This text is part of the special Feminine Leadership notebook
Although there are more and more women-owned businesses in the country, they remain little visible in certain markets. Addressing the lack of diversity at the heart of Canadian supply chains by allowing women entrepreneurs to take their place among the suppliers of large companies is precisely the reason for the Maïa project, Inclusive Growth, whose official launch is scheduled for April.
“With this project, we want to ensure that the supply chains of our large companies are more inclusive,” explains Ruth Vachon, president and CEO of the Quebec Business Women’s Network (RFAQ), an organization that is the origin of the initiative, announced last December. “We want to remove the obstacles linked to the integration of women-owned businesses into the supply chains of large companies. »
In order to achieve this objective, the RFAQ attempts to list the “groups” discriminated against because they are invisible in order to improve their discoverability. Thus, 750 businesses run by women will benefit from a boost and 50 large companies will be made aware of the importance of supplier diversification and will be helped in implementing more equitable initiatives on an economic and social level. “What they do today, they do not necessarily do out of bad will,” notes Mme Vachon. But women, being mostly heads of small businesses, often lack visibility. We will try to make it easier for them to enter the supply chains. »
The project is notably funded by the federal government’s Women in Entrepreneurship Strategy. Other partners such as the Business Development Bank of Canada, the Women’s Enterprise Organizations of Canada and the Canadian Gay and Lesbian Chamber of Commerce are also behind this initiative.
Awareness tours on the importance of supplier diversification and development of technological tools will be part of the means used by the RFAQ to mobilize the different companies within the framework of the Maïa project. The initiative therefore offers companies the opportunity to quickly find new partners, thus strengthening their brand reputation through the promotion of their diversity initiatives. Ultimately, this approach stimulates innovation by opening the way to new possibilities and solutions, both for consumers and businesses, thus contributing to a dynamic and progressive business environment. It is a project that will transform the landscape of access to supply for the benefit of women entrepreneurs, but also large corporations and, ultimately, the Canadian economy, believes the RFAQ.
Barriers present
In addition to the lack of visibility of women-owned businesses, other obstacles remain to their integration into supply chains. Because they are not used to working with them, contract givers are sometimes afraid of their ability to deliver, explains M.me Vachon. Diversifying your suppliers, she adds, certainly requires reviewing your practices and being creative. The large company must be well aware that the small company with which it is going to do business is not the multinational with which it knows how to work, but rather an entrepreneur to whom it is going to give a helping hand. To get him started, she can for example place split orders or sign over-the-counter contracts, which are less demanding since they do not put the companies in competition with each other, illustrates the president and CEO.
According to M.me Vachon, not understanding the importance of each gesture made towards greater inclusion, no matter how small, also harms the integration of businesses owned by women. “People say to me: ‘You know, Ruth, I don’t have any big contracts to give.’ Except that if you give him a $2,000 contract today, eventually, you’ll be able to give him a $4,000 contract. And if this entrepreneur has the legitimacy to put your logo to show that you are one of her clients, we gain a lot,” maintains the one who defends the idea that “diversification allows you to move beyond the usual playing field.”
The effect of each step that could lead to a change in the supply chain environment must also be understood by the corporations in the sights of the RFAQ. Ruth Vachon believes they are ready to make this leap. “If large companies want to change things, they will succeed, because they are the ones who have the choice,” says the CEO. They can, for example, decide to share their calls for tenders on more diversified channels in order to ‘go look for interesting businesses that are owned by women. It’s a quick path to action, she believes.
In 2023, in Canada, 18% of businesses were majority owned by women, while in 2017, they were only 15.6%, cites Ruth Vachon, based on a study entitled State of play of female entrepreneurship in Canada 2023. An increase which is synonymous with progress, according to her. “Initiatives like ours on the diversification of supply chains play a big role. More and more actors are talking about it. Larger companies are increasingly aware of this challenge. More and more business people are becoming aware that women entrepreneurs need support because there are still few of them who are already in the field. It takes someone to bring them out of hiding,” she concludes.
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This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.