This text is part of the special Business Challenges booklet
For several years, we have observed a (slow) growth in the number of female entrepreneurs. Portrait of these women and the challenges they face.
15%, 40%… What is the percentage of women among entrepreneurs? “We hear everything like a number, but it depends on how we define ‘entrepreneur’,” explains ESG-UQAM professor Christina Constantinidis. The one who founded the Entrepreneurship and Gender Observatory notes that women are increasingly taking their place in the world of entrepreneurship, even if we are still far from parity.
“The most notable growth over 20 years is among the self-employed,” she notes. In 2021, there will thus be nearly 30,000 more self-employed women than in 2002.
These women are moreover often surprised to be considered as entrepreneurs: yet, even without employees, they assume 100% of the financial risks, create their activity and are fully responsible for their business. “They are full-fledged entrepreneurs,” says Ms.me Constantinidis, who however noticed that Quebec women were more comfortable with this label than European women, the notion of entrepreneurship being more positive on this side of the Atlantic. Self-employed women in care, human services and education are even more likely not to see themselves as entrepreneurs. “It’s absurd because they have an extremely important societal impact,” she notes.
The proportion of women among all self-employed workers in Quebec is also increasing. In 2021, 37% of self-employed workers were women, compared to 32% in 2001. Their proportion has therefore been growing slowly for 40 years (28% in 1981).
But if we isolate the incorporated self-employed workers who receive paid help or the businesses majority-owned by women (51% or more of the shares), parity is far from certain. The proportion of incorporated self-employed women has stagnated since the 1990s (around 20% women, 80% men). Only 16% of companies (SMEs with at least one employee) were majority-owned by women in 2017, a figure that increases to 37% if companies owned 50/50 by a woman and a man (often a couple) are included. .
We also observe a real transformation of gender models in the handover of companies to succession, traditionally from father to son, but increasingly from father to daughter. “It’s changing, it’s becoming more egalitarian. But not all companies are ready for that,” says Ms.me Constantinidis.
Entrepreneurship differently
Despite this growth, which could be described as rather timid, the researcher does not want to pass judgment. “For a long time, the argument has been put forward that women must accelerate the growth and increase the size of their businesses, which are economic levers. But a growing body of research points out that this growth is not necessarily good. It destroys resources and creates inequalities,” says M.me Constantinidis.
Not for biological reasons, but rather a consequence of social structures, women do business differently. A study in the United States noted that women draw the line between private and professional life less firmly, “by choice or because they are asked to do so”, says Ms.me Constantinidis, who noted the same trend in interviews made here and in Europe. This interconnection — which has been amplified with the pandemic and working from home — allows a lot of flexibility, but also brings additional challenges (from stress to burnout).
Challenges that persist
Women entrepreneurs face various obstacles. “It’s a bit depressing, they’ve been almost the same for 40 years,” laments Mme Constantinidis. One of the big challenges is access to finance. Perhaps because they need it less (due to the size of the company or the sector) or because they lack information. “Women are less likely to seek external financing — from the bank, from angel investors, etc. “, she mentions. And when they do ask, women (and other minorities) are more turned down because they don’t fit the stereotypes of the young, male, white entrepreneur.
It also remains that the networks of women entrepreneurs, despite the essential role of support and contact that they play, “are not necessarily the networks most connected to those who provide funding”, according to the professor. There is therefore still a long way to go to get rid of the boys’ clubs.
This special content was produced by the Special Publications team of the To have to, pertaining to marketing. The drafting of To have to did not take part.