Women entrepreneurs, wealth, and the value of advice

The number of female entrepreneurs is rising but they still face more hurdles than men; Getting the right financial advice is a game-changer

Female entrepreneurs are driving innovation, creating jobs, and strengthening Canada’s economy. For many women, entrepreneurship is a way to take control of their careers and align work with their personal values. But turning that vision into reality requires navigating complex financial decisions.

That’s where the right financial advice can make all the difference.

“Female entrepreneurs face so many choices,” says Mary Ellen Byrne, a financial advisor at Richardson Wealth in Halifax. “Will you incorporate or operate as a sole proprietorship? What financing options make sense? What kind of insurance do you need? These are choices people who aren’t self-employed never even have to think about.”

Why women choose entrepreneurship

While studies show that advancing women’s equality and entrepreneurship could add $150-billion to Canada’s GDP by 2026, the real story lies in the journeys of women who are building businesses on their own terms. Their motivations are just as diverse as their businesses.

Helen, an optician owner, sees entrepreneurship as a way to take control of her career.

“I started out my career working for other stores but soon realized that I could do it myself – and do it better,” she says. “Having the freedom to make my own decisions and make this business my own has been huge for me.”

For Lily, a store owner who provides space to local artisans selling handcrafted goods, starting her own business has allowed her to help other artists flourish.

“The most rewarding part of my business is seeing other artists grow and evolve,” she says. “I’ve had the pleasure of working with many artists who were new to their craft and seeing them get better at what they do is one of my favourite things to be a part of.”

Entrepreneurship also offers flexibility – something many women need as they balance raising children with caring for aging or ill parents.

Jen, a former public relations manager, made the leap to self-employment to better balance work and family.

“Running my own communications business has given me the freedom to choose my clients and spend more quality time with family,” she says. “I feel like my entire work mindset has shifted, and I’m now able to define my own course.”

Barriers to success

Despite progress, women still face unequal access to capital for entrepreneurship opportunities.

Helen experienced this firsthand when she approached her bank for a loan to help launch her optical practice and was turned down.

“As a single woman, still living at home with my parents at the time, I was basically told ‘good luck.’ Thankfully, my parents were able to help out, allowing me to launch the business on a smaller scale, but the rejection made me question myself. Am I not a sure bet?”

Women entrepreneurs are also less likely to receive venture capital or angel investment, and most rely on personal savings. As a result, they risk depleting their savings, remaining more dependent on high-interest debt, and jeopardizing their retirement plans.

Financial advice can help close the gaps

For all these reasons, financial planning is more than just numbers – it’s about gaining confidence.

“Planning provides clarity in a world where you can’t really have certainty,” Ms. Byrne says.

Susan Daley, a financial advisor at Richardson Wealth in Waterloo, Ont., works closely with women entrepreneurs. She says the first step is understanding their goals.

“Women might be planning for maternity leave, part-time work, or taking time off to care for family. We look at how income, savings, and investments can support those goals,” Ms. Daley explains.

When it comes to retirement, entrepreneurs often want the freedom to keep working for as long as they can, without relying solely on their businesses to fund daily expenses.

“But we have to plan for a longer life expectancy and the income gaps that come from caregiving, whether for children or aging parents,” Ms. Daley says.

A 2022 study by the Women’s Entrepreneurship Knowledge Hub found that 37 per cent of women entrepreneurs earned less than $50,000 annually, compared with 32 per cent of men entrepreneurs. It also found that 11 per cent of women entrepreneurs earned more than $150,000, compared with 15 per cent of men entrepreneurs.

This gap not only affects business growth but also long-term financial security, making strategic planning and insurance essential. Ms. Daley says it’s less about being conservative and more about aligning investment choices with short-term and long-term plans.

“Some goals are short-term, so the investments need to reflect that. Others are longer term, and there’s room for growth,” she explains.

Taxes are another area where early planning pays off. With 83 per cent of women entrepreneurs relying on personal savings to launch or grow their businesses, according to data from the Women Entrepreneurship Knowledge Hub, managing tax obligations becomes even more critical.

Without careful planning, women risk depleting savings or taking on high-interest debt, which can jeopardize both their business and personal financial future. “Understanding expected revenues, expenses, and tax obligations allows entrepreneurs to plan ahead rather than react,” Ms. Daley says.

Choosing an advisor who gets you

For both Ms. Daley and Ms. Byrne, a strong advisory relationship is key. Ms. Daley recommends finding someone who understands the unique life challenges women face and can partner with them on their entrepreneurial journey.

“You need to feel confident sharing your goals and personal information, and you want someone asking the right questions about your life, not just your money,” she says.

Ms. Byrne adds that recommendations from those already in your trusted network can be an invaluable resource to help women entrepreneurs find the right advisor, with the right skills, to help them reach their goals.

“Nothing goes further than a recommendation from somebody in your network,” she says. “Because being a trusted, collaborative professional matters as much as experience.”

Planning with a trusted advisor can turn uncertainty into clarity and lay the groundwork for decisions that support both short- and long-term goals.

“Good advice isn’t just about saving or investing as much as possible,” Ms. Daley says. “It’s about understanding what you want to achieve and how to make it fit your life.”

Advertising feature produced by Globe Content Studio with Richardson Wealth. The Globe’s editorial department was not involved.