Budget allocates $5 million for female entrepreneurs

The federal government will spend $5 million over the next two to three years to help address the struggles faced by female entrepreneurs and business owners.

The commitment, though not the dollar figure, was contained in the recent federal budget. Status Of Women Canada later provided the amount.

The spending will focus on things such as adapting new business mentorship models for women, improving online resources and supporting networking opportunities for businesswomen.

That’s welcome news to business coach and entrepreneur Jane Huhtanen.

“I think it’s wonderful that they’re putting some money and effort into it,” Huhtanen said. “Whether it will be enough is hard to say. Only time will tell, but at least it’s a public acknowledgment that something needs to be done.”

Huhtanen’s Toronto-based coaching company, Focal Point Coaching, specializes in helping female entrepreneurs navigate the challenges of the Canadian business environment. She also studies women in the business world, and says it’s still an uphill battle for most.

“The research indicates that, generally, men get approved for bank loans more often than women. A lot of the networking opportunities can be very male-focused. I do come across some old boys’ clubs,” she said.

Lois Volk, the president of the Canadian Association of Women Executives and Entrepreneurs, was more cautious in her optimism about the funding.

“I’m just very curious about how they’ll be developing their plans and who they will be targeting. Five million dollars these days doesn’t seem to be a lot of money,” Volk said.

The budget also mentioned $700 million in financing over three years from the Business Development Bank of Canada to support women-owned businesses. That project isn’t new money.

But BDBC spokeswoman Daniela Pizzuto said she expects it will allow between 300 and 400 more loans to businesses that are majority-owned by women.

Volk said she was surprised that the BDBC would have a special fund set aside for women and that more information on the programming is needed.

“Why would women be applying for this program and not others? Are the criteria different for women or for men? Are the interest rates different?” she wondered.

University of Ottawa business professor James Bowen, a board member with Startup Canada, said it appeared that the new funding is targeted at the later end of the entrepreneurial “pipeline.”

While the measures will likely have some positive effect, Bowen said he wants to see the government focus more on creating an “entrepreneurial culture” in Canada.

“Entrepreneurs aren’t always successful at first, and the support structure needs to continue to nurture them as they improve,” Bowen said.