module four for review (draft 7)
TRANSCRIPT
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A Tool Kit for Credit Union Leaders and Lenders
Module Four
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Why do more women than men start businesses in Canada but more men grow them?
What barriers do women face in growing their businesses?
How can credit union leaders and lenders better support women to grow their businesses?
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Vancity Community Foundation undertook the
Women Entrepreneurs: Financing
Opportunities for Growth
project between 2011 – 2013 to address these
questions.
The project included extensive
research and a pilot project for women
entrepreneurs.
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The content of this tool kit reflects what we learned from project participants, service providers and advisors about how credit
unions in Canada can better support women to grow their businesses and, by
extension, support greater economic activity and job creation.
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Welcome to Module Four:
Ways Lenders and Credit Unions Can Support Women
Entrepreneurs
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In This Module We Will Explore
• Ways Credit Union leaders can support women entrepreneurs to overcome business growth challenges.
• Ways branch leaders can support women entrepreneurs to overcome business growth challenges.
• Ways lenders can support women entrepreneurs to overcome business growth challenges.
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Introduction
Strategies identified in this module are
divided into three groupings.
1) Credit union leaders including board and
executive-level strategies.
2) Branch leaders including managers and
assistant managers.
3) Lenders including business lenders and risk
analysts.
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Another way to think about these strategies
is what can be done through
• leadership,
• policy, and
• action.
The size and unique profile of your credit
union will require you to think about who can
lead these strategies in your organization.
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Strategies for Credit Union Leaders
• Encourage senior leadership (at the board level) to participate in community organizations focused on women and women and business.
• Prioritize women entrepreneurs as an important growth market.
• Profile diverse women entrepreneurs in marketing and brand promotion.
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• Establish women business champions within credit union organization.
• Establish internal targets to increase lending to women entrepreneurs.
• Link targets in applicable employee performance evaluation.
• Develop or partner on loan-guarantee funds to collateralize women’s business loans.
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• Consider and implement alternative credit
evaluation procedures and/or have community
liaison loan officers handle individual loan
evaluations outside the credit scoring system.(recommendation to U.S. banks and financial
community from Ewing Marion Kauffman Foundation,
July 2006)
• Repackage and market existing loan products
aimed at women business owners positioned to
grow their businesses.
- e.g. Women Entrepreneur Business Growth Loan
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How Important is Target
Marketing?
• Vancity credit union successfully grew their market share with the gay and lesbian community in the early 2000s by deliberately including images of same-sex couples in advertising, along with clear welcoming messages.
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• This strategy proved the institution was willing to ‘show up’ – through member services not just with sponsorships.
– No new products or services were required
– The campaign changed the conversation with
existing members
– The campaign attracted new members
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VIDEO
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Strategies for Branch Leaders
strategy
• Create community -create opportunities for
women entrepreneurs to network.
• Make space - create a
resource area in your branch and/or on your
website with targeted information and
resources for women entrepreneurs.
challenges addressed
� Knowledge of Financing Options
� Lack of Assets, Business Skills & Confidence
� Connection to Networks & Business Supports
• Setting Business Goals
• Accessing New Markets
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strategy
• Ensure your suite of financial services effectively reach women business owners through advertising and marketing channels (i.e. face-to-face, signage, ads, brochures).
challenges addressed
� Knowledge of Financing Options
• Setting Business Goals� Lack of Assets,
Business Skills & Confidence
� Connection to Networks & Business Supports
• Accessing New Markets
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“Specialized clinics for women entrepreneurs who don’t have a
business/finance background, who want to grow their businesses would be a highly
valued, much needed member service. This would create loyalty and attract new
members”
Clare Cullen, Eco-retailer, Social Entrepreneur
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strategy
• Establish strategic partnerships with women-
serving community organizations and
business networks to
reach under-served women entrepreneurs.
• Organize agenda specific member events
(seminars) for women entrepreneurs (e.g.
lending, marketing, social
media).
challenges addressed
• Setting Business Goals
� Knowledge of Financing Options
� Lack of Assets, Business Skills & Confidence
� Connection to Networks & Business Supports
• Accessing New Markets
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strategy
• Provide women entrepreneurs with targeted skills training or business coaching on – developing business
growth plans
– setting financial goals
– business financing options: how, when and why to use credit
– making cash flow projections
challenges addressed
� Setting Business Goals
� Knowledge of Financing Options
� Lack of Assets, Business Skills & Confidence
� Connection to Networks & Business Supports
• Accessing New Markets
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Skill-building is Important
• Many studies have found a clear connection between business success and access to applicable skills training and mentorship.
• Women entrepreneurs, in particular, are eager to take advantage of educational opportunities when they are offered.
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Strategies for Lenders
strategies
• Use active listening strategies.
• Avoid trivializing or dismissing women’s
business needs.
• Ask strategic questions to
understand financing
needs.
• Tailor communication to
meet and serve their unique needs.
challenges addressed
• Setting Business Goals
� Knowledge of Financing Options
� Lack of Assets, Business Skills & Confidence
• Connection to Networks
& Business Supports
• Accessing New Markets
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strategies
• Establish an ongoing
relationship.
• Find opportunities to
educate women business
owners about your credit union’s lending policies
and requirements.
challenges addressed
• Setting Business Goals
� Knowledge of Financing Options
� Lack of Assets, Business Skills & Confidence
• Connection to Networks and Business Supports
• Accessing New Markets
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Strategies
• Develop a resource list of
local business networks,
training and mentorship opportunities.
• Connect and refer women to those resources.
challenges addressed
• Setting Business Goals
• Knowledge of Financing Options
• Lack of Business Skills &
Confidence
� Connection to Networks and Business Supports
• Accessing New Markets
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strategy
• Be open to creative strategies to finance
women’s business growth (i.e.: targeted business
growth loan program, cash-flow based lending
or guaranteed loan
funds).
challenges addressed
• Setting Business Goals
• Knowledge of Financing Options
� Lack of Assets, Business Skills & Confidence
• Connection to Networks & Business Supports
• Accessing New Markets
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Growing into Growth
Don’t make assumptions about ‘life-style’, mission-driven or home-based entrepreneurs – they may start small, but want to grow later and need support and guidance to do so.
Some examples include: Fairware, Indigo
Natural Products, Lunapads, Robeez and
Natural Pod [links here]
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Strategies for Leaders and Lenders
Learn More!
Bring together female business members in
focus groups to hear where they need help with
growing their businesses – e.g. financing
coaching, network building and advice.
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Learn More!
Track and measure financing requests received
from different women entrepreneurs - sole
proprietors, women only partnerships,
husband/wife teams - to deepen understanding
of this market segment (wants, needs and
opportunities).
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Quiz
• Please click on this link to review the points covered in this module.
• Note to Reviewer:
– Modules will include an optional, online quiz
(5 to 6 questions) that will reinforce some of
the key points made in the module.
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Resources
• Websites
• Articles
• Studies
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End Notes
• The Urban Institute. July 2006. “Capital Access for Women; Profile and
Analysis of U.S. Best Practice Programs.” Ewing Marion Kauffman
Foundation.
• Hadary, Sharon G. May 2010. “Why Are Women-Owned Firms Smaller
Than Men-Owned Ones?”, The Wall Street Journal
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Project Partners
Project partners:
This project was funded by