3.0 Evaluation Findings

The section below presents the key findings according to the questions identified in the Evaluation Issues and Questions Matrix in Section 2.2. Input from the WEI organizations concerning the Western Canada Business Service Network (WCBSN), the Francophone Economic Development Organizations (FEDO), the Community Economic Development Internship Program (CEDIP) and Community Economic Development Organization (CEDO) has been incorporated into those specific GGI evaluation reports.

3.1 Evaluation Issue - Relevance

Evaluation Issue: Relevance

This issue examined:

Is there a need for the Women’s Enterprise Initiative?
Are the objectives and activities of the WEI organizations consistent with WD’s mandate?

Findings

Questions concerning the relevance, continuing need and the consistency with the WD mandate of the Women’s Enterprise Initiative were addressed through the review of documents, interviews with key informants, focus group sessions and case study analysis. The evaluation found that:

Women entrepreneurs continue to face barriers (e.g. access to capital) related to business start-up and growth;
The Women’s Enterprise Initiative 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 WCBSN network (i.e. CBSCs, CFDCs, FEDOs);
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 Western Economic Diversification Canada to support the WEI organizations; and
The objectives and activities of the WEI organizations are consistent with WD’s mandate.

Relevance of the Women’s Enterprise Initiatives

From the document review, as discussed in Section 1.0, current research indicates that women entrepreneurs continue to face gender specific barriers for start-up and growth stages of their businesses. The Prime Minister’s Task Force on Women Entrepreneurs found that these barriers inhibit the full economic growth potential of this segment of Canadian society. The evaluation found that the Women’s Enterprise Initiative represents an important policy response and key program in the provision of services to women entrepreneurs in Western Canada.

The evaluation determined from interviews with WD staff, focus group participants and information supplied by other organizations that there is a demand for WEI Program services, including lending. WEI organizations have reported that since April 1, 2001, approximately 14,000 clients have received business advisory services, with approximately 48,000 participating in training services since 1999 (See Section 3.4 concerning data reliability). The focus group participants provided evidence that the demand for services is linked to unmet needs by stating that without access to the WEI organizations services and loan funds, many women entrepreneurs would not currently be in business.

WEI Organization Niche Within the WCBSN

The evaluation found that the WEI organizations differ significantly from other WCBSN members i.e. CBSCs, CFDCs and FEDOs. Interview information indicated that the WEI organizations are centred around gender appropriate programs and approaches, with the express purpose of providing conducive environments for women entrepreneurs.

CBSCs
The evaluation found that the relationship between the CBSCs and the WEI organizations is complementary with each providing distinct services to women entrepreneurs. The CBSCs play a role as a research resource utilized by WEI clients for the development of their business plans, but do not offer the business advisory services and loan funds. In increasing instances, CBSCs and WEI organizations collaborate on delivering training that includes WEI clients. This training would be available in the absence of the WEIs, but may not be as accessible or attractive to WEI clients without the link to the WEI organization.

CFDCs
The evaluation also found that the services provided by CFDCs and the WEI organizations are distinct, primarily because of the gender centred sensitivity and approach of the WEI organizations. The services of CFDCs are available to women entrepreneurs, but many women choose to utilize the WEI organizations services and lending programs. This is in line with research findings that indicate that women prefer to deal with women. The WEI organizations provide targeted support to a widespread geographic constituency (women entrepreneurs), whereas the CFDCs have broader mandates applied to the geographic areas in which they operate.

One of the concerns expressed by interview respondents about utilizing CFDCs instead of the WEI organization was that rural women may find themselves linked to the financial circumstances of their spouse or partner due to high levels of local knowledge within the CFDCs. This is a common complaint from rural areas, but based on research indicating the women’s credit histories are for the most part less developed than their male counterparts, the evaluation determined that women should be free to choose when approaching any organization of the WCBSN. Assumptions based on family financial histories may act as barriers to women wishing to develop their own businesses.

FEDOs
The evaluation found that the WEI organizations do not overlap with the FEDOs due to the provision of services in French. For example, in Manitoba the FEDO and the WEI organization have worked together in support of Francophone women entrepreneurs.

WEI Organization Lending Niche

Financial Institutions
The evaluation found that the WEI organizations differ from financial institutions in the niche they serve: the predominant focus of the WEI organization loan funds is in the retail and services sectors, sectors generally not supported by traditional financial institutions. Another distinction is that the WEI organization lending programs have the ability to provide very small loans as well as larger loans up to $100,000. WEI organization board members with bank experience reported that financial institutions generally rate small loans as not cost-effective in terms of the management time and systems required, and also generally do not provide loans due to higher risk factors in the sectors of interest to the majority of women entrepreneurs served by the WEI organizations.

Potential for Duplication of Programs

The evaluation sought to identify other provincial organizations occupying the same niche (i.e. services and loans targeted at women entrepreneurs) as that filled by the WEI organizations. In all the regions there are membership organizations that offer business information, networking opportunities and specific assistance in areas such as export through trade missions, etc to women entrepreneurs. In the case of B.C. it was reported by WD respondents that there are many of these organizations. At the same time, these organizations do not offer loans or the degree of start-up support provided by the WEI organizations. The evaluation found that even those organizations that do offer small loans for young entrepreneurs value the partnership with the WEI organization to “top up” loans that are considered insufficient for the business planned. Other organizations perceive WEI organizations to be complementary rather than duplicating their services.

Support from WD to the WEI organizations

WD funding to the four WEI organizations comprises their major source of financial support to the organizations. Some funds are found for small research projects, but operational funding through the Five Year Contribution Agreements continues to be the only sustaining funding received. The evaluation found that WD funding to the WEI organizations is necessary for the continued existence of the WE Initiative in Western Canada.

Mandate of Western Economic Diversification

Western Economic Diversification Canada (WD) works to strengthen Western Canada's economy and advance the interests of the West in national economic policy. Its programs and services support three strategic directions:

Innovation;
Entrepreneurship; and
Sustainable Communities.

The evaluation found that the WEI organizations’ activities are consistent with the WD mission and mandate, with particular focus on entrepreneurship for the female segment of the population. Program Performance figures (See page 24) indicate that the WE Initiative has leveraged funds from other sources as well as created and maintained jobs, linking the initiative to increased economic sustainability. Program performance figures indicate that between April 1, 1999 and March 31, 2004, the WE Initiative has created or maintained over 2300 full time jobs in Western Canada.

The evaluation also found that the WEI organizations are pursuing innovative measures such as teleconferencing, entrepreneurship retreats, “quick response” initiatives and youth education activities to better serve their mandates and clientele. The WEI organizations are therefore considered by the evaluation to be relevant and useful for the achievement of the WD mandate.

Summary

The WEI organizations support the mission and mandate of WD. The activities of the WEI organizations are also considered distinct from, but complementary to, the CBSCs, CFDCs, FEDOs, financial institutions and other provincial organizations. The WEI organizations have recognized the need to, and value in, pursuing partnerships and are actively doing so.

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