The ardor has been slowed down during a pandemic, but the female entrepreneurial spirit is once again manifesting itself both in terms of business ownership and on boards of directors.
The Quebec Entrepreneurial Index published in March 2021 told us that the atypical recession caused by the pandemic had dampened entrepreneurial momentum. However, women stood out in this undertow. We could observe that the decline in the rate of intention, steps and owners is half as pronounced among them as among men. They were also more likely (24.6%, compared to 17.3% for men) to have identified business opportunities during the pandemic. They were also clearly ahead among new entrepreneurs, i.e. 17.3% compared to 10% among men in 2020, compared to 10% and 9% respectively in 2019. This observation is part of a strong trend, the rise of female entrepreneurship having grown at a rate 3.1 times greater than male entrepreneurship in the 40 years preceding the pandemic, it was written.
This asymmetrical movement is reflected in a noticeable increase today in the number of companies owned by women. In its 2023 report on the state of women’s entrepreneurship in Canada, the Women Entrepreneurship Knowledge Portal notes that 18% of businesses are majority-owned by women, compared to 16.8% in 2020 and 15 .6% in 2017. “Women-owned businesses represent a growing proportion of businesses despite the devastating effects of the COVID-19 pandemic,” the study points out.
The Portal adds that the gender gap in reporting ownership of established businesses has also narrowed. The rate of businesses established by women increased from 68% of the rate of businesses established by men to 77% in 2022.
Also, after a decrease recorded at the height of the COVID-19 pandemic, the number of self-employed women increased slightly, from 975,200 in 2021 to 988,400 in 2022, while the number of self-employed men continues to decline. .
little shadow
A small fly in the ointment: SMEs majority-owned by women have a lower survival rate than SMEs majority-owned by men. In fact, the survival rate after 14 years is under 50% in the first case, under 60% in the second. However, it rises to around 70% when the company is owned equally by men and women.
This observation should also be put in the context that Canadian female entrepreneurs can claim a higher rate of entrepreneurial activity in the start-up phase than their male counterparts. This rate increased from 65% for men in 2021 to 81% in 2022.
This increased presence of women in company management is also confirmed on boards of directors. An overview of the companies making up the S&P/TSX stock market index showed that women now hold one-third (33.7%) of board seats at No. 1er January 2023, compared to 27.9% in January 2020 according to ISS Corporate Solutions. The firm specializing in corporate governance speaks of a summit. The highest presence is seen in utility companies (39.1% of seats) and the lowest (24%) in the healthcare industry.
In comparison, women held 32.3% of directorships on the boards of companies that make up the US stock market index S&P 500.
ISS adds in its press release that the number of female CEOs in companies comprising the Toronto Stock Exchange’s benchmark index has increased from six to nine between 2020 and 2023, and the number of non-employee female board chairs, 13 to 22.
More successful companies
In a blog published last September, analysts from the International Monetary Fund insisted on the fact that “it is essential to increase the proportion of women in management positions. The greater the number of women working in financial institutions and participating in the development of financial policies, the more financial resilience is strengthened. If in fintech companies having women in leadership positions leads to better performance, in the enterprise sector it is profitability that is improved.”
A study by the Institut Montaigne taken up by the French financial media The echoes goes in the same direction. “The more women are present and integrated at all levels of the hierarchy, the better the results for companies. The Institute cites data from a report by the firm McKinsey measuring that out of a sample of 300 companies worldwide, those with the most women in their management bodies are 47% more profitable than those that do not. have none. The Institute adds that the presence of at least one woman on a board of directors would, for example, reduce the risk of bankruptcy by 20%.
The human resources consulting firm Sodexo conducted a five-year study taking into account 50,000 managers in 70 entities who recorded an improvement in their results. “Our global study on gender diversity shows that the best performance is obtained where women represent 40% to 60% of the management workforce,” she concluded.