MONTREAL, June 19,
2024 /CNW/ - The faces of entrepreneurship are
changing. Despite a two-decade decline in the overall entrepreneur
population, the number of Indigenous and Black-led businesses is
growing, counteracting this trend. To ensure these business
creators can thrive, BDC has created a dedicated Inclusive
Entrepreneurship team, is launching a $50
million financing and training program, and investing
$200 million in Indigenous and
Black-led businesses.
"Too many underrepresented entrepreneurs continue to face the
same barriers that existed a decade, or even a generation ago,"
said Isabelle Hudon, President and
CEO, BDC. "Despite a lot of positive strides, we just aren't moving
quickly enough. It's clear a one-size-fits-all approach does not
work and, like the entrepreneurs we serve, we must innovate. The
initiatives announced today are part of BDC's efforts to drive
greater economic impacts and increase productivity."
As a development bank, BDC takes on more risk to help
entrepreneurs and grow the economy. The bank identifies market
gaps, and partners with others to create solutions that address the
unique challenges faced by entrepreneurs and that mainstream
lenders can use. Using this same innovative approach, BDC is aiming
to propel more businesses with three key initiatives.
The bank's new Inclusive Entrepreneurship Team leads with an
inclusion mindset and puts that intention at the centre of every
client experience. They have increased accountability with
measurable targets around business development and entrepreneur
training, and are already testing regional programs with business
centres to better serve entrepreneurs where they are.
Recognizing the barriers are highest, and trust is lowest, among
the smallest and earliest-stage businesses, their first act was
creating a new $50M program that
provides loans, plus training, for businesses that are
majority-owned by women, Indigenous and Black entrepreneurs and
have revenues under $3 million.
Lastly, BDC Capital, BDC's investment arm, is creating two new
$100M platforms to support Indigenous
and Black-led businesses. This will complement the $500M Thrive Platform for Women (launched in
2022) which includes Indigenous and Black women
entrepreneurs. The team is currently working to hire key roles
from the Black and Indigenous communities and collaborating with
them to design and set objectives for the platforms. More details
will come later this year.
"A critical driver of creating intergenerational wealth for
Black communities is equitable support for Black-owned businesses,"
said Lise Birikundavyi, Managing Partner, BKR Capital. "With less
than 0.5% of venture capital dollars in North America going towards Black
entrepreneurs, there is a clear gap to fill. Since we started our
fund focused on Black founders, we have seen an incredible amount
of quality opportunities, and we believe it is great news to see an
organization like BDC join forces to create a more diversified and
robust venture capital industry."
These initiatives expand BDC's long-standing support for diverse
entrepreneurs. Last year, BDC increased its women and Indigenous
clients by 11% and 22% respectively. To date, BDC has committed
over $8B dollars to underserved
business owners directly through programs like the Indigenous
Entrepreneur Loan and Thrive Fund, and indirectly through partners
like Futurpreneur, FACE, NACCA, BKR Capital, and Raven Capital.
Hundreds of free education resources are also available at
bdc.ca.
BDC's mission is to support Canadian entrepreneurs to build
strong and resilient businesses and, in doing so, contribute to
creating a more prosperous, competitive, and inclusive Canada. Its corporate values - United for
Entrepreneurs, Powered by People, and Courageously Impactful - are
the building blocks of BDC's corporate DNA. These values connect
what the organization stands for to how it delivers on its mandate
and corporate strategy.
Additional Quotes
"Indigenous Peoples are among the fastest growing populations in
Canada and represent the highest
growing segment of entrepreneurs," said Althea Wishloff (Gitxsan Nation, Fireweed Clan),
General Partner, Raven Indigenous Capital Partners. "At Raven, we
have learned that taking a platform approach, supporting, and
mentoring founders, while providing equity and equity-like capital
in a culturally sensitive way is of utmost importance. We look
forward to the growth of the ecosystem, new businesses being born
and new co-investors emerging."
"Women make up half our population and workforce, yet less than
20% are majority owners in Canadian businesses," said Marwa Abdou, Senior Research Director, Canadian
Chamber of Commerce. "Our most recent report found progress is
moving at a glacial pace in entrepreneurship and representation and
unless radical changes are made, gender parity is more than a
century away. It's great to see organizations like BDC continuing
to invest new and innovative approaches like the Thrive Platform
which is the world's largest venture fund in the world for
women."
About BDC
As Canada's bank for
entrepreneurs, BDC is a partner of choice for all
entrepreneurs looking to access the financing and advice they need
to build their businesses and tackle the big challenges of our
time. Our investment arm, BDC Capital, offers a wide range of
risk capital solutions to help grow the country's most innovative
firms. We are one of Canada's Top 100 Employers and
Canada's Best Diversity Employers.
BDC was the first financial institution in Canada to receive the B
Corp certification in 2013 and it is the B
Corp movement's national partner in Canada. For more information on BDC's products
and services and to consult free tools, templates and articles,
visit bdc.ca or join BDC on social media.
SOURCE Business Development Bank of Canada