Module four for review (draft 7)

2/15/2013 DRAFT FOR REVIEW - PLEASE DO NOT CIRCULATE

A Tool Kit for Credit Union Leaders and Lenders

Module Four


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?


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.


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.


Welcome to Module Four:

Ways Lenders and Credit Unions Can Support Women

Entrepreneurs


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.


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.


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.


1/2

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.


1/2

• 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.


2/2

• 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


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.


• 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


VIDEO


1/5

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


2/5

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).



• Setting Business Goals� Lack of Assets,

Business Skills & Confidence




“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


3/5

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).








4/5

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


� Setting Business Goals






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.


1/3

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.





• Connection to Networks

& Business Supports



2/3

strategies

• Establish an ongoing

relationship.

• Find opportunities to

educate women business

owners about your credit union’s lending policies

and requirements.





• Connection to Networks and Business Supports



2/3

Strategies

• Develop a resource list of

local business networks,

training and mentorship opportunities.

• Connect and refer women to those resources.



• Knowledge of Financing Options

• Lack of Business Skills &

Confidence

� Connection to Networks and Business Supports



3/3

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).



• Knowledge of Financing Options


• Connection to Networks & Business Supports



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]


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.


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).


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.


Resources

• Websites

• Articles

• Studies


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


Project Partners

Project partners:

This project was funded by

Documents

Module four for review (draft 7)