International Women’s Day has always been both a moment for reflection and a call to action. But this year, with economic volatility, trade turbulence, and political uncertainty, the stakes for women-owned businesses in Canada have never been higher.
If you’ve been watching the headlines (or simply scrolling social media), you know that Trump just slapped a 25% tariff on Canadian imports. And it’s not just business owners feeling the heat—these tariffs will ripple across the entire economy. But for women entrepreneurs? This is just one piece of a much bigger puzzle.
Despite owning 21% of private sector businesses in Canada, women continue to face stark barriers in business. None more daunting than access to capital. With economic and political uncertainty taking center stage, policies that once provided stability may be shifting.
We see the headlines. We know things feel chaotic. But there’s opportunity amidst the chaos, if you know where to look.
1
Why Government Support is Essential for Growth
There’s a narrative we hear often in the world of entrepreneurship that equates success with grit, hustle, and sheer determination. And while that’s true, anyone who’s been in the trenches knows that entrepreneurship isn’t just about working hard—it’s about access to capital, markets, and policies that make growth possible.
The reality is that women receive significantly less private investment than their male counterparts, which makes government-backed programs a vital source of funding. But just because a program exists doesn’t mean it’s accessible, or sustainable. Take the Canada Digital Adoption Program (CDAP), for example. Initially set to run until 2025 with an ambitious $4 billion budget, the program was supposed to help small businesses integrate digital tools. However, low uptake and an overly complicated application process prompted an early shutdown with only a fraction of its goals met. In the end, only $500 million was disbursed—far below what was needed.
Even with these hurdles, there’s real cause for optimism. Government-backed programs like the Women Entrepreneurship Strategy (WES) and regional development continue to provide vital support for women-led businesses in Canada.
But while these programs exist on paper, getting access to them is another story. Armaghan Taghvei, founder of GutPlans, a startup focused on personalized gut health solutions, experienced these challenges firsthand.“Government-backed funding and support programs played a big role in helping us develop the first version of our platform,” she explains. “But many prioritize businesses with significant revenue, making it harder for early-stage companies like ours to secure capital when we needed it most.”
It’s a frustrating paradox. The businesses that could benefit the most from funding are often the least likely to quality. And while more programs are emerging, these requirements still leave many women entrepreneurs in a tough spot—needing capital to grow but unable to meet the thresholds to secure it.
Source: Canadian Chamber of Commerce
2
Bridging the Capital Gap: Funding for Women Founders
Whether through loans, venture capital, or government grants, securing funding is often an uphill battle—one shaped by systemic barriers, risk-averse investors, and rigid eligibility requirements. Despite targeted efforts to expand funding opportunities, women entrepreneurs receive an estimated 4% of venture capital funding in Canada. They are also more likely to be denied loans or approved for smaller amounts than their male counterparts, making it harder to secure the capital needed to scale.
Part of the problem isn’t just access to funding itself, it’s the unspoken dynamics that shape who gets taken seriously in the first place. Taghvei, who has two male co-founders, has seen these biases play out in real-time.“Trust seems to form more naturally between men in business settings, especially with investors and partners. I’ve sometimes had to put in more effort to be taken seriously, or I had to ‘convince’ more to gain the same level of trust.” When unconscious biases shape investment decisions, women are often left fighting an uphill battle. Not because their ideas aren’t viable, but because they aren’t afforded the same initial confidence from investors.
For racialized and immigrant women, these challenges are even more pronounced. The Women Entrepreneurship Knowledge Hub’s (WEKH) 2024 report reveals that Indigenous women make up 23.2% of Indigenous business owners—outpacing non-Indigenous women (19.5%). But even with this significant presence, they still face major barriers when it comes to accessing capital. The same story unfolds for immigrant women, who, despite being more likely to export their products than Canadian-born women (16.9% vs. 9.0%), find themselves stifled by a lack of financing that could fuel global growth.
This graph compared the anticipated challenges for women-owned businesses vs. all businesses. Source: WEKH
Fortunately, there’s a growing recognition of the need for change and the resources are starting to catch up. Government-backed programs have stepped in to bridge the gap, offering alternative funding pathways to break free from the traditional reliance on private investment. The Women Entrepreneurship Strategy (WES), with its nearly $7 billion investment, stands as one of Canada’s most significant commitments to women-led businesses. At the heart of this initiative are key programs like the Women Entrepreneurship Loan Fund, which provides loans of up to $50,000 to help women business owners and entrepreneurs secure the capital needed to scale their ventures.
To further break down the barriers that still exist, the government has also rolled out the Black Entrepreneurship Program and the 2SLGBTQI+ Entrepreneurship Program. These initiatives are creating pathways for entrepreneurs who’ve historically been left out of the conversation, expanding access to capital, mentorship, and support networks.
But while these programs exist, not every entrepreneur knows about them, or how to tape into them at the right time. For Taghvei, navigating the funding landscape as a first-time entrepreneur was a challenge in itself. “I wish we had known earlier how many resources were out there. It naturally takes time for a startup to get connected to the right communities and funding opportunities, but if we had known about them sooner, it would have made a huge difference!”
This underscores an ongoing gap, not just in funding access but in awareness and outreach. Expanding resources is only part of the solution—making sure they’re accessible when and where entrepreneurs need them is what will drive real progress.
3
Opportunities Amid Trade Uncertainty in Canada
While tariffs and trade disputes dominate the news cycle, Canadians are making a different kind of statement, with their wallets. A recent poll from the Angus Reid Institute found that 85% of Canadians now actively choose to replace American products with local ones. And it’s not just a passing trend. Of those consumers, 98% specifically seek out the “Made in Canada” label when shopping for food, a clear sign that the appetite for homegrown goods has never been stronger.
This surge in local support isn’t fleeting. It’s a chance for entrepreneurs to tap into something much bigger. As Canadians turn away from foreign imports, they are eager to invest in businesses that reflect their values—locally sourced, sustainable, and ethically produced. This shift presents a significant opportunity for women-led businesses that embrace these principles to tap into a broader market.
However, despite the rising momentum for local products, the weight of current economic uncertainty continues to cast a long shadow. Recent tariffs are forcing many Canadian-owned businesses to rethink their supply chains, business models, and explore markets that were once secondary.
In times like these, government-backed initiatives for women entrepreneurs aren’t just helpful, they’re a lifeline. Programs like Export Development Canada’s Women in Trade Program offer crucial financial support and guidance for women-led businesses ready to scale globally. While the Business Women in International Trade (BWIT) initiative connects entrepreneurs to global opportunities, trade missions, and export financing—transforming uncertainty into growth.
As Canada shifts toward homegrown goods, the door is wide open for women to build a thriving, sustainable business in a world that’s hungry for change.
4
Redefining Growth for Women Founders
For Canadian businesses, the future is bright, but only for those willing to adapt and redefine what success looks like in the face of change. Not ones to back down from adversity, women entrepreneurs are poised to lead the charge. But resilience alone won’t get us where we need to go. Policymakers must ensure funding remains steady and accessible while investors need to broaden their scope and recognize women-led businesses as the viable powerhouses of growth they are.
Taghevi at the TBDC office.
And while funding is critical, Taghevi points to another crucial gap, connections. “The challenge isn’t just about access,” she explains. “It’s about how networks are built and how relationships take shape.” Whether it’s on the golf course or after a shiny game of hockey, business networking and informal deal-making still favour men. The trust built in these spaces often leads to partnerships, investments, and opportunities—before women even step into the room.
That’s why funding alone isn’t enough.“We also need more initiatives that connect women directly with top investors, experienced founders, and decision-makers, especially in informal and deal-making settings. A strong network can be just as valuable as funding, and ensuring women have equal access to these spaces will help close the gap faster.”
The road ahead may be uncertain, but one thing is clear: women have the talent, drive, and ideas to succeed. What they need is an equal shot—because when women-led businesses have the resources to thrive, the entire economy benefits.
We know the road to entrepreneurship is not easy. At TBDC, we have been helping newcomer entrepreneurs launch and scale their businesses in Canada. If you are looking to expand your business to the North American market, visit our website to learn more about our programs and the support we offer.
