Opinion: Supporting women entrepreneurs is crucial to Alberta's economy

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Jess Black had a big idea — to develop first-of-its-kind active workwear for women made of stretchy, fire-retardant fabric. 

But turning that innovative idea into a successful business hasn’t been easy.

Although Canada is recognized as a global leader in women’s entrepreneurship, women like Jess still face a number of barriers.

The first, and arguably the most important, is access to financial capital needed to start and grow a business. The second is social capital — the opportunities to build a community or network of like-minded people with role models and mentors. And the third is entrepreneurial capital which is the knowledge and financial acumen required to run a business.

Advancing women entrepreneurs like Jess is critical to Alberta’s long-term economic prosperity. Stymied by systemic barriers, Alberta might just be missing out on its largest resource — the power of the female economy and untapped potential of women entrepreneurs. 

Over the past decade, we’ve seen an unprecedented rise in women’s entrepreneurship and Alberta has been at the forefront of this growth, boasting one of the country’s highest rates of women entrepreneurs. 

The Global Entrepreneurship Monitor report on Women’s Entrepreneurship in Alberta shows that 15.5 per cent of women here are involved in starting a business. This is higher than the national rate as a whole (13.3 per cent) and higher than all other innovation-driven economies, including the U.S., Australia and the U.K.

But the challenges facing women entrepreneurs mean women own fewer than 16 per cent of Canadian businesses and are under-represented in the economy overall.

When it comes to breaking down these barriers, we need to — as some people say — follow the money. 

There is an abundance of evidence showing female business owners raise less capital than their male counterparts. In Canada, nearly 90 per cent of investment deals disclosed by Canadian Venture capital funds over the past five years went to companies founded exclusively by men.

But there’s one source of financing that may just be a game-changer for women — crowdfunding. 

According to PwC Consulting and the Crowdfunding Centre, crowdfunding is the only financing source where women outperform men. Not only are women 32 per cent more successful than men in reaching their target, they also tend to pull in a higher average pledge amount.

While rewards-based crowdfunding isn’t new, it is an alternative form of financing that isn’t widely promoted or used.

For entrepreneurs, the benefits of crowdfunding can be great for starting or growing a company. Through the process, they’re able to raise money, validate their idea, and market to a crowd. A successful campaign can also make it easier to obtain more traditional financing and find potential investors.

That was the thinking behind ATB’s Build Her Business crowdfunding campaign, first launched last year with the support of our president and CEO Curtis Stange. Through the campaign, Albertans are able to support fellow Albertans by contributing a small amount of money in exchange for a reward if the crowdfunding goal is met. 

For women like Jess Black, crowdfunding has been crucial. Jess participated in ATB’s Build Her Business campaign where she had an opportunity to promote her business, validate her ideas and get the backing she needs to get to market.

Now, with some vital financial support, Jess is one step closer to launching a clothing line this spring under her textile and clothing start-up Jess Black Inc. 

Women make a significant contribution through their diverse ideas, products and services. They bring a different perspective to understanding and solving the world’s complex issues. Studies also show that women entrepreneurs contribute close to $150 billion to the Canadian economy. By advancing women’s economic participation in the economy, Canada could add up to $150 billion in GDP by 2026.

The full and equal participation of women in the economy is not just the right thing to do, it’s good for the bottom line. When women like Jess are successful, our economy, community and society benefit.

Shannon Pestun is director of women’s entrepreneurship at ATB Financial and a member of the government of Canada’s Women’s Entrepreneurship Expert Panel. ATB’s second Build Her Business campaign launched on Women’s Entrepreneurship Day, Nov. 19.