The State of Entrepreneurship by Black Women in Canada
4 mins read · April 15, 2021
Women Entrepreneurship Knowledge Hub, Black Business and Professional Association, Casa Foundation, de Sedulous Women Leaders
Summary
The report highlights the demographic attributes of Black women entrepreneurs in Canada, their businesses, their inspirations and motivations to start businesses, the barriers they face when starting or scaling their businesses, and their achievements as business owners.
Methodology
This report is based on an analysis of English and French data from a survey sample of 700 Black women entrepreneurs — the largest study undertaken for this group in Canada. The selection is based on the 2020–2021 Rise Up Pitch Competition applicants. Most Black women entrepreneurs in the sample are from Ontario, followed by Quebec and Alberta (which matches the distribution of Black Canadian population).
Key findings
Quantitative Findings
1. Demographic attributes of applicants:
Black women entrepreneurs surveyed in this study are a highly educated population, with 62.7 percent having a bachelor's degree or higher compared to 27.5 percent of Black women overall in Canada.
Most participants indicated they were either African (44.7 percent) or Afro-Caribbean (44.3 percent). It is consistent with data from Statistics Canada that shows that the most common ethnic origins reported by first- and second-generation Black individuals are of African and Caribbean roots. Applicants also identified as North American Black (5.6 percent), European Black (1.1 percent), and "other" (4.3 percent). The "other" category allowed participants to specify, and responses included "Black" or mixed heritage. (i.e., Black and Indigenous, Black and white, etc.).
Most Black women entrepreneurs studied had either been born in Canada (39.7 percent) or had been in Canada for more than ten years (37.1 percent).
This group is also younger and more educated than the general population of Black women in Canada. Almost half of the applicants indicated they do not have dependent children.
2. Business Characteristics:
Most businesses were located in Ontario, followed by Quebec and Alberta. Examining location by major Canadian cities shows that most businesses were located in the Greater Toronto Area (64.1 percent).
Most applicants' businesses had no employees working full-time (74.8 percent), part-time (69.4 percent), or casually (63.1 percent). Also, about 93 percent of businesses had current annual revenues of less than $100,000.
Their businesses tend to operate from home, and almost 80 percent are online. The businesses also are small in size, with the majority having no employees. Approximately half of the businesses owned by Black women in Toronto are in the health care and social assistance, accommodation and food services, finance and insurance, professional services, or retail sectors.
3. Barriers:
The overwhelming majority of applicants used personal financing (81.4 percent); 22 percent used government loans, grants, or subsidies; 22 percent used financing from business owners; and 17 percent used credit from financial institutions.
Qualitative Findings
The primary responses reported by the authors are based on what motivates and inspires the entrepreneurs to continue the journey:
Various motivating factors behind their entrepreneurship engagement are family and community influences, positive and negative personal experiences, and the desire for flexibility and freedom to dictate their work schedules and find financial stability. Entrepreneurs shared feeling proud of the work they put into building their product, business, and brand and their positive feedback. The ability to connect with communities through their businesses and having their efforts come full circle was the ultimate achievement for many.
Takeaways
The author proposes that the report’s findings reinforce the importance of a systems approach: their recommendations are organized within an ecosystem model and include actions at the societal, organizational, and individual levels, below:
Collect disaggregated data on the experiences and the barriers Black women entrepreneurs experience when accessing funding, programming, resources, and other supports.
Promote policies that explicitly support Black women entrepreneurs, including targeted investments, procurement, micro-grants, and childcare.
Ensure that government programming and funding opportunities are allocated equitably using an intersectional approach.
Read the full report here.
References
Rise Up: A Study of 700 Black Women Entrepreneurs. (2021, April 15).
