Impact Assessment of the Women Enterprise Initiative (WEI

Transcription

FERENCE WEICKER & COMPANY
Impact Assessment of the Women Enterprise
Initiative (WEI)
Prepared for:
Western Economic Diversification Canada
October 6, 2008
Prepared by:
Ference Weicker & Company Ltd.
550-475 West Georgia Street
Vancouver, BC
V6B 4M9
Tel: 604-688-2424
EXECUTIVE SUMMARY
Executive summary
The Women’s Enterprise Initiative
The Women's Enterprise Initiative (WEI) was established by Western Economic Diversification Canada
(WD) in 1994 to encourage the establishment and growth of women-owned and controlled businesses,
encourage self-employment and business development, and promote economic equality between men
and women. This mandate is supported through:
Introducing and promoting the concept of entrepreneurship to women;
Increasing the availability of capital to women-owned enterprises; and
Providing services to help women develop experience, expertise, assets and credit track records,
enabling them to increase both the number and strength of women-owned businesses in Western
Canada.
WEI is implemented by a not-for-profit organization in each province served by WD, including:
The Women’s Enterprise Centre (WEC-BC), which operates in BC;
Alberta Women Entrepreneurs (AWE – the legal name is Alberta Women Entrepreneurs
Association);
Women’s Entrepreneurs of Saskatchewan Inc. (WESK); and
The Manitoba Women’s Enterprise Centre (MWEC).
Each WEI organization is an independent entity which is named and organized uniquely to reflect the
differing needs and client base in each province.
Purpose of the Project
The purpose of this project is to conduct an impact assessment of the WD-funded activities of the four WEI
organizations covering the five-year period from April 1, 2003 through March 31, 2008. The assessment
focuses on both outputs and outcomes:
Key outputs include loans, advisory services, training and information services.
Key outcomes and related performance indicators include the number of businesses created,
maintained and expanded, number of jobs created and maintained, increased revenues, leveraged
financing, and client satisfaction.
Method of Study
We conducted this study in two phases. The primary objective of the first phase was to prepare a detailed
work plan that was then implemented in the second phase of the study. In preparing the work plan, we
conducted an initial meeting with the Advisory Committee established for the project; compiled available
information regarding the funding provided by WD, the services delivered, and the results reported by the
WEI organizations from 2003 to 2008; developed a profile of WEI including a program "logic" model;
defined the research questions, indicators and data sources; and developed the questionnaires for the
impact assessment. We then met with the Advisory Committee to obtain approval of the detailed work plan
prior to proceeding with the field research.
Impact Assessment of the Women Enterprise Initiative
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EXECUTIVE SUMMARY
The major component of the field research involved a survey of a sample of 444 WEI clients drawn from
across the four provinces. At a confidence level of 95%, a sample of 444 WEI clients achieves a margin of
error of about ± 4.6%. Of the 444 clients who participated in the review, 175 were loan clients. These loan
clients accounted for 36% of the number of loans and 38% of the value of loans approved over the past 5
years. Other components of the field research included a focus group with clients in each province and
interviews with 31 WEI and WD staff, 25 Board Members (current and past), and 30 other stakeholders who
work with the target group.
Major Findings and Conclusions
The major findings and conclusions arising from our review are as follows:
1.
The WEI organizations provide a range of services to women entrepreneurs in Western
Canada.
The key services that are delivered by the WEI organizations include:
 Capital loans to assist existing businesses and help entrepreneurs create new businesses. WEI
organizations can make loans of up to $100,000 to new or existing businesses. Over the past 5
years, the four organizations have issued 572 loans totalling approximately $22.9 million.
 Business advisory services such as assistance with business planning, one-on-one counselling
and business orientation. Over the past 5 years, almost 28,000 business advisory services
have been delivered.
 Training and skills development through seminars and workshops covering topics such as
marketing, business start up and planning, and financial management. Over the past 5 years,
WEI organizations have delivered over 1,700 sessions targeted at over 21,000 clients.
 Information services provided as a result of telephone enquiries, walk-ins, consultations, and
information sessions.
2.
Clients are generally very satisfied with the services that they receive.
Most clients (60%) reported receiving more than one type of service. Of the clients whom we
surveyed, 58% have participated in a training session or seminar, 48% have received one-on-one
business counselling, and 42% indicated that they have received a loan under the program. When
asked to rate their satisfaction with the assistance received from WEI on a scale of 1 to 5, where 1
is not at all satisfied, 3 is somewhat satisfied and 5 is very satisfied, clients provided an average
rating of 4.1. While 75% of the respondents indicated that they are satisfied or very satisfied with
the assistance received (a rating of 4 or 5), only 5% indicated that they are not at all satisfied (a
rating of 1).
The loans, particularly when combined with business advising, are considered the most significant
service received by clients. Most loan clients reported also receiving business counselling and,
more specifically, reported receiving assistance in the development of a business plan. Clients
praised the knowledgeable, friendly staff who not only offered guidance and helpful advice but also
provided significant moral support and encouragement. The business planning sessions and
training programs offered by the organization were considered well-organized, educational,
specifically relevant to women, and affordable.
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Clients who were not satisfied with the assistance they received commented on a lack of follow-up
or follow-on services; concerns about staff turnover and/or the capabilities of the staff; and a poor fit
between their needs and the focus of the training sessions or seminars (e.g., not tailored to the
characteristics of their business or their stage of development).
3.
Most of the clients are women between the ages of 35 and 54, well educated, and (at the time
of the interview) currently operating a business.
Of the 444 clients who were surveyed, 309 (70%) are currently operating a business. Most of
these businesses are in the service or retail sector, have operated for 4 years or less, employ four
or fewer people, and generate revenues of $250,000 or less annually. Most clients have fewer than
5 years of management experience which, in most situations, is directly linked to the operation of
their current business.
On average, the businesses which received loans under WEI generate $475,000 in revenues and
employ 5.8 people. Businesses which did not receive loan funding currently have revenues
averaging $272,000 and employ 2.8 people.
4.
The services have had a range of impacts on the clients.
Clients reported that the services have:
Helped them to further develop their business, management and/or personal skills (39%
reported a significant impact). Clients reported further developing skills related to business
planning, marketing, financial management, business management, and general business
knowledge through participating in training programs and seminars, networking with others, and
reviewing information and resources the organization has gathered and made available online or
through its offices.
Increased their access to other programs and services (38%). The clients reported that the
referrals from staff as well as the information and resources available through the offices, WEI
websites, and newsletters have increased their access to information about other programs and
services related to networking and mentoring, training, professional development, business
development, financial management, marketing, and business planning. The WEI organizations
commonly serve as a “front door” through which clients are able to identify and access other
programs and services.
Enabled them to network with other entrepreneurs (37%). The WEI organizations facilitate
networking by staging events and seminars as well as informing clients of events, seminars, and
workshops (not necessarily staged by the WEI organization) via e-mails, newsletters, phone calls
and postings. Clients reported being motivated and inspired by other women entrepreneurs met
at networking events. These events and seminars also allowed women to exchange information
and build business relations with each other.
Increased their access to information for decision making (35%).
Encouraged them to start and/or further develop their own business (34%). Many of the
women said that they had already made the decision to start a business prior to approaching
WEI but noted that advisors played a very important role in encouraging them to continue
progressing towards that objective. More specifically, clients recognized the motivational and
emotional support provided by the WEI staff as well as their technical assistance in areas such
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as business planning and counselling. Staff members were described as positive, supportive,
motivational, and professional in their advising and counselling services. The financial
assistance and advice, the available information resources and training, the networking
opportunities, and help regarding various business issues were also identified by clients as
encouraging factors.
Increased access to financing or capital from sources other than WEI (14%). Some clients
indicated that the advisors played an important role in helping them prepare their business plan,
which they then took elsewhere, and/or in providing referrals to other sources of capital such as
the Business Development Bank of Canada, the Canadian Youth Business Foundation,
commercial banks and credit unions, Community Futures, Aboriginal Business Canada, and
other local, provincial and federal sources of assistance.
5.
The services, particularly the loans, have generated significant economic impacts in terms of
business development.
The loans and assistance provided by WEI to loan clients help businesses become more
established and grow. Assessing the impact of this assistance is complicated by the fact that the
impacts are not limited to one year (the businesses may continue to grow and prosper well into the
future) and most clients receive more than one service that impacts upon them (e.g. they may
obtain one or more loans, receive business counselling and participate in training). To address
these issues, the methodology focuses on the enterprise, rather than individual services, and then
tracks the growth and survival rates of those enterprises going out five years from the time that the
first significant assistance is provided. The five-year period was selected because our survey
consisted of clients who have received assistance during the past five years. To the extent that the
impacts of the assistance provided by WEIs continue to go forward beyond five years, this approach
will under-estimate the ultimate cumulative impact of the assistance provided.
The results of the research indicate that:
The revenues of the WEI assisted businesses tend to grow each year that operations
continue. The revenues of the average business receiving loans increased from about
$57,000 in the year prior to receiving the loan (most of the businesses are not yet in operation)
to $163,000 in the first year to over $550,000 in the fifth year after receiving the loan. Over a
five- year period, the average WEI client business which remained in business would generate
about $1.9 million in additional revenues.
Business survival rates decline over time. Based on the survey results, loan write-off data
and other research, we estimate the business survival rates for loan clients decline from about
98% in Year One to 75% by Year Five (i.e. 75% of businesses are still operating after five
years).
After adjusting for survival rates, we estimate that the average WEI business (including
those which are still operating and those which have ceased to operate) generates revenues
of approximately $1.5 million over the five-year period.
The majority of impacts are incremental in that they would not have occurred in the
absence of the support provided by the program. When asked to rate the importance of the
WEI services to the establishment and/or development of their business on a scale of 1 to 5,
where 1 is not at all important and 5 is very important, loan clients gave an average response
of 4.5. On average, these clients estimated that there is only a 34% chance they would have
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been able to develop their business to the extent they have without the assistance of the WEI.
Overall, the WEI clients attribute 55% of their current business revenues to the services
provided by the WEI.
By extrapolating this analysis to the entire population of WEI loan clients, we estimate that (going
out over a five-year period from when assistance is initially provided) the $22.9 million in loan
funding issued over the past five years has generated about $660 million in incremental revenues
and 8,000 incremental person years of employment. Of this amount, $363 million in revenues and
4,430 person years of employment is attributed by clients to the services provided.
The following table summarizes the estimates on a per business basis and extrapolated to the total
population of loan clients based on the value of loans issued over the past five years.
Estimate of the aggregate economic impacts of the
services provided to WEI loan clients
Per Loan Client
Total Population
of Loan Clients
$51,693
$22.9 million
$1.5 million
$660 million
$74,000
$33 million
18.1 person years
8,000 person years
Wages
$341,000
$151 million
Investment
$171,000
$76 million
Indicator
Loans
Value of Loans Received
Business Activity Over A five-year period
Incremental Revenues Over 5 Years
Export Revenues
Employment
Impacts Are Attributed to the Services of WEI
Total Revenues Over Five Years
$818,000
$363 million
Export Revenues
$41,000
$18 million
10.0 person years
4,430 person years
Wages
$188,000
$83 million
Investment
$62,000
$27 million
Employment
Over time, the loan clients have invested about $2.35 in their businesses for every dollar in loan
funding received. The loan clients estimated that 36% of their investment is incremental in that it
would not have been made in the absence of the services received from the WEI organizations.
6.
Although difficult to quantify, the non-loan services have also generated significant impacts.
As part of the impact assessment, we also reviewed the impact of non-loan services with a
particular focus on business advisory services and training. Because of the soft, incremental nature
of many of the services, it is often difficult for clients to quantify the impact that an advisory service
or participation in a training program has had on their business. It was not unusual for clients to
indicate that they are very satisfied with the services that were provided to them, to feel that it has
helped them in starting-up or operating their business by enhancing their confidence or skills as well
as providing guidance and useful feedback, but not to be able to provide a reasonable estimate of
the economic impact that it had.
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EXECUTIVE SUMMARY
That being said, there were examples where clients reported significant impacts. For example,
there were several clients who participated in the survey and/or the focus groups who indicated that
their business was very unlikely to have been established without the assistance of the business
advisor and/or the training they received. In some cases, these businesses are now generating
revenues of $400,000 or more annually.
We interviewed 181 clients who had received training but had not received a loan and 112 clients
who had received business advisory services but had not received a loan (some clients fit into both
categories). The results of the focus groups and interviews with these clients indicate that:
 The services were provided to a mixture of clients who were in the process of starting a
business, were already operating a business or who have not started a business.
 Clients are very satisfied with the training that they have received. When asked to rate their
satisfaction with the assistance received from WEI on a scale of 1 to 5, where 1 is not at all
satisfied, 3 is somewhat satisfied and 5 is very satisfied, the training clients provided an average
rating of 4.0. Advisory clients (i.e. non-loan clients who received advisory services) provided an
average satisfaction rating of 4.1.
 Most training clients believe that the training and other non-loan services they received was
useful to them in the establishment or further development of their business but not critical.
When asked to rate the importance on a scale of 1 to 5, where 1 is not at all important and 5 is
very important, the average rating was 3.5 and 54% of the training indicated that it was fairly or
very important (ratings 4 or 5). Similarly, advisory clients provided an average rating of 3.8 and
59% of the clients indicated that it was fairly or very important.
7.
WEI is viewed as successful in achieving its key intended impacts.
When asked what they consider to be the most important indicators for measuring the success of
the program, WEI staff, WD representatives, Board Members and other stakeholders identified
measures such as the number and value of loans provided, number of clients served and services
delivered; the success rate of the businesses assisted, performance of the loan portfolio (e.g., low
default rates); the number of jobs created/maintained, the number of new start-up businesses
assisted; and the level of client satisfaction.
When asked to rate how effective they believe the program is in terms of the indicators that they
identified, on a scale of 1 to 5 where 1 is not at all effective, 3 is somewhat effective and 5 is very
effective, the average rating ranged from 3.5 amongst other stakeholders (who tend to be least
familiar with the program) to 4.0 amongst WEI and WD staff to 4.3 amongst Board Members. WEI
was considered particularly successful in terms of increasing access to capital, assisting large
numbers of clients, delivering a range of quality services, aiding in the start up and further
development of businesses, improving the success rates of businesses, and raising awareness of
the entrepreneurial option for women.
8.
The strong capabilities of the staff, the support provided by the Board of Directors and other
volunteers, and strong linkages developed with other programs and services have been key
to the success of the WEIs.
A variety of factors were identified through the interviews and focus groups as contributing to
the success of the WEIs. These include:
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EXECUTIVE SUMMARY
 The professionalism and performance of the staff and CEOs. When asked to identify what
they attribute the success of WEI, the majority of stakeholders, WEI and WD staff, and WEI
Board Members identified staff including the CEOs who have strong managerial and leadership
skills as well as the effective and proactive staff team who are highly motivated and committed
to quality in service delivery. Similarly, in the focus groups, clients praised the commitment of
staff to serving women entrepreneurs in the province and their willingness to work hard to
ensure that women are in the best position possible to achieve success.
 The support provided by a strong Board of Directors and extensive volunteer base. In
2007-08, there were 32 Board Members which is equal to an average of 8 per organization.
Over 3,600 hours were contributed by 467 volunteers (including Board Members), equal to an
average of about 900 hours per WEI per year. The Board Members bring valuable expertise
and a strong commitment to supporting the development of women entrepreneurs. Many of the
Board Members play an important role in developing linkages among the WEI, their region and
other organizations.
 Strong linkages that have been developed with other programs and services. In each
province, there is a wide variety of organizations involved in delivering programs, services, and
resources which can be of assistance to entrepreneurs. The WEI organizations work hard to
complement these resources by focusing on filling gaps, being active in the community,
establishing a strong referral network, and partnering with other organizations wherever
possible on specific services, events and activities. The four organizations reported working
with 177 partners in 2007-08.
 Awareness of its services among the target group. The WEI organizations have continued
to make progress over the past five years in terms of creating awareness of services and raising
the visibility of the organization through promoting and upgrading their websites, developing
extensive communication lists, attending or hosting events, advertising, and building a strong
referral network. Indicators of rising awareness include increases in the number of website hits
and telephone inquiries as well as the number of clients served and requests for speaking
engagements.
 Increasing ability to serve women entrepreneurs from across the province. The ability of
WEI to serve clients from across the respective provinces has improved significantly in recent
years. Regional delivery of services is facilitated by delivering services by telephone and the
Internet, collaborating with regional organizations, establishment of satellite offices, staff travel,
videoconferencing, and staging seminars, workshops, and meetings in various regions.
9.
There is a strong perceived need for the types of services supported by WEI.
When asked to rate the need for the program on a scale of 1 to 5, where 1 is no need at all, 3 is
somewhat of a need, and 5 is a major need, WD and WEI staff provided an average rating of 4.8,
WEI Board Members and clients provided an average rating of 4.7, and other stakeholders
interviewed provided an average rating of 3.7. Some of the major factors identified by WD and WEI
staff, Board Members and other stakeholders as contributing to the strong need for this type of
program include:
 Difficulties that women face in accessing capital. Factors such as the characteristics of the
businesses (e.g. in the service, retail and hospitality sectors), limited availability of collateral,
and credit history can all constrain their access to capital.
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 The limited experience of many of those planning to start up a new business.
 Rising demand, as reflected in the impressive growth in the number of women entrepreneurs in
Western Canada.
10.
Budget limitations were identified as the primary factor constraining the impacts generated
by the program.
As such, the most common recommendation by those involved in the program was to increase the
level of operating funding provided. The budget for the program has not increased in recent years.
Budget issues limit the level of services that can be delivered, limit the ability of the organizations to
market themselves and reach segments which they consider to be underserved, and contribute (or
are anticipated to contribute over the next few years) to turnover amongst staff members.
The maximum size of loans that can be provided was also identified as a constraint. The level has
not been increased since the program was established. The current maximum of $100,000
constrains the ability of the WEI to loan money to businesses in industries that require higher levels
of capital (e.g. manufacturing) than the typical retail, service or hospitality business.
Subject to the availability of increased funding, some of the steps that were identified by the WEIs
that could be considered to build on the strong results and further increase the impact of WEI going
forward include:
 Continue to raise the profile of the program by creating more awareness of the services offered.
Some provinces have particularly highlighted the need to reach out to certain groups such as
Aboriginal, immigrant, older and younger women who may be underrepresented as clients.
 Continue to work to increase regional access to services across the provinces.
 Make greater use of the loan funds that are available. As of March 31, 2008, approximately
49% of the aggregate loan funds of the four organizations were outstanding.
 Strengthen partnerships with other business organizations in the province and with WEI offices
in other provinces.
 Increase access to aftercare services, with a particular focus on identifying businesses at risk
and working with those in a position to expand.
 Continue to upgrade and expand the capabilities of the website (e.g. provide greater
opportunities for women entrepreneurs to promote their business and interact with each other)
while ensuring that the content remains up-to-date.
 Expand other services. Suggestions included expanding training services to ensure that
women have the skills to not only start businesses but also expand their business as well as
staging more networking events that bring women together in an informal setting.
11.
WEI has contributed to achievement of the intended outcomes outlined under WD’s Program
Activity Architecture.
More specifically, as outlined in the previous points, WEI has helped to:
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EXECUTIVE SUMMARY
 Improve business productivity and competitiveness by promoting awareness and adoption of
management and business practices as well as facilitating the creation of business networks.
Clients report that the wide range of WEI business services have helped them to further develop
their business, management and/or personal skills, increased their access to other programs
and services, enabled them to network with other entrepreneurs, increased their access to
information for decision making, and encouraged them to start and/or further develop their own
business.
 Increase access to risk capital and business services for entrepreneurs and small
businesses. In addition to the nearly $23 million in loans provided by the four organizations,
WEI services have increased access to capital from other sources through assisting women
entrepreneurs in the development of business plans and in providing referrals to other sources
of capital.
12.
The economic return on the investment made by WD has been significant.
WEI organizations have received $18.8 million in operating funding over the past five years. Even
without taking into consideration the impacts of their services on non-loan clients, the WEI
organizations are generating one person year of employment for every $4,246 in operating funding
they receive. On a per dollar of operating funding basis, the loan clients attribute $19.30 in
revenues, $0.96 in export revenues, $4.43 in wages, and $1.46 in new investment to the services
received from WEI.
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1
2
3
5
Introduction
Background
Purpose of the Impact Assessment
Method of Study
Structure of the Report
6
6
7
14
16
Program Mandate
Organizational Structure
Types of Services Provided
Logic Model
Funding Provided by WD
17
21
23
27
31
40
42
46
Key Research Findings
Increased Access to Services
Characteristics of the Clients Served
Impacts on the Clients
Characteristics of the Client Businesses Served
Impacts on the Loan Clients
Impacts on the Non-loan Clients
Perceived Need for the Program
Factors Contributing and Constraining Success
Differences Across Provinces
57 Characteristics of the Clients
58 Characteristics of the Services Received
60 Characteristics of the Businesses
I.
Introduction
A.
Background
1.
Western Economic Diversification
INTRODUCTION
Western Economic Diversification (WD) Canada administers a suite of coordinated programs to bring
together industry, community and different levels of government to help businesses successfully adapt to
changing market conditions and advance in the global marketplace in order to ensure continued economic
growth and prosperity in Western Canada. The programming of WD falls into three strategic categories:
 Policy, Advocacy and Coordination, which consists of policies and programs that strengthen the
Western Canadian economy. Policy, Advocacy and Coordination activities are intended to:
 Foster an improved understanding of Western Canadian economic issues, challenges,
opportunities and priorities through research and analysis;
 Advance Western Canada’s interests in national policies, priorities and programs through
awareness and outreach exercises with partners and stakeholders; and
 Facilitate better coordinated economic development activities, policies and programs in the
West through collaboration.
 Community Economic Development, which consists of activities aimed at ensuring that the
communities in Western Canada are economically viable. Community Economic Development
activities involve:
 Economic development and diversification initiatives that support communities to sustain
their economies and adjust to changing and often very challenging economic circumstances;
and
 Infrastructure initiatives to maximize economic, social, cultural and environmental benefits to
Western Canadians through investments in public infrastructure in a coordinated manner
with provincial and municipal governments.
 Entrepreneurship and Innovation, which consists of activities geared toward ensuring that the
business sector in Western Canada is competitive, expanded and diversified and the innovation
system is strong.
 Entrepreneurship activities are designed to improve business productivity, develop new
markets, promote industry collaboration and alliances, encourage foreign direct investment,
and facilitate access to capital; and
 Innovation activities help companies with technology adoption and commercialization, build
technology linkages, promote applied research and development, foster community
innovation, and support the development of a highly skilled technology workforce as well as
an extensive knowledge infrastructure.
WD’s programs help to strengthen the economy of Western Canada by promoting diversification of Western
Canada's heavily resource-based industrial structure, expansion of the value-added component of current
economic output, stable long-term economic growth, improvement in business productivity, and the creation
of skilled jobs and technologies that will drive the economies of the future.
Page 1
2.
INTRODUCTION
Women play an important role in the creation and operation of small businesses across Canada, yet they
often face barriers and a lack of support. To help address these barriers, Western Economic Diversification
Canada (WD) established the Women's Enterprise Initiative (WEI) in 1994. Through a series of non-profit
organizations operating in each of the four western provinces, WEI provides a variety of unique products for
women entrepreneurs including advisory services, training options, networking opportunities, business
loans and referrals to complementary services. The organizations have proven to be valuable to women
entrepreneurs. A specific recommendation of the 2003 Prime Minister’s Task Force on Women
Entrepreneurs report was that the Federal Government should establish Women’s Business Centres
throughout Canada, modeled on the WEI organizations supported by WD, which would build on and partner
with existing resources. The report also recommended that the Federal Government ensure that the WEI
organizations are maintained and provided with long-term support.
A 2004 evaluation of the WEI found that:
 Women entrepreneurs continue to face barriers (e.g. access to capital) related to business start up
and growth;
 The WEI organizations provide gender sensitive and appropriate services for women
entrepreneurs;
 Due to their gender specific orientation, the services provided by the WEI organizations are not
duplicated by other members of the WD's Western Canada Business Network (WCBN). In addition
to WEI, the WCBN consists of Community Futures, Canada Business service centres, and
Francophone Economic Development Organizations;
 The WEI organizations fill a particular niche for small loans and support services to women
entrepreneurs in all areas of commerce, especially in retail and service enterprises;
 There is a need for WD to support the WEI organizations; and
 The objectives and activities of the WEI organizations are consistent with WD’s mandate1.
B.
Purpose of the Impact Assessment
The purpose of this project is to conduct an impact assessment of the WD-funded activities of the four WEI
organizations covering the five-year period from April 1, 2003 through March 31, 2008. The impact
assessment measures the benefits – positive and negative, intended and unintended – that the WEI has
had on their clients and communities. More specifically, it focuses on both outputs and outcomes:
 Key outputs include loans, advisory services, training and information services.
 Key outcomes and related performance indicators include the number of businesses created,
maintained and expanded, number of jobs created and maintained, increased revenues, leveraged
financing, and client satisfaction.
1
Evaluation of the Women’s Enterprise Initiative, Goss Gilroy Inc., October 2004
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C.
INTRODUCTION
Method of Study
We conducted this study in two phases. The primary objective of the first phase was to prepare a detailed
work plan that was then implemented in the second phase of the study.
Phase I: Preparation of the Detailed Work Plan
The work that we undertook to prepare the detailed work plan included:
 Conducted an initial meeting with the Advisory Committee to confirm the scope of the study
and the specific outputs desired. During the meeting, we reviewed the work plan contained in
the proposal, the Statement of Work and other key documents to ensure that the purpose, scope
and objectives for the assignment are clearly understood, how the assignment is to be undertaken
within the stipulated time frame and budget, and the major elements to be contained in the final
report.
 Compiled available information regarding the funding provided by WD and the services
delivered and results reported by the WEI organizations from 2003 to 2008. We reviewed
various documents and relevant files from different sources including reports, operating plans,
annual reports, and other statistical and administrative data. We also discussed the process for
accessing lists of clients from which a sample could be generated.
 Developed a profile of WEI including a program "logic" model. The profile describes the
activities that have been supported and presents a preliminary description of the service delivery
model as well as an overview of the target groups. The program model clearly defines the intended
outcomes and illustrates the linkages between those outcomes and the activities of WEI
organizations that have been supported by WD.
 Finalized the research questions and defined the performance indicators and data sources
that were be used in addressing each issue.
 Developed questionnaires for the impact assessment. We analyzed the information available
from secondary sources as well as the input provided by WD and WEI representatives to determine
what information needs can be fulfilled from secondary sources and what information needs must
be addressed through primary research. Based upon this analysis, we then developed survey
instruments to address the information gaps identified.
 Prepared the detailed work plan. We then met with the Advisory Committee to obtain approval of
the detailed work plan prior to proceeding with the field research.
Phase II: Field Research
The major components of our field research included:
 Surveyed a sample of 444 WEI clients from across the four provinces. We worked with the
WEI organizations to distribute an e-mail to clients for whom e-mail addresses were available. The
e-mail letter referred the clients to the project website where they could complete the survey online.
Alternatively, clients were invited to contact us by e-mail, through the website, or by telephone (tollfree) to set up an appointment to complete the survey by telephone. We also obtained lists of
clients from Saskatchewan and Alberta (loan clients only) as well as a partial list of BC loan clients
Page 3
INTRODUCTION
whom were able to call directly. At a confidence level of 95%, a sample of 444 WEI clients
surveyed from across the four provinces achieves of margin of error of about ± 4.6%.
As an impact assessment, the most important source of information is the interviews conducted with
the clients. Clients can be divided into two major categories: those who received loans (usually in
addition to other services) and those who only received other types of services. Of the two
categories, loan clients are in the best position to report on economic impacts because loans tend
to be more directly associated with changes in economic activity than are softer services such as
training or the provision of information. Furthermore, clients are often better able to directly attribute
such changes to receiving a loan than to other services. Of the 444 clients who participated in the
review, 175 were loan clients.
The non-response error tends to be lower amongst loan clients than amongst other types of clients
because the contact information is more likely to be up-to-date and loan clients may be more likely
to participate because of the perceived significance of the assistance that they received. A
limitation of the review is that we were not able to directly approach clients in all provinces but
rather had to rely on the willingness of clients, once contacted by WEI, to contact us or complete a
questionnaire online. As a result, it is difficult to assess whether the clients who responded to the
survey are representative of the overall population. That being said, the overall response among
loan clients is generally high ranging from 25% in Manitoba to 47% in British Columbia which adds
to the reliability of the data. Furthermore, the characteristics of the loan clients who responded
appears to be generally consistent with the profile of clients overall in terms of characteristics such
as size of loan.
Response Rate Amongst Loan Clients
Loan
Respondents
39
Loans
Received
50
Total Loans
Approved
107
Response
Rate
47%
Alberta (AWE)
52
54
126
43%
Saskatchewan (WESK)
59
66
201
33%
Manitoba (MWEC)
25
34
138
25%
WEI Total
175
204
572
36%
Province
British Columbia (WEC-BC)
At a confidence level of 95%, a sample of 204 loans from across the four provinces achieves of
margin of error of less than ± 5.5%. During the process of analyzing the results, we called back
many of the clients (particularly those who had responded online) to confirm the key data provided
or to fill gaps in responses.
 Conducted interviews with a sample of 31 WEI and WD staff as well as 25 Board Members
(current and past) who have been involved in the management, development and delivery of
the program. The sample included representatives from each of the four provinces in Western
Canada. We also conducted a focus group of Board Members in BC.
 Conducted interviews with 30 other stakeholders who may be able to provide an outside
opinion of the impacts of the program. The individuals interviewed included representatives
associated with:
 Other assistance programs (e.g., Community Futures, Canada Business, Business
Page 4
INTRODUCTION
Development Bank of Canada, Canadian Youth Business Foundation);
 Organizations with a focus on women & entrepreneurship;
 Industry organizations/ associations (e.g., chambers of commerce, economic development
organizations, home based business associations, etc.); and
 Other selected experts.
The purpose of these interviews was to obtain another perspective on issues such as the need for
and impacts of the assistance provided.
 Conducted field trips to WEI
offices in each of the four
provinces. During each field trip,
we conducted interviews with key
staff members of the WEI
organizations; reviewed background
information on any activities (e.g.,
business advising or training)
selected for further review. We also
conducted a focus group session
with a sample of clients, with a
particular focus on the activities
selected for further review.
Number of Interviews By Province
BC
15
AB
14 7
SK
14
8
9
MB 13 6
88
109
129
118
0
40
80
120
In total, in addition to other participants
WD staff, WEI staff and Board Members
providing input through the focus groups,
Stakeholders
530 people provided input into the impact
Clients
assessment. A summary of the number of
interviews or surveys conducted by province
is provided in the accompanying chart. As
indicated, the number of people providing input ranged from 111 in BC to 152 in Saskatchewan.
D.
160
Structure of the report
The report is divided into four chapters.
 Chapter II provides the profile of the Women Enterprise Initiative in Western Canada in terms of its
objectives, service delivery model, major activities, program logic model, and budget.
 Chapter III summarizes the major findings of our review regarding the services provided to
entrepreneurs, the characteristics of the clients served and the impact of the services on them, the
characteristics of the businesses served and the resulting economic impacts, the factors
contributing to and constraining the success of the program, and the perceived need for the
program.
 Chapter IV summarizes the results of the client survey by province. The major findings and
conclusions arising from the report are presented in the Executive Summary.
Page 5
II.
THE WOMEN’S ENTERPRISE INITIATIVE
This chapter provides an overview of the Women Enterprise Initiative (WEI) in Western Canada in terms of
its objectives, service delivery model, major activities, program logic model, and budget.
A.
Program Mandate
Each of the four provinces served by WD (British Columbia, Alberta, Saskatchewan, and Manitoba) has
established a WEI organization that is responsible for the administration and delivery of WEI services. The
mandate of the WEI organizations is to encourage the establishment and growth of women-owned and
controlled businesses, encourage self-employment and business development, and to promote economic
equality between men and women. This mandate is supported through:
Introducing and promoting the concept of entrepreneurship to women;
Increasing the availability of capital to women-owned enterprises; and
Providing services to help women develop the experience, expertise, assets and credit track
records enabling them to increase both the number and the strength of women-owned businesses
in Western Canada.
B.
Organizational Structure
Each provincial organization is named and organized uniquely, reflecting the differing needs and client
base of each province. WEI is implemented through the four not-for-profit organizations including:
The Women’s Enterprise Centre (WEC-BC), which operates in BC;
Alberta Women Entrepreneurs (AWE – the legal name is Alberta Women Entrepreneurs
Association);
Women’s Entrepreneurs of Saskatchewan Inc. (WESK); and
The Manitoba Women’s Enterprise Centre (MWEC).
Each WEI organization is an independent entity which has its own Boards of Directors with broad
representation from their respective provinces. A Chief Executive Officer (CEO) is responsible for
administrative and operational duties of each provincial WEI organization. The CEO reports to the Board of
Directors, which oversees the policy and direction of the organization. Board Members are knowledgeable
about business and the challenges that women face as entrepreneurs.
Each provincial organization is responsible for its own approach to the delivery of services in order to best
meet the needs of its particular economic and demographic client base. The following table summarizes
the number of staff, Board Members, volunteers, and volunteer hours reported to WD by the organizations
as of March 2008. As indicated, the four organizations reported an average of eleven staff members and
eight Board Members.
Page 6
Reported number of staff, board members
and volunteers as of March 2008
WEC-BC
AWE
WESK
MWEC
Number of Staff
13
9
11.5
11.5
Number of Board Members
7
8
7
10
Number of Volunteers
212
10
227
18
Hours Committed by
Volunteers
1,888
672
564
494
Source: data reported to Western Economic Diversification
In addition to the Board Members, volunteers may be involved in the delivery of various services and
activities. For example, the training programs in BC make extensive use of storytellers to bring real life
examples to the learning process. Storytellers are local women business owners who volunteer their time
and are willing to tell their stories to the audience in a facilitated discussion format. Similarly, volunteers in
Saskatchewan work with the organization either as a mentor offering her specific experience and
enthusiasm or as a guest speaker at the monthly Lunch & Learn and Breakfast Series seminars to share
her expertise.
The four organizations provide services throughout their respective provinces from offices located in nine
communities.
Location of Offices by Province
WEC-BC
AWE

Kelowna (head office)

Vancouver

Victoria

Calgary (head office)

Edmonton
WESK

Saskatoon (head office)

Regina
MWEC

Winnipeg (head office)

Thompson
The WEI organizations are responsible for marketing efforts to promote small business, administering their
organization and participating in Pan-Western activities. Each provincial organization operates at arm’s
length from WD, but provides WD with regular financial and operational reviews.
C.
Types of services provided
Each WEI organization delivers a range of services including business services (business advisory, training
and skills development, information services and referrals, and networking and mentoring) and capital
lending. A brief description of the services in each of these areas is provided below.
1.
Business Services
WEIs deliver a range of technical support, training and information services to women entrepreneurs who
are starting, purchasing, or growing a small business. These services include:
 Business

Advisory services such as:
Assistance with business plans;
Page 7


 Training




Business planning and counselling; and
Export readiness and supplier development.
and Skills Development services in areas such as:
Self-employment skills;
Marketing;
Strategic planning; and
Financial management.
 Networking



Peer mentoring groups;
One-to-one mentoring; and
Mentor Advisory Forums.
 Information




and Mentoring services such as:
Services and Referrals including:
Access to government programs;
Access to business libraries;
Access to business databases; and
Electronic links to municipal, provincial, regional and federal sites and Canada
Business Service Centres in the respective provinces.
Some examples of each type of service are provided in the following table.
Examples of Services Provided
Type of Services
Example of Services
Working with clients on a one-to-one basis, providing services in all
Business
Advisory
areas of business management and development, from start-up and
expansion issues to dealing with barriers
Hosting business orientation sessions
MWEC offers various fee-paying seminars and various workshops
Training & Skills
Development
including:
o Start up to Sustainability sessions: introductory sessions for
women in the early stages of business start-up and those
considering entrepreneurship as a career option
o Experienced-Expanding sessions: facilitated by the members of
Certified Management Consultants of Manitoba. The “Experience
Speaks” sessions are geared to women at the growth and
expansion stage of their business
AWE offers a How to Outsell Big Companies workshop: focusing on
how to outsell big companies by mastering time management and
specific strategies to close the maximum amount of sales
WEC-BC offers Going Solo! For Aspiring Entrepreneurs: an
exploration to the world of entrepreneurship and business start-up
using real-world examples to help participants develop a vision for
their business and investigate potential gaps in business plans
Page 8
Type of Services
Example of Services
WESK offers three types of mentorship programs including :
o Pan-West Business-to-Business Linking Program: links a
Networking &
Mentoring
Information
member with a non-competing business owner in Western
Canada from the same industry
o Raj-Manek Business Mentorship Program: one-on-one mentoring
by experienced business owners and executives to protégés
o Mentoring Circles: provides an opportunity for members who are
existing business owners to meet on a regular basis providing a
forum to share business experiences, serve as a sounding board,
provide feedback, and generally act as a support group
WEC-BC also offers three types of mentorship programs including:
o Peer Mentoring: provides women entrepreneurs the personal
contact with others in the community who are facing the same
challenges. A group of up to eight women meet under the
supervision of a facilitator (experienced entrepreneur) who acts
as an overall supervisor and mentors the group
o One-on-One Mentoring: links an experienced mentor to a mentee
who is in the first two years of business and is motivated to work
towards business success
o Mentoring Advisory Forum: organized in a way such that two or
three mentors participate in a 90 minute forum by telephone via a
teleconference line held by WEC-BC to discuss a specific topic
with pre-registered women entrepreneurs
Distributing eNewsletters
Answering phone or e-mail inquiries
Providing referrals to learning guides and associated coaching
sessions and other resources
Developing self-directed, web-based loan information sessions
The mentoring program in BC is funded by the Provincial Government rather than WD.
WESK is unique from the other organizations in that it is a fee-paying membership-based organization.
Members have access to business advisory services, membership referrals, mentoring, use of the
boardroom, advertising (office display bulleting), an online member directory, and other benefits. As of
March 31, 2008, WESK had 860 members.
On an annual basis, the four WEI organizations reported the number of services for the three types of
business services they provide. These include: Business Advisory services, defined to include services
provided on an individual basis such as assistance with business plans, business counselling, and specific
skills counselling; Training and skills development services, defined to include the number of
participants/clients trained; and Information services, reflecting the number of times that WEIs provided
information services to clients as a result of telephone enquiries, walk-ins, consultations, and information
sessions.
A summary of the number of reported business services over the past five years is included in the table on
the following page.
Page 9
WEI Business Services Performance April 2003 – March 2008
Regional
WEI
British
Columbia
(WEC-BC)
Alberta
(AWE)
Saskatchewan
(WESK)
Manitoba
(MWEC)
WEI Total
2.
Business
Advisory
Year
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
Services
provided to
clients
Training & Skills
Development
Training
sessions
delivered
1,483
1,281
1,328
1,116
3,021
9,712
1,171
1,142
1,018
4,461
1,258
9,050
750
940
2,185
1,957
1,671
7,503
599
632
591
748
1.079
3,649
3,906
3,995
5,122
8,996
5,971
29,914
42
135
109
36
62
384
96
100
99
192
29
516
101
83
130
84
86
484
49
56
52
92
123
372
288
374
390
404
300
1,756
Number of
clients
trained
626
3,302
3,310
879
806
8,923
2,061
1,548
537
616
348
5,110
749
567
993
735
728
3,772
639
676
543
1,140
898
3,896
4,075
6,093
5,383
3,370
2,780
21,701
Information Services
Services
provided to
clients
2,015
4,939
9,484
11,930
12,078
40,446
18,808
18,445
27,351
25,860
2,893
93,357
1,826
1,867
2,303
2,130
2,731
10,857
11,820
10,397
9,577
10,367
5,684
47,845
35,145
35,648
48,715
50,287
23,386
192,505
Website
visits
101,027
65,750
69,924
131,078
303,837
671,616
N/A
N/A
N/A
27,615
21,494
N/A
44,155
47,966
68,977
69,154
76,798
307,050
7,199
9,289
17,053
31,278
43,872
108,691
N/A
N/A
N/A
259,125
446,001
N/A
Access to Capital
WEIs provide capital to assist existing businesses for expansion as well as help entrepreneurs create new
businesses. The maximum amount of a loan is $100,000 throughout the four provinces. To be eligible, the
applicant must be:
 A woman who owns and controls a business2 that is registered and located in the particular PanWest province;
 A Canadian citizen or Permanent Resident;
 Residing in the particular province; and
 In good standing with WEI on any existing financing.
2
Ownership and control is typically defined as at least 51% management control over the operations of the business across the provinces, with the
exception of Manitoba where ownership must be 50%. Alberta Women Entrepreneurs (AWE) has also specified owning at least 50% of voting
shares or 50% partnership interest in addition to the 51% management control. Detailed specifications may vary amongst the provinces.
Page 10
Furthermore, in making loans, the organizations commonly consider the following criteria:
 Business Plan and three years financial projections that demonstrate the viability of the business
venture;
 Two years audited financial statements for an existing business or if purchasing an existing
business;
 Good credit history of all shareholders/partners;
 Owners contribute certain amount of equity investment into the business; and
 Ability to provide collateral to secure the loan.
The application and evaluation process for capital lending is often done in three stages. These are:
 Business Advising Stage: The woman entrepreneur works with a business advisor who will
assess her business needs, identify the loan requirements, determine whether or not her request
meets the lending criteria of the WEI, help the applicant on the development of a business plan, and
whether more information is required.
 Loan Application Stage: The Loan Application form is submitted and a credit review is performed
on all shareholders/partners. As part of the loan assessment, business advisors at WEI
organizations also review the applicant’s business plan.
 Final Review Stage: In the final stage, the entrepreneur’s loan application is assessed, taking into
consideration issues such as the viability of the business venture; management and operational
capacity; marketability and consumer acceptance of the product/service; repayment capacity; credit
history; collateral security; owner equity; and capacity to financially contribute to the business. The
length of time it takes to approve or decline the loan depends on the amount of money being
requested, the complexity of the business plan, and the speed at which the applicant is able to
respond to information requests from the WEI Business Advisor.
As clients make repayments, the principal and at least a portion of the earned interest is returned to the
general loan fund for future use.
Over the past five years, the four WEI organizations have approved and provided 572 loans totaling $22.9
million. According to the data reported by the organizations:
 The average value of loan approved was $40,106, ranging from $34,414 in Manitoba to $48,827 in
BC. A client may have received more than one loan over the five-year period.
 The loans created or maintained over 2,000 jobs over the five years, which is equal to about 3.7
jobs per loan. Approximately one job was reported as created or maintained for every $10,750 in
loans provided;
 The loans were leveraged with $20.7 million in funding from other sources, which represents about
$0.90 for every dollar in loans approved under the WEI; and
 54% of the loans were approved to new businesses while 46% were approved for existing
businesses.
A summary of capital lending performance by province is provided in the table on the following page.
Page 11
Capital lending performance indicators by province
for the period April 1, 2003 to March 31, 2008
CAPITAL LENDING SERVICES
Regional
WEI
British
Columbia
(WEC-BC)
Alberta
(AWE)
Saskatchewan
(WESK)
Manitoba
(MWEC)
WEI Total
Year
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
03/04
04/05
05/06
06/07
07/08
Total
Number
of loans
approved
26
23
20
17
21
107
23
48
28
9
18
126
44
46
40
35
36
201
34
25
31
24
24
138
127
142
119
85
99
572
Value of
loans
approved
Amount
leveraged
$1,276,964
$1,113,900
$1,231,576
$639,500
$962,500
$5,224,440
$522,000
$1,480,377
$996,405
$362,617
$983,379
$4,344,778
$1,853,165
$1,961,877
$1,619,150
$1,581,035
$1,607,250
$8,622,477
$1,195,137
$902,899
$900,750
$841,500
$908,815
$4,749,101
$4,847,266
$5,459,053
$4,747,881
$3,424,652
$4,461,944
$22,940,796
$0
$622,500
$190,200
$1,843,371
$2,357,595
$5,013,666
$315,000
$861,000
$1,202,250
$281,850
$1,861,146
$4,521,246
$1,095,849
$1,836,851
$1,376,825
$1,171,000
$1,881,603
$7,362,128
$1,147,715
$183,259
$551,800
$318,859
$1,601,435
$3,803,068
$2,558,564
$3,503,610
$3,321,075
$3,615,080
$7,701,779
$20,700,108
Loans to
business
Jobs
created/
maintained
New
Existing
96.5
147.5
87.5
42.5
107
481
64
194
72
18
75
423
83
122
206
141
142
694
103
122
87
80
143
535
346
586
453
282
467
2,134
15
16
15
6
10
62
12
28
22
4
14
80
28
29
24
9
14
104
16
9
18
15
15
73
71
82
69
34
53
319
10
6
5
11
11
43
11
20
6
5
4
46
16
17
16
26
22
97
19
15
13
9
9
65
56
58
50
51
46
251
Over the past five years, there has been a significant increase in leveraged funds. The rise of leveraged
funds can be attributed, especially in the last three years, to the fact that WEIs have introduced more
stringent reporting requirements to ensure they account for all investment dollars. The chart on the
following page shows the five-year trend of loans, leveraged funds, and total investment (equal to the value
of the loan and leveraged funds) made by WEI loan clients.
Page 12
Thousands
FIVE-YEAR TREND OF LOANS, LEVERAGED FUNDS, AND TOTAL INVESTMENT BY WEI
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
2003/2004
2004/2005
2005/2006
Value of loans
2006/2007
Leverage
2007/2008
Total investm ent
The size of individual loans approved over the past five years ranged from $1,000 to $100,000. As
indicated below, according to the individual loan data supplied to us by each WEI organization,
approximately two-thirds of approved loans are for less than $50,000 in value including 25% which are
between $10,000 and $24,999 in value and 28% which are between $25,000 and $49,999.
Distribution of Loans Approved
$5,000 to
$9,999
8%
$10,000 to
$24,999
25%
$0 to $4,999
5%
$25,000 to
$49,999
28%
$75,000 and
over
18%
$50,000 to
$74,999
16%
We also obtained data on the recent status of loans from each WEI organization. According to this data,
50% of the loans issued over the past five years are still active, 39% have been paid in full and 11% have
been written off or in default. The pie chart on the following page shows the recent status of loans issued
over the past five years.
Page 13
Status of Loans Issued Over the Past Five Years
Paid in Full
39%
Active
50%
Written-Off/ In
Default
11%
The four organizations have written off approximately $1.7 million in funding, which is equivalent to 7.5% of
the value of the loans approved over the past five years. This does not necessarily mean that 7.5% of the
value of the loans issued over the past five years has or will be written off over time; some of the loans
which have been written off over the past five years were made prior to the five year period while portions
of the loans currently active may yet be written off.
As of March 31, 2008, the value of loan funds of the four WEI organizations totaled about $16.3 million of
which $7.7 million was outstanding. The remainder was generally held in short-term investments.
Value of loan funds and loans outstanding,
March 31, 2008 ($ million)
Loans Outstanding
Cash and Short-term
Investments
Total Value of the
Loan Funds
WEC-BC
AWE
WESK
MWEC
Total
$1.7
$2.0
$3.2
$1.6
$8.5
$2.4
$2.0
$2.1
$2.2
$8.7
$4.1
$4.0
$5.3
$3.8
$17.2
Sources: Financial statements of the organizations
D.
Logic Model
A program model illustrating the interrelationships between the business services activities, outputs, and
intended impacts is provided on the following page. As indicated, in the short-term, the services supported
under WEI are intended to increase access to capital, leverage of funding from other sources, support
further development of business, management and personal skills, increase networking activity, increase
awareness of and access to other programs and services, and increase access to information for business
decision making.
Over the medium-term, it is intended that the services will result in development and maintenance of
businesses, improvement in management practices, and increased economic activity (e.g. revenues,
employment, wage, investment, exports, etc). Over the longer term, the Initiative will contribute to further
development and diversification of the Western Canadian economy.
Page 14
Program Logic Model dor the WEI
Activities
Outputs
Short-term
Impacts
Intermediate
Impacts
Longer Term
Impacts and
Effects
Marketing of the
programs and
services
Loan application
review &
portfolio
management
Loans
Increased access
to capital
Leveraging of
funding from
other sources
Development & maintenance of
businesses
Training and skill
development
programs
Networking and
mentoring
services
Training
Events
Development of
business,
management and
personal skills
Increased
networking
Improved management practices
Business
advisory services
Business
Planning
Increased
awareness of and
access to
programs and
services
Information
services
Advice and
Information
Increased access
to information for
business
decision making
Increased economic activity
(revenues, employment,
investment, etc)
Development and diversification of the Western Canadian economy
Page 15
E.
Funding Provided by WD
WD has provided three types of funding for each WEI organization:
 Contributions to the Loan Fund. Each organization could receive up to $5 million in loan funds,
which flowed over a ten-year period between April 1995 and March 2005. None of the
organizations received the full amount, with Saskatchewan, BC and Alberta each receiving about
$4.2 million. These loan funds, which are conditionally repayable, are provided to the organizations
for the sole purpose of lending to women-owned and controlled businesses.
 Operating Funding. WD provides annual funding for operating costs under the terms of an
agreement which expires on March 31, 2010. The original agreement for operating funding expired
in 2000, was renewed for another 5 year term to 2005, and then extended to 2010. Under the
existing agreement, each organization can receive up to $975,000 annually.
 Project Funding. The organizations may also be eligible to receive funding from WD for various
projects such as special events, seminars, programs, and other initiatives.
Over the past five years, the funding provided by WD to the four organizations has totalled $22.3 million of
which operating funding has made up the largest percentage.
WEI funding by province
for the period from April 1, 2003 to March 31, 2008
WEC-BC
Operating
AWE
WESK
MWEC
Total
$4,811,825
$4,101,809
$4,914,880
$4,981,700
$18,810,214
Capital
$850,000
-
$800,000
$850,000
$2,500,000
Projects
$543,290
-
-
$410,099
$953,389
$6,205,115
$4,101,809
$5,714,880
$6,241,799
$22,263,603
Total
Source: Western Economic Diversification
The table below summarizes funding (all three types combined) provided by WD by province and by year.
WEI funding by year
for the period from APRIL 1, 2003 TO MARCH 31, 2008
2003/2004
2004/2005
2005/2006
2006/2007
2007/2008
Total
WEC-BC
$866,009
$1,503,414
$1,682,308
$1,144,766
$1,008,618
$6,205,115
AWE
$529,716
$880,843
$975,000
$975,000
$741,250
$4,101,809
WESK
$1,039,237
$1,357,963
$1,475,000
$901,138
$941,542
$5,714,880
MWEC
$1,497,670
$1,525,212
$1,093,009
$1,103,718
$1,002,190
$6,241,799
Total
$3,932,632
$5,267,432
$5,225,317
$4,124,622
$3,713,600
$22,263,603
Source: Western Economic Diversification
Page 16
KEY RESEARCH FINDINGS
III.
Key Research Findings
This chapter summarizes the major findings of our review regarding the services provided to entrepreneurs,
the characteristics of the clients served and the impact of the services on them, the characteristics of the
businesses served, the resulting economic impacts, the factors contributing to and constraining the success
of the program, the perceived need for the program, and differences in results across province, types of
clients and types of businesses served.
A.
Increased Access to Services
The major findings of our review regarding the services utilized by the clients, the frequency of interaction
of clients with the organizations, and the level of satisfaction with the services are as follows:
1.
The programs provide a range of services to assist women entrepreneurs.
Most clients (60%) reported receiving more than one type of service. Of the clients whom we
surveyed, 58% have participated in a training session or seminar, 48% have received one-on-one
business counselling, and 42% indicated that they have received a loan under the program. The
chart below summarizes the percentage of clients who reported receiving the various types of
services.
SERVICES RECEIVED BY THE CLIENTS SURVEYED
58 %
Par ticipated in a training prog ram/seminar
4 8%
Business cou nse lling (one-on- one)
42%
Received a loan
35%
Assistance in the d evelopment of a bu sine ss plan
14%
Pathfinding to ide ntify other business resources
12%
Participated in a mento ring program
0%
10%
20%
30 %
40%
50%
60%
7 0%
Percent of clients interviewed re ce iving service
Examples of other services identified by clients included receipt of newsletters and other
publications, meetings, conferences, and other events, and business awards.
2.
On average, the clients estimated that, over the past 5 years, there has been 11 occasions
during which they have participated in counselling, training, mentoring or seminar sessions
provided by or arranged through WEI
NUMBER OF CONTACTS OVER THE P AST 5
organization
and/or
contacted
the
YEARS
organization in person or by telephone to
6 to 10
obtain information.
1 9%
As indicated in the chart,
utilized the services of
(excluding loan services)
However, 9% of the
most clients have
the organization
5 or fewer times.
clients identified
11 to 25
1 5%
5 and under
49%
25 and over
9%
Non e
8%
Page 17
themselves as frequent users having been in contact with the organization 25 or more times over
the past five years. Those who reported no contact with the organizations related to counselling,
training or information services generally consisted of loan clients who received loans but did not
report receiving other types of assistance.
3.
Loans provided by the WEI assist client businesses in different stages.
On average, the loan clients reported receiving $51,693 in loans (an average of $42,318 per loan)
during the past five years. Of the loans provided to the 175 loan clients we interviewed, 16%
totalled $10,000 or less, 26% totalled between $10,000 and $25,000, and 58% totalled more than
$25,000. The 175 loan clients who participated in the survey reported receiving 204 loans, totalling
$8.6 millions in value. Taken together, the value of loans received by these clients represents 36%
of the number of loans approved and 38% of the value of loans approved over the past five years.
Of the 204 loans issued to these clients:
 109 (53%) were made to start up operations; and
 95 (47%) were made to businesses which were already operating.
In some cases, clients both received a start up loan and subsequently received a further loan or
loans once they were established. On average, clients interviewed received 1.2 loans at a value of
$51,693. The loan clients indicated that the loans they received were used to:
 Start up new operations either in the form of a new business or new operations within their
existing business (identified by 57% of the loan clients);
 Expand production (35%);
 Cover working capital/operating costs (20%);
 Fund market development (9%); and
 Fund the development and/or commercialization of new products (5%).
Other uses reported by the loan recipients included buying an existing business, purchase of
assets, renovation and relocation, and technical services and upgrades.
4.
Most clients (75%) have been very satisfied with the assistance they received through WEI.
When asked to rate their satisfaction with the assistance received from WEI on a scale of 1 to 5,
where 1 is not at all satisfied, 3 is somewhat satisfied and 5 is very satisfied, the clients provided an
average rating of 4.1. As indicated in the chart below, while 75% of the respondents indicated that
they are fairly or very satisfied with the assistance received (a rating of 4 or 5), only 5% indicated
that they are not at all satisfied (a rating of 1).
Page 18
LEVEL OF CLIENT SATISFACTION REGARDING WEI ASSISTANCE
60%
50%
40%
30%
20%
10%
0%
52%
23%
14%
5%
6%
1 - Not at all
satisfied
2
3 - Som ew hat
satisfied
4
5 - Very
satisfied
Clients who were satisfied with the assistance they received noted that:
The knowledgeable, friendly staff not only offered guidance and helpful advice but also provided
significant moral support and encouragement (identified by 174 clients);
The organization increased their access to resources and information. Clients noted that a
wealth of information is available on site and on the organization’s website, questions were
answered promptly, and they were kept informed of upcoming seminars and networking
opportunities through regular e-mails and phone calls (121 clients);
The business planning sessions and training programs offered by the organization were wellorganized, educational, interactive, practical, specifically relevant to women, tailored to the
audience (e.g. demographics, business or professional experience, and geographic region) and
affordable (47 clients);
The organization provided them with financial support that was crucial to their business and
guided them through the loan process. In addition, some clients highlighted the flexible payment
options and terms (42 clients); and
The mentoring and networking opportunities enabled them to meet other successful women
entrepreneurs, learn from each other, and develop business relations (26 clients).
Clients who were not at all or not very satisfied with the assistance they received (a rating of 1 or 2)
commented on:
A lack of follow-up or follow-on services (identified by 21 clients);
Concerns about staff turnover and/or of the capabilities of the staff (21 clients);
That the training sessions or seminars were not relevant to their needs (e.g., they were more
tailored to the needs of small, start-up businesses rather than established businesses – noted by
14 clients);
Concerns about the location (e.g. in major centres/out of reach for clients in rural communities)
and/or timing of events, training or seminars (8 clients); and
Concerns about the lengthy process or eventual outcome associated with the loan applications
(5 clients).
Page 19
As would be expected, clients who interact more often with the organizations tended to be the most
satisfied. For example, the average satisfaction rating amongst clients who have been in contact
with the centres 25 or more times over the past 5 years was 4.5. The average satisfaction rating
amongst clients who have been in contact with the centres 5 or fewer times was 4.1.
The women who attended the focus group sessions, drawn primarily from those who received
business counselling or participated in training, also indicated a high level of satisfaction with the
services received. These clients characterized the WEI staff/instructors as friendly, readily available
to talk or meet with them, and capable of providing both technical support and encouragement to
the clients in their efforts to move forward with their business. Only a few of the focus group
participants expressed concerns with services they received. Similar to the results of the interviews,
these concerns related to lack of a formal process for following up with the clients and specific
concerns that they did not receive a loan or support for their business plan/concept. A few women
also mentioned that, because of staff turnover, they had several business advisors which made the
process of preparing their business plan more difficult. Despite the staff turnover, these women
were happy with the service they received.
5.
Loan clients tend to have received a wider range of services, been in more frequent contact
with the organizations, and be somewhat more satisfied with the services than are other
types of clients.
To compare the satisfaction of clients who have received different services, we divided the clients
into four groups:
 Loan clients include those who have received loan funding, often in addition to other
services;
 Non-Loan clients include clients who have received services other than loan funding;
 Counselling clients include those who have received business advisory services possibly in
addition to other services including a loan; and
 Training clients include those who have participated in at least one training session,
possibly in addition to other services including a loan.
It is to note that the clients groups are not mutually exclusive and are categorized solely for the
purpose of comparison of satisfaction and impacts perceived. As indicated in the table below,
satisfaction levels tend to be high amongst all four groups, ranging from 3.9 amongst non-loan
clients to 4.5 amongst loan clients.
Reciept of services by client group
Measures/ Type of Clients
Number of Respondents
Percentage Receiving Services
Received a loan
Business counselling
Development of a business plan
Training program or seminar
Mentoring program
Pathfinding to identify other resources
Average Number of Contacts Made
Average Satisfaction Rating
Loan
175
Non-Loan
269
Counselling
204
Training
246
100%
53%
46%
37%
10%
10%
14.1
4.5
0%
42%
25%
67%
13%
16%
8.4
3.9
45%
100%
48%
58%
14%
17%
13.2
4.3
27%
48%
33%
100%
14%
15%
12.3
4.2
Page 20
A small majority of the loan clients reported receiving business counselling and, more specifically,
reported receiving assistance in the development of a business plan. Two-thirds of the non-loan
clients had participated in a training program or seminar.
B.
Characteristics of the Clients Served
The demographic characteristics of the WEI clients who participated in the survey are summarized below:
1.
Most of the WEI clients (85%) are between the ages of 25 and 54.
In comparison to the general population of women in Western Canada aged 20 years and older as
reported in the 2006 Census, WEI clients are more likely to be in the 35 to 44 years and 45 to 54
years age ranges.
Age Characteristics of Clients
Demographic Characteristics
Loan
Non-Loan
General
Population
20 to 24 years
2%
1%
9%
25 to 34 years
23%
20%
17%
35 to 44 years
34%
30%
20%
45 to 54 years
29%
36%
21%
55 to 64 years
12%
13%
15%
1%
1%
19%
100%
100%
100%
65 years or older
Total
In comparison to non-loan clients, loan clients are somewhat more likely to be aged 25 to 44 years
and somewhat less likely to be 45 to 54 years of age.
2.
WEI clients tend to be more educated than is the general population of women in Western
Canada.
Whereas 50% of the female population in Western Canada identified their education level to be
high school or under, over 80% of the WEI clients reported some form of post-secondary education
(e.g. college, university, or post-graduate level of education). Non-loan clients were much more
likely to indicate that they had a university degree than were loan clients.
Education Level of Clients
Education Level
Less than high school
High school
College or diploma program
(2 years and under)
University degree and above
No response
Total
Loan
Non-Loan
General
Population
2%
1%
21%
16%
8%
29%
44%
33%
27%
38%
58%
24%
-
1%
-
100%
100%
100%
Page 21
Clients who reported a college diploma, university degree, or post-graduate degree were asked to
indicate whether their diploma/degree is related to business management. One-third of the loan
clients and 30% of non-loan clients indicated that their diploma/degree is related to business
management.
3.
Loan clients tend to have somewhat more experience in business management than do the
non-loan clients.
One-fifth (19%) of the non-loan clients indicated that they have no experience in the business field
as compared to only 6% of the loan clients. The loan clients who reported no business experience
are in the process of starting up their business.
Level of Business Experience
Business Experience Level
None
Loan
Non-Loan
6%
19%
Less than 2 years
10%
15%
2 to 5 years
28%
23%
6 to 10 years
25%
19%
11 to 15 years
12%
10%
Over 15 years
20%
15%
100%
100%
Total
For most clients, their experience is directly linked to the operation of their current business.
4.
Most clients found out about the program through word-of-mouth, referrals from other
organizations, or the Internet.
When asked how they first found out about the WEI organization, clients most commonly identified
word-of-mouth referrals from friends, family, or colleagues. In comparing the two groups, loan
clients were more likely to be referred to the program by another organization or government while
non-loan clients were more likely to find out about WEI services through advertisement or story and
the Internet.
Page 22
How did you first find out about the Centre?
27%
Word of mouth
17%
Referred by another organization
31%
30%
19%
Internet
16%
Advertisement or story
19%
6%
11%
Pamphlet/brochure
6%
6%
Referred by government
Non-loan clients
Lo an clients
13%
8%
7%
Other
Trade show
0%
0%
4%
10%
20%
30%
40%
50%
Examples of other organizations that provided referrals included:
 Various business centres (e.g., the Business Link in Alberta, Small Business BC, Canada
Manitoba Business Centre, the Canadian Youth Business Foundation);
 Local women’s networks (e.g., Saskatoon Women’s Network, Women Business Owners,
Women Entrepreneurs of Canada, Enterprising Mom’s Network);
 Community Futures Development Corporations (CFDCs);
 Other community resources (e.g., economic development offices, chambers of commerce,
YWCA, career centres, schools, and business courses);
 Financial institutions (e.g., commercial banks, credit unions); and
 Accountants and other business services.
Examples of government organizations that were mentioned by clients include Western Economic
Diversification, Business Development Bank of Canada, Aboriginal Business Canada, Indian and
Northern Affairs Canada, Service Canada, and public education and training institutions and
programs. The other category includes phonebooks, driving or passing by the facility, networking
events or workshops, and postings.
C.
Impacts on the Clients
We asked the clients to rate the impacts that the services they received had on themselves. The major
findings are summarized as follows:
1.
The WEI clients reported that the services had a wide range of impacts on them.
Using a scale of 1 to 5, where 1 is no impact at all, 3 is somewhat of an impact, and 5 is major
impact, the clients were asked to rate the impact that the services they received have had on them
in terms of:
Page 23
 Increasing their access to other programs and services;
 Helping develop their business, management and/or personal skills;
 Encouraging them to start their own business;
 Enabling them to network with other entrepreneurs;
 Increasing their access to information for decision making; and
 Increasing their access to financing or capital from sources other than the organization.
As indicated below, the impacts that were rated highest are in the areas of skills development,
increasing access to other programs and services, and enabling them to network with other
entrepreneurs. The chart also highlights the percentage of clients who rated the impact as a 4 or 5
(i.e. a major impact). It should be noted that the average ratings are reduced by the fact that each
type of impact is not relevant to each client; for example, only a percentage of the clients would be
looking for services which would assist them in accessing other sources of funding or further
developing their business management skills.
PERCEIVED IMPACTS GENERATED BY THE SERVICES IN TERMS OF:
% rated the impact as a 4 or 5 (major impact)
0%
Helping develop business management skills
39%
Increasing access to other programs and services
38%
Enabling them to netw ork w ith other entrepreneurs
37%
Increased access to information for decision making
35%
Encouraging them to start their ow n business
34%
Access to other sources of funding
14 %
0
20%
40%
60%
80%
100%
3.1
3.0
3.0
2.9
2.7
1.9
1
2
3
4
5
Average Rating w here 1 is no impact at all,
3 is somew hat of an impact, and 5 is a major impact
The types of impacts identified by the client are highlighted below:
Helping develop business, management, and/or personal skills (average rating of 3.1)
Clients reported further development in skills related to business planning, marketing, financial
management, business management, and general business knowledge through training
programs, seminars, networking opportunities, and review of materials. Clients noted that
training sessions helped them to learn how to access information and resources relevant to
their particular sector, better understand possible business structures, organizational issues
and legal issues, utilize market research to define their target markets and understand the
competitive environment, and gain confidence in carrying out their business.
The marketing workshops offered by the organization helped clients in developing marketing
and promotional strategies for their businesses. Financial management sessions were
reported to assist clients to acquire bookkeeping skills, understand tax issues, and read and
prepare financial statements. The general business management and networking seminars
allowed them to improve their personal skills in managing and recruiting employees, as well as
Page 24
developing connections with other women entrepreneurs and business opportunities. In
addition to the sessions, the information and resources the organization has gathered and
made available online were also recognized as a useful tool in developing business and
management skills.
Increasing access to other programs and services (average rating of 3.0)
The clients felt that the staff, information and resources available through the offices as well as
the WEI websites and newsletters increased their access to information about other programs
and services related to networking and mentoring, training, professional development, business
development, financial management, marketing, and business planning.
Some of the programs that the clients specifically mentioned gaining access to include the
Canadian Youth Business Foundation, Aboriginal Business Canada, programs at the YWCA,
the Self-Employment Program (SEP), commercial banks, business consultants, business
services centres, local women entrepreneur networks, and libraries. A few clients commented
that having the organization as a “front door” through which they were able to identify and
access other programs and services was particularly useful.
Clients who attended the focus group sessions confirmed that the WEI services had increased
their access to other programs and services in the community. Most had worked with a
business advisor who helped them to identify their needs and make use of referrals. Several
women indicated that the advisor has helped them with a business plan which they were then
able to use to apply for a loan through another institution.
Enabling them to network with other entrepreneurs (average rating of 3.0)
The WEI organizations facilitate networking by staging events and seminars as well as
informing clients of events, seminars, and workshops (not necessarily staged by the WEI
organization) via e-mails, newsletters, phone calls and postings. Clients reported being
motivated and inspired by other women entrepreneurs that they met at networking events as
well as training workshops, luncheon meetings, and mentoring groups held by the organization.
These events and seminars also allowed women to exchange information and build business
relations with each other. A few clients mentioned that the provincial organizations and/or WD
had featured their stories in publications or videos which attracted and connected them with
other potential women entrepreneurs with similar interests.
This impact was most commonly identified by those who had participated in training programs,
mentoring programs or events. Clients who had only received a loan or business counselling
services were less likely to report an impact in terms of networking with other entrepreneurs.
The entrepreneurs who attended the focus group sessions commented that they would
appreciate even more opportunities to network with other women business owners. They
acknowledge that it can be difficult to find the time to attend events outside work hours but still
feel that networking is important. A few women noted that they sometimes feel intimidated at
events held by other organizations, such as chambers of commerce, because many of the
members have been in business for a long time. In addition, some of the women have nontraditional businesses (the wellness area, for example) and feel nervous about promoting
themselves at these events.
In some provinces, clients suggested that the WEI websites could be used to enable women
Page 25
entrepreneurs to network with each other. This could involve having a discussion board and an
option of posting a business profile. As an example, in Saskatchewan, members are able to
browse profiles of all members and make contacts with each other.
Increasing access to information for decision making (average rating of 2.9)
When asked what helped them to access information for decision making, clients identified
sources including staff and resources available at the office, business planning sessions,
financial management workshops, marketing workshops, networking seminars, and the
information on the website.
In general, clients felt that knowing where to find information and acquire professional
assistance greatly increased their access to information for decision making. The WEI
organization was able to not only directly connect them with various books and contacts
relevant to their business but also help clients find out about a range of information available
and where to access it.
The entrepreneurs who attended the focus groups stressed that one of the most important
roles of the business advisor is to give them the tools to make a decision. They recognized that
the WEI is an excellent resource and, if the advisors do not have the information the client
needs, they will work with the clients to identify the appropriate resources.
Encouraging them to start their own business (average rating of 2.7)
Many of the women who had already made the decision to start a business prior to
approaching WEI noted that advisors played a very important role in encouraging them to
continue progressing towards that objective. More specifically, clients recognized the
importance of the motivational and emotional support provided by the WEI staff as well as their
technical assistance in areas such as business planning and counselling. The staff members
were described as positive, supportive, motivational, and professional in their advising and
counselling services.
The women entrepreneurs who attended the focus groups said that the role of the business
advisor is to assist them in making a good decision rather than necessarily encouraging them
to start a business if they are not ready or do not have a feasible business idea. A few women
in the focus groups were in that position. One woman, for example, abandoned her original
business idea once she realized there was little market for her product. She is currently working
with a business advisor on a new plan.
Increasing access to financing or capital from sources other than WEI (average rating of
1.9)
The low ratings reflect that most clients were not looking for capital from sources other than
WEI loans when they approached the organization. However, some clients indicated that the
advisors did play an important role in helping them prepare their business plan, which they then
took elsewhere, and/or in providing referrals to other sources of capital such as the Business
Development Bank of Canada, the Canadian Youth Business Foundation, commercial banks,
Community Futures Development Corporations, credit unions, Aboriginal Business Canada,
and other local and federal assistance.
Page 26
2.
The ratings provided by loan clients were relatively consistent with those provided by nonloan clients.
As shown in the chart on the following page, loan clients were somewhat more likely to identify
increasing access to financing from other sources as an impact while non-loan clients were
somewhat more likely to identify impacts related to management, business and personal skill
development, increased access to information for decision making, and increased access to other
programs and services as impact.
The chart also show the impacts reported by clients who participated in training sessions or used
the services of a business advisor. Not surprisingly, clients participating in training programs or
seminars were those most likely to report impacts related to the skills development and networking.
D.
Characteristics of the client businesses served
The key characteristics of the businesses operated by the clients who were surveyed are summarized
below:
1.
Of the 444 clients who were surveyed, 309 (70%) are currently operating a business.
When asked to identify the current status of the business for which they received assistance, 85%
of the loan clients and 59% of the non-loan clients indicated that the business is currently operating.
CURRENT STATUS OF THE BUSINESS
Current Status of the Business
Loan Client
Number
It is currently operating
It is still in the planning stage but not yet operating
Non-loan Clients
Per cent
Number
Per cent
149
85%
160
59%
11
6%
81
30%
It was being planned but now will not proceed
0
0%
17
6%
It has temporarily stopped operations
2
1%
4
1%
It has permanently stopped operations
11
6%
0
0%
Other
2
1%
9
3%
Total
175
100%
269
100%
For loan clients, the other category includes businesses that were sold. For non-loan clients, the
other category consists primarily of clients who were using the services solely for information and/or
education purposes (i.e. they had no intention to start a business).
2.
Of the businesses that are currently operating, most are in the service or retail sector, have
operated for 4 years or less, employ four or fewer people, and generate revenues of
$250,000 or less annually.
Page 27
Comparison of Average Ratings on Impacts Between Client Groups
with Percentage of Clients who Rated the Impact 4 or 5 (Major Impact)
3.2
41% rated major
Helping develop
management and
business skills
2.8
35%
3.4
48%
3.3
47%
3.1
39% rated major
Increasing access to
other programs and
services
2.9
36%
42%
3.3
44%
3.3
3.1
39% rated major
Enabling them to
network with others
3.0
34%
3.4
45%
3.2
44%
3.1
40% rated major
information for
decision making
2.7
29%
Encouraging them to
start their own
business
41%
3.2
42%
3.2
33% rated major
2.7
37%
2.7
2.9
36%
42%
3.0
11% rated major
financing from other
sources
1.8
18%
Loan Clients
1.9
11%
15%
0
Non-Loan Clients
2.1
Training
Counselling
2.0
1
2
3
4
5
Average ratings
Where 1 is no impact at all, 3 is somewhat and 5 is major impact
* The groups are not mutually exclusive. Loan clients include those who have received loan funding often in addition to other services; Non-Loan
clients include clients who have received services other than loan funding; Counselling clients include those who have received business advisory
services (possibly in addition to other services including a loan; and Training clients include those who have participated in at least one training
session (possibly in addition to other services including a loan).
Page 28
The following table compares the characteristics of the businesses of loan and non-loan clients.
Comparison of the characteristics of businesses
operated by loan and non-loan clients
Characteristics of the Businesses Operated
Loan Clients
Non-Loan Clients
149
160
Manufacturing
Retail
Wholesale
Primary Production
Construction
Real Estate or Insurance
Accommodation, Food and Beverage
Professional Services
Other
8%
29%
4%
1%
1%
0%
8%
31%
18%
4%
16%
3%
0%
2%
2%
4%
47%
24%
Total
100%
100%
8%
47%
30%
13%
2%
100%
15%
46%
23%
13%
3%
100%
5.7 years
6.0 years
63%
21%
13%
3%
100%
84%
8%
7%
2%
100%
5.8 employees
2.8 employees
6%
12%
20%
17%
21%
24%
100%
$475,266
32%
15%
20%
12%
10%
11%
100%
$272,473
$465,025
$357,842
$405,271
$318,233
Number of Businesses Currently Operating
Sector
Years in Operation
Less than 1 year
1 to 4 years
5 to 9 years
10 to 24 years
25 years or more
Total
Average
People Employed in the Organization
1 to 4
5 to 9
10 to 19
20 or greater
Total
Average
Projected Revenues for the Current Fiscal Year
$0 to $25,000
$25,001 to $50,000
$50,001 to $100,000
$100,001 to $250,000
$250,001 to $500,000
Greater than $500,000
Total
Average
Comparison to Previous Years
Projected Revenues for the Current Year (excluding
new business with no previous comparables)
Previous Year Revenues
Page 29
Characteristics of the Businesses Operated
Average Increase in Revenues
Loan Clients
Non-Loan Clients
15%
12%
5.8
$81,942
$18,795
2.8
$97,312
$29,670
17%
5%
11%
7%
$171,335
$2.31
n/a
n/a
Revenues and Wages Per Employee
Number of Employees
Average Revenues Per Employee
Average Wages Per Employee
Export Sales
Percentage of Companies Reporting Export Sales
Export Revenues as a Per Cent of Total Revenues
Investment
Average Investment Per Business
Average Revenue Per Dollar Invested
As indicated, the size of the average business operated by loan clients tends to be significantly
larger than the average business operated by non-loan clients, generating revenues of $475,266
(as compared to $272,473 for non-loan clients). On average, the loan clients are projecting that
their revenues are increasing by 15% this year over last year while non-loan clients are projecting
an increase of 12%.
The size of the average business operated by loan clients also tends to be significantly larger than
the average business operated by non-loan clients in terms of employment, with an average of 5.8
employees (as compared to 2.8 for businesses of non-loan clients). These levels of employment
equate to an average of one employee for $18,795 in wages paid and $81,942 in revenues for the
businesses of loan clients and an average of one employee for $29,670 in wages paid and $97,312
in revenues for the businesses of non-loan clients. The average wages per employee is low
because of the nature of the operations (e.g. lower paying retail and service jobs), the part-time or
seasonal nature of some of the work, and the fact that the employment levels include the
entrepreneur who does not necessarily draw compensation or significant compensation in the form
of wages.
Most loan clients also reported data on the amounts invested in their business (including equity and
any loans including WEI loans). According to the clients surveyed, the loans represent about 30%
of the approximately $171,000 on average, that has been invested in these businesses. This
means that $2.35 has been invested in the businesses for every $1.00 provided in WEI loans.
Based on the reported revenue levels, the average revenue is equal to $2.31 for every $1.00
invested in the business.
The other sources of financing most commonly identified by the loan clients include funds invested
by the client or partners, commercial lenders, and family and friends.
Page 30
OTHER MAJOR SOURCES OF FINANCING
BY NUMBER OF LOAN AND NON-LOAN CLIENTS
55%
Self/Partner
63%
18%
Commercial lenders
32%
10%
15%
Family/friends
Other Federal government sources
Other
Provincial government sources
Private sector equity investors
4%
9%
3%
6%
1%
6%
1%
2%
0%
Non-Loan Clients
Loan Clients
20%
40%
60%
80%
100%
Other sources of financing identified by the clients include internally generated funds, education
loans, and vendor financing.
E.
Impacts on the Loan Clients
At the time of the survey, 149 of the loan clients were operating businesses, 11 were still in the final
planning stages and expected to be operating this year, and 15 businesses had ceased operations
(temporarily or permanently including those which had been sold). The chart below traces the evolution of
the businesses from the first contact.
Status of the Loan Client Prior To and After Receiving Assistance
Continuing (33%)
Operating (35%)
Ceased Operating (2%)
Still Operating (55%)
Started Up (60%)
Ceased (5%)
Not Operating (65%)
Not Yet Operating (5%)
As indicated, when the loan clients first approached the WEI centre, 35% were operating businesses and
65% were not. Of that 35%, 33% are still operating and 2% have ceased operations. Of the 65% who
were not yet operating, 60% subsequently started up operations of which 55% are still operating and 5%
have ceased operations or were sold. The annual revenues of the 59 businesses that already existed when
they initially approached the WEI organization for a loan ranged in size from under $10,000 to over
$1,000,000.
Page 31
A major objective of our survey of clients was to develop an estimate of the economic impact (in terms of
revenues and employment) that the assistance provided to WEI clients has had. It is important to not only
track changes in the client businesses over time but to also obtain input regarding the extent to which those
changes are attributable to the services provided by WEI organizations. In reviewing the economic impact,
we focused most heavily on loan clients because those are the clients most likely to be impacted by the
services and for whom the impacts are most easily measured and extrapolated.
To assist us in this regard, we asked the loan clients a series of questions related to issues such as:
The value of the loan or loans received;
How long the business has been operating;
The status and revenues of the business when the first service (usually a loan) was provided that
significantly impacted the business;
The size of the business in the previous fiscal year (e.g. revenues, employment, wages and
exports) and the estimated revenues for the current fiscal year;
Total investment in the business to date; and
How important the service provided by the WEI was to the development of the business and how
likely it is that the clients would have been able to obtain the loan from another source in the
absence of the program (expressed as a probability percentage). We also asked clients to estimate
the level of revenues that would have been generated and the level of investment that would have
been made in the absence of assistance from the program.
Our methodology focuses on defining the cumulative economic impacts that are generated by a typical WEI
loan client business in the first five years after receiving assistance. A five-year period was selected
because our sample was drawn from clients who have received assistance during the past five years. To
the extent that the impacts of the assistance provided under WEI continue to go forward beyond five years,
this approach underestimates the ultimate cumulative impact of the assistance provided. To estimate the
five-year cumulative impact of the assistance provided, we divided the methodology into the following
series of five steps:
The first step was to determine the growth rate in the revenues of the typical client business over a
five-year period.
The second step was to estimate the survival rates of the typical client businesses over a five-year
period. What per cent of the businesses survive and how does that change over time? The survey
results provided an indication of survival rates. However, we also had to adjust for the fact that the
businesses which were surveyed tend to have higher survival rates than do those which we could
not reach (i.e. the non-response error).
The third step was to calculate the net economic activity of the client businesses. Taking both the
growth rates and survival rates into consideration, what level of revenues does the typical client
business generate over a five-year period?
The fourth step was to determine the extent to which the economic activity can be attributed to the
assistance provided by the WEI. In effect, based on the survey results, how much of this activity
can the loans and other services provided through WEI take credit for?
The fifth step was to extrapolate the results to the larger population of loan clients who have been
assisted. To do so, we simply took the average impact per client and multiplied it by the value of
loans provided over the past five years.
Page 32
The results of each of the five steps are presented below.
1.
The revenues of the WEI assisted businesses tend to grow each year that operations
continue.
To illustrate the growth pattern, we have developed a scatter diagram that shows the revenues
reported by the loan clients by the number of years it has been since the first important service
(usually a loan) was received through WEI. The data for the Year 0 represents the revenue in the
year prior to the assistance being provided.
Thousands
Revenues ($)
Revenues of Operating Business by Number of Years Since They Were
First Assisted Under WEI
$2,500
$2,000
$1,500
$1,000
$500
$0
0
1
2
3
4
5
6
Number of years since first important service
As indicated, the revenues of the businesses tend to increase over time. In the following chart, we
have developed a regression line based on the revenue data provided above (including outliers not
shown in the chart) and used it to calculate the cumulative revenues that would be generated by
clients over a period of five years.
Thousands
Revenues ($)
Cumulative Revenues per Client by Year by Client Category
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
0
1
2
3
4
5
6
Num ber of years since first important service
Annual
Cumulative
Over a five-year period, the average WEI client business which remained in business would
generate about $1.9 million in revenues. In calculating the cumulative line, we have also adjusted
Page 33
for any revenues generated by the businesses prior to receiving assistance from WEI.
2.
Business survival rates decline over time but are difficult to estimate because of the nonresponse error.
The second step was to determine the survival rates of the typical WEI client business over a fiveyear period. As noted earlier, about 8% of the businesses we surveyed have ceased operations
(temporarily or permanently) or have been sold. The survey results overstate the actual survival
rates because of the non-response error. Representatives of businesses which are no longer in
operation are less likely to participate in the survey because the contact information maintained by
the WEI is less likely to be up-to-date and, even when contacted, these clients may be less willing
to respond.
In attempting to adjust for these factors, we have taken into consideration:

The default rate on loans. As noted in Chapter II, of the loans issued over the past five
years, 50% are still active, 39% have been paid in full and 11% have been written off.
These figures overstate survival rates to the extent that not all currently active loans will
be paid in full and not all businesses which stop operating default on their loans. For the
three provinces which provided detailed data on the status of each loan made over the
past five years, the write-off rate increased from 0% amongst loans issued in fiscal 2008
to 4% amongst those issued in fiscal 2007, 5% amongst those issued in fiscal 2006, 16%
amongst those issued in 2005, and 17% amongst those issued in fiscal 2004. In other
words, 83% of the loans approved five years ago have not been written off.

The results of a recent survey conducted by WEC-BC. In April 2008, WEC-BC followed
up on loans awarded to businesses prior to 2004 and found that 73% were still actively in
business 5 years after receiving their initial loan.

The results of previous studies we have conducted. For example, when we conducted an
assessment of the impacts of CFDCs in 2002, we obtained loan clients lists and were
able to survey a larger sample of 808 loan clients. Taking into consideration, the survey
results, loan default rates, and the percentage of businesses that we were not able to find
(e.g. number out of service/no listing in the telephone directory), we estimated that the
actual survival rate after five years could range from about 60% to over 75%.
Based on this information, we have roughly estimated that survival rates would range between 83%
(which corresponds to the percentage of loans approved five years ago that have not been written
off) and 67% (taking into consideration that not all businesses with active loans or who have paid off
loans will still be in business after 5 years). It should also be noted that businesses which are no
longer in operation are not necessarily unsuccessful; there are a variety of reasons why businesses
may no longer be in operation related to factors such as the entrepreneur moving on to another
business or obtaining employment, competing priorities, or health.
Page 34
Estimated Range in Survial Rates
by Number of Years Since Assistance First Provided
% Currently operating
120.00%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
1
2
3
4
5
Upper Band
Lo wer B and
For the purpose of calculating the accumulated impacts in this study, we assumed that the actual
survival rate is at the mid-point of the range (i.e., a survival rate of 75% after five years).
It is interesting to note that these survival rates are significantly higher than those of the typical
business. According to Statistics Canada’s Longitudinal Employment Analysis Program (LEAP)3
which tracked the survival rates amongst businesses established between 1994 and 2003, 72%
micro-businesses (fewer than 5 employees) in Canada were still operating after the first year, 46%
were operating after three years, and only 35% were operating after five years. Similarly, 70% of
small businesses with 5 to 99 employees in Canada were still operating after the first year, 46%
were operating after three years, and 38% after five years. The following chart compares our
estimated survival rates with Statistics Canada’s LEAP survival rates.
Comparable Small Business Survival Rates
Our Estimates and Statistics Canada's LEAP Survival Rates
Small Business
Survival Rates (%)
100%
80%
60%
40%
20%
0%
1
2
3
4
5
Duration of Business (Year)
Stats Can Micro-Enterprises Average
Stats Can Small Business Average
Our Estimates
3
Key Small Business Statistics, Industry Canada, January 2008
Page 35
3.
After adjusting for survival rates, we estimate that the average WEI business (including
those which are still operating and those which have ceased to operate) would generate
revenues of approximately $1.5 million over the five-year period since the first important key
service was provided.
The following chart shows the cumulative revenues of the typical firm, the estimated survival rate of
the businesses (we have adopted the midpoint of the upper and lower bands from the previous
table), and the product of the average annual revenues and the survival rates which is referred to
as the adjusted cumulative revenue line.
$2,000
100%
$1,500
80%
60%
$1,000
40%
$500
20%
$0
% Currently
operating
Thousands
Revenue ($)
Adjusted Average Cumulative Revenues of Businesses including Both
Operating Businesses and Those That Have Ceased Operations
0%
1
2
3
4
5
Cumulative revenue
Adjusted cumulative revenue
Survival rate
If we assume that there is one person year of employment for every $81,942 in revenues, which is
consistent with the data reported by the businesses surveyed, the average business would
generate about 18.1 person years of employment over a five-year period. The wages associated
with this employment would total about $341,107 over the five-year period. Export sales are
estimated to total about $75,000 (assuming the export market accounts for 5% of sales revenues).
4.
The majority of impacts generated by the services provided are incremental in that they
would not have occurred in the absence of the support provided by the program.
To obtain data to be used in assessing incrementality, we asked the loan clients to estimate how
likely it is they would have been able to obtain their loans from another source (e.g. from banks or
other financial institutions) if the program had not been available, how likely it is that they would
have been able to develop their business to the extent that they did in the absence of the services
received under WEI, and what they estimate their revenues would have been without those
services. To provide an alternative perspective, we also asked WEI Board Members, staff and
other stakeholders to estimate how likely it is that loan clients would have been able to obtain their
loans elsewhere. The results indicate that:
The clients were, on average, only 34% confident that they could have obtained their loans
elsewhere (e.g. from banks or other financial institutions) if the program had not been
available. Sixty-one per cent of the clients considered the prospects of obtaining financing
elsewhere to be very unlikely (0% or 25%) due to their limited credit history or lack of
collateral (identified by 41 loan clients), concerns of banks regarding the risky nature of the
start up businesses (identified by 27 loan clients), perceived reservations in lending to women
Page 36
or youth (identified by 8 loan clients), and the high level of risk associated with their sector
(e.g., restaurant, retail, web services – identified by 6 loan clients).
ESTIMATES OF LOAN CLIENTS REGARDING THE LIKELIHOOD
OF OBTAINING THEIR LOAN ELSEWHERE
% of Clients
60%
40%
40%
Loan clients
21%
16%
Loan clients Loan clients
20%
7%
Loan clients
16%
Loan clients
0%
0%
25%
50%
75%
100%
Likelihood of Obtaining Loan Elsewhere
The responses of WEI Board Members, staff and other stakeholders suggest that the loan
clients overestimate their ability to obtain loans from other sources. As indicated below, other
stakeholders estimate that, on
average, there was a 22%
AVERAG E RATINGS ON THE LIKELIHO OD OF
likelihood that loan clients could
CLIENTS OBTAINING LOAN ELSEWHERE
have obtained a loan from
50%
another source if the WEI loan
has not been available while
40%
34%
WEI Board Members provided
30%
22%
21%
an average estimate of 21%.
20%
WEI staff who felt comfortable
5%
estimating
the
likelihood
10%
provided an average estimate
0%
of only 5%. In general, these
WD & WEI staff WEI Board
Other
WEI clients
groups indicated that most loan
members
stakeholders
clients would not have been
able to obtain funding from
other sources given the nature of the business and concerns regarding collateral or credit
histories. It was noted that, even if the clients had been successful in obtaining a loan, the
amounts may have been less, the interest rates higher, and the repayment conditions more
stringent or less flexible which would have reduced the success achieved by the business.
Although WEI does ask loan clients to guarantee the loan with any available capital, staff said
they commonly ask for less than what banks require. In addition, the staff said that they are
able to be more flexible with respect to repayment of loans. If a woman entrepreneur is
unable to make a payment, the WEI is better able to work with her to keep the business on
track.
Most loan clients believe that the loans and services they received have been very important
to them in the establishment or further development of their business. When asked to rate
the importance on a scale of 1 to 5, where 1 is not at all important and 5 is very important, the
average rating was 4.5 and 74% of the respondents indicated that it was very important.
Page 37
IMPORTANCE OF THE LOANS AND SERVICES RECEIVED
BY PERCENTAGE OF LOAN CLIENTS
% of Clients
100%
74%
80%
60%
40%
20%
4%
2%
5%
1 - Not at all
2
3 - Som ew hat
im portant
15%
0%
4
5 - Very
im portant
On average, the businesses estimate that there was only a 34% chance that they would have
developed their business to the extent that they did in the absence of the program. As
indicated below, 41% of the clients felt that there was no chance of developing the business
to this extent in the absence of the program whereas 12% felt that the loans and services had
no impact on the eventual development of the business.
ESTIMATES OF LOAN CLIENTS REGARDING THE CHANCE OF DEVELOPING
BUSINESS TO THIS EXTENT WITHOUT WEI ASSISTANCE
% of Clients
60%
50%
40%
41%
Loan clients
30%
20%
10%
19%
Loan clients
16%
Loan clients
25%
50%
13%
Loan clients
12%
Loan clients
0%
0%
75%
100%
Percentage chance of developing business to this extent in the absence of
the Program
This is not to say that the businesses would necessarily not have developed at all in the
absence of the program. When asked to estimate what their revenues would have been
in the absence of the services received, the loan clients reported that their revenues
would have declined by 55% on an aggregated basis (i.e. revenues would have been
equal to 45% of current levels). Larger businesses tended to be less likely to attribute
their development to the service received. Similarly, the clients reported that the level of
funding invested in their business (including debt and equity) would have declined by 36%
on an aggregated basis (i.e. investment would have been equal to 64% of current levels).
The investment would have declined less than the revenues because the loan clients
believe they still would have invested funding from other sources and could possibly have
replaced some or all of the WEI loans with alternative funding.
Using these figures, we estimated the extent to which the revenues of each client (or the change in
revenues if the business was already existing prior to receiving services) are attributable to the
services received from the programs. More specifically, we have estimated that 55% of the
Page 38
revenues and employment generated by these businesses over a five-year period are incremental
in that they would not have occurred in the absence of the program. Therefore, we estimate that
the services provided to each WEI loan client have, on average, over a five-year period generated:
 Over $818,000 in revenues including $40,000 in export sales;
 About 10 person years of employment; and
 $187,600 in wages.
Given that the average client we surveyed received an average of $51,693 in loans, we therefore
estimate that the loans result in about $15.82 in incremental revenues for every dollar in loans
provided and generate about 1 person year of incremental employment for every $5,179 in loan
funding provided over a five-year period. Similarly, we have assumed that 36% of the investment
(an average of $61,680 per loan client) is attributable to the services received from the programs.
5.
By extrapolating the survey results to the entire population of WEI loan clients, we estimate
that (going out over a five-year period from when assistance initially provided) the $22.9
million in loan funding approved over the past five years has generated about $660 million in
incremental revenues and 8,000 incremental person years of employment.
The following table summarizes the estimates on a per business basis and extrapolated to the total
population of loan clients based on the value of loans issues over the past 5 years.
Estimate of the aggregate economic impacts of the
services provided to WEI loan clients
Per Loan Client
Total Population
of Loan Clients
$51,693
$22.9 million
$1.5 million
$660 million
$74,000
$33 million
18.1 person years
8,000 person years
Wages
$341,000
$151 million
Investment
$171,000
$76 million
Indicator
Loans
Value of Loans Received
Business Activity Over A Five-Year Period
Incremental Revenues Over 5 Years
Export Revenues
Employment
Impacts Which Can Be Attributable to the Services of WEI
Total Revenues Over Five Years
$818,000
$363 million
Export Revenues
$41,000
$18 million
10.0 person years
4,430 person years
Wages
$188,000
$83 million
Investment
$62,000
$27 million
Employment
These figures underestimate the total economic impacts of the programs because they do not
include the impacts associated with clients who receive technical assistance but do not receive a
loan under WEI.
Page 39
The WEI organizations have received $18.8 million in operating funding over the past five years.
Even without taking into consideration the impacts of their services on non-loan clients, the WEI
organizations are generating 1 person of year of employment for every $4,246 in operating funding
they receive. On a per dollar of operating funding basis, the loan clients attribute $19.30 in
revenues, $0.96 in export revenues, $4.43 in wages, and $1.46 in new investment to the services
received from WEI.
F.
Impacts on the non-loan clients
As part of the impact assessment, we also reviewed the impact of non-loan services with a particular focus
on business advisory services and training. Each WEI organization employs business advisors who may
work with clients on a one-to-one basis and host business orientation sessions. In addition, the
organizations are involved in delivering a range of training programs. In 2007-08, the 4 organizations
provided nearly 6,000 counselling services to clients and delivered 300 training sessions involving almost
2,800 people. Many of the training sessions are delivered in partnership with other organizations.
To develop a better understanding of these services, we:
Interviewed WEI staff members who are involved in delivering the services;
Conducted focus groups with clients who have received these services; and
Reviewed the results of the clients surveyed regarding clients who received these services.
Because of the soft, incremental nature of many of the services, it is often difficult for clients to quantify the
impact that an advisory service or a training program has had on their business. It was not unusual for
clients in the focus groups or interviews to indicate that they were very satisfied with the services that were
provided to them, to feel that it had helped them in starting up or operating their business by enhancing
their confidence or skills as well as providing guidance and useful feedback, but not to be able to provide a
reasonable estimate of the economic impact that it had.
That being said, there were examples where clients reported significant impacts. For example, there were
a number of clients who participated in the survey and/or the focus groups who indicated that their business
was very unlikely to have been established without the assistance of the business advisor and/or the
training they received. In some cases, these businesses are now generating revenues of $400,000 or more
annually.
With respect to the training that had been provided, we interviewed 181 clients who had received training
but had not received a loan. The results of the focus groups and interviews with training clients (i.e. nonloan clients who received training) indicate that:
The training was provided to a mixture of clients who were in the process of starting a business,
were already operating a business or who have not started a business. At the time of the
survey, 64% of the training clients were operating businesses, 27% were still in the planning
stages, 5% had been planning to start a business but will not be proceeding, 3% had been
involved only for information purposes, and 1% had ceased operations.
Clients are very satisfied with the training that they have received. When asked to rate their
satisfaction with the assistance received from WEI on a scale of 1 to 5, where 1 is not at all
satisfied, 3 is somewhat satisfied and 5 is very satisfied, the training clients (i.e. non-loan clients
who received training) provided an average rating of 4.0. Participants in the focus groups
indicated that they found the training to be very useful to them in developing skills in areas such
as marketing and in encouraging them to move forward with their business.
Page 40
Most training clients believe that the training and other non-loan services they received was
useful to them in the establishment or further development of their business but not critical.
When asked to rate the importance on a scale of 1 to 5, where 1 is not at all important and 5 is
very important, the average rating was 3.5 and 54% of the respondents indicated that it was
fairly or very important (ratings 4 and 5). Of those who could provide an estimate, the training
clients estimate that there was a 70% chance that they would have developed their business to
the extent that they did in the absence of the program. As indicated below, 3% of the clients felt
that there was no chance of developing the business to this extent in the absence of the services
while 37% felt that the services had no impact on the eventual development of the business.
ESTIMATES OF TRAINING CLIENTS REGARDING THE CHANCE OF
DEVELOPING BUSINESS TO THIS EXTENT WITHOUT WEI ASSISTANCE
% of Clients
60%
50%
40%
30%
20%
10%
3%
Training
clients
13%
Training
clients
21%
Training
clients
27%
Training
clients
37%
Training
clients
0%
0%
25%
50%
75%
100%
Percentage chance of developing business to this extent in the absence of
the Program
Training clients were also asked to identify their current revenues and to roughly indicate what
their revenues would have been in the absence of the assistance provided. Based on the
responses, we estimated the extent to which the revenues of each training client are attributable
to the services received from the programs. Taken together, we have estimated that 8% of the
revenues generated by the training clients could be attributable to training and other non-loan
services received. Because clients who had more extensive interaction with the WEI
organizations are those more likely to respond to the survey, these results would likely not be
representative of the total population of clients who received training services.
We interviewed 112 clients who had received business advisory services but had not received a loan. The
results of the focus groups and interviews with the advisory clients (i.e. non-loan clients who received
business advisory services) indicate that:
The advisory services were provided to a mixture of clients who were in the process of
starting a business, were already operating a business or who had not started a business. At
the time of the survey, 57% of the advisory clients were operating businesses, 34% were still
in the planning stages, and 7% will not be starting up, 1% had no intention to start a business,
and 1% had ceased operations.
Clients are satisfied with the business advisory services that they have received. When
asked to rate their satisfaction with the assistance received from WEI on a scale of 1 to 5,
where 1 is not at all satisfied, 3 is somewhat satisfied and 5 is very satisfied, the advisory
clients (i.e. non-loan clients who received advisory services) provided an average rating of
4.1. The entrepreneurs highlighted that the advisors provided much needed encouragement,
Page 41
access to various resources and tools, help in the development of a business plan, and
assistance in making good decisions.
Most advisory clients believe that the business advisory and other non-loan services they
received have been important to them in the establishment or further development of their
business. When asked to rate the importance on a scale of 1 to 5, where 1 is not at all
important and 5 is very important, the average rating was 3.8 and 59% of the respondents
indicated that it was fairly or very important (ratings 4 or 5). Of those who could provide an
estimate, the advisory clients estimate that there was a 66% chance that they would have
developed their business to the extent that they did in the absence of the program. As
indicated below, 3% of the clients felt that there was no chance of developing the business to
this extent in the absence of the services whereas 27% felt that the services had no impact on
the eventual development of the business.
ESTIMATES OF ADVISORY CLIENTS REGARDING THE CHANCE OF DEVELOPING
BUSINESS TO THIS EXTENT WITHOUT WEI ASSISTANCE
% of Clients
60%
50%
40%
30%
20%
10%
3%
Advisory
clients
15%
Advisory
clients
24%
Advisory
clients
30%
Advisory
clients
27%
Advisory
clients
75%
100%
0%
0%
25%
50%
Percentage chance of developing business to this extent in the absence
of the Program
Based on the responses given, we estimated the extent to which the revenues of the advisory
clients are attributable to the services received from the programs. Taken together, we have
estimated that 6% of the revenues generated by the clients could be attributable to the advisory
and other non-loan services received. Again, these results may not be representative of the
total population of clients who received advisory services.
G.
Perceived need for the program
Most representatives who were interviewed as part of the impact assessment believe that there is a strong
need for the types of services provided through the Women’s Enterprise Initiative program. When asked to
comment on the need of such a program on a scale of 1 to 5, where 1 is no need at all, 3 is somewhat of a
need, and 5 is a major need, WD and WEI staff provided an average rating of 4.8, WEI Board Members
and clients provided an average rating of 4.7, and other stakeholders interviewed provided an average
rating of 3.7.
Page 42
AVERAGE RATINGS ON THE NEED FOR THIS TYPE OF PROGRAM
4.8
WD & WEI Staff
WEI Board Mem bers
4.7
WEI Clients
4.7
3.7
Other Stakeholders
0
1
2
3
4
5
Where 1 is no need at all, 3 is somewhat of a need, and 5 is a major need
The major factors identified by WD and WEI staff, Board Members and other stakeholders as contributing
to the strong need for this type of program include:
Difficulties that women face in accessing capital. Capital was, by a wide margin, the issue
most commonly identified by all of the groups interviewed as a major barrier facing women
entrepreneurs. The key factors that were identified in our interviews and focus groups as
constraining access to capital include:

Characteristics of the businesses. Women tend to own firms in slower growth sectors
that banks consider to be high risk, such as the service, retail and hospitality sectors, for
which access to financing is generally more challenging for businesses to obtain. Banks
often do not loan money for these types of businesses or will not loan money for
inventory. As noted by the profile of client businesses, WEI regularly loans money to start
up and expand businesses in these ‘high-risk’ industries. In addition, WEI works with
banks to provide additional loan money for inventory and other business expenses that
the bank is not willing to cover.

Earnings. On average, women in Canada still earn one-third less than men. For example,
only 17% of self-employed women make more than $30,000 a year, compared with 42%
of men.

Availability of collateral. This lower earning power, combined with the need to withdraw
from the labour force to bear and raise children for periods of time, can contribute to
women having less access to personal savings and assets they can use to help finance
their businesses. Banks still assess risk primarily on the basis of whether or not the
potential borrower has assets that can be used to provide collateral for loans.

Credit history. According to WEI staff, some women still do not have adequate credit
because family finances have been in a spouse’s name4. The banks will require women
to have a spouse or parent, if available, co-sign for their loan or will ask for a considerable
amount of capital to guarantee the loan (house, for example). Some women are only
offered a line of credit which is not the same as having a loan to fund the business. The
WEI assesses not just a woman’s credit history, but also her character and business plan
to determine if the applicant qualifies for a loan.
4
Most staff feel this may change in the future as more younger women choose to become entrepreneurs; at the moment, the majority of
clients are still women in their forties.
Page 43
Mentioned less often but still considered a barrier is the perceived lack of credibility (stereotypes)
that women business owners may face when they approach traditional lending institutions.
Although attitudes toward women in business are changing, some women reported to WEI staff
that they have had difficulty dealing with some banks.
The limited experience of those planning to start up a new business. As noted earlier,
many of the women entrepreneurs had very little business management experience prior to
starting their business. As such, access to knowledge and information regarding issues such as
business planning and available resources was identified as another barrier. Staff reported that
many women are unsure about the first steps they should take when starting a business. As well,
WEI staff reported that clients often do not have a lot of work experience and lack basic business
skills such as bookkeeping and managing an office. The WEI in each province works with clients
to identify their needs and provide direction to the resources that are available.
Competing priorities. Women may face significant work-life balance issues, particularly with
respect to the family.
The impressive growth in the number of women entrepreneurs in Western Canada, which
has helped foster community growth and economic development. Between 1981 and 2001, the
number of women entrepreneurs in Canada increased by 208% as compared to the 38%
increase amongst men. As of 2002, one-third of self-employed Canadians were women. Women
in Canada now make up a larger share of the self-employed segment than in any other country.
According to Statistics Canada’s Labour Force Survey reports, there were 877,000 selfemployed women in Canada in 2006, accounting for about one-third of all self-employed
persons. Between 1996 and 2006, the number of self-employed women grew by 18% compared
with 14% growth in male self-employment5.
The findings of our interviews are consistent with past research. A 2004 report by The Foundation of
Canadian Women Entrepreneurs found that obtaining financing to support their business establishment and
growth still remains a challenge to women regardless of their country or location. A recent survey
(published in February 2008) of 500 residents and 150 women small business owners in BC, commissioned
by WEC-BC, found that:
38% of residents disagreed with the statement that “women are usually able to get access to the
capital they need to succeed in their own business”, while 49% agreed and 13% indicated that
they do not know.
63% of BC residents and 52% of women entrepreneurs recognized that women business owners
in BC face more barriers than men. Other common barriers mentioned by the women
entrepreneurs surveyed in the study include financial needs (15%), skills and personal
development (11%), and time management issues (11%), which are consistent with our research
findings6.
Barriers can be particularly acute for women based in smaller rural or northern communities. A 2005
research study involving MWEC investigated the changing needs of rural and Northern women in Manitoba
through the use of discussion groups, focus groups and a survey. The study found that the access to credit
5
6
Key Small Business Statistics, Industry Canada, January 2008
BC Public Perceptions of Entrepreneurship for Women and Women Entrepreneurs Access to Financing Study, Mustel Group, February 2008
Page 44
and financing is a significant problem for rural and Northern women in Manitoba. Many financial institutions
are reluctant to lend capital to women because they may lack the required history and collateral. In
addition, the average income levels reported by rural and Northern women are significantly lower than the
Manitoba average. Rural and Northern women interviewed identified the lack of child care as the major
barrier that prevent them from obtaining higher education, which in turn reduces their opportunities of
getting employment or starting their own business. Other barriers included limited access to training
supports as well as information on what programs were offered and the intricacies of getting approval to
attend7.
The 2003 Prime Minister’s Task Force on Women Entrepreneurs report found that women entrepreneurs
continue to face gender specific barriers for start up and growth stages of their businesses and these
barriers inhibit the full economic growth potential of this segment of the Canadian society. The Task Force
report stated that there is still a huge need for support services and programs specifically geared to women
entrepreneurs. The Federal Government was identified as playing an essential role in ensuring that the
needs of women entrepreneurs are addressed, without which a significant segment of the Canadian
economy will be left underdeveloped. It quoted data from the OECD and the World Bank confirming that
countries with an active women’s entrepreneurial community enjoy a higher standard of living and are
better places to live.
When asked why there is a strong need for a program such as WEI in their province, clients responded
that:
WEI offers significant counselling/advising assistance and training support for women
who want to start their own business which is not available from any other source. By providing
potential women entrepreneurs with assistance in planning their business, developing their
business/management skills, counselling and advising, and network opportunities, WEI gives
women an opportunity to pursue and realize their goal (identified by 197 clients).
The emotional and motivational support of WEI staff and mentors gives women entrepreneurs
confidence and encouragement. Clients felt comfortable in asking any questions and discussing
any issues with their advisors without fear or pressure. Some clients recognized that there still
exists an uneven playing field and stereotype for women to succeed in the business world and
that other business organizations have tended to overlook the potential in women (identified by
137 clients).
The organization offers the vital financial assistance women require to start or expand their
businesses while commercial banks often decline their loan application due to limited credit
history, collateral, and work experience. Some respondents praised WEI for focusing on the
validity and feasibility of the business rather than just numbers (91 clients).
Some clients indicated that the growing economy has created many business opportunities
and there is a growing trend of young women entrepreneurs. Having resources available not
only helps potential women entrepreneurs but also generates positive economic impacts
including job creation (48 clients).
The organization increases access of women to information and resources as a “front door”
or “one-stop shopping” source where questions are answered, directions are given, and referrals
are made in a timely manner. Some clients noted that, even though they do not access the
services frequently, knowing that the organization is there when they need help is very important
7
Changing Needs of Rural and Northern Women in Manitoba, Women’s Enterprise Centre of Manitoba, May 2005
Page 45
(44 clients).
The networking events and seminars can inspire women entrepreneurs and provide
opportunities to interact with and learn from other women entrepreneurs. A number of
clients noted that there are limited opportunities to network with women in business and the
seminars allow them to connect with others who have similar interests and build business
relations (24 clients).
Lastly, some clients felt that the organization is able to understand the challenges women
face in achieving work-life balance, particularly the responsibilities women may have in taking
care of their family (12 clients).
H.
Factors contributing and constraining success
The major findings of our review regarding factors which contribute to and constrain the impacts of the
program are as follows:
1.
WEI is viewed as successful in achieving its key intended impacts.
We first asked WEI staff, WD representatives, Board Members and stakeholders to identify what
they consider to be the most important indicators for measuring the success of the program. The
key indicators were considered to be:
The number and value of loans provided;
The number of clients served and services delivered;
The success rate of the businesses assisted (particularly the survival rates of businesses
which received a WEI loan);
The performance of the loan portfolio (e.g., default rates);
The number of jobs created/maintained;
The number of new start-up business assisted;
The level of client satisfaction;
Awareness of the WEI organization and services; and
The number of members (Saskatchewan only).
Some WEI staff stressed that, in addition to the quantitative indicators on which they report to WD, it
is important to consider softer, more qualitative indicators of success such as the impact on
decision making. For example, it was stressed that it is just as important to help a woman
entrepreneur reach a decision not to proceed with a business that will not be successful because of
market, financial, or personal issues as it is to help a new business become established.
We then asked WEI staff, WD representatives, Board Members and stakeholders to rate how
effective they believe the program is in terms of the indicators that they identified, on a scale of 1 to
5 where 1 is not at all effective, 3 is somewhat effective and 5 is very effective. The average rating
ranged from 3.5 amongst other stakeholders (who tend to be least familiar with the program) to 4.0
amongst WEI and WD staff to 4.3 amongst Board Members.
Page 46
EFFECTIVENESS OF THE WEI PROGRAM
WEI Board members
4.3
WD & WEI Staff
4.0
Other Stakeholders
3.5
0
1
2
3
4
5
Where 1 is not at all effective, 3 is somewhat effective, and 5 is very effective
WEI was considered particularly successful in terms of increasing access to capital, assisting large
numbers of clients, delivering a range of quality services, aiding in the start up and further
development of businesses, improving the success rates of businesses, and raising awareness of
the entrepreneurial option for women. It was also noted that, as a group, the businesses assisted
by WEI make a notable contribution to the economy of Western Canada. With respect to raising
awareness of the entrepreneurial option for women, it is interesting to note that progress is being
made. A survey commissioned by WEC-BC found that:
Not only does 96% of the general public agree that entrepreneurship is a valuable option for
women, people also recognize that it is a valuable option for women at any age or life-stage
(93%), as well as a valuable option for women of any ethnic background (94%).
In comparison to the previous baseline study conducted in 2006, the 2008 survey revealed that
the public awareness of accomplished women in business in BC increased significantly from
41% in 2006 to 63% in 2008.
When asked to identify areas where the program had been somewhat less successful, the areas
most commonly identified related to reaching out to a particular segment (e.g. Aboriginal women,
older women, and smaller communities), establishing a high profile for the program, and accessing
the funding needed to expand the services it provides.
2.
When asked to identify which types of services or support have been most important in
terms of generating these impacts, the most common response was capital lending followed
by business counselling.
As highlighted earlier, women face significant challenges in accessing other sources of capital. It
was noted that business counselling services, provided pre-loan (e.g. assistance in developing a
business plan prior to applying for a loan) and/or post-loan (e.g. business aftercare), strongly
complement the capital lending function by helping to improve business success rates and enhance
the performance of the loan portfolio. The combination of loans and business counselling is
considered unique to WEI and not offered by traditional lending institutions.
Through the WEI, clients can work with a business advisor to develop a business plan which
outlines the business idea, market, resources required, development plans, and income projections.
According to both staff and clients, the resulting plans tend to be very detailed and often take weeks
or months and several reviews to complete. Some entrepreneurs find the process onerous but, in
Page 47
the end, very valuable. The plan addresses details that many new business owners would
otherwise miss, which could affect the ultimate success of the business. For example, clients in
focus groups noted that this process enabled them to develop a much better understanding of their
market as well as the full cost structure and margins inherent in their business. If the WEI staff did
not offer this service, women would have to develop a business plan on their own or hire a
consultant.
Training programs and seminars, networking, mentoring and general encouragement are
considered important but were identified less frequently as the key services in terms of generating
impacts. It was noted that training can prepare entrepreneurs who are just starting a plan and need
some basic skills or can be targeted at more experienced entrepreneurs who wish to further
develop their skills through more advanced training. One key to the importance of these services is
that they are focused specifically at women. In the opinion of some staff and clients, “women do
business differently” than men (e.g. it was suggested that women may be less aggressive,
somewhat more risk adverse, and more open to assistance and advice). With respect to general
encouragement, it was noted that “sometimes a woman entrepreneur just needs to pick up a phone
and call someone for support”.
3.
The professionalism and performance of the staff and CEOs combined with the guidance
provided by the Board of Directors is a key contributor to the success of WEI.
When asked to what they attribute the success of WEI, the majority of stakeholders, WEI and WD
staff, and WEI Board Members identified staff including the CEOs who have strong managerial and
leadership skills as well as the effective and proactive staff team who are highly motivated and
committed to quality in service delivery. Similarly, in the focus groups, clients praised the
commitment of staff to serving women entrepreneurs in the province and their willingness to work
hard to ensure that women are in the best position possible to achieve success.
The CEO and staff are supported by a strong Board of Directors and extensive volunteer base. In
2007-08, there were 32 Board Members which is equal to an average of eight per organization.
Over 3,600 hours were contributed by 467 volunteers (including Board Members), equal to an
average of about 900 hours per WEI per year. The Board Members bring valuable expertise and a
strong commitment to supporting the development of women entrepreneurs. Many of the Board
Members play an important role in developing linkages between the WEI, their region and other
organizations.
4.
The WEI organizations have benefited significantly from the development of strong linkages
with other programs and services.
A key driver of the success achieved by WEI is the relationships which have been developed with
other organizations. When asked to rate how successful WEI has been in establishing strong
linkages with other programs and services on a scale of 1 to 5, where 1 is not at all successful, 3 is
somewhat successful and 5 is very successful, WEI and WD staff provided an average rating of 4.8
while Board Members provided an average rating of 4.2.
Page 48
SUCCESS OF THE PROGRAM DEVELOPING STRONG LINKAGES
WITH OTHER PROGRAMS AND SERVICES
WD & WEI Staff
4.8
WEI Board Members
4.2
0
1
2
3
4
5
Where 1 is not at all successful, 3 is somewhat and 5 is very successful
In each province, there are a wide variety of organizations involved in delivering programs, services,
and resources which can be of assistance to entrepreneurs. Examples of some of the other
resources that were identified by clients, stakeholders, staff and Board Members are listed in the
table below.
Examples of other programs and services
to assist women entrepreneurs
Province
Examples of Programs and Services Identified
British
Columbia
 Aboriginal Business Canada
 Aboriginal Capital Corporations/Advisory Services
 Business Development Bank of Canada
 Canadian Youth Business Foundation
 Chambers of Commerce
 Commercial Banks/Credit Unions
 Community Futures Development Corporations
 Service Canada (Self Employment Program)
 Small Business BC
Alberta
Saskatchewan
 Commercial Banks
 Roaring Women
 The Business Link
 Women in Home Office
 YWCA
 Aborignial Business Canada
 Business Development Centre
 Business Development Bank of Canada
 Business Info Source
 Business Plan Competition
 Chambers of Commerce
 Commercial Banks
 Regional Economic Development Authority
 SaskNative Economic Development Corporations
 Saskatchewan Indian Equity Fund
Page 49
Province
Examples of Programs and Services Identified
Manitoba
 Aboriginal Business Canada
 Angel Network
 C/MBSC
 Commercial Banks/Financial Institutions
 Regional Economic Development Authority
 Service Canada
 Women Business Owners of Manitoba
The WEI organizations work hard to complement these and other resources by:
 Focusing on filling gaps. The services provided by the WEI organizations are designed to fill
specific gaps with respect to the types of services delivered, the target groups, and the ways in
which they are delivered. Stakeholders saw very little overlap between the services of WEI and
those of other organizations. While other organizations (e.g. CFDCs, BDC and financial
institutions) may offer loans, they differ with respect to terms, approval criteria, the focus on
women, and support services available (e.g. business counselling and help with business
planning). No overlap was identified in other areas such as training or mentoring, which tend to
be unique in terms of the content, focus and means of delivery. WEI staff noted that, before
moving forward with new initiatives, products and services, they generally look to other
organizations to determine what services are already available and whether there are
opportunities to partner with or build on the efforts of other organizations.
 Being active in the community. For example, other stakeholder organizations regularly
interact with WEI staff through mechanisms such as relationships with the CEO and other staff
members, attendance at women’s networking and general business events, newsletters and
other communications, and co-location. The stakeholders whom we interviewed included a
cross-section of representatives associated with other programs (e.g., Community Futures,
Canada Business, Business Development Bank of Canada, Canadian Youth Business
Foundation), other organizations with a focus on women & entrepreneurship; and industry
organizations and associations (e.g., chambers of commerce, economic development
organizations, home based business associations, etc.). All of the representatives who were
interviewed had interacted with WEI staff at some point and, therefore, were at least somewhat
familiar with the program. When asked to rate their familiarity with the WEI program, the 30
stakeholders provided an average rating of 4.0 on a scale of 1 to 5, where 1 is not at all familiar,
3 is somewhat familiar and 5 is very familiar.
FAMILIARITY WITH THE WEI AMONGST STAKEHOLDERS
15
13
12
10
9
5
6
3
2
0
0
1 - Not at all
familiar
2
3 - Somewhat
familiar
4
5 - Very familiar
Page 50
 Establishing a strong referral network. Each province has an extensive referral list. For
example, each province has developed a relationship with the Canadian Youth Business
Foundation so that young entrepreneurs who work with WEI advisors become aware of the
Canadian Youth Business Foundation as a loan option. In addition, the WEI staff regularly work
with traditional lending institutions (banks and credit unions) to increase the funding available to
women entrepreneurs. Other service providers with whom WEI is particularly active in terms of
referrals include Community Futures, BDC, and regional business or female entrepreneurial
organizations. Nineteen of the 30 stakeholder organizations reported that they make referrals
and/or receive referrals from the organization on a regular basis. These referrals commonly
focus on loan and financial assistance (identified by 13 respondents), business planning (8),
networking and mentoring (5), training (4), counselling (3), and general information (2).
 Partnering with other organizations wherever possible on specific services, events and
activities. Staff in each province noted that they partner with organizations to ensure that
services are complementary rather than competitive and take advantage of opportunities to
share resources and support each other in planning and organizing activities and events. The
WEI organizations reported that they partner with a variety of organizations in delivering training
programs, conferences, networking events, and other services in their respective provinces
such as Community Futures, Canada Business Services Centres, chambers of commerce,
women’s business networks, the Business Development Bank of Canada, provincial
governments, Junior Achievement, Canadian Youth Business Foundation, financial institutions,
colleges and various media outlets. The four organizations reported working with 177 partners
in 2007-08.
NUMBER OF PARTNERS IN 2007-08 BY PROVINCE
WEC-BC
AWE
WESK
MWEC
OVERALL
71
50
35
21
177
Almost one-half of the stakeholder organizations (14 of 30) who were interviewed reported that
they have partnered with WEI in planning, organizing, and delivering training workshops and/or
networking events. Examples of joint projects included delivering presentations and shared
training workshops, co-sponsoring events, sponsoring awards for members, videoconferencing, and bringing in speakers.
5.
Other factors that contribute to the effectiveness of WEI include the success in meeting
client needs, the ability to create awareness and provide services across the provinces, and
the balance of services provided.
The WD staff and the WEI staff and Board Members were asked to rate the success of WEI with
respects to various aspects of service delivery (on a scale of 1 to 5, where 1 is not at all successful,
3 is somewhat and 5 is very successful) including:
 Creating awareness of its services among the target group;
 Serving women entrepreneurs from across the province;
 Meeting the needs of its clients; and
 Providing an appropriate balance of pre-care, capital, and aftercare services.
The results are outlined below.
Page 51
AVERAGE RATINGS ON THE SUCCESS OF PROGRAM DELIVERY IN:
4.6
Creating awareness of its services
3.9
Serving women entrepreneurs from across the
province
4.5
3.6
4.2
4.4
Meeting the needs of its clients
Providing an appropriate balance of pre-care,
capital, and aftercare services
WD & WEI Staff
WEI Board Members
4.2
4.0
0
1
2
3
4
5
Where 1 is not at all successful,
3 is somewhat and 5 is very successful
The major comments provided by those interviewed are highlighted below:
Creating awareness of its services among the target group
On average, the Board Members provided an average rating of 3.9 while WD and WEI staff
provided an average rating of 4.6 regarding success achieved in creating awareness. The WEI
organizations have continued to make progress over the past five years in terms of creating
awareness of services and raising the visibility of the organization through promoting and
upgrading their websites, developing extensive communication lists, attending or hosting events,
advertising, and building a strong referral network. Indicators of rising awareness include
increases in the number of website hits and telephone inquiries as well as the number of clients
served and requests for speaking engagements. Some regions, particularly BC, Alberta and
Saskatchewan, are specifically targeting certain groups such as Aboriginal, immigrant and young
women who have been underrepresented as clients.
Other research indicates that awareness differs somewhat across the provinces. A recent 2008
survey commissioned by WEC-BC found that 10% of the general public and 25% of women
entrepreneurs were aware of the Women’s Enterprise Centre (BC). Nearly four in ten of the
women entrepreneurs who were aware of the WEC-BC reported that they have used the
services of the organization. On the other hand, a 2008 survey8 commissioned by Women’s
Enterprise Centre of Manitoba found that 28% of the general public, 34% of women province
wide, and 43% of women in Winnipeg were aware of MWEC.
Serving women entrepreneurs from across the province
Board Members provided an average rating of 3.6 while WD and WEI staff provided an average
rating of 4.0 regarding the success achieved in serving clients from across the province. The
ability of WEI to serve clients from across the provinces has improved significantly in recent
years. Regional delivery of services is facilitated by:
8

Responding to inquiries and delivering services by telephone and e-mail. The advisors said
that much of the counselling/advising can be done over the phone or through e-mail;

Collaborating with organizations across the province;
Women’s Enterprise Centre of Manitoba: Awareness and Appeal, Probe Research, March 2008
Page 52

Having satellite offices;

Staff who travel outside of the office to various parts of the province;

Videoconferencing with clients in rural areas (often using the videoconference capabilities of
Community Futures);

Staging seminars, workshops, mentoring circles (which bring together rural women to
network and support each other) and meetings in various regions, often in partnership with
local or province-wide organizations;

Distributing materials through the website; and

Distributing newsletters.
While some representatives felt that there is room for improvement, particularly with respect to
reaching out into smaller communities, most representatives felt that the organizations have
been very effective given the resources available.
Meeting the needs of its clients
rating of 4.2 regarding the success in meeting the needs of clients. Through the interviews and
focus groups, clients generally reported a high level of client satisfaction. Critical to the success
of the program is the ability of staff, particularly business advisors, to identify needs and to have
the tools or resources needed to meet those needs. Staff commented on the positive feedback
that they received and the long-term relationships which are established. It is becoming more
common for women to obtain assistance in starting a business and then return a few years later
for assistance in expanding the business. Staff acknowledged that they cannot always meet the
needs of clients; for example, clients may simply not meet the criteria to obtain a loan.
Providing an appropriate balance of pre-care, capital, and aftercare services
rating of 4.2 with respect to delivering an appropriate balance of pre-care, capital, and aftercare
services. Staff often work extensively with clients during the process of business planning and
preparing loan applications. Some representatives suggested that, if additional resources were
available, they would like more of an emphasis to be placed on aftercare to facilitate long-term
relationships with clients and likely reduce the potential for write-offs in the loan portfolio. At the
present time, aftercare typically involves a review of submitted financial statements and
occasional site visits. Staff suggested increasing access to more advanced courses and
individual services specifically relevant to women entrepreneurs who have been in business for a
while. Staff in each of the provinces indicated that there has been an increase in the number of
expansion loans made and suggested that this trend should continue.
6.
Budget limitations were identified as the primary factor constraining the impacts generated
by the program.
The budget for the program has not increased in recent years. In fact, expenditures for some of the
WEI organizations have actually declined in recent years; the terms of previous agreements with
Page 53
WD had allowed unused budgets to be carried forward which means that annual expenditures
increased in the later years. Budget issues:
 Limit the level of services that can be delivered (the organizations are continually expected
to do more with a budget that is declining in real terms);
 Limit the ability of the organizations to market themselves and reach segments which they
consider to be underserved (e.g. Aboriginal, immigrant, younger and older women as well
as smaller communities); and
 Contribute (or are anticipated to contribute over the next few years) to turnover in staff
members who are able to move to higher paying positions with other organizations.
Concerns about staff turnover are particularly high in Alberta and BC, where the job market
is very competitive and the cost of living can be high. Staff turnover was one of the most
common concerns about the program identified by clients.
The maximum size of loans that can be provided was also identified as a constraint. The maximum
level has not been increased since the program was established. Some felt that the current
maximum of $100,000 constrains the ability of the WEI to loan money to businesses in industries
that require considerable capital compared to smaller retail or hospitality businesses. Womenowned manufacturing and mining companies were given as examples. At times, WEI has been
able to work around this constraint by brokering larger deals where they partner with banks and
other lending institutions. However, this is not always possible and it can pose difficulties for clients
who have to deal with several different institutions.
7.
Various suggestions were received from each of the groups interviewed regarding how WEI
could be improved.
While many of these initiatives are planned or already underway, the suggestions for improvement
which were received from clients include:
Work to improve the current services, workshops, seminars and business consulting services
that are offered (identified by 58 respondents). It was suggested that offering more options in
terms of times and dates would increase participation. Clients noted that services are typically
offered during business hours which can make it difficult for them to attend and add to the
cost. Clients also suggested that there should be more opportunities for networking,
mentoring, free consulting, and more one-on-one counselling;
Clients felt that the loan application process could be improved. Suggestions focused on
reducing the administrative burden associated with loan applications, streamlining the
process and waiting times, increasing the overall size of loans, reducing fees and interest
rates, and supplying clients with additional information on other funding sources (36
respondents);
Focus on staffing issues. Some clients commented on turnover among staff, situations where
staff were considered unfriendly, and inconsistency of the necessary skills, knowledge and/or
experience of staff (26 respondents);
Increase access to workshops, seminars and staff support in rural areas (14 respondents);
Raise the profile of the program by creating more awareness of the services offered
Page 54
(identified by 12 respondents);
Create a database of reputable businesses which clients can use to access essential services
and as a networking tool (5 respondents); and
Offer specialized services to Aboriginal and immigrant women (3 respondents).
Recommendations for improvement from stakeholders include:
Increase funding to build more resources, expand services to the rural communities, and
ensure that programs are sustainable;
Raise the profile and awareness of the program by increasing the marketing budget,
promoting the program in the business community, and generating broader program visibility;
Increase the use of technology to expand program capacity and functioning as well as ensure
that services are reaching rural areas;
Develop a better understanding of cultural diversity and the needs of immigrant and
Aboriginal clients; and
Improve the services offered by staff and reduce the level of turnover.
Recommendations for improvement from Board Members include:
Increase funding so that the program can increase the size of loans, expand its services, and
provide greater stability in programming;
Enhance the accessibility of its services across all communities in the province and reach out
to women in rural areas;
Foster and strengthen partnerships with other business organizations in the province and with
the WEI offices in other provinces;
Increase the number of staff;
Continue to meet needs of clients over time with an increasing focus on aftercare services
including follow-up; and
Increase awareness by expanding promotion and marketing, holding more events, and
reaching out to high school students who may be potential clients.
The most common recommendations for improvement suggested by staff include:
Continue to upgrade and expand the capabilities of the website (opportunities for women
entrepreneurs to promote their business and interact with each other) and ensure that the
content remains up-to-date;
Stage more networking events that bring women together in an informal setting. Talks,
discussion groups and receptions were mentioned as potential networking events;
Page 55
Increase the level of interaction across the provinces. Currently, there are conferences and
meetings for staff to get together but more opportunities to share experiences and work
toward common goals would be beneficial;
Increase availability of aftercare services. This is an area identified by all provinces as being
overlooked. It was suggested that provinces should continue to develop and implement
aftercare strategies to identify businesses at risk and work with those in a position to expand;
and
Expand training services to ensure that women have the skills not only to start businesses,
but also to expand their business (such as advanced marketing and accounting programs).
Page 56
DIFFERENCES ACROSS PROVINCES
IV.
Differences Across Provinces
To develop a deeper understanding of the survey results, we cross-tabulated client responses by the four
provinces in terms of characteristics of clients, characteristics of the services received, and characteristics of
the businesses. It is to note that the figures are calculated based on our survey results; conclusions drawn
based on the smaller sample sizes of each province have limitations and may not represent the general
population. The results are presented in the following pages.
A.
Characteristics of the clients
Some of the key trends in the characteristics of clients observed from the cross-tabulation include:
 The age and level of experience of clients in business management did not vary significantly across
province.
 Clients in British Columbia are more likely to report a college diploma as their highest level of
education whereas university degree or post-graduate degrees were more commonly reported in
other provinces. BC clients are those most likely to report a business related diploma or degree.
 While clients in BC and Alberta commonly found out about WEI through Internet, clients in
Saskatchewan and Manitoba were more likely to become aware of the organization through word-ofmouth and advertisements or stories.
Characteristics of the clients
Characteristics
BC
AB
SK
MB
OVERALL
88
109
129
118
444
2%
26%
36%
28%
9%
100%
1%
20%
35%
29%
14%
1%
100%
20%
26%
40%
13%
1%
100%
4%
18%
30%
34%
14%
1%
100%
2%
21%
31%
33%
12%
1%
100%
2%
12%
1%
7%
2%
17%
2%
8%
2%
11%
47%
39%
33%
32%
37%
39%
100%
53%
100%
47%
1%
100%
59%
100%
50%
0%
100%
32%
24%
28%
30%
Number
Number of Clients Surveyed
Age
Younger than 24 years
25 to 34 years
35 to 44 years
45 to 54 years
55 to 64 years
65 years or older
Total
Highest Level of Education
Less than Grade 12
Grade 12
College or diploma program (2 years
or less)
University degree
Don’t know or no response
Total
Diploma or Degree Related to Business Management
Yes
36%
Page 57
Characteristics
BC
AB
SK
MB
OVERALL
14%
10%
24%
20%
12%
15%
2%
4%
100%
9%
13%
24%
21%
13%
20%
1%
100%
10%
14%
23%
24%
9%
18%
2%
100%
19%
15%
25%
19%
9%
15%
100%
13%
13%
24%
21%
10%
17%
1%
1%
100%
16%
26%
25%
6%
6%
11%
3%
2%
19%
20%
23%
7%
6%
8%
9%
2%
32%
12%
5%
18%
9%
4%
5%
3%
28%
20%
12%
14%
9%
9%
7%
2%
25%
19%
15%
12%
7%
8%
6%
2%
Years of Experience in Business Management
None
Less than 2 years
2 to 5 years
6 to 10 years
11 to 15 years
Over 15 years
Other
Don’t know or no response
Total
How Client Found out about WEI
Word-of-mouth
Referred by another organization
Internet
Advertisement or story
Pamphlet/brochure
Referred by government
Other
Tradeshow
B.
Characteristics of the services received
Some of the key trends observed in the characteristics of services received include:
 Clients in Saskatchewan and Manitoba are more likely to have participated in a training program or
seminar. None of the clients in Manitoba reported participating in a mentoring program. Clients who
responded from Manitoba are the least likely to have received a loan.
 On average, loan clients made more contacts with the WEI organization than non-loan clients did
except in Saskatchewan, where non-loan clients on average made more contacts with the
organization (which is likely due to its membership structure).
 Non-loan clients in Alberta tended to be somewhat less satisfied with WEI services and less likely to
believe that assistance played an important role in the development of their business.
 Clients from all regions saw a strong need for the program.
 Loans tend to account for a higher percentage of the total investment made by businesses in
Saskatchewan and Manitoba (i.e., be less leveraged).
 Clients in Manitoba were more likely to report that the services increased their access to other
programs, services, and training sessions, and encouraged them to start up operations.
Page 58
Characteristics of the services received
Characteristics
BC
AB
SK
MB
OVERALL
88
109
129
118
444
56%
44%
52%
48%
54%
46%
79%
21%
61%
39%
47%
24%
44%
13%
14%
38%
31%
48%
9%
11%
47%
41%
60%
23%
11%
52%
33%
66%
0%
19%
46%
33%
55%
12%
14%
4.1
12.4
18.5
13.7
4.2
17.0
8.4
14.1
Number
Number of Clients Surveyed
Type of Clients
Non-loan
Loan
Percentage Receiving Services
Business Counselling
Business Plan Development
Training Programs
Mentoring Program
Pathfinding to identify other resources
Average Number of Contacts over the Past 5 Years
Non-loan
Loan
7.1
14.9
Average Ratings on Importance of the Various Types of Assistance Provided by WEI
Non-Loan
3.7
2.4
3.4
4.2
3.4
Loan
4.6
4.3
4.7
5.0
4.6
3.0
4.1
4.0
4.6
4.2
4.5
3.9
4.5
4.4
4.7
4.7
4.8
4.8
5.0
4.7
4.8
Average Ratings on Satisfaction with WEI Assistance
Non-loan
Loan
4.0
4.8
Average Ratings on the Perceived Need for the Program
Non-loan
Loan
4.8
4.9
Likelihood of Developing Business to this Extent Without WEI Assistance
Non-loan
Loan
78%
32%
84%
39%
79%
34%
77%
28%
80%
34%
$45,504
$36,176
$45,455
$41,294
$42,318
28%
21%
45%
39%
31%
45%
41%
28%
17%
14%
28%
49%
27%
22%
15%
0%
29%
63%
31%
14%
0%
0%
12%
74%
53%
21%
5%
16%
11%
57%
35%
20%
9%
5%
20%
41%
32%
27%
34%
LOAN CLIENTS
Loan Profile
Average Loan Amount
Average Loan as Percentage of Capital
Investment
Role of the Loan
Start up Operation
Expand Production
Cover Working Capital
Fund Market Development
Fund New Product Development
Other
Likelihood of Getting Loan from other Sources
Percentage of Likelihood
32%
Page 59
Characteristics
BC
AB
SK
MB
OVERALL
IMPACT RATINGS REGARDING THE SERVICES
Average Rating (Where 1 is no impact at all and 5 is a major impact) for Non-Loan / Loan Clients
Business Skills Development
Access to other Programs/ Services
Network with Other Entrepreneurs
Access to Information
Encouragement to Start up
Access to other Funding Sources
C.
3.3
3.1
2.9
3.3
2.5
1.8
/
/
/
/
/
/
2.9
2.9
2.9
2.9
2.2
2.0
2.7
2.5
2.5
2.4
2.2
1.8
/
/
/
/
/
/
2.5
2.5
2.5
2.4
2.1
1.8
3.5
3.3
3.7
3.0
2.8
1.6
/
/
/
/
/
/
2.8
2.9
3.2
2.8
3.3
2.1
3.4
3.3
3.1
3.4
3.0
2.0
/
/
/
/
/
/
3.2
3.8
3.4
2.8
3.5
3.0
3.2
3.1
3.1
3.1
2.7
1.8
/
/
/
/
/
/
2.8
2.9
3.0
2.7
2.7
2.1
Characteristics of the businesses
Some of the key trends with respect to the characteristics of the businesses include:
 Retail businesses are more common in British Columbia and Saskatchewan. The professional
services sector was commonly identified in Manitoba.
 The number of years in operation did not vary significantly by province.
 On average, businesses in Manitoba had more employees than businesses in other provinces
because of the presence of a few larger companies in our survey.
 Average revenues for the current fiscal year were higher for businesses in British Columbia as were
the average wages paid per employee. Companies in British Columbia were also those most likely
to report export sales.
 The projected revenues for the current year, the revenues for the previous year, and the average
revenue per dollar invested appear to be higher in Saskatchewan (this is somewhat skewed due to
two large Saskatchewan organizations generated significant revenues).
Characteristics of the businesses
Characteristics
BC
AB
SK
MB
OVERALL
67
74
98
70
309
16%
3%
76%
0%
0%
3%
100%
17%
3%
68%
2%
5%
8%
100%
12%
4%
75%
2%
2%
5%
100%
28%
7%
59%
2%
1%
5%
100%
18%
4%
70%
1%
2%
6%
100%
12%
31%
8%
5%
13%
3%
2%
26%
1%
7%
17%
1%
6%
22%
3%
Number of Businesses Surveyed
Number of Active Businesses
Current Status of the Business
Planning stage
Planned but will not proceed
Currently operating
Temporarily stopped operations
Permanently stopped operations
Other
Total
Sector
Manufacturing
Retail
Wholesale
Page 60
Characteristics
BC
AB
SK
MB
OVERALL
1%
1%
3%
5%
21%
17%
100%
2%
4%
39%
33%
100%
1%
1%
7%
40%
23%
100%
2%
1%
7%
57%
6%
100%
1%
2%
1%
6%
40%
21%
100%
16%
48%
16%
13%
6%
100%
6.3 years
12%
36%
38%
11%
3%
100%
5.5 years
9%
44%
35%
8%
4%
100%
5.8 years
24%
34%
23%
11%
7%
100%
5.7 years
15%
41%
29%
11%
5%
100%
5.8 years
71%
16%
11%
2%
100%
4.1 staff
70%
18%
11%
1%
100%
4.1 staff
71%
8%
18%
3%
100%
6.4 staff
71%
16%
11%
2%
100%
4.5 staff
Primary production
Construction
Real estate or insurance
Accommodation, food and beverage
Professional services
Other
Total
Years in Operation
Less than 1 year
1 to 4 years
5 to 9 years
10 to 19 years
20 years or more
Total
Average
People Currently Employed in Organization
1 to 4
5 to 9
10 to 19
20 or greater
Total
Average
72%
19%
6%
2%
100%
4.3 staff
Average Estimated Revenues for the Current Fiscal Year
$0 to $25,000
$25,001 to $50,000
$50,001 to $100,000
$100,001 to $250,000
$250,001 to $500,000
Greater than $500,00
Total
Average
Comparison to Previous Years
Projected Revenues for the Current
Year (excluding new business with no
previous comparables)
Previous Year Revenues
Average Increase in Revenues
18%
7%
16%
15%
22%
22%
100%
$464,096
10%
15%
18%
24%
21%
13%
100%
$318,965
18%
15%
21%
13%
12%
20%
100%
$343,551
22%
14%
26%
8%
12%
18%
100%
$316,843
17%
13%
20%
15%
16%
18%
100%
$389,076
$379,051
$343,610
$498,468
$409,592
$416,460
$323,801
$291,103
$441,607
$378,596
$365,475
17%
18%
13%
8%
14%
4.3
4.1
4.1
6.4
4.5
Revenues and Wages Per Employee
Number of Employees
Average Revenues Per Employee
$107,929
$77,796
$83,793
$49,507
$86,461
Average Wages Per Employee
$23,311
$21,880
$20,887
$18,589
$21,360
27%
18%
14%
24%
20%
9%
5%
5%
2%
5%
Export Sales
Percentage of Companies Reporting
Export Sales
Export Revenues as a Per Cent of
Total Revenues
Investment
Page 61
Characteristics
Average Investment Per Business
Average Revenue Per Dollar Invested
BC
AB
SK
MB
OVERALL
$182,726
$155,680
$105,368
$87,949
$139,822
$1.59
$1.96
$3.95
$2.59
2.49
Page 62

Impact Assessment of the Women Enterprise Initiative (WEI

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