Honoring Women's Entrepreneurship Day: The Importance of Financial Literacy and How Advisors Can Support Women Entrepreneurs in Canada
November 19th is Women’s Entrepreneurship Day, a day dedicated to celebrating and empowering women around the world who are building businesses, driving innovation, and reshaping industries. Here at MOD Accounting and Tax, a feminist, cloud-based CPA firm, we’re proud to stand behind women entrepreneurs, especially here in Canada, where the landscape for women in business is constantly evolving.
But while we celebrate women’s contributions to the entrepreneurial ecosystem, we also recognize the barriers that still exist. One of the most critical challenges women entrepreneurs face—one that too often goes under the radar—is financial literacy. This is not just about understanding balance sheets or tax codes, but about feeling empowered to take control of your financial future, make informed decisions, and ultimately, build sustainable businesses.
The Importance of Financial Literacy for Women Entrepreneurs
Financial literacy is the foundation upon which successful businesses are built. Understanding how money works—how to manage cash flow, how to forecast profits, and how to navigate taxes—is essential for any entrepreneur. But for women in particular, financial literacy can be a powerful tool for overcoming gendered financial challenges. According to recent studies, women are less likely than men to feel confident in their financial knowledge and, as a result, are often less prepared to take the risks necessary to scale their businesses.
Additionally, women entrepreneurs are still significantly underfunded compared to their male counterparts. A report by the Canadian Women's Foundation revealed that only 4% of venture capital funding goes to women-led businesses in Canada. This stark statistic highlights why financial literacy is not just an individual asset but a collective one. When women entrepreneurs are more financially literate, they are better equipped to negotiate for funding, secure investment, and advocate for their businesses in a way that reflects their true value.
How Advisors Can Support Women Entrepreneurs in Canada
As a cloud-based CPA firm with a feminist perspective, we believe that accountants and financial advisors have a critical role to play in advancing financial literacy among women entrepreneurs. By providing tailored advice, education, and actionable support, we can help level the playing field for women in business. Here are a few key actions that advisors can take to support women entrepreneurs:
1. Provide Education, Not Just Services
Financial literacy doesn’t come from a one-time consultation. It comes from ongoing education. Advisors should aim to be educators first—helping women understand the basics of financial planning, business taxes, cash flow, and investment options. For example, hosting webinars, writing blogs, or creating easy-to-digest guides can empower women to make informed financial decisions.
In our experience at MOD Accounting and Tax, we’ve found that many women entrepreneurs—especially those who are self-taught—don't always know where to start when it comes to financials. They may not understand how to track their finances or which metrics are most important for scaling their businesses. Advisors should make the process accessible and digestible, encouraging a culture of learning that feels empowering rather than overwhelming.
2. Tailor Financial Strategies to Unique Needs
Every business has its own set of challenges and opportunities, but women entrepreneurs often face unique barriers, such as managing the work-life balance, dealing with the gender pay gap, and overcoming access to capital. A one-size-fits-all financial strategy doesn’t work for any entrepreneur, but for women, personalized financial plans that take these challenges into account are critical.
Advisors should work closely with women entrepreneurs to craft customized financial strategies. This may involve tax strategies, funding plans, or cash flow management tailored to their specific business and personal circumstances. For example, if a woman is starting a business while juggling childcare responsibilities, an advisor might offer flexible options for managing payroll or budgeting for part-time assistance.
3. Encourage Networking and Access to Capital
Financial literacy is more than just numbers; it’s also about knowing how to navigate the business ecosystem. Many women entrepreneurs struggle to find the capital they need to grow their businesses, but an advisor can be instrumental in connecting them to funding opportunities. This might include introducing them to angel investors, venture capital networks, or government grants specifically aimed at women-led businesses. Advisors should help women build a network of financial support by facilitating introductions, offering advice on pitching to investors, and identifying potential funding sources that align with their business goals.
4. Provide Digital Tools for Business Management
As a cloud-based firm, we’re firm believers in leveraging technology to streamline business management and enhance financial literacy. Advisors can introduce women entrepreneurs to digital tools and platforms that make it easier to track finances, manage cash flow, and generate reports. These tools allow business owners to better visualize their financial position, make smarter decisions, and maintain control over their business growth. Tools like QuickBooks Online, Xero, and other cloud-based accounting platforms can be game-changers when it comes to organizing finances.
In addition, many cloud-based solutions offer tutorials and customer support, empowering women to continue learning and using the software independently. Advisors should ensure that their clients are not only familiar with the tools available but also confident in using them.
5. Advocate for Gender Equality in Business Financing
While financial literacy is important, it’s also critical to address the systemic challenges that women face in securing financing and investment. Advisors should advocate for gender equality in business financing and be vocal about the need to support women-led businesses with fair access to capital. By actively engaging in conversations about this issue, advisors can help create a more inclusive financial ecosystem for women entrepreneurs.
6. Celebrate and Share Success Stories
Finally, it’s crucial to celebrate the successes of women entrepreneurs and share their stories. Success breeds success, and when women see other women thriving, it can inspire them to take action. Advisors can spotlight the achievements of their clients, whether through case studies, blog posts, or social media, to highlight how financial literacy and strategic action can lead to success. This not only reinforces the importance of financial knowledge but also builds a supportive community of women entrepreneurs who can lean on one another.
In Conclusion
Financial literacy is one of the most powerful tools women entrepreneurs can wield, but it’s not something that happens overnight. It takes time, education, and tailored support from advisors who are committed to helping women succeed. As a feminist, online CPA firm, we believe that every woman has the potential to create and lead successful businesses—but they need the right resources to make that a reality. By focusing on education, personalized strategies, networking, and advocating for equity in the business world, financial advisors can be true allies to women entrepreneurs across Canada.
This Women’s Entrepreneurship Day, let’s honor the incredible achievements of women in business and commit to building a more financially literate and supportive future for the next generation of women entrepreneurs.