Canada is missing out on billions in economic potential due to persistent gender disparities in entrepreneurship, according to a new report from the Canadian Chamber of Commerce’s Business Data Lab (BDL).
The report, Women Entrepreneurs: Canada’s Biggest Missed Business Opportunity, examines the status of women-owned businesses and highlights the significant economic gains that could be achieved by closing the gender gap in entrepreneurship.
Gender gap in entrepreneurship limiting growth
Despite decades of investment in supporting women entrepreneurs, progress remains slow. Women-owned businesses have consistently made up less than 20% of all enterprises since 2005, falling short of the federal government’s Women Entrepreneurship Strategy, which aimed to double their numbers by 2025. In 2024, the proportion of women-owned businesses remained at approximately 18%.
“Despite years of investment, women-owned businesses have experienced glacial progress. Canada lags behind other developed countries in sufficiently supporting entrepreneurship with a higher-than-average share of missing women entrepreneurs — entrepreneurs who could be thriving if gender-based barriers were addressed,” Marwa Abdou, senior research director at the Canadian Chamber of Commerce, said in a statement.
According to the report, about 710,000 majority women-owned businesses are considered “missing” — meaning individuals who could be entrepreneurs but are not participating in business ownership due to systemic challenges. Women remain significantly underrepresented in high-growth sectors such as construction, mining, and technology, where they own fewer than 10% of businesses.
Economic stakes: A potential $180 billion in lost activity
The economic impact of this gap is substantial. The report notes that in 2017, Innovation, Science and Economic Development Canada (ISED) estimated that closing the gender gap in entrepreneurship could increase GDP by 6% or more over a decade. In contrast, the BDL’s Partners in Prosperity report estimated that the economic impact of a 25% tariff across all industries would be a 2.6% loss of GDP annually. Similarly, the International Monetary Fund (IMF) has estimated that eliminating internal trade barriers in Canada could be worth 4% of GDP.
“This massive entrepreneurship gap has resulted in a loss of up to $180 billion in foregone economic activity. Unlocking Canada’s economic growth potential requires a consistent and real focus on gender parity in entrepreneurship,” said Candace Laing, President and CEO of the Canadian Chamber of Commerce.
Key barriers and the path forward
The report outlines several systemic challenges limiting women’s entrepreneurial potential, including structural biases, limited access to financing, and underrepresentation in key sectors.
The report highlights regional disparities, with nearly two-thirds of the missing women-owned businesses concentrated in Ontario and Quebec. The gender gap is most pronounced in the Prairies, Prince Edward Island, and New Brunswick.
BDL’s findings coincide with the theme of International Women’s Day 2025, “Accelerate Action,” emphasizing the urgency of addressing these longstanding gaps. The report calls on governments, financial institutions, and industry leaders to take concrete steps to reduce barriers and unlock the economic benefits of increased women-led entrepreneurship.
As Canada continues to struggle with slow productivity growth and declining business dynamism, the report underscores that greater inclusion of women in entrepreneurship is not just a matter of equity but a critical economic opportunity.
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