Thank you so much.
Good afternoon. My name is Meseret Haileyesus, a founder and the executive director of the Canadian Center for Women's Empowerment, CCFWE. We are the only Canadian not-for-profit organization that focuses on addressing economic abuse and injustice through system change, research and advocacy.
I stand before you today to address the paramount issue of the economic empowerment of women.
Economic abuse impacts 95% to 99% of domestic violence survivors. Women survivors report losing sources of income due to domestic violence, yet they have no way of pursuing business ventures because of the strict background checks, including credit score checks.
Women-owned businesses, particularly those run by single moms, represent a significant and growing sector of the global economy, driving innovation, creating jobs and fostering economic growth. However, women entrepreneurs often confront systemic barriers that limit their progress and potential. It's our duty to address these disparities, empower women in business and create a more inclusive and prosperous society.
Women-owned businesses have long faced disparities in accessing financial resources. Access to microcredit, funds and a steady income are common challenges confronted by survivors of domestic abuse. Most women who have survived gender-based violence experience unemployment and are recipients of social welfare or disability support programs. Racialized women often face a dual challenge in obtaining capital for their businesses. They experience gender bias as well as racial disparities in accessing financing. Discriminatory lending practices and limited access to venture capital can significantly hinder business growth.
Dear honourable members, policy-makers must immediately implement policies that promote equitable access to financial resources for women-owned businesses. This includes ensuring secure banking services, offering specialized loans for women of colour and start-ups, providing affordable banking options and establishing clear guidelines for disentangling joint bank accounts following separation and divorce.
These policies support women-owned businesses by fostering secure financial practices, removing obstacles like limited access to financial institutions and discrimination, and ensuring equitable services for asset ownership. These measures are essential for preventing predatory lending practices, enhancing economic self-reliance and driving sales and profits, ultimately contributing to greater financial stability for women entrepreneurs.
In addition to this foundational work, the Canadian Center for Women's Empowerment respectfully urges the standing committee to enact the following recommendations.
First, identify the regulatory barriers that disproportionately affect racialized women-owned businesses, and systemic and structural racism.
Second, invest in building a collective federal strategy with financial institutions to remove the existing regulatory barriers and to encourage survivors who are interested in entrepreneurship by offering trauma-informed microentreprise or entrepreneurship programs. Microenterprise and entrepreneurship programs provide survivors with practical opportunities such as skills development and mentorship, ensuring survivors' economic safety.
Third, create economic incentives so financial institutions can actively support women-owned ventures. This includes the provision of low-interest loans, grants and venture capital specifically earmarked for women-owned businesses. Furthermore, fostering partnerships between government agencies and financial institutions can significantly enhance accessibility.
Fourth, fund and support research on women-owned businesses to better understand their challenges and opportunities. This data-driven approach will enable the development of evidence-based policies and initiatives.
Fifth, work with provincial and territorial governments to establish transparent reporting requirements for businesses and government agencies to track their support for women-owned enterprises.
Sixth, foster international trade and export opportunities for women-owned businesses through trade agreements, education programs and access to global markets.
Dear honourable committee members, policy-makers must champion these policies to drive their implementation for the benefit of women entrepreneurs and the broader economy. These steps foster equity, dismantle systemic barriers and harness the vast potential of marginalized women entrepreneurs to drive economic growth and innovation. Empowering racialized women is not only a social justice issue; it's imperative for our nation's prosperity and competitiveness.
Let's collectively ensure racialized women entrepreneurs flourish. Together, we can take bold action to uplift racialized women entrepreneurs, creating a more equitable and prosperous society that celebrates diversity and provides economic opportunities for the next generation.
I would like to thank you, committee members, for your interest in this important topic and, most importantly, for having this conversation through a public hearing.
Thank you.