1 Innovative Financing for Women Entrepreneurs Presentation by: Simone Desjardins, Special Advisor to the President Business Development Bank of Canada (BDC) May, 2004

2 Outline of presentation Overview of BDC –Mission and mandate –Services Women Entrepreneur Market –Facts BDC and Women Entrepreneurs –Historical perspective –BDC financing activity –Access to Venture Capital –Current activities –Going forward – future strategies

3 BDC – An Overview Mission –BDC’s mission is to help create and develop Canadian small and medium-sized business through timely and relevant financial and consulting services Nationwide network –Over 80 branches and 1,200 employees –One Virtual branch $8 billion in assets – over 22,000 clients Record $2.1 billion in authorizations fiscal year 2003

4 BDC Services 1.Financial Assistance to Support Start-ups Development Growth / Expansion Maturity 2.Consulting Support Quality Growth Human Resources

5 Facts on Women Entrepreneurs Women hold 50% or more ownership of more than one-third of all Canadian SMEs Women predominate in service industries and are increasing their presence in other sectors –e.g., manufacturing, construction and primary sectors A larger proportion of women-owned businesses are younger and smaller Fewer women-led businesses export compared to men (8% versus 11%) Industry Canada, SME Financing in Canada, 2002

6 What women entrepreneurs want Recent research provides some insights of what women entrepreneurs want –A long-term relationship with their banker –Value-added opportunities to network for information, resources and potential clients –Support in understanding and discovering growth opportunities –To grow their business beyond Canada’s border –To be treated equally and not differently than men Generations Research Inc., Exploratory Research into Opportunities within the Women’s Market, 2001

7 BDC and women entrepreneurs - an historical perspective BDC has been a pioneer in developing initiatives to support women entrepreneurs for over a decade Developed expertise through focus groups, surveys, in- depth research, training and mentoring programs –In 1990, the Bank pioneered the first comprehensive profile of women-owned businesses In 1992, spearheaded training and mentoring programs specifically designed to encourage women to start and grow businesses [the successful Step-Up, Step-In programs] BDC has evolved with the market and is now focussing on growth & export by promoting and supporting global summits and conferences

8 BDC and women entrepreneurs *Defined as more than 50% female ownership

9 Current Initiatives Internal Committees in Branches – these committees champion business issues, are involved in local women’s organizations and participate in women oriented events Discussion Workshops – Workshops and networking events on financial, export and growth planning are organized across the country. Growth & Export Forums – BDC sponsored the launch of the first Canadian Chapter of the Women Presidents’ Organization (WPO) in May Since then, a second chapter was established in the fall of WPO members meet monthly to discuss a variety of business growth issues and participate in international conferences to develop export opportunities and business alliances abroad Designated Web Section – Launch of a Web section providing value-added information on business management and promoting successful women entrepreneurs as role models

10 Access to Venture Capital Opportunity for women entrepreneurs –Stimulate a VC awareness –Facilitate investment forums for women entrepreneurs –Access to appropriate financing mechanisms 6% of BDC’s investment companies are lead by women (Presidents & CEOs)6% of BDC’s investment companies are lead by women (Presidents & CEOs) Women hold more than one-third (35%) of the management team positionsWomen hold more than one-third (35%) of the management team positions Particularly relevant in life sciences sectorParticularly relevant in life sciences sector

11 $25 Million Fund In October 2003, BDC launched a new $25 million fund targeted to women entrepreneurs Target well-managed, established, fast growing businesses This fund will serve to leverage additional private equity

12 Going forward... BDC’s other future strategies for women entrepreneurs –Continue to support start-ups with new service offering and as part of the Bank’s overall strategy –Organize additional “Learning and Networking Forums” on growth, export and access to VC

13 BDC.ca