Boosting Canada's Economic Resilience

As Canada navigates a rapidly changing economic landscape, the role of women entrepreneurs has never been more crucial. With their remarkable ability to innovate and adapt, these business leaders are not just participating in the economy; they are driving it forward. Understanding their contributions, challenges, and the potential for growth is essential for fostering a more resilient and inclusive economy.

Women entrepreneurs as economic drivers

Recent studies, particularly from the Women Entrepreneurship Knowledge Hub (WEKH), underscore the significance of women-owned businesses in the Canadian economy. Currently, women own over 20% of all Canadian businesses and constitute nearly 40% of the self-employed workforce. This representation translates into substantial economic activity, as women-led small and medium enterprises (SMEs) employ close to one million Canadians and generate more than $90 billion in annual revenues.

With the right support systems in place, such as resources for digital transformation, diversification of trade, and investment in key sectors, women entrepreneurs can significantly contribute to the economic resilience of Canada, even in the face of challenges.

Current landscape and ongoing challenges

Despite the progress made, the gains achieved by women entrepreneurs are increasingly threatened by external pressures, such as rising costs and shifting trade dynamics. The latest report from WEKH, the State of Women’s Entrepreneurship in Canada (SOWE), provides insights into the ongoing progress of women entrepreneurs. As of now, businesses with majority female ownership account for 20% of all firms in Canada, demonstrating a steady rise in female entrepreneurship.

However, rising operational costs pose a significant risk. Since 2025, new tariffs have escalated the expenses related to materials and supplies, forcing many businesses to reassess their supply chains. In addition, while access to financing for women-owned SMEs has improved—reaching 27.4% with a high approval rate of 92.2%—the average loan amounts remain lower than those for male-owned businesses. Notably, women entrepreneurs face higher interest rates for lines of credit, adding to their financial burdens.

Breaking barriers in various sectors

Women are increasingly breaking into sectors that have traditionally been male-dominated. Recent statistics reveal that representation in fields such as construction has doubled to 7.8%, manufacturing has risen to 10%, and agri-food, forestry, and mining have reached 9.5%. The emergence of new industries also presents fresh opportunities, especially in the global femtech market, which is anticipated to grow to US$3.81 billion by 2030, highlighting the demand for innovations in women’s health and well-being.

The resilience shown by women entrepreneurs during trade disruptions is commendable. For instance, data from Statistics Canada indicates that in the third quarter of 2025, only 15.2% of majority women-owned businesses reported a major negative impact due to U.S. tariffs, compared to 19.5% of all businesses. Many female entrepreneurs are proactively seeking alternative suppliers, showcasing their adaptability.

The role of sustainability and innovation

Women entrepreneurs are at the forefront of sustainability efforts, with many incorporating social and environmental goals into their business models. This commitment aligns with Canada's ambitions to lead in clean technology, sustainable manufacturing, and climate innovation. By prioritizing sustainability, women-led SMEs not only contribute to environmental stewardship but also open new avenues for growth.

• Increased focus on clean technology
• Development of sustainable manufacturing processes
• Engagement in climate-related innovations

Strengthening trade and supply chains

The Canadian federal government’s initiatives, such as the Buy Canadian program, aim to bolster domestic sourcing and enhance interprovincial trade. These efforts present significant opportunities for women entrepreneurs, particularly in light of recent tariff pressures from the U.S. The government has also committed to doubling Canada's non-U.S. exports over the next decade, which aligns with the increasing export activities of women-owned SMEs.

Statistics reveal that 14.5% of majority women-owned SMEs are engaged in exporting goods or services, nearly matching the 15.3% of their male counterparts. Furthermore, women-owned SMEs tend to export more to non-U.S. markets, including the U.K., India, Brazil, and China. Incorporating a gender lens into procurement and trade programs could enhance these initiatives and broaden access to opportunities for women entrepreneurs.

Navigating the digital landscape

While Canada is making strides in various sectors, it still lags in the adoption of artificial intelligence (AI) compared to other nations. Female entrepreneurs currently trail behind their male counterparts regarding overall AI uptake (12.3% vs. 16.5%); however, they excel in software adoption, with 35.8% of women entrepreneurs utilizing this technology.

Recent federal strategies, outlined in the Budget 2025 and new sectoral industrial plans, show promise for addressing this digital gap. Policymakers must prioritize women's inclusion in economic strategies to unlock growth potential. This involves ensuring that women have a seat at the decision-making table and considering their needs in investment strategies, trade expansions, and policies like Buy Canadian.

Fostering an inclusive economic environment

To achieve the ambitious economic goals set for Canada, it is crucial to integrate women into every aspect of the economic strategy. This includes:

• Incorporating women, Indigenous Peoples, and equity-deserving groups into industrial sector strategies
• Leveraging procurement processes to invest in women and their businesses
• Bridging the digital divide, particularly in AI adoption
• Implementing evidence-based approaches to strengthen the entrepreneurial ecosystem

It is essential to provide bold support through access to investments, capital, and innovative microloan programs that cater to entrepreneurs at all stages of their journeys. By addressing these components, Canada can not only support women entrepreneurs but also ensure a thriving and resilient economy.

Women entrepreneurs are integral to the fabric of Canada’s economy, creating jobs, fostering market growth, and promoting sustainability. Their contributions are vital for building a prosperous future for all Canadians.