Home : Reports and Publications : Audit & Evaluation : Evaluation of the WEI – October 2004
1.0 Introduction
The purpose of this report is to provide an evaluation of the Women’s Enterprise Initiative supported by Western Economic Diversification Canada. The Western Economic Diversification Canada (WD) is a federal government department that works to strengthen Western Canada's economy and to advance the interests of the West in Canada’s national economic policy1. WD programs and services focus on three strategic directions, namely:
- Innovation,
- Entrepreneurship and
- Sustainable Communities
WD also supports the Western Canada Business Service Network, which provides over 100 points of service across Western Canada, including, in addition to the WEI offices: WD Officers, Canada Business Service Centres, Francophone Economic Development Organizations, and Community Futures Development Corporations.
In response to the identified need of women entrepreneurs, WD initiated the Women’s Enterprise Initiative (WEI) in FY 1994/95. The objectives of the WEI initiative as stated in program documents are to:
- establish a resource for women’s enterprise in each of the four Western Canadian provinces; and
- utilize the resources of the centres to assist in the expansion and diversification of the Western Canadian economy.
WEI Organizations
Each WD Region (Manitoba, Saskatchewan, Alberta and British Columbia) has established a WEI organization under this initiative. The provincial non-profit Women’s Enterprise Initiative organizations are 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 through2:
- 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 strength of women-owned businesses in Western Canada.
Each provincial organization is named and organized uniquely, to reflect the differing needs and client base of each province. The WEI initiative is implemented through the following four not-for-profit organizations:
- the Women’s Enterprise Society of British Columbia (WESBC);
- Alberta Women Entrepreneurs (AWE – the legal name is Alberta Women Entrepreneurs Association);
- the Manitoba Women’s Enterprise Centre (WEC); and
- the Women’s Entrepreneurs of Saskatchewan (WES).
At the time of the evaluation, WESBC had offices in Kelowna (HQ) and Vancouver, AWE had offices in Calgary (HQ), Edmonton and Lethbridge, WEC had an office in Winnipeg and WES had offices in Saskatoon (HQ) and Regina. Due to the nature of provincial regulations concerning the establishment of not-for-profit organizations in Saskatchewan, WES is structured as a membership organization. Organization profiles as presented in the 2002 Women’s Enterprise Initiative Impact Study can be found in Appendix A.
The WEI organizations are responsible for marketing efforts to promote small business, administering their organization and participating in Pan-Western activities3. Each provincial organization operates at arm’s length from WD, but provides WD with regular financial and operational reviews. In rural areas, the Community Futures Development Corporations (also funded by WD) are encouraged to partner with the provincial WEI organizations to refer WEI services to local women residents.
The WEI organizations in each province are independent entities that have their own Boards of Directors with broad representation from their respective provinces. An Executive Director is responsible for administrative and operational duties of each provincial WEI organization. The Executive Director 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.
Resources
The WE Initiative has been in existence for what will be ten years on March 31, 2005. Each WEI organization receives an average of $850,000 operational funding annually and each has also received $5million in loan funds to flow over the ten year period between April 1995 and March 2005. This is a conditionally repayable fund. The current round of Contribution Agreements expires at the end of FY 2004/2005.
WEI Organization Services
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. Support from WD enables the four provincial organizations to provide enhanced business services to women entrepreneurs, including4:
- Business Advisory Services;
- Lending;
- Information Services and Referrals;
- Training and Skills Development;
- Networking; and
- Mentoring.
The Loan Fund program is the lending window through which conditionally repayable loans are disbursed to each province (for a total of $20 million over ten years) to be used as a capital base for offering loans to qualifying women entrepreneurs. The Loan Fund has somewhat unique characteristics in each province, but the common link is to be a lender to women entrepreneurs. The provincial organizations have developed their own criteria for risk evaluation of loan applications, which was approved at the outset of the WEI by WD prior to release of funds to each provincial organization5.
Any new or expanding business located in one of the four participating provinces is eligible for WEI loan funds. Eligibility requirements (i.e. definition of woman owned and other criteria) are determined by each WEI organization. For example, in some provinces the business must also be the applicant’s main source of income. Loans obtained through the WEI program may be used to leverage funds from other financial institutions.
The four provincial WEI organizations are to partner with a wide range of organizations and government agencies to offer a maximum range of services to their client base. WEI organization partners include community groups, educational institutions, traditional financial institutions, business and women’s business association, CFDCs, CBSCs, FEDOS and other entrepreneurship programs operating in the local areas.