good.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Madam Chair, I think we agree that you have a day to manage the reports that we have. If you feel that we're going to be here anyhow and we can fit this group in if they're here, then I think we give that to you.

Obviously, we wouldn't want to take away from a day or any future days where we have important meetings, but if that's a day you can fill, why not? Let's do it.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

If the calendar avails itself, as suggested by the clerk, we will go forward on the second hour. We'll have the first hour of our regular business and we will allow them the second hour, if we feel a whole hour is necessary.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Madam Chair, I apologize, but I just want to ask now, because I'm not aware of the group that's making this request.

[The Chair, Liberal, Judy Sgro]

It's NASCO, which is the North American Strategy for Competitiveness Network.

[Tony Baldinelli, Conservative, Niagara Falls, ON]

Okay.

[The Chair, Liberal, Judy Sgro]

Are we all right?

To our witnesses, I apologize for a few minutes of delay.

We have with us today, from the Asia Pacific Foundation of Canada, Christine Nakamura, vice-president, central Canada office, by video conference.

From Invest Ottawa, we have Sonya Shorey, president and chief executive officer, also by video conference.

We welcome you both to the committee.

We will start with opening remarks and then proceed with rounds of questions. You have up to five minutes.

Ms. Nakamura, would you like to start, please?

[Christine Nakamura, Vice-President, Central Canada Office, Asia Pacific Foundation of Canada]

Thank you, Madam Chair.

The Asia Pacific Foundation is an independent not-for-profit organization dedicated to strengthening ties with Asia through research, education and convening activities to facilitate connections between Canadians and counterparts in the Indo-Pacific.

Studies have shown that advancing gender equality and increasing women's economic engagement in Canada could potentially add $150 billion in incremental GDP by 2026. This projection prompted our team to see how our expertise on Asia could contribute to intensifying women's participation in the economy, and particularly those who lead small and medium-sized enterprises, or SMEs.

In 2017, SMEs accounted for about 99.8% of all employer businesses in Canada. However, only 15.6% of the total were majority women-owned, and of these, only 11.1% exported. To help grow the number of women SMEs who export, we launched the women's business missions series to Asia in 2019 to facilitate introductions of Canadian women entrepreneurs to potential business partners in the burgeoning markets of Asia. From 2017 to 2018 we spoke to over 300 women in business across Canada, who told us that they lacked the confidence to tackle the culturally diverse and unknown markets of Asia. They did, however, conclude that if introductions, facilitated through trade missions dedicated to women, could be arranged by agents experienced in navigating these markets, they would attempt market entry.

In spring 2019 we led a pilot mission to Japan, with women entrepreneurs in health tech who specialized in elder care, to address the needs of Japan's aged society. The results included NDAs and MOUs to collaborate on R and D, and agreements for product localization and distribution. Discussions are still under way, which is a good indication that there will be more outcomes in the future.

In summer 2019 we were selected to receive funding from the women's entrepreneurship strategy ecosystem fund, enabling us to lead another six successive missions to key markets in the Indo-Pacific from 2020 to 2023. As expected, our two in-person missions after COVID generated the majority of the outcomes so far, but soon we will embark on our eighth mission to Taiwan and Vietnam.

With WES funding we also created the Canadian Women's International Network, or CanWIN, a spinoff of our trade missions to further support women SMEs. CanWIN offers a powerful network of global connections that provide necessary supports to women in international trade.

This year, on Canada's National Indigenous Peoples Day, we hosted CanWIN's inaugural global summit in Toronto, bringing together over 150 women and gender-diverse participants from across Canada and seven economies in the Indo-Pacific to network and share best practices. We featured a special panel of indigenous business leaders from member economies of the Indigenous Peoples Economic and Trade Cooperation Arrangement, or IPETCA. We also spotlighted award-winning next-generation entrepreneurs from Canada and staged a pitch competition for five talented Canadian finalists in front of an international jury of investors.

To date, 212 women and gender-diverse participants, including business and thought leaders, participated in our seven missions, highlighting Canada's rich cultural and regional diversity; 740 tailored business-to-business meetings were curated; and almost 4,500 women and male allies engaged in our activities across Canada and Asia to advance gender economic empowerment. Our trade mission series generated a conservative estimate of about $21.5 million Canadian in sales and investments as of August 2024, and there are close to 70 business discussions in progress.

The funding enabled us to reach out to under-represented groups of entrepreneurs and “futurepreneurs”, including those who are indigenous women, women of colour and LGBTQ+, to inform them of the opportunities offered by Asian markets and to ensure inclusive representation on our delegations. Our outreach efforts also connected us to many organizations across Canada that support women's entrepreneurship, resulting in a more coordinated approach to helping women founders.

Our results are only a small sampling of what is attainable with curated support for women SMEs that export. With sustained investment, women will continue to drive Canada's economic growth in the years to come.

In closing, I make several recommendations. The first is to continue efforts to weave together independently run supports for women founders to export.

The second is to provide supports not only to early-stage start-ups but also to later-stage start-ups to increase export growth, because there's a gap.

The third is to follow company growth for years, not just once, because to capture accurate growth metrics, you need to continue. It takes a while for results to come out.

Lastly, expand the reach of women-focused supports across associations and chambers of intersectional minority groups.

I'll stop there, Madam Chair. Thank you for the opportunity.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll go to Ms. Shorey for up to five minutes, please.

[Sonya Shorey, President and Chief Executive Officer, Invest Ottawa]

Thank you, Madam Chair and all members of the committee, for the opportunity to share the vision, progress and lessons learned from Invest Ottawa, your lead economic development agency here in Canada's capital, and all of the partners we're honoured to collaborate with.

Together, as an ecosystem, we're committed to empowering women founders, CEOs and business owners from every single walk of life to reach international markets and thrive globally.

If you see her, you can be her.

In Ottawa, we're privileged to collaborate with remarkable women founders who serve as powerful role models in Canada and for the world: Elizabeth Audette-Bourdeau, founder and CEO of Welbi, who is transforming senior care; Alida Burke, co-founder of Growcer, who is addressing food security and sustainability; Erin Kelly, CEO and founder of Advanced Symbolics, who is enabling AI decision-making; Sarah Sedgman, founder of LearnExperts, who is enabling a revolution in the trainer sector; and Heather Ward, who is president of Hyperion Global Energy, a carbon technology capture company.

These leaders are creating a triple bottom line of economic, social and environmental impact, as well as advancing UN sustainability goals.

At Invest Ottawa, when we say “women”, we include all individuals who identify as women, including women of colour, transgender women and those with gender-diverse identities. These women have faced systemic barriers, and together with partners like SheBoot, the Capital Angel Network and so many others, we're committed to prioritizing equity, access and inclusion. In our programs, we are working hard to ensure everyone who accesses our support, together with our partners, feels welcomed and empowered.

Since 2017, our strategy has addressed systemic challenges facing women entrepreneurs, particularly around capital and global market access.

The data speaks volumes. Women own less than 16% of Canadian businesses, yet women-founded companies drive significant economic, social and environmental value. Our ecosystem is dedicated to amplifying and enabling this impact.

In 2018, at Invest Ottawa, we created a women founders and owners subcommittee of our board, with leaders from diverse backgrounds. We also contributed to the development of a women founders and owners strategy, a road map to make Ottawa the best city globally for women to launch, grow and scale impactful global companies. Among our goals is to establish Ottawa's first woman-owned $100-million company and inspire a pipeline of many more.

Our strategy revolves around four key thrusts: to promote, educate, equip and connect. This strategy has increased women's participation in our programs significantly over the last six years. In our Invest Ottawa scale-up program alone, 77% of the technology companies generating $500,000 to $2 million minimum in annual recurring revenue now have at least one woman founder, co-founder or senior executive. That's up from single digits, and many of these companies are now exporting globally.

Investment remains a key challenge for women founders. On Planet Earth, only 2.2% of venture capital in the first half of 2024 went to women sole founders. Mixed-founder teams fare slightly better, but the disparity is clear. For women founders from marginalized groups, venture capital is less than 1%.

It's critical to break these barriers for our economy and society. Studies consistently show that women-founded companies generate higher revenue per dollar invested, underscoring the tangible value and resilience they bring to this market.

In 2020, Invest Ottawa and the Capital Angel Network, led by Jennifer Francis, Julia Elvidge and me, created SheBoot, an investment readiness boot camp that is now national and is addressing this challenge head-on. It enables more women to get funded, and it gets more women investing. When more women are investing, more women get funded. Research demonstrates that.

Since its inception, SheBoot has helped to catalyze more than $25 million in follow-on funding for 50 participating women founders, preparing them to attract capital and navigate the complexities of global expansion.

Join us to see our fifth cohort in action at our SheBoot pitch competition on November 12 here in Ottawa. Big applause goes to our Capital Angel Network partners, where women now comprise 30% of investor membership, a significant increase over years past.

We've also launched international women's month, another key initiative uniting 50 partners annually from within and beyond our region, across the country and around the world.

It's a long-term driver for sustainable change, not just creating a critical mass of successful women leaders here in Ottawa and beyond but also enabling us to serve as role models to inspire others.

These initiatives we are championing directly address so many of these challenges, but more is needed. We can truly make Ottawa the best city and Canada the best country for women to launch, scale and lead companies that fuel our economy and change our world for the better.

Collaboration is crucial. Reports estimate it will take 131 years to close the gender gap. We need everyone working together. We invite all people, organizations and sectors to join us.

Our work is just beginning. We have a long way to go. I truly believe that with intention, collaboration and commitment, and with all the partners across this country and so many leaders, Canada can lead and change the world.

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll go to Mr. Williams for six minutes, please.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Thank you very much, Madam Chair.

Thank you to our witnesses for attending today. It's really great to have you here on this important study.

Ms. Shorey, I will start with you. Thank you for representing all the entrepreneurs in Invest Ottawa, a very important organization.

With your extensive background in policy advocacy and government relations, how do you see federal taxation policies affecting Canadian women entrepreneurs involved in international trade, particularly when it comes to market access?

[Sonya Shorey]

When we think about taxation, we don't think about it in isolation. We think about the entire business environment, all of the policies, how they work together and how they are designed to be inclusive, to encourage and break down barriers. We would see things such as the funding available, all of the supports available, and taxation and procurement from our domestic side all working together as a suite. The more that we can do to encourage all founders, including women founders and marginalized founders, to think big, be bold and pursue big, bold dreams, certainly, the more we can do together to create the kind of environment that makes it very lucrative to stay and to grow deep roots here.

Our scale-up program is all about that. It's about how we can encourage more founders to anchor here, to make great roots and continue building and scaling and not leave for the U.S., where there are certainly some very distinct advantages.

We are working hard to collaborate with all levels of government, industry and our founder community, to encourage them to look broadly at everything we have in our policy environment. Here in Canada, we are distinct. Our culture has many critical advantages, and we have a quality of life that is second to none.

When we talk to founders, including women founders, these considerations are absolutely critical—an environment where you can raise children and grow a company that thrives, that is safe, that is encouraging and where you can get the quality of life that you deserve. Everything operates as a suite. I don't see anything operating in isolation.

[Ryan Williams, Conservative, Bay of Quinte, ON]

That's fantastic. I loved your quote. You said that, if there are more women entrepreneurs investing in women entrepreneurial businesses, there will be more women entrepreneurs getting invested in.

We see part of the solution to that as open banking in Canada. The Americans are closer than we are right now. They're close to getting some compliance, and they have 4,400 banks. Part of that would be seeing open banking and some of those applications go into venture capitalism, where right now we have $6 billion of funding in Canada. To your point, only 2.2% of that worldwide goes into sole female-led enterprises. The Americans have $200 billion.

We see that perhaps we're losing an advantage. By having open banking implemented quickly in Canada, we can make sure that we can take that advantage and hopefully see more female-led venture capital groups invest in more female-led businesses. Would you see that as an advantage from your standpoint?

[Sonya Shorey]

Again, I think everything works together as a suite. I think we need to create pathways for more women angels. It's the entire cycle of venture capital. From the earliest stages right up through the venture capital, I think certainly there are many advantages to be had, but we need to inspire more women to pursue that career path—it starts very early—and enable more women to become educated about the opportunity and the ability to invest.

There are many organizations that we collaborate with across this country. The Capital Angel Network and SheBoot are anchored here in Ottawa, but together with BDC's “Thrive” venture capital funds, StandUp Ventures, Phoenix Fire, The Firehood, Women's Equity Lab, The51 Ventures and Sandpiper Ventures are all leading by example with women who are bringing new women investors into the pipeline and creating the inspiration that enables them to see themselves as investors, which I see as one of the anchor challenges.

Before we think about all of those other advantages, we have to equip women to see themselves in those roles. We have to create pathways and make the opportunity something that's possible.

[Ryan Williams, Conservative, Bay of Quinte, ON]

Thank you.

Ms. Nakamura, you also talked also about second-stage scale-up, getting some more funding for acceleration. It's getting from the start-up stage to the growth stage, where we can see good IP generation and development commercialization.

Can you please tell me about your ideas for seeing more acceleration of businesses that are female-led? How do we really put emphasis onto those businesses, and how does that relate to getting more of those businesses ready for international trade?