Thank you. Good morning, Madam Chair and distinguished members.
My name is Shereen Benzvy Miller. I am the assistant deputy minister for small business, tourism and marketplace services, at Innovation, Science and Economic Development.
I'm pleased to be here today, alongside my colleagues from ESDC and Natural Resources. Thank you for providing us an opportunity to speak to you about how ISED is supporting the economic security of women.
There is a growing understanding that addressing the constraints of women's economic empowerment is fundamental to lasting, inclusive, and sustainable economic growth and to the achievement of gender equality
However, women continue to face challenges. We know that women are generally under-represented in entrepreneurship and small business ownership, in science, technology, engineering and mathematics, and on corporate boards. In addition, sometimes general programs and services don't take into account the distinct needs of women.
Let me walk you through some of our department's initiatives and programs that aim to address these issues.
First, women entrepreneurs represent a significant source of untapped talent and potential in Canada. Only 15.7% of small and medium-sized enterprises are majority owned by women, as opposed to 64.7% majority owned by men.
As well, only 5% of women-owned businesses export, as opposed to 12% of male-owned businesses. Despite expressing high growth intentions, women are less likely to scale up their businesses and export due to a number of barriers, such as limited business networks, lack of financial literacy, inconsistent levels of training and mentorship, and lack of access to capital for financing.
For instance, Statistics Canada found in 2014 that only 78% of majority women-owned businesses that requested debt financing has those requests approved as opposed to 91% of majority male-owned businesses that requested it. That's only 78% of women-owned businesses being approved for financing.
ISED is working on determining how to best support women entrepreneurs. As part of this, the program is continually engaging with stakeholders. For instance, on November 9, 2016, the Honourable Bardish Chagger, Minister of Small Business and Tourism, hosted the Canadian Women's Entrepreneurship Conference in Toronto. Businesswomen from across the country came together, as did Minister Hajdu and Status of Women, to discuss the challenges that women entrepreneurs face and to collaborate on ideas to provide better support for them. I am very pleased that more than 250 inspiring women business owners and organizations that support them were able to participate. Going forward, this engagement will inform policies to promote the full participation of women entrepreneurs in Canada's economic development.
During the conference, Minister Chagger announced that she had asked the Business Development Bank of Canada, the BDC, to become a world-leading financial institution for women business owners. This will involve an introspective look at their business processes and how they meet the needs of women.
Minister Chagger also announced BDC's creation of three new initiatives to support women entrepreneurs in the technology sector, totalling over $50 million in investments.
BDC has also committed to increasing its term lending to majority women-owned businesses to at least $700 million over three years ending in fiscal year 2018. BDC is on track to exceed this commitment.
The six regional development agencies support women entrepreneurs and organizations that support women starting and growing their businesses.
For instance, FedDev Ontario announced in June 2016 $880,000 over two years to directly support women's entrepreneurship through Fierce Founders, a specialized program for women in technology industries.
Both Western Economic Diversification Canada, WD, and the Atlantic Canada Opportunities Agency, ACOA, provide financial support to member organizations, like the Women's Enterprise Organizations of Canada. These organizations provide critical business management skills.
ISED programs that support women in business include the Canada Business Network, a comprehensive directory of services for business provided by the federal, provincial, and territorial governments, which has dedicated a landing page for women entrepreneurs featuring the profiles of successful women entrepreneurs. I would also ask you all to follow the Canada Business Network on Twitter. Their handle is @canadabusiness.
Futurpreneur Canada, another ISED program, is a national not-for-profit organization that supports young entrepreneurs aged 18 to 39. Over 40% of Futurpreneur's clients are women.
ISED is also committed to working to improve the representation in the STEM disciplines. For instance, ISED is working with ESDC to help employers create more co-op placements and work-integrated learning opportunities in the STEM and business fields for young Canadians, including young women and indigenous peoples.
The Natural Sciences and Engineering Research Council of Canada's, or NSERC, chairs for women in science and engineering program was launched in 1996 to increase women's participation in STEM disciplines and to provide career role models for women in those disciplines. NSERC's PromoScience program also helps promote STEM culture by supporting non-profit organizations that generate public excitement in STEM and motivate and encourage youth, specifically young women and girls, to participate in STEM activities.
Increasing women's diversity on boards is also recognized as important. To address this, Bill C-25 was tabled in the House of Commons on September 28, 2016, by the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development. The bill concluded its second reading on December 9, 2016, and has been referred to the Standing Committee on Industry, Science and Technology for further study. It will require directors of federally incorporated companies to disclose to shareholders the diversity of their boards.
In conclusion, ISED's policies and programs are helping to foster a workforce that is more inclusive for women. ISED is striving to better support women entrepreneurs and ensure the representation of women in STEM, and to improve diversity on corporate boards. Moreover, by applying the GBA lens to new initiatives, ISED will ensure that women are considered in policies and programs. Together, these actions contribute to the economic empowerment and security of women.
Furthermore, as we look to the future, ISED's new innovation agenda will pursue inclusive economic growth to help realize our country's full economic potential and help strengthen the middle class.
The innovation agenda will help unleash the economic potential of women and other under-represented groups in Canada's entrepreneurial ecosystem.
Thank you for your attention and I look forward to your questions.