Evidence of meeting #65 for Status of Women in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was company.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Lesley Lawrence  Senior Vice President, Ontario, Business Development Bank of Canada
Ramona Benson  Chief Commercial Officer, Globacon Inc., As an Individual
Geneviève Dion  Cofounder, Parents jusqu'au bout
Marilyne Picard  Cofounder, Parents jusqu'au bout
Michelle Scarborough  Managing Director, Strategic Investments and Women in Tech, Business Development Bank of Canada
Caroline Codsi  President and Founder, Women in Governance
Lynsey Thornton  Vice-President, User Experience, Shopify Inc.
Shifrah Gadamsetti  Chair, Board of Directors, Canadian Alliance of Student Associations
Alexandra Clark  Director, Public Policy, Shopify Inc.

8:45 a.m.

Conservative

The Chair Conservative Marilyn Gladu

Good morning, colleagues. We are excited to have gender equality, gender parity, before our committee today. How wonderful that is.

Today we have a very exciting bunch of witnesses for our study on the economic security of women in Canada. We have from the Business Development Bank of Canada, Lesley Lawrence, the senior vice-president; and Michelle Scarborough, the managing director of strategic investments. We also have, from Globacon, Ramona Benson, the chief commercial officer.

Also with us are Marilyne Picard, Geneviève Dion and Marie-Ève Tétreault, from the organization Parents jusqu'au bout.

Welcome ladies.

We are going to give you seven minutes per organization, but before we do that, I want to let the committee members know that our analyst, who works so hard on our behalf, is getting married on Saturday.

8:45 a.m.

Some hon. members

Hear, hear!

8:45 a.m.

Conservative

The Chair Conservative Marilyn Gladu

She's normally joyous. I expect to see only an improvement in that over time. Congratulations to you.

We'll begin with the Business Development Bank of Canada. I will turn it over to Lesley, for seven minutes.

8:45 a.m.

Lesley Lawrence Senior Vice President, Ontario, Business Development Bank of Canada

Thank you, Madam Chair and committee members, for having us here today.

My name is Lesley Lawrence. I am the senior vice-president overseeing the financing and consulting activities in Ontario of the Business Development Bank of Canada. I have also championed the bank's initiatives to support women entrepreneurs. I would also like to introduce my colleague, Michelle Scarborough, who is the managing director for strategic investments and women in tech at BDC.

Before I touch on women entrepreneurs, I would like to share a few notes about BDC. We are Canada's only bank dedicated exclusively to entrepreneurs and are a financially sustainable crown corporation. We provide support to small- and medium-sized businesses in the form of loans, investments, and advice. We do not provide grants or subsidies, rather we support viable and creditworthy businesses.

One path toward achieving economic security can be entrepreneurship, and as you know, women are changing the face of entrepreneurship. Their businesses contribute greatly to Canada's economy—$148 billion annually, according to RBC Economics.

I want to share with you a few of those faces of women-led companies that BDC supports, like Caitlin MacGregor of Plum, who has a SaaS, or software as a service platform, that removes the bias in hiring to help employers pinpoint the best applicants for jobs. There's also Jodi Glover of Real Tech, who designs and manufactures water quality analyzers that detect common impurities in real time to improve global water quality. Fairware is another company that creates sustainable custom promotional materials. They are passionate advocates for changing the way business is done by sourcing not only sustainable materials, but also ethically sourced materials, and they also happen to be a B corp-certified company, or beneficial corporation. However, as you've heard throughout your study, women are not only under-represented in entrepreneurship, but also face distinct challenges when it comes to starting and growing a business. At BDC we are continually working to improve how we support women entrepreneurs to ensure their full participation in the Canadian economy.

Let me take you back a couple of years to where we started the women entrepreneur initiative. In 2014, BDC created a women entrepreneur task force to determine potential gaps between the needs of women entrepreneurs and our services, and then put forward recommendations on how to improve that support. This led to the launch of our women entrepreneur initiative in March 2015, which would be threefold: first, we committed to increasing our lending to at least $700 million in loans to majority-owned women businesses; second, we earmarked $150,000 for sponsorship for specific programs, events, and initiatives focused on women entrepreneurs; and third, we would create a pan-Canadian delivery and support system, a network of people within BDC to support women entrepreneurs.

Where are we today? I'm very pleased to report that at the end of two years of the three-year initiative this past March, we reached 89% of our $700-million target for women-owned businesses. That means we've lent nearly $621 million since March 2015, and will definitely exceed our $700-million budget, with less than one year of the initiative remaining. But rest assured, we are not slowing our pace at all.

Perhaps even more impressive is how many more women entrepreneurs we now support. Over these same two years, the number of women-led businesses supported by BDC has grown by 27%, from 3,300 to just over 4,200. The 27% growth of the women entrepreneur portfolio outperforms the growth of BDC's overall portfolio for the same period, which was 22%.

We know that we can't go at this alone, and that is also why we partner with different organizations already doing great work in the space, so we can improve our collective impact to women entrepreneurs.

We partner closely with Futurpreneur Canada, whom I know you've also heard from in the context of this study. By working with Futurpreneur, we can help extend the amount of capital available to young entrepreneurs.

Another great partner is the Women's Enterprise Centre of Manitoba, whose CEO I believe you heard from earlier this month. Yesterday we announced our partnership with them, whereby we can match up to 100% of the money that the Women’s Enterprise Centre of Manitoba lends to women entrepreneurs. This provides more capital to women and helps them scale up their business.

In skills development, we also partner with CPA Canada and Community Futures Development Corporation to deliver financial literacy workshops across Canada, which also play an important role in confidence building for women entrepreneurs.

Futurpreneur pairs each entrepreneur with a mentor, which we all know to be crucial to their success. We also recently worked with Futurpreneur on an awareness campaign through social media, which promoted entrepreneurship as a viable career option and shone a spotlight on successful positive women entrepreneur role models.

As you may know, we also recently stepped up our commitment to women entrepreneurs by dedicating an additional $50 million in growth and venture capital for women-led tech firms. That said, we know it can be particularly hard for women starting tech companies or growing them. That is why we launched this program and recently hired Michelle to run it. She is an accomplished serial entrepreneur and has been a pioneer in the venture capital industry in Canada over the last 20 years. As you may know, in venture capital, simply having a woman investor on the team increases the likelihood of a woman-led business receiving an investment. To date, of the companies we've invested in through the venture acceleration program, 15% are women-led.

To conclude, be it lack of access to capital, developing networks or mentorship needs, women entrepreneurs continue to face many challenges in the business world. However, we hope that we can continue to be part of the solution. Our aim is to be a world-leading financial institution for women business owners, and Michelle, and I, and others will always remain open to your questions and feedback.

Thank you very much for your attention today.

8:50 a.m.

Conservative

The Chair Conservative Marilyn Gladu

Excellent. Thank you very much.

We'll go now to Ms. Benson for seven minutes.

8:50 a.m.

Ramona Benson Chief Commercial Officer, Globacon Inc., As an Individual

Thank you for having me here today.

The economic security of women cannot be addressed unless we look at three factors: education, employment, and entrepreneurship. What I'll do is go backward and start with entrepreneurship.

I've looked at a study conducted by the OECD in 2014, named “Enhancing Women's Economic Empowerment Through Entrepreneurship and Business Leadership in OECD Countries”. It found that when it comes to entrepreneurship, more men prefer to be self-employed than women. The reasons for that, as noted in a European Commission study in 2013, were a fear of bankruptcy, a lack of available financial support, and the complex situation of reaching funding.

They found that women, more than men, start ventures for non-pecuniary reasons, such as satisfaction with their work, the possibility of making a difference in the community, or a search for a good balance between work and family life. What it came down to was that women started businesses out of necessity, becoming entrepreneurs because they could not find employment in the labour market.

If we look at employment, we see that women need to have equal access to opportunity. That comes down to really making sure that top management and leadership are committed to making sure that there is equality in hiring and that they promote women in organizations. That comes down to the actions of CEOs, senior managers, and managers, who influence this entire gender change and gap in corporations.

Let's look at education, which is really the core fundamental. I'm here to suggest a drastic change to our education system. I've been fortunate enough to work for many companies, including two German companies, an English company, and a Malaysian one. I've worked all over. I come with 10 years of experience in telecommunications. Prior to that I worked for Correctional Service Canada here in Ottawa. In-between, I've worked in small business and government, with international experience.

I found that the best labour force was in Germany, and it came down to their education system. They do a lot of aptitude tests. They do a lot of testing for the process until the age of 11, and after that, based on the testing they do, students have a choice of going into five different types of schooling. After they finish that schooling, up to about grade 9 or 10, they go into an apprenticeship where they work for a few days a week and go to school. It's actually training in the field.

Based on the studies they go through, they either go into a college where they learn a skill, a trade that is matched to a job when they graduate; or they go to university and study, whether it's in engineering, legal studies, or whatnot.

What Germany does is to test their students throughout, from the early age of six. They put them through the right schooling and then then through part-time work where they get paid as well as going to school.

One important thing is that even the students who have finished university have to do one year of internship. Because of the European Union, they are able to go and live abroad, all over the EU, and work. When they graduate, they have a network and real-life experience are able to go to work. They're matched to jobs. That's why their labour market is that much more efficient. When you talk about German efficiency—and we consume their cars, their medicine, and their top technology—it's because of that.

As for what we do here in Canada, I can only speak of Ontario, where a minimum wage of $15 was just announced. I think that is dangerous.

I started my first job when I was 16 years old. I worked at Canada's Wonderland. I thought that was the greatest thing. I decided to do it because I was able to work and then go and play, but I was getting paid $6.40. My first job was selling ice cream out of those carts. I was selling ice cream and cotton candy, but you could pay me $6.40, or whatever the minimum wage was then. If you start at $15 per hour, I would never be hired if I were 16 years old, because why wouldn't you hire somebody with far more education and experience? We're heading down a path that could alienate not only the youth, but also women.

I want to clarify one thing. In Canada, we bring in—what is the quota?—fewer than 300,000 immigrants every year. What you see in Germany is that immigrants from Pakistan, India, China, and Vietnam perform exceptionally well because they go into a system where they are tested in aptitude tests and go through the education system. The parents and teachers discuss the path they want their children to take, so it's a collaborative effort. Today, you have people going to school to become teachers, but there aren't many jobs left.

My brother, for example, started his own company. He creates websites and does marketing, search engine optimization, and branding. When he went to college, he couldn't find an up-to-date coding course and anything on what the disruptive market has introduced in California—the sharing economy and whatnot. He had to learn it on his own and start his company, and he's been successful.

Not everybody is going to have that entrepreneurial spirit. Not everybody is going to be able to have such a job. It starts from early on. I know the education system is under the mandate of the provinces, but I think the federal government should start a process wherein—just like with the marijuana legalization—they would develop a framework that the provinces would then have to manage X, Y, and Z. This is what I believe we should do with our education system, which is really where it stems from. We could throw money at everything and have access to opportunity and funding and education, but it really comes down to what I suggested. That's it.

9 a.m.

Conservative

The Chair Conservative Marilyn Gladu

Thank you very much.

Let's proceed to the presentation by Parents jusqu'au bout.

9 a.m.

Geneviève Dion Cofounder, Parents jusqu'au bout

Hello.

It is an honour to appear before you today to talk about the inequality that we, as mothers of severely disabled and seriously ill children, experience as compared to other Canadian women.

We are women with degrees, we have a career, financial independence, plans and purchasing power, but life has thrown us a curve ball by giving us a child who is seriously ill and severely disabled.

This situation leads to the separation of over 85% of couples like us. That means that 85% of mothers are left to shoulder all these responsibilities alone. Our children require care that we could never have imagined providing, such as tube feeding, suction, tracheotomy care, and the administration of various medications.

9 a.m.

Marilyne Picard Cofounder, Parents jusqu'au bout

To give you an idea of what our lives are like, here is a typical day.

We often wake up during the night to make sure that our child is breathing properly, has not pulled at their feeding tube, to reposition their oxygen tube or to restart the feeding tube. Also, we often have to stay up half the night because our child simply does not want to sleep.

We wake up in the morning at the same time as our child, at 4 a.m. or 5 a.m., we unplug their tubes, administer their medications, and prepare their purees. Feeding our child can take up to 90 minutes for each meal.

We go to medical appointments once or twice a week at the hospital, which in many cases is an hour from home. We have to prepare the tube feeding bag, medications, wheelchair, papers, paperwork and prescriptions, just like for a little baby.

When we get home, we do the daily physiotherapy, occupational therapy, speech therapy, and respiratory therapy exercises.

In the evening, we look after their personal hygiene, which can sometimes take up to an hour.

At bedtime, there is more medicine to be administered, a feeding tube to start up, and then we start all over again the next day.

That is an example of a typical day when everything goes smoothly: no convulsions in the middle of the night, no ambulance, and the child does not catch a virus. This typical day does not consider their siblings either.

9 a.m.

Cofounder, Parents jusqu'au bout

Geneviève Dion

Yes, medicine saves our children, and we are very grateful for that. The assistance programs are not there, however, and it is us, the mothers, who pay the price in 98% of cases.

Stress is a central aspect of our lives. Whether it is owing to fear of losing our child at any time, the family situation that requires hospitalization, or financial stress, we face tremendous pressure.

The care we provide to our children 24 hours per day because of heir fragile health means that it is often difficult to return to the labour market, even when our children are adults.

We end up in physical pain from lifting our children, who get heavier every year. We are constantly on the verge of exhaustion. We neglect our own health, our appearance, and our personal development. Unfortunately, our freedom is severely limited.

In this whirlwind, we have realized that there are a lot of gaps in the public system, in particular as regards the financial assistance provided to families such as ours. In 2015, we therefore founded the movement Parents jusqu'au bout, whose goal is to obtain equality between families with a seriously handicapped child and host families. We have received considerable media and political attention, culminating in the support of the CBC television program, Tout le monde en parle.

In a campaign of just 16 months in Quebec, we got the provincial government to create a new program, the supplement for a handicapped child with exceptional care needs, which will provide additional assistance to some 900 Quebec families.

9:05 a.m.

Cofounder, Parents jusqu'au bout

Marilyne Picard

This assistance is greatly appreciated and is necessary to meet our children's many needs: their specialized therapy, expensive uninsured medications, ambulance fees, and fees related to hospitalization, such as parking and food.

At the same time, however, we as Canadian women are not offered any compensation for the loss of our employment income.

Given our financial situation, we cannot afford to contribute to any retirement savings plan or save for anything. We no longer have any purchasing power. So it is difficult if not impossible for us to purchase a house and a specially equipped vehicle, which we need for our children. We become financially dependant on our spouse, for the 15% of us who still have a spouse, or on society, which puts us back in the 1950s or even back to before women had the right to vote.

In Quebec, the low-income threshold for a single person is $24,000 in 2016-1017. A single mother who is looking after a disabled child receives $9,132 in social assistance in Quebec, which is less than half the low-income threshold, even though it costs $10,000 per year to look after her disabled child.

9:05 a.m.

Cofounder, Parents jusqu'au bout

Geneviève Dion

We cannot make ends meet. We have to put our dignity aside and expose ourselves to everyone by holding fundraising activities. We feel judged, excluded, and like we do not mean anything to society.

We keep going, of course, out of love for our children.

At the federal level, there are a few small programs that provide assistance under certain conditions. A number of them are tax credits, which do not help most families because their income is too low.

Why can a mother with a seriously disabled child under the age of 18 not benefit from a family caregiver program and receive the refundable medical expense supplement?

Why can a mother with an adult disabled child not claim the tax deduction for child care tax expenses and the child disability benefit? A disabled child is still a child, even in adulthood.

We have to become a priority for the government. We have been left by the wayside for too long. By investing in us, the government would make it possible for us to give back to society, contribute to the economy, reclaim our potential, and live in dignity.

9:05 a.m.

Conservative

The Chair Conservative Marilyn Gladu

Thank you.

All right, we're going to our first round of questions, beginning with my colleague Mr. Fraser.

9:05 a.m.

Liberal

Colin Fraser Liberal West Nova, NS

Thank you very much, Madam Chair.

Thank you all very much for being here today. I appreciate your presentations. I have just a few questions.

Ms. Lawrence, thank you for your presentation on the BDC.

You talked about $150,000 in program support, I believe, to promote the services that you provide for women in business. Could you describe a little bit the promotional aspect of BDC's encouraging women to use your services and how that's applied across the country?

9:05 a.m.

Senior Vice President, Ontario, Business Development Bank of Canada

Lesley Lawrence

Sure. I'd be happy to.

Starting out we had allocated the $150,000, which we envisioned to be $50,000 per year. I can tell you that in the first year, we spent more than $150,000. Basically the focus of that was to build awareness and work with partners. We went out and did a number of events on a regional basis.

Maybe I'll take a step back. As part of the structure in the team for this initiative, we have VP sponsors in each geographic region across Canada. As well, we have people from all lines of business, Michelle's line of business and others, who are part of this larger team.

The money that we deployed was really in partnerships with other associations. I talked about CFDC, the Women's Enterprise Centre, and the awareness sessions. We did many sessions on financial literacy. It was really about skill development of women entrepreneurs and building their awareness of what capital is available to them, not just through us but also through other partners in the community, and through a number of different events that we were involved in and actually sponsored.

9:10 a.m.

Liberal

Colin Fraser Liberal West Nova, NS

Being from a small town in Nova Scotia, I know the challenges that many entrepreneurs in rural areas, but in particular women in business, face. There are different challenges, I think, in cities versus in smaller towns.

I wonder if you could comment on that and on what BDC is doing to help encourage women in business in rural areas.

9:10 a.m.

Senior Vice President, Ontario, Business Development Bank of Canada

Lesley Lawrence

We have found that a key element to the success of the strategy so far has been to align with partners and regional partners. We're working with regional development agencies. In particular we do a lot of work with the CFDCs and partner with them. We run sessions that bring women entrepreneurs together, and we come out and help bring them awareness about our financing. We talk about what we can do on our advisory services side.

We run financial literacy sessions, with the CFDCs and the CPA association of Canada, in markets where we know it's not as accessible as it is in a more urban market. We have put more of an emphasis on ensuring that we're doing outreach in the more rural markets with local partners in those markets.

9:10 a.m.

Liberal

Colin Fraser Liberal West Nova, NS

When women entrepreneurs come to the BDC to access funding, counselling and all of those types of programs and services that you deliver, do you see that assisting them in leveraging funds from traditional sources of financing such as banks? Do you at BDC fill a financing gap, which then helps leverage other kinds of investment for women in business?

9:10 a.m.

Senior Vice President, Ontario, Business Development Bank of Canada

Lesley Lawrence

We do. We are a complementary lender. We are meant to fill gaps in the market that others don't fill. To me, because we don't do everything, it's important that they have key relationships with other financial partners to be able to sustain and grow their business.

We will often partner on deals. We'll give some money, and a chartered bank or another lender will give money. It's not just one person at the table to support women entrepreneurs.

9:10 a.m.

Liberal

Colin Fraser Liberal West Nova, NS

Do you have any recommendations or suggestions for this committee as to how the federal government could be assisting BDC in helping to promote or make more easily known the services you provide for women in business?

9:10 a.m.

Senior Vice President, Ontario, Business Development Bank of Canada

Lesley Lawrence

That's an interesting question. I must say I hadn't thought of that when I was coming here today.

I think one of the big things that we have found is the the value of our just building awareness of who we are and what we do in the marketplace, honestly. Support for that is great. We've seen big growth as you've heard. Actually, our portfolio has grown in terms of a higher percentage, as I mentioned, in the bank overall, as well as our number of clients and our market share. We really want to increase the market share.

The visibility part is a big thing for us in terms of women entrepreneurs.

I'm not sure if we could reflect on that and get back to you a little bit more. I certainly appreciate it.

9:10 a.m.

Liberal

Colin Fraser Liberal West Nova, NS

Okay, sure. If you do have thoughts on that, I think you could just submit them.

9:10 a.m.

Senior Vice President, Ontario, Business Development Bank of Canada

Lesley Lawrence

I don't know, but maybe my colleague Michelle does.

You come at it from a different perspective than I do—more traditional. Maybe in terms of your world, you may have other suggestions.

9:10 a.m.

Michelle Scarborough Managing Director, Strategic Investments and Women in Tech, Business Development Bank of Canada

I would need to think about it.

We certainly partner with a number of organizations to expand the message. Certainly the venture capital side is just starting to take off, and there's lots of work to be done there.

Perhaps between the two of us we can reflect on that and provide some commentary back to this committee.

9:10 a.m.

Liberal

Colin Fraser Liberal West Nova, NS

That would be great. Thank you.

Ms. Benson, perhaps I can turn to you for a moment. Thank you for your presentation.

You talked a little bit about corporate boards and some of the challenges that women face in various aspects of business. I wonder if you could comment on specific barriers to women getting roles on governance boards, or becoming a CEO. Are there specific challenges for women in particular that you could identify?