9.1 The Impacts of COVID-19 on Women Entrepreneurship
5 MIN READ
Like most spheres of society, the entrepreneurial landscape has been hit hard by the COVID-19 pandemic. Women entrepreneurs, already facing their own challenges, have not been immune to the changes brought on by this “new normal.”
Top COVID-19-related challenges identified by women entrepreneurs:1
What research is telling us so far
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Business survival: According to a Femmessor survey with women entrepreneurs from Quebec, almost half the respondents said they needed extra financing to ensure the survival of their businesses or to adapt to the current reality.2 Women entrepreneurs also voiced concerns about pandemic-related revenue loss.3
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Business size: Businesses with fewer than 20 employees have been hit harder by the pandemic.4 It should be noted that 92.7% of majority women-owned businesses have fewer than 20 employees.5
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Operating sectors: Pandemic-related restrictions have had a major impact on many sectors, such as hotels, restaurants, tourism, retail as well as businesses specializing in health and beauty. These sectors are particularly common among women entrepreneurs.6
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Staff management: Since the pandemic began, 40.8% of women-owned businesses have been forced to reduce their staff, with more than half of those same businesses having to lay off 80% of their employees.7 Other HR management issues have been raised, including ensuring employee/client safety (fear of COVID-19), supporting employees in stressful times and overseeing telework arrangements.8
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Clientele: 61% of women-owned businesses have lost contracts and clients due to COVID-19, as opposed to 34% for all small or medium-sized businesses.9
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Domestic violence: Studies show that women are more likely to experience domestic violence in times of crisis (even more so in situations of social isolation).10 Helplines for victims of domestic violence in various Canadian provinces have had an increasing numbers of calls, in some cases even doubling compared to the same period pre-pandemic.11 Alarmingly, Women’s Shelters Canada also notes that over 50% of women staying in shelters said that the violence they experienced had intensified since the pandemic began.12
Potentially exacerbated barriers
Access to information: Since the pandemic began, entrepreneurs have been overwhelmed with information about new public health measures, support programs and funding opportunities. Given that information barriers already existed for Canadian entrepreneurs (see Tool 3.1), it is not surprising to learn that pandemic-related changes have compounded these daunting challenges. Some women entrepreneurs report that dealing with this new information has been difficult, especially when it comes to finding and qualifying for COVID-19 financial support.13
Disqualifying factors: Since the pandemic began, various types of financial support have been offered to entrepreneurs. However, many women report that they don’t have access to numerous funding sources because they do not meet the eligibility criteria. This is the case for some unincorporated businesses, sole proprietorships, part-time businesses, start-ups and businesses with Indigenous employees. Gradually, adjustments have been made to the eligibility criteria to better support women-owned businesses. However, they have often come too late for companies that were forced to close or are still struggling to make ends meet.14
Family responsibilities: 53% of women entrepreneurs said they have spent more time taking care of their children since the pandemic began, as opposed to only 12% of men entrepreneurs.15 Women often must juggle telework, new schooling arrangements and missing or disrupted professional/family support networks.16 Tool 5.7 addresses the pandemic’s impacts on women entrepreneurs’ work-life balance.
Access to education/training/career development: The pandemic has ushered in significant changes in educational practices. Education accessibility and quality have been impacted, as have training and career development opportunities for current and aspiring entrepreneurs.
Underrepresented women: The pandemic has exacerbated barriers for many underrepresented women. For Indigenous entrepreneurs and those in rural areas, reliable Internet access remains a significant problem. This challenge is even greater in the current context as the pandemic often means telework, which requires access to reliable networks.17 For many women entrepreneurs who are immigrants or from ethnic minorities, the pandemic has seen an upswing in discrimination, especially involving entrepreneurs of Asian origin who have experienced racism and xenophobia directed towards their population.18
Hope for the Future
- New entrepreneurial approaches: The pandemic has prompted many entrepreneurs to review their practices and find new ways to promote their businesses. Although it has upended the status quo, COVID-19 has at times been a catalyst for innovation and new entrepreneurial approaches.19
- Shared experiences: Despite the social isolation imposed by the pandemic, many initiatives have allowed individuals to stay connected to the entrepreneurial ecosystem. Thanks to webinars, online sharing platforms and social networks, entrepreneurs have had opportunities to discuss their own COVID-19-related experiences, leading to much-needed conversations and a better understanding of entrepreneurial realities and needs during the pandemic and for the post-pandemic future.
- Community support: The COVID-19 pandemic has led to a new wave of entrepreneurial solidarity, including new partnerships and stronger local/regional support networks. This show of support bodes well for the future of Canadian entrepreneurship.
- Online entrepreneurship: The pandemic has evidently spurred a shift to online entrepreneurship, which could prove beneficial for many businesses. An effective online presence can help companies to promote new products/services, reach a wider clientele and ensure more efficient communication with the entire entrepreneurial network.20
Tips to better support women entrepreneurs during the pandemic
Staying informed: Clients may have felt overwhelmed by the array of options available to them, including new support programs and funding sources since the pandemic began. By staying informed about these changes, lenders can provide their clients with frequent updates. Women’s Enterprise Organizations of Canada (WEOC), for example, offers an extensive list of COVID-19-related resources for women entrepreneurs.
Relationship-based approach: The pandemic’s impact on mental health is ranked among women entrepreneurs’ top 3 concerns.21 Now more than ever, women entrepreneurs need your help. You can show your support by assisting them with their business ventures. In these uncertain and difficult times for some entrepreneurs, a relationship-based approach can be highly beneficial. Don’t hesitate to contact your clients to see how they are doing and to tell them how you or your lending institution can help them during the pandemic.
Online presence: Due to social isolation and related restrictions, online communication has become essential for some. Lenders and lending institutions must engage in effective online communication with their clients if they wish to stand out from their competitors. To create or maintain positive relationships with clients, be sure to stay on top of new trends and take advantage of all the benefits that technology provides.
2 Femmessor (May 2020). Regard sur l’entrepreneuriat féminin en période de Covid-19, Analyse des résultats de l’enquête effectuée entre le 16 et le 20 avril 2020, https://femmessor.com/femmessor/data/files/pdfs/2020-05-01_femmessor_rapport_sondage_covid-19_web.pdf, p. 3.
3 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 8-9.
4 Julie Cafley, Katie Davey, Tania Saba, Simon Blanchette et al. (September 2020). Economic Equality In A Changing World : Removing Barriers to Employment For Women, Toronto, Diversity Institute, Toronto Metropolitan University, https://www.ryerson.ca/diversity/reports/RemovingBarriersToEmploymentForWomen_EN.pdf, p. 19.; Wendy Cukier (June 2020). “COVID-19 may turn back the clock on women’s entrepreneurship”, The Conversation, https://theconversation.com/covid-19-may-turn-back-the-clock-on-womens-entrepreneurship-139961 (page consulted January 28th 2021).; Erin Millar, Teara Fraser and Suzanne Siemens (March 2020). “Women-led small businesses are among the most undercapitalized and vulnerable to failing, and they’ll need more than a 10 percent wage subsidy”, Policy Options, https://policyoptions.irpp.org/fr/magazines/march-2020/federal-aid-package-wont-save-small-businesses-from-covid-19-fallout/ (page consulted February 5th 2021).; Statistics Canada (May 2020). Impact of COVID-19 on Small Businesses in Canada, STATCAN COVID-19: Data to Insights for a Better Canada, Catalogue no. 45280001, https://www150.statcan.gc.ca/n1/en/pub/45-28-0001/2020001/article/00018-eng.pdf?st=3M3Vw2Ts (page consulted February 24th 2021).; Women Entrepreneurship Knowledge Hub (2020). The State of Women’s Entrepreneurship in Canada 2020, Toronto, Diversity Institute, Toronto Metropolitan University, p. 55.
5 Douwere Grekou, Jiang Li and Huju Liu (2018). The Measurement of Business Ownership by Gender in the Canadian Employer-Employee Dynamics Database, https://www150.statcan.gc.ca/n1/pub/11-633-x/11-633-x2018017-eng.htm (page consulted October 22nd 2020).; Women Entrepreneurship Knowledge Hub (2020). The State of Women’s Entrepreneurship in Canada 2020, Toronto, Diversity Institute, Toronto Metropolitan University, p. 7.
6 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 1.; Julie Cafley, Katie Davey, Tania Saba, Simon Blanchette et al. (September 2020). Economic Equality In A Changing World : Removing Barriers to Employment For Women, Toronto, Diversity Institute, Toronto Metropolitan University, https://www.ryerson.ca/diversity/reports/RemovingBarriersToEmploymentForWomen_EN.pdf, p. 20.; Femmessor (May 2020). Regard sur l’entrepreneuriat féminin en période de Covid-19, Analyse des résultats de l’enquête effectuée entre le 16 et le 20 avril 2020, https://femmessor.com/femmessor/data/files/pdfs/2020-05-01_femmessor_rapport_sondage_covid-19_web.pdf, p. 7.; Catherine François (March 2020). « Coronavirus au Canada : un plan pour venir en aide aux entrepreneuses », TV5 Monde, https://information.tv5monde.com/terriennes/coronavirus-au-canada-un-plan-pour-venir-en-aide-aux-femmes-entrepreneuses-352817?fbclid=IwAR0_hgunPELyQfd3ba5iJWSFnfxHTAuNVcY7m3DmT1K9YG3furPaz1INKmA (page consulted September 9th 2020).; Guangying Mo, Wendy Cukier, Akalya Atputharajah, Miki Itano Boase and Henrique Hon (July 2020). « Differential Impacts during COVID-19 in Canada : A Look at Diverse Individuals and Their Businesses », Canadian Public Policy, UTP Journals, University of Toronto Press, Volume 46, No S3, October 2020, pp. S261-S271, https://www.utpjournals.press/doi/full/10.3138/cpp.2020-072 (page consulted February 18th 2021).; Women Entrepreneurship Knowledge Hub (2020). The State of Women’s Entrepreneurship in Canada 2020, Toronto, Diversity Institute, Toronto Metropolitan University, p. 55.; Women Entrepreneurship Knowledge Hub (May 2020). The Impact of COVID-19 on Women Entrepreneurs, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2020/05/WEKH_The_Impact_of_COVID-19_on_Women_Entrepreneurs-1.pdf, p. 4.
7 Wendy Cukier (June 2020). “COVID-19 may turn back the clock on women’s entrepreneurship”, The Conversation, https://theconversation.com/covid-19-may-turn-back-the-clock-on-womens-entrepreneurship-139961 (page consulted January 28th 2021).; Statistics Canada. Table 33-10-0231-01: Staffing actions taken by businesses during the COVID-19 pandemic, by business characteristics, https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310023101&request_locale=en (page consulted March 1st 2021).; Statistics Canada. Table 33-10-0232-01 : Percentage of workforce laid off because of COVID-19, by business characteristics, https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310023201&request_locale=en (page consulted March 1st 2021).
8 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 11-12.
9 Canadian Women’s Chamber of Commerce and Dream Legacy Foundation (May 2020). Falling Through The Cracks: Immediate needs of Canada’s Underrepresented Founders, https://canwcc.ca/wp-content/uploads/2020/05/Falling-through-the-Cracks_CanWCC_May2020v19.pdf, p. 14-15.
10 Julie Cafley, Katie Davey, Tania Saba, Simon Blanchette et al. (September 2020). Economic Equality In A Changing World : Removing Barriers to Employment For Women, Toronto, Diversity Institute, Toronto Metropolitan University, https://www.ryerson.ca/diversity/reports/RemovingBarriersToEmploymentForWomen_EN.pdf, p. 15.; Canadian Women’s Foundation, Ontario Nonprofit Network, Canadian Centre for Policy Alternatives and Kathleen Lahey (May 2020), Resetting Normal : Funding a Thriving Women’s Sector, https://canadianwomen.org/wp-content/uploads/2020/05/Resetting-Normal-Report-Womens-Sector.pdf, p. 9.
11 Stéphanie Marin (April 2020). « COVID-19 : une Canadienne sur 10 redoute la violence familiale au foyer », La Presse Canadienne, Le Soleil, https://www.lesoleil.com/actualite/covid-19-une-canadienne-sur-10-redoute-la-violence-familiale-au-foyer-video-f20d34a552fc8084e33ce3f3f209508b (page consulted February 26th 2021).; Brenna Owen (October 2020). « Les appels aux lignes d’aide pour femmes en hausse », La Presse, https://www.lapresse.ca/covid-19/2020-10-15/violence-conjugale/les-appels-aux-lignes-d-aide-pour-femmes-en-hausse.php (page consulted March 1st 2021).; Nicole Thompson (February 2021). “Domestic violence reports continue to rise due to COVID-19 pandemic”, The Canadian Press, https://www.cp24.com/news/domestic-violence-reports-continue-to-rise-due-to-covid-19-pandemic-1.5309133 (page consulted March 1st 2021).
12 Women’s Shelters Canada (November 2020). Shelter Voices, Special Issue: The Impact of COVID-19 on VAW Shelters and Transition Houses, http://endvaw.ca/wp-content/uploads/2020/11/Shelter-Voices-2020-2.pdf, p. 3.
13 Femmessor (May 2020). Regard sur l’entrepreneuriat féminin en période de Covid-19, Analyse des résultats de l’enquête effectuée entre le 16 et le 20 avril 2020, https://femmessor.com/femmessor/data/files/pdfs/2020-05-01_femmessor_rapport_sondage_covid-19_web.pdf, p. 3.; Guangying Mo, Wendy Cukier, Akalya Atputharajah, Miki Itano Boase and Henrique Hon (July 2020). « Differential Impacts during COVID-19 in Canada : A Look at Diverse Individuals and Their Businesses », Canadian Public Policy, UTP Journals, University of Toronto Press, Volume 46, No S3, October 2020, pp. S261-S271, https://www.utpjournals.press/doi/full/10.3138/cpp.2020-072 (page consulted February 18th 2021).
14 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 13-15.; Women Entrepreneurship Knowledge Hub (February 2021). Webinar: She-Covery, The Role of Women’s Entrepreneurship in Pandemic Recovery, https://www.youtube.com/watch?v=sF0bCeWLlek (webinar offered February 23rd 2021).; Women Entrepreneurship Knowledge Hub (May 2020). The Impact of COVID-19 on Women Entrepreneurs, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2020/05/WEKH_The_Impact_of_COVID-19_on_Women_Entrepreneurs-1.pdf, p. 8-25.
15 Canadian Women’s Chamber of Commerce and Dream Legacy Foundation (May 2020). Falling Through The Cracks: Immediate needs of Canada’s Underrepresented Founders, https://canwcc.ca/wp-content/uploads/2020/05/Falling-through-the-Cracks_CanWCC_May2020v19.pdf, p. 14-15.
16 Julie Cafley, Katie Davey, Tania Saba, Simon Blanchette et al. (September 2020). Economic Equality In A Changing World : Removing Barriers to Employment For Women, Toronto, Diversity Institute, Toronto Metropolitan University, https://www.ryerson.ca/diversity/reports/RemovingBarriersToEmploymentForWomen_EN.pdf, p. 15-16.; Jackie Dunham (April 2020). “Women disproportionately ‘bearing the brunt’ of coronavirus crisis, advocates say”, CTV News, https://www.ctvnews.ca/canada/women-disproportionately-bearing-the-brunt-of-coronavirus-crisis-advocates-say-1.4907309 (page consulted February 24th 2021).; Véronique Dupont (June 2020). “Why women bear the brunt of virus fallout in workplace”, CTV News, https://www.ctvnews.ca/health/coronavirus/why-women-bear-the-brunt-of-virus-fallout-in-workplace-1.4993403 (page consulted February 24th 2021).; Women Entrepreneurship Knowledge Hub (2020). The State of Women’s Entrepreneurship in Canada 2020, Toronto, Diversity Institute, Toronto Metropolitan University, p. 55.; Women Entrepreneurship Knowledge Hub (May 2020). The Impact of COVID-19 on Women Entrepreneurs, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2020/05/WEKH_The_Impact_of_COVID-19_on_Women_Entrepreneurs-1.pdf, p. 3-4.; Carmina Ravanera (April 2020). “Primer on the gendered impacts of COVID-19”, Gender and the Economy, https://www.gendereconomy.org/primer-on-the-gendered-impacts-of-covid-19/ (page consulted February 25th 2021).
17 Women Entrepreneurship Knowledge Hub and Canadian Council for Aboriginal Business (December 2020). Breaking Barriers, A decade of Indigenous women’s entrepreneurship in Canada, Toronto, Diversity Institute, Toronto Metropolitan University, p. 1.
18 Angus Reid Institute and University of Alberta (June 2020). Blame, bullying and disrespect: Chinese Canadians reveal their experiences with racism during COVID-19, https://angusreid.org/wp-content/uploads/2020/06/2020.06.22_Discrimination_Chinese_Canadians.pdf (page consulted March 2nd 2021).; Jessica Lee (August 2020). “Chinese Canadians share their experiences of racism during COVID-19”, Maclean’s, https://www.macleans.ca/society/chinese-canadians-share-their-experiences-of-racism-during-covid-19/#gallery/covid-racism/slide-1 (page consulted March 2nd 2021).; Geoff Mcmaster (July 2020). “Majority of Chinese-Canadians say they’ve experienced discrimination because of COVID-19: study”, Folio, University of Alberta, https://www.ualberta.ca/folio/2020/07/majority-of-chinese-canadians-say-theyve-experienced-discrimination-because-of-covid-19-study.html (page consulted March 2nd 2021).; Carmina Ravanera (April 2020). “Primer on the gendered impacts of COVID-19”, Gender and the Economy, https://www.gendereconomy.org/primer-on-the-gendered-impacts-of-covid-19/ (page consulted February 25th 2021).; Yasmeen Serhan and Timothy McLaughlin (March 2020). “The Other Problematic Outbreak: As the coronavirus spreads across the globe, so too does racism”, The Atlantic, https://www.theatlantic.com/international/archive/2020/03/coronavirus-covid19-xenophobia-racism/607816/ (page consulted February 24th 2021).; Maryam Shah (June 2020). “Canadians of Chinese ethnicity report widespread racism over coronavirus: suvey”, Global News, https://globalnews.ca/news/7091118/coronavirus-racism-chinese-canadians/ (page consulted March 2nd 2021).; Statistics Canada (September 2020). Expériences of discrimination during the COVID-19 pandemic, https://www150.statcan.gc.ca/n1/daily-quotidien/200917/dq200917a-eng.htm (page consulted March 2nd 2021).; Nick Wells (February 2021). “Chinese-Canadians voice worries about racism, job losses one year into pandemic”, The Canadian Press, CTV News, https://www.ctvnews.ca/health/coronavirus/chinese-canadians-voice-worries-about-racism-job-losses-one-year-into-pandemic-1.5299682 (page consulted February 24th 2021).
19 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 1,9.; Femmessor (May 2020). Regard sur l’entrepreneuriat féminin en période de Covid-19, Analyse des résultats de l’enquête effectuée entre le 16 et le 20 avril 2020, https://femmessor.com/femmessor/data/files/pdfs/2020-05-01_femmessor_rapport_sondage_covid-19_web.pdf, p. 3, 10.
20 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 23.
21 BMO and Women Entrepreneurship Knowledge Hub (November 2020). Women Business Owners and the Impact of COVID-19: Pre-read Document for Roundtable Event, Toronto, Diversity Institute, Toronto Metropolitan University, https://wekh.ca/wp-content/uploads/2021/01/Women_Business_Owners_and_the_Impact_of_COVID-19.pdf, p. 7.; Canadian Women’s Chamber of Commerce and Dream Legacy Foundation (May 2020). Falling Through The Cracks: Immediate needs of Canada’s Underrepresented Founders, https://canwcc.ca/wp-content/uploads/2020/05/Falling-through-the-Cracks_CanWCC_May2020v19.pdf, p. 12-15.
All documents prepared for the LEADING LENDERS project were developed in line with the most appropriate and recent terminology. However, we recognize that terminology is subject to change over time. To the best of our ability, we have attempted to use terminology that respects the dignity and rights of all individuals.
