Pan-Atlantic Needs Assessment of Women in Business [2012]

PAN-ATLANTIC NEEDS ASSESSMENT OF WOMEN-OWNED GROWTH-ORIENTED BUSINESSES: EXPORTING, SUPPLIER DIVERSITY AND GLOBAL SUPPLY CHAINS, USE OF TECHNOLOGY

Submitted to: Atlantic Canada Women in Export Working Group (ACWIE)

Submitted by: Dr. Sandi Findlay-Thompson and Dr. Karen Blotnicky

December 2012

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TABLE OF CONTENTS I.

INTRODUCTION .................................................................................................................................... 4 Background Information ........................................................................................................................... 4 Objectives for the Study............................................................................................................................ 6 Scope of the Research............................................................................................................................... 6

I.

Literature Review .................................................................................................................................. 9 Women and Exporting .............................................................................................................................. 9

II.

METHODOLOGY ............................................................................................................................... 20

III.

SECTOR PROFILE.............................................................................................................................. 22

Characteristics of the Region’s Women-owned Businesses ................................................................... 22 Respondents ....................................................................................................................................... 22 Sectors................................................................................................................................................. 22 Domestic Markets ............................................................................................................................... 22 Service or Manufacturing.................................................................................................................... 24 Business Start-Up and Motive............................................................................................................. 24 Length of Time in Business.................................................................................................................. 24 Number of Employees ........................................................................................................................ 25 Age of WBO, Education Level and Business Experience ..................................................................... 25 Export Status ........................................................................................................................................... 25 Awareness of Supplier Diversity and Global Supply Chains.................................................................... 26 Use of Technology in the Business as a Means of Improving Productivity and Growth ........................ 26 Sales, Profits, and Growth....................................................................................................................... 27 Export Financing...................................................................................................................................... 29 Challenges Facing Female Entrepreneurs ............................................................................................... 29 IV.

ANALYSIS ......................................................................................................................................... 31

Export-Related Strengths and Weaknesses ............................................................................................ 31 Strengths ............................................................................................................................................. 31 Weaknesses ........................................................................................................................................ 32 Identification of export opportunities and existing and emerging trends ............................................. 33

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Challenges, barriers and constraints for Atlantic Canada women-owned businesses with regards to exporting ................................................................................................................................................. 35 Export Growth Factors ............................................................................................................................ 39 Available Programs and Services for Women-Owned Businesses and Gap/Satisfaction Assessment ... 39 Gender as a Help, or Hindrance, for Exporters? ..................................................................................... 43 Research and Technology Investment, and Technology Use, in Women-Owned Businesses ............... 44 Technology Adaptation Analysis and Assistance Used ....................................................................... 44 Investment in Research and Development ......................................................................................... 46 V.

SUMMARY AND RECOMMENDATIONS ............................................................................................ 48

VI.

Appendices ...................................................................................................................................... 53

VII.

References .................................................................................................................................... 130

VIII.

Endnotes: Statistical Tests ............................................................................................................ 133

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I.

INTRODUCTION

Background Information Canada is an export economy and exporting has accounted for close to 40 percent of GDP in recent years, with the exception of 2009 and 2010 which were impacted by the global recession and the high value of the Canadian dollar. In 2010 the total value of exports was approximately $313 billion. Of this amount, small businesses – defined as businesses with less than 100 employees – were responsible for $77 billion (25 percent) of the total value of exports, with an average value of $3 million per firm. Medium-sized businesses – defined as businesses with between 100 – 499 employees - accounted for $52 billion (17 percent) of the total value of exports in 2010, with an average value of $14 million per firm. Large businesses – defined as businesses with more than 500 employees - accounted for $185 billion (59 percent) of the total value of exports, with an average value of $158 million per firm (Industry Canada, 2012). Exporters are an economic driver of the Canadian economy and exporting can be an important strategic means of developing markets beyond Canada’s relatively small domestic market.

In manufacturing, the largest exporting industry, small businesses contributed about 12 percent to total exports compared with 65 percent from large firms. In industries that accounted for a relatively small share of the total value of exports, small businesses made the largest contribution to exports. The largest contributions were in construction (84.3 percent), transportation and warehousing (83.0 percent), and retail trade (80.5 percent) (Industry Canada, 2012).

While the export numbers appear impressive, it is important to realize that a very small proportion of small businesses actually export. In 2010, there were approximately 30,000 small business exporters which represented only 1.3 percent of small businesses in the overall economy. In the same year, 19 percent of medium-sized businesses and 43 percent of large businesses exported.

Women entrepreneurs are an important part of the small and medium sized enterprise (SME) landscape in Canada. Statistics Canada’s Labor Force Survey reports there were 950,000 self-employed women in Canada in 2011, accounting for about one third of all self-employed persons. Between 2001 and 2011 the 4

number of self-employed women grew by 23 percent compared with 14 percent growth in male self-employment (Industry Canada, 2012). Developing entrepreneurial activity among women should be encouraged and supported because of the vital impact this segment can have on wealth and job creation across the country.

The participants in this report are women-owned businesses in Atlantic Canada. In July 2012, Statistics Canada reported its latest findings for the year 2010. Majority female-owned small businesses (those with 1 to 99 employees) represented 18 percent of all small business in Atlantic Canada plus an additional 8 percent were half-owned by women for a total of 26 percent. Jung (2010) reported that revenues earned by majority female-owned firms were still significantly less than revenues earned by majority male-owned firms in 2004 and 2007. Given the low percentage of small businesses that actually engage in export activities, developing new markets and increasing revenues through exporting could be an important strategic opportunity for women-owned businesses to explore.

In January, 2011 four associations (The Centre for Women in Business at MSVU, the PEI Business Women’s Association, the Newfoundland and Labrador Organization of Women Entrepreneurs and the Women in Business New Brunswick) and government stakeholders agreed to form a working group to stimulate export activity and international business growth for women-owned businesses in Atlantic Canada. In April of 2011, the Atlantic Canada Women in Export (ACWIE) working group was founded. The mandate of ACWIE is to identify and develop pan-Atlantic opportunities that support, enhance and increase export activity among women-owned businesses.

ACWIE believes that women-owned businesses in Atlantic Canada are not taking full advantage of opportunities to develop and grow their businesses. In addition, some of their needs are not being addressed and their export sales and corporate growth potential are not being realized due to a lack of information on growth strategies.

The purpose of this research project was to conduct an assessment of the needs of growth-oriented businesses and the development of a subsequently growth-

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oriented framework. The project aimed at profiling women entrepreneurs in Atlantic Canada with a focus on women exporters.

Objectives for the Study 1. To capture the proportion of export-oriented women-owned businesses and to determine the size of the sector according to the export continuum; 2. To identify the needs (growth inhibitors) and the potential of growthoriented women-owned businesses; 3. To determine the level of supplier diversity and global supply chain awareness among women-owned businesses, as well as their level of technology use in their business, as a means of increasing productivity and growth potential; 4. To recommend, based on the findings of this study, areas of intervention that would stimulate the export activity among women-owned businesses and international business growth.

Scope of the Research The research includes four primary parts: sector profile, analysis, input, and recommendations.

Sector Profile: - A sector profile was developed of the Atlantic Canadian Women in Business Sector. These women-owned businesses were categorized based on their export status: 1. Category 1: Not exporting at all (and not inclined towards exporting) 2. Category 2: Export interested 3. Category 3: Already exporting For Category 1: An analysis is provided to determine or try to understand better why this particular group/category are not exporting at all.

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For Categories 2 and 3: 1. A SWOT analysis was completed; 2. The main characteristics were described of the region’s women-owned businesses (e.g. products or services, growth rates, years in business, sales volumes, markets); 3. The type of women-owned businesses in Atlantic Canada were described who require assistance with respect to their export ambitions and what type of assistance is required (what are the growth inhibitors?); 4. The familiarity with supplier diversity and global supply chains was described, as well as the level of use of technology in the business as a means of improving productivity and growth.

Analysis: 1. An international environmental scan was conducted to identify export opportunities, existing and emerging trends, as well as other growth opportunities for women-owned businesses; 2. Specific growth-related initiatives for category 2 and 3 were identified that could be undertaken to support expanded exports for women-owned businesses; 3. A gap analysis (categories 2 and 3) was conducted outlining challenges and barriers for Atlantic Canadian women-owned businesses with regards to exporting, as well as gaps in available services and programs. The available programs and services for women-owned businesses were also identified; 4. A review of R&D investment and use of available advisory services to facilitate R&D investment decisions was completed; 5. An analysis on the rate of technology adaptation by women-owned businesses and link to growth rates was conducted.

Input: A comprehensive review of relevant literature was completed. In addition a survey was conducted of Atlantic Canadian women-owned businesses and personal interviews were conducted with the following stakeholders: a. Mary Anderson, President, WeConnect Canada 7

b. c. d. e.

Jill Black, owner, eSource Event Registration Canadian Trade Commissioner Services (TCS) Business Women In International Trade (DFAIT) Emily Bouchet (CANWIT)

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I.

LITERATURE REVIEW

The literature review for this study will be separated by the three primary objectives, namely, 1) Women and Exporting, 2) Supplier Diversity and Global Supply Chain, and 3) Technology Use, in Women-owned businesses.

Women and Exporting Canada has always been a trading nation. As the world becomes a smaller global marketplace and the expansion of global commerce continues, there are many reasons why a company that is already doing well within Canada should consider becoming an exporter. The Canadian Trade Commissioner Service (2011) cites the benefits of exporting as increased sales, higher profits, economies of scale, reduced vulnerability, new knowledge and experience, global competitiveness, and domestic competitiveness.

Given the Statistics Canada’s Labor Force Survey that reported there were 950,000 self-employed women in Canada in 2011, which accounts for about one third of all self-employed persons, women-owned enterprises represent a significant economic opportunity. In a report by the Taskforce for Women’s Business Growth (2011) it was reported that a 20 percent increase in total revenues among majority womenowned enterprises would contribute an additional $2 billion per annum to the Canadian economy. It is a reasonable conclusion to argue that developing entrepreneurial activity among women would have a vital impact on wealth and job creation across the country. However, as reported by the Taskforce for Women’s Business Growth (2011) Canada has no national strategy to facilitate women’s enterprise growth.

In terms of exporting, Orser and Carrington (2006) found that women-owned firms were significantly less likely to export as compared to their male counterparts.

However, they found that the majority of research was focused on particular sectors such as manufacturing, high-tech based, and high-knowledge-based firms.

Female business owners tend to populate the service industry but this sector is often excluded from research studies of SME exporting (Lefebvre & Lefebvre, 2000). Because of this exclusion, Orser, Spence, Riding and Carrington conducted a study in 2009 that controlled for sector, firm, and owner attributes but their 9

findings continued to support the conclusion that female majority-owned firms were significantly less likely to export than firms owned by men.

There are two primary theories that are found in most of the research regarding women and exporting. They are liberal feminism and social feminism theories.

Liberal feminism theory is rooted in the belief that men and women are equally able. The subordination of women reflects discrimination and/or structural barriers.

The rationale for liberal feminism is that performance outcomes such as growth, size, and profit are a function of organizational inputs and gender differences in organizational performance are attributed to individual ability, actions, and choices (Orser, et. al, 2009). Social feminism states that there are differences between genders and the focus needs to be on celebrating women as women. In other words, understand their experiences, skills, competencies, and values. This theory is rooted in the belief that society has neglected women, at its cost and in order for women to share public power and authority, there needs to be a change in the current patriarchal structures. The rationale for social feminism is that social structure, power, class structure, and politics play a role in gender influences as opposed to the liberal feminism position that these differences are due to individual ability, actions, and choices. In other words, there is more involved than just the owner and his or her entrepreneurial abilities and decision making that influence performance outcomes.

The research is divided on whether the reasons that women-owned firms are less likely to export than firms owned by men are due to liberal or social feminism.

Orser, et al. (2009) tested different export attributes such as growth intention, management experience, residency status, firm size, firm age, sector, and innovation (R&D Investment). Based on liberal feminist theory the results should indicate that men and women who retain similar levels of these attributes are equally likely to export while those that support social feminism would expect these attributes to be influenced by structural impediments. For example, women are much less likely to operate firms in knowledge-based and technology sectors.

This is supported by the Canadian Women in Technology (CANWIT) group, who reported that women represent 47 percent of the Canadian workforce but only 30 percent of the Canadian Technology sector workforce. The attribute of innovation and R&D investment would therefore be moderated by gender and male-operated businesses are more likely to export than female-operated businesses. The Orser, et 10

al. (2009) study tested several hypotheses related to these export attributes and found a mix of support for both the liberal and social feminism arguments. A summary of the findings are: 1. Growth intention – firms with a stated growth intention were more likely to be intensive exporters than firms that were not growth-oriented; 2. Management Experience – there was no support for the inference that export tendency was positively associated with management experience; 3. Residency Status – firms owned by recent immigrants were more likely to be exporters compared to firms owned by long-time Canadian residents; 4. Firm Size – larger firms were more likely to be exporters, however, given comparative firm size, majority female-owned firms were less likely to export compared to firms owned by men; 5. Firm Age – more established businesses were more likely to export; 6. Sector – knowledge-based and technology-based businesses were more likely to export; 7. Gender – gender itself was not found to have any significant direct association with export propensity (p. 949).

In trying to determine the export tendency of women-owned businesses, it is useful to look at the entrepreneurial orientation of women business founders. A recent study undertaken by Kariv (2011) analyzed the push/pull perspective. He found that the push orientation is one of necessity where an individual is “pushed into entrepreneurship because all other options for work are absent or unsatisfactory” and the pull orientation is “opportunity-driven entrepreneurs who are pulled into this endeavor more out of choice to exploit some business opportunity (p. 398).”

Women’s entrance into entrepreneurship might help explain their propensity to grow and ultimately export. Research has revealed that necessity-driven orientation to entrepreneurship is associated with lower levels of business success and higher business failure rates than an opportunity-driven orientation. Hughes (2003) found that there was a discrepancy between the genders in their orientation towards entrepreneurship and that women are more prone to necessity entrepreneurship than men.

While Kariv’s study was used to compare gender and business success between Canada and other countries it is interesting to note that he used Canada because of 11

his belief that the country exhibited more opportunity-driven entrepreneurs. He did not, however, provide any statistical break-down as to the percentage of necessitydriven versus opportunity-driven women-owned businesses.

The Business Women in International Trade program is managed by Foreign Affairs and International Trade Canada (DFAIT) and offers targeted information and services to support Canadian women’s global business efforts. According to trade commissioner Josie Mousseau “DFAITS’s program provides guidance and one-stop access to crucial information to help business women build on their momentum on a global scale.” (Business Women in International Trade, 2012).

However, one of the primary findings in most studies on woman and exporting when WBSs are asked about barriers to international trade one of the consistent responses is that WBOs do not know where to go for information and when they do find resources they are widely scattered and piece-meal in nature, making the process extremely frustrating. There is a need for WBOs to be able to find resources regarding exporting in a more consolidated search approach because although there are excellent resources available they are not helpful if WBOs find them difficult to locate and/or navigate.

In the study by Stoian and Rialp-Criado (2010) they analyzed the decision-makers’ role in the export activity decision and found it to be the deciding factor. This becomes very relevant in the context of small and medium sized businesses as the owner is often the key decision maker and therefore their perceptions might be critical for the export behavior of the firm. The findings show that high educational level, language skills, high-risk tolerance, innovativeness, as well as strong perceived export stimuli compared to low and relatively easy to overcome export barriers positively influenced the export involvement and development in SMEs. Their study revealed that foreign export markets, in particular emerging ones, are being currently regarded as very promising for contributing to strategic adaptation and international competitiveness of developed market firms. These findings are in concert with the message from DFAIT where they are encouraging WBOs to explore doing business with BRIC countries – that is, Brazil, Russia, India and China.

Innovation is also reported as a critical activity for exporting because it aids in competitiveness and survival in global markets. Exporters were more likely to 12

invest in research and development (R&D) and in 2007 the percentage of SME exporters classified as innovative (spending more than 20 percent of total expenditures on R&D) was more than double that of SME non-exporters (11 percent versus 4 percent) (Industry Canada, 2011). Although SME exporters are found across all industries, it is commonly known that exporting is more prevalent within the manufacturing industry. In 2007, manufacturing had the highest concentration of SME exporters at 28 percent followed by knowledgebased/technology industries at 17 percent (Industry Canada, 2011).

In a study by Kneller and Pisu (2011) they explored the barriers to exporting by sampling firms that had participated in the UK Trade and Investment support program. Their findings differed with those of Orser, et al., and Industry Canada.

They determined that “the best predictor of whether a particular firm identifies a barrier as relevant is explained almost exclusively by just one variable: the number of years the firm has been exporting. No other firm-level characteristics, such as R&D intensity, size, other measures of export experience, such as export intensity, or industry-level variables were related to export barriers in any consistent fashion.� (Kneller and Pisu, 2011, p. 895).

Industry Canada (2011) reports that the majority of SME export sales are to the United States. This aligns itself with Larson’s belief that Canadian exporters need to either do business as an American subsidiary or develop key relationships with American firms. This was echoed by Mary Anderson of WeConnect Canada. This, of course, is not to say that exploring trade with developing nations such as BRIC countries should not be considered but it appears that the easiest road to exporting, at least initially for WBO is through the United States. It does raise the question however of whether there is a fit or alignment between government-sponsored trade missions for WBOs and the effectiveness of same if they are trying to encourage, for example, BRIC trade relations, if the consensus is that WBOs should be looking at American relationships, especially large corporations with supplier diversity programs, as a springboard and easier entry road to exporting.

Supplier Diversity and Global Supply Chain The supply chain includes every organization that is involved in bringing a good or service to the consumer. In this chain, companies purchase raw materials, products 13

and professional services from other, often smaller organizations. Supplier diversity means that small and medium-sized organizations owned or operated by visible minorities have equal access to these opportunities, allowing them to grow their business and providing benefits to the Canadian economy (Larson, 2012).

Dr. Paul Larson conducted a research project focused on organizations in Ontario and especially in the Greater Toronto Area (GTA) that buy goods and services from other organizations that are at least 50 percent owned and operated by visible minorities. He’d received 165 responses as of September 20, 2012 and of this number, half were female respondents. These 165 organizations reported average spending on goods and services of $452 million, representing $75 billion of annual economic activity. The findings from the study revealed that 47.6 percent have employee diversity policies while only 25.5 percent have supplier diversity programs. It was his conjecture that employee diversity is a prerequisite for supplier diversity programs.

Larson noted that large GTA organizations with operations in the United States were three to seven times more likely to have a supplier diversity program than those with no American link. Of interest is that when he then compared these large GTA organizations that had an American link against large Chicago headquartered firms, Chicago companies were three times more likely to have a supplier diversity program - in other words, 77.4 percent versus 23.3 percent. He offered that this difference can be at least partly explained by U.S. federal and state policies which encourage companies to make supplier diversity a priority.

Larson found that companies that had supplier diversity programs credited much of their success to top management commitment and efforts to work closely with current or future suppliers. This is an interesting fact because as Anderson (2012) of WeConnect Canada noted, it is primarily middle-level managers who champion supplier diversity within their organizations and gaining top level support is challenging. It is therefore important that the correct tools be given to middle level champions to gain support of top management relative to conversations about supplier diversity programs. Anderson’s comments echo those of Wendy Cukier from Ryerson University who noted that in a review of 200 publicly traded companies in Canada, 90 percent had diversity statements while only 18 percent addressed procurement and diversity. Cukier also states that one of the challenges 14

of supply chain diversity is identifying and leveraging the decision makers in organizations (Cukier, 2010).

Other challenges of supply chain challenges were 1) an economic downturn could put pressures on margins and force larger organizations who have supplier diversity programs for marketing purposes to abort or decrease their stated percentages, 2) no metrics or reporting by organizations to the Canadian government on diversity spending, 3) gaining media attention for role models of supplier diversity, and 4) Canada lags behind the United States and needs more mentoring, coaching and matchmaking (Conference Board of Canada, 2010).

In Canada, WeConnect Canada is a Canadian non-profit organization committed to supplier diversity. Any WBO who wishes to be considered for and engage in supplier diversity programs can apply for certification from WeConnect Canada.

The certification process confirms that the WBO’s organization is at least 51 percent owned, managed and controlled by a female. The founding corporate members of WeConnect Canada were from large organizations such as Accenture, Ernst & Young, Merck Frosst, Royal Bank of Canada, Staples, TELUS, and WalMart, who all wanted to widen access to their supply chains. In the United States, The Women’s Business Enterprise National Council (WBENC) was established in 1997 and WeConnect UK was launched in 2007.

WeConnect also facilitates the building of strong networks for women by connecting them with both procurement officers of top corporations and with other certified firms in order to enhance bidding capacity. In an interview with Jill Black, owner of eSource Event Registration and a member of the Centre for Women in Business she has been forthright in her assessment of certification. She stated that her investment in certification from Weconnect Canada “has come back to me in spades,” and she has leveraged her certification to gain new business plus find an accomplished mentor from Central Canada to work with her. When asked why she felt that the majority of WBOs do not take steps to become certified she was direct in stating that they do not see the immediate benefits. The Canadian government might have diversity programs but they do not appear to assign any point values for certified WBOs in requests for proposals nor do they have a stated specific percentage of spending that must be directed to diversity. It is therefore difficult to ascertain whether or not certification has assisted in being selected as the supplier 15

of choice but Black is quick to note that she strongly believes her being certified has made the difference in her success. Black also points out that without the certification process she would not have had the opportunity to understand that her product could be widely exported nor would she have gained the level of confidence that allowed her to more competently seek out networking opportunities. She stated categorically that there is no downside to taking the steps required to become a certified supplier.

According to Larson (2012) the benefits of supplier diversity include: 1.

2.

3.

4.

Results in better value for money by having more competition for bids Helps companies reach new markets or provide new products Increases investor confidence and access to capital Improves the organization’s reputation with customers and employees, resulting in increased sales and staff retention 5. Helps small and medium-sized business grow, creating opportunities for the region 6. Builds the capacity and profile of visible minority leaders thereby increasing leadership diversity overall

WeConnect Canada estimates that Canadian women-owned businesses comprise less than 5 percent of all domestic and international suppliers to corporations and governments. With over 95 percent of Fortune 500 companies involved in supplier diversity programs, Canadian WBOs are missing out on and not taking advantage of significant growth opportunities, boosting innovation, becoming more competitive, and gaining access to market knowledge.

WeConnect Canada reports there are currently 220 certified WBOs in Canada and of this number 180 are active on its roster. The most likely reason for the lower active roster number is that certification must be renewed each year for quality assurance purposes to confirm the organization is still 51 percent owned and controlled by a female.

According to Mary Anderson of WeConnect Canada, supplier diversity is a soft landing for women interested in exploring export markets. The international engagement activities that result from being a certified supplier offer a value proposition WBOs need to harness. Certification does not always guarantee that a 16

deal will be completed with corporations seeking suppliers but it does guarantee fast tracking access to international organizations. These networking opportunities provide confidence and exposure for WBOs that would otherwise be difficult and costly to nurture. Anderson views supplier diversity as an “easy road� to entry into international markets. She concurs with Larson that American ties are a critical first step in helping both WBOs secure new customers and potential exporting opportunities.

According to the Diversity Business Network, a Canadian company that provides tools, strategies and systems for corporations seeking to engage in supplier diversity so as to achieve a return on investment from supplier diversity, companies who focus heavily on supplier diversity, spend on average 20 percent less on their buying operations and have procurement teams half the size of their peers whose supplier programs are not as diverse. Each year approximately $360 billion is spent by Canadian corporations and government on procurement and only 3 percent of this expenditure is awarded to diverse-owned suppliers. Anderson (2012) noted that finding a metric for calculating ROI on supplier diversity is not a readily available tool and is a critical piece in advancing the case for supplier diversity with both corporations and WBOs. In 2008 a study was undertaken by Smallbone, Kitching, Athayde, & Xhenetin (2008) to investigate for the Olympic Delivery Authority the probable impact that supplier diversity would have for SMEs with respect to the 2012 Olympics. The findings were that most opportunities would be for second or third tier suppliers as first tier construction contracts would likely be too large to be suitable for SMEs. Additionally it was noted that many small firms lacked supporting documentation and procedures required by the Olympic Delivery Authority and that SMEs successful in securing contracts for the 2012 Olympics had had previous experience of tendering successfully with public sector organizations. The knowledge that needed to be taken away from this report was that it is necessary for SME owners to invest time in understanding and meeting procurement requirements of public sector bodies.

The Olympic Delivery Authority stressed that its supplier diversity program was developed to create a level playing field rather than positively discriminating in favour of disadvantaged groups. Mary Anderson of WeConnect Canada suggested 17

this was not unusual and that organizations wishing to partake in bidding for supply opportunities had to be able to meet the purchaser’s requirements but that leveling the playing field was a critical first step.

The Toronto 2015 Pan Am/Parapan Am Games Organizing Committee have closely monitored the London Olympics and have established a supplier diversity advisory council to help engage and enable under-represented groups to actively participate in the procurement process for the Games. To date, 7 percent of TO2015 active suppliers who have self-identified on the Games online supplier database as meeting criteria in support of TO2015 diversity initiatives account for 33 percent of all Games spending to date. The next Diversity and Inclusion Progress Report for Toronto 2015 will be issued in June 2013.

As the Pan Am and Parapan Am Games are one of the world’s largest international multi-sport events, it has the potential for long lasting community outreach especially in the area of supplier diversity. Although the Games will only be three weeks in total, the government of Canada has an incredible opportunity to capture and transfer the knowledge it learns about supplier diversity and use it to inform policy.

In the latest Conference Board of Canada report (November 2012), it was reported that while Canada’s share of both merchandise and service exports to the United States will decline by 2015, the U.S. will remain Canada’s largest export market by a considerable margin. Despite the high value of the Canadian dollar, merchandise exports will continue to expand at a modest pace of close to 2 percent per annum through 2025. It is expected that the U.S. economy will record modest growth over the forecast period, especially in comparison with the Eurozone and Japan.

Technology Use in Women-Owned Businesses When it comes to the selection of technology, 83 percent of female business owners take a personal interest in choosing the technology used for their business.

This runs against conventional thought that women are not as interested in technology. Similar to their male counterparts, WBOs recognize the need to take a hands-on approach to all of the aspects of their business (SME Toolkit, 2012).

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There did not appear to be any significant differences in the use of technology in business between female or a male-owned businesses. One difference that was noted was how men and women use their business technology. Female business owners see technology as a way to increase workplace flexibility. For example, 44 percent of female business owners use technology to allow their employees to work at home or to incorporate other flexibility into their work schedules. More than 60 percent also use technology as a way to balance the responsibilities of their personal and professional lives (SME Toolkit, 2012).

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II. METHODOLOGY This section outlines the research methodology undertaken to implement this study.

In addition to five personal interviews with stakeholders appropriate to the research focus, an online survey of women-owned businesses in Atlantic Canada was conducted in late October/early November 2012. An email was sent to approximately 1,200 women business owners asking for their participation in the survey. Contacts were provided by the Centre for Women in Business (Halifax, NS), by the PEI Business Women’s Association, and by the Newfoundland and Labrador Organization of Women Entrepreneurs. These contacts were invited to participate in the survey by the Centre for Women in Business. Women in Business New Brunswick sent email requests to their own clients. A telephone follow-up was also conducted for contacts in Prince Edward Island, Nova Scotia, and Newfoundland-Labrador, by TMC The Marketing Clinic, a marketing research firm based in Bedford, NS. The survey response was 206 completed surveys, of which 199 usable surveys were obtained for analysis. Prior to analysis the data was weighted to ensure accurate representation across the four Atlantic provinces and to remove any sample skew across provinces. After data weighting a final sample size of 198 was obtained, resulting in a final sample of 16.5 percent of the population. This is much higher than the norm for online survey research. The margin of error of this sample, based on a population of approximately 1,200 businesses, is plus /minus 7 percent, 19 out of 20 times.

Overall survey results were obtained, followed by breakouts and significance tests.

Significance tests used were those most suitable for the level data measurement used. Exact tests were used to facilitate data analysis when underlying assumptions for traditional significance tests were violated. Paired comparison analysis was used to tease out statistically significant results buried within large crosstabulation tables. When paired comparisons were used, the probability level required to

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achieve statistical significance was adjusted to compensate for the number of tests being conducted.1 This research project was granted prior approval by the University Research Ethics Board of Mount Saint Vincent University in Halifax, NS.

1

Significance tests included Independent-samples t-tests, Chi-Square and Analysis of Variance. Exact tests used were Monte Carlo for Chi-Square and Brown-Forsyth for ANOVA. The Bonferroni correction was used to adjust the alpha-level for significance tests involving multiple paired comparisons for Chi-Square and t-tests. Bonferroni posthoc tests were used for ANOVA.

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III. SECTOR PROFILE This section of the report discusses the outcomes of the research project. Summary tables and statistical highlights are included in the discussion. A copy of the survey and all results tables are included in the Appendix.

Characteristics of the Region’s Women-owned Businesses Respondents Respondents were obtained from all four Atlantic provinces. Over 40 percent were from Nova Scotia, 31.6 percent from New Brunswick, 19.7 percent from Newfoundland and Labrador, and 7.8 percent from Prince Edward Island.

Sectors The largest sector represented in the research was the professional services sector, with 37.9 percent. Other larger sectors represented included wholesale/retail (18.1 percent), health care (14.4 percent), and manufacturing (11.9 percent). The balance of the sectors was recorded in tourism/hospitality, education, knowledge-based industries, food/speciality foods, agriculture and fisheries, and bioscience. In terms of “Other” there were 32 identified sectors, with art and construction having five mentions each. Respondents were asked to click “all that apply” thus the total does not equal 100 percent. Figure 1 contains the sector breakout. Complete information is included in the Appendix.

Domestic Markets Firms sold products across Canada. However, their major domestic markets included those in local Atlantic Canadian markets, as well as considerable sales in Ontario and Alberta. Markets served in Canada are summarized in Figure 2.

Complete information is provided in the Appendix.

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Figure 1: Sector Representation Professional services

37.9

Other sector

23.5

Wholesaler/Retail

18.1

Health care

14.4

Manufacturing

11.9

Tourism/hospitality

9.8

Education

6.1

Knowledge-based industry

5.4

Information technology &‌

5.1

Food/specialty foods

5.0

Agriculture & Fisheries

4.2

Bioscience

0.9 0

5

10

15

20

25

30

35

40

(Sample size = 198) Respondents could list more than one sector.

Figure 2: Domestic Markets Served Nova Scotia

62.3

New Brunswick

47.2

Newfoundland/Labrador

33.2

Prince Edward Island

31.2

Ontario

29.1

Alberta

21.7

Quebec

15.4

British Columbia

14.0

Manitoba

12.4

Saskatchewan

12.3

Northwest Territories

6.0

Yukon Territory

5.6

Nunavut

4.6 -

10.0

20.0

30.0

(Sample size = 198) Respondents could list more than one market.

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40.0

50.0

60.0

70.0

Service or Manufacturing Over half of the businesses were service-based and 35 percent had both service and tangible product offerings. Less than 14 percent had businesses dealing only with tangible products and no service aspect. Also, the majority of respondents served both business and consumer markets (40.4 percent). Over 31 percent served a business market only and 28.3 percent had consumer-only markets.

Business Start-Up and Motive Most women had started their businesses from scratch (81.6 percent). Nine percent had acquired their business from non-family members and just over 4 percent had obtained their businesses from a family connection. The primary motive for starting their business had been to provide an income source (71.4 percent) as opposed to pursuing a market opportunity (28.6 percent). These statistics reveal that female entrepreneurs in Atlantic Canada are resourceful individuals who are very self-directed and independent business owners. Most of the businesses were sole proprietorships (48.4 percent) or incorporated companies (41.1 percent). Eight percent were partnerships. The percent of business ownership by female entrepreneurs ranged from zero to 100 percent, averaging 89 percent.

According to Kariv (2011), the majority of respondents in this study (71.4 percent) would have followed a push orientation, that is, starting a business out of necessity because all other options for work are absent or unsatisfactory as opposed to the pull orientation which is opportunity-driven and businesses are started more out of choice to exploit some business opportunity. This is concerning because Kariv found that necessity-driven orientation to entrepreneurship is associated with lower levels of business success and higher business failure rates than an opportunitydriven orientation. Women’s entrance into entrepreneurship might help explain their propensity to grow and ultimately export.

Length of Time in Business Seventy percent of respondents had been in business for 10 years or less. Over 13 percent had new businesses that had been in existence for less than one year.

Fifteen percent had been in business for more than 15 years. Overall, the sample

24

consisted of well established businesses, most of which had survived for at least five years or more.

Number of Employees Many had multiple roles in their businesses, but two-thirds were either CEO or President. They supervised up to 250 full-time employees and 70 part-time employees. However, the businesses were generally quite small, with an average of 5.2 full-time employees and 2.5 part-time employees. It appeared that respondents included themselves in the employee count for their organizations. Less than half of the entrepreneurs surveyed used subcontractors in their business.

Age of WBO, Education Level and Business Experience The respondents ranged in age from 25 to over 65. Most had some post-secondary education, with most having a university degree. On average, the women entrepreneurs surveyed had 22.2 years of industry and work experience, ranging from none to 50 years, and an average of 10 years of experience in business ownership and self-employment, ranging from none to 40 years. Overall, these business owners had high levels of relevant business experience.

Export Status Research focused on identifying the export status of respondents. These results included the following: Category 1 – Not exporting and reluctant to do so in the future – 52.8 percent Category 2 – Not exporting but interested – 27.4 percent Category 3 – Already exporting – 19.8 percent There were some statistically significant patterns in the data regarding export status. Those in the manufacturing sector were more likely to be active exporters than non-exporters.i Also, those in the health care sector were more likely to be non-exporters than exporters.ii Firms that sold tangible products were more likely to export than firms that sold services only.iii The Conference Board of Canada (2012) noted that 80 percent of exports to the US are service-based. The finding in

25

this study reveals that WBOs are not capitalizing on a lucrative market opportunity.

Awareness of Supplier Diversity and Global Supply Chains Over 45 percent of respondents who were either already exporting, or are considering exporting, had attended trade shows outside of Canada. Only 15.2 percent had attended trade missions to meet companies with a supplier diversity program. More than 55 percent reported that the trade mission had resulted in new opportunities or sales for their firm. Prior to doing the survey, 34.2 percent of respondents were aware of supplier diversity. Also, 9.5 percent were certified as a women’s business enterprise (WBE).

Use of Technology in the Business as a Means of Improving Productivity and Growth Thirty-four percent of respondents used specialized technology. Thirty-six different kinds of technology were in use. Sixty-eight percent of firms reported having used technology to impact administrative or productivity efficiency. The most common types of technology listed were non-specialized (smart phones, laptops, Internet, mass-market software) (26.3 percent) and specialized software (10.5 percent). The next two types of technology that were listed most frequently were low intensity laser and digital thermal imaging, and cash registers/Point-ofsale systems, which were tied with 3.5 percent of respondents. The remaining 32 technologies listed were listed by only one firm each. These included a vast array of technological applications, including e-learning, travel health package, fabrication systems, graphic design and photographic systems, intense pulsed light, online video games, laser welding, and many others. All technologies in use are listed in the Appendix.

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Sales, Profits, and Growth Most of the businesses in the sample were small to medium-sized enterprises.

Nearly 60 percent had gross sales (before tax) of less than $100,000 last year.

Another 23.5 percent had sales ranging from $100,000 to less than $500,000 last year.

Less than 10 percent of the entrepreneurs had annual revenue of one million dollars or more. Nearly 23 percent reported no change in sales from the previous year. Just under 48 percent had seen their sales increase. Those who saw sales increase typically saw increases of less than 50 percent. However, 10.5 percent reported that their sales had grown by 100 percent or more. Fourteen percent reported that their sales had decreased over the last year.

Over 50 responses were given when they were asked what had caused changes in sales. The most common causes were attributed to marketing/advertising, word of mouth/referrals, and changes in the economy.

Most firms saw profits less than 10 percent of sales, but this did range as high as 75 percent or more. Half earned a profit margin between 10 percent and 24 percent of sales revenue. Trends in sales and profit are summarized in Figure 3.

Thirty-nine percent of firms reported that they were either in the start-up phase or at a fast-growth stage, where sales were growing faster than the economy as a whole. Over half reported that they were in a moderate growth to mature growth market, where sales were increasing slowly, or had stopped growing.

Approximately 6 percent were facing a declining market where sales were decreasing.

Despite what is a mature or declining industry for some firms, 71.1 percent anticipated growing, or have already grown their businesses, this year. While 80 firms could not provide an estimate, the ones that did said they anticipated an average target sales growth this year of 39.4 percent. Nearly 32 percent of business owners anticipated hiring staff in the next year and only 4.3 percent expected to lay staff off. Those who did not predict that they would expand their business provided reasons for not doing so. The main reasons had to do with having as much business

27

as they wished to handle (not wanting to expand) (10), planning to retire (6), or not wanting to finance an expansion (3).

Overall, only 36.3 percent of firms had a formal marketing strategy plan. There were statistically significant differences between Sales (percent) those who were already exporting, those who Under $100,000 59.6 were inclined to export, and those who were $100,000 to under $500,000 23.5 $500,000 to under $1 million 7.7 not. Seventy-seven percent of those who had $1 million to under $5 million 6.6 no intention to export had no marketing plan, $5 million and over 2.6 compared to 66% of those who planned to Sales Growth (percent) export in the future, and 42% of those who Increased by 100 percent or more 10.5 already export.iv These results, although Increased by 50 percent to less than 8.7 100 percent statistically significant, indicate that exporters Increased by less than 50 percent 28.5 are more likely to have a marketing plan, but Stayed about the same 22.9 Decreased by 50 percent to less than 2.4 since only 58% of exporters had a marketing 100 percent Decreased by less than 50 percent 14.2 plan there is definitely room for improvement.

Do not know how much sales changed 12.7 Also, only 31.6 percent conducted marketing from the previous year research on a regular basis, either related to Profit Percent (percent) Under 10 percent 30.4 new products or services, or as part of an 10 percent to less than 25 percent 20.0 annual review process. A comparison was 25 percent to less than 50 percent 13.7 created based on those who do marketing 50 percent to less than 75 percent 5.8 research for any reason, and those who do no 75 percent and more 6.5 marketing research at all. The results revealed Don't know 23.5 that overall, 68% do not do any marketing (Sample size = 198) Results may not add up to 100% due to rounding. research at all. However, there were statistically significant differences between those who exported and those who planned to export, by those who had no intention of exporting. Only 22% of those who did not plan to export did any kind of marketing research, compared to 45% of those who planned to export, and 40% of those who already exported. These findings were statistically significant, indicating that export involvement and intention are associated with more intensive marketing research, but it is important to recall that overall very little marketing research is being done by women business owners and that there is room for improvement.v Figure 3: Sales, Growth and Profit for Last Year

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Export Financing The most common financing used for exporting was personal funds (68.2 percent).

Retained earnings was used by 41.9 percent of respondents. Various types of debt were used as well. The most common type of debt used to financing exporting was a line of credit (29.7 percent), followed closely by credit cards (28.5 percent) and loans from institutions (22.9 percent). Loans from family and friends were tied with loans from individual investors with 7.9 percent of responses. Lesser used forms of financing included venture capital (4.1 percent), public funding (13 percent), letters of credit (1.2 percent), international banking (1.7 percent), guarantees of receivables (insurance) (3.7 percent), trade accounts/accounts payable or buyer financing (4.1 percent), and bid/performance guarantees (1.7 percent). Regarding other types of financing listed, one individual indicated that she had used government grants, while another said that she has been in business for 37 years and just relies on the cash flow in the business to financing her exporting activities.

Challenges Facing Female Entrepreneurs Respondents were asked about six key challenges that often face female entrepreneurs. They were asked to rate each challenge on a scale of 1 to 3: 1) Not challenging, 2) Somewhat challenging, 3) Very challenging, or they could indicate that they felt the issue was irrelevant.

The ratings revealed that the greatest challenge they faced was time management, which was rated as somewhat or very challenging by 80 percent of respondents.

This was followed by four challenges which were rated as somewhat or very challenging by over 60 percent of respondents: networking opportunities (66.3 percent), lack of mentors (63.2 percent), management skills (62.9 percent), and information on financing (62 percent). The challenges with the lowest ratings for somewhat or very challenging were finding qualified staff (59.4 percent), leadership skills (52.8 percent), and lack of career advancement (42.9 percent).

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Figure 4: Ratings of Challenges Faced by Female Business Owners (percent) Leadership Skills

Lack of Mentors

1) Not challenging

41.8

2) Somewhat challenging

43.0

3) Very challenging

9.8

4) Irrelevant

4.8

1) Not challenging

31.4

2) Somewhat challenging

40.1

3) Very challenging

23.1

4) Irrelevant

Lack of Career Advancement

1) Not challenging

34.7

2) Somewhat challenging

33.5

3) Very challenging

Management Skills

20.1

1) Not challenging

33.4

2) Somewhat challenging

46.4

3) Very challenging

16.6

28.9

2) Somewhat challenging

46.6

3) Very challenging

19.7

Time Management

3.6

1) Not challenging

28.7

2) Somewhat challenging

34.3

3) Very challenging

27.7

4) Irrelevant

Finding Qualified Staff

3.0

1) Not challenging

4) Irrelevant

Information on Financing

9.5

4) Irrelevant

4) Irrelevant

Networking Opportunities

4.8

7.0

1) Not challenging

18.1

2) Somewhat challenging

31.0

3) Very challenging

28.4

4) Irrelevant

21.3

1) Not challenging

17.4

2) Somewhat challenging

39.0

3) Very challenging

41.0

4) Irrelevant

1.5

(Sample size = 198) Results may not add up to 100% due to rounding.

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Sixty-three respondents listed 52 other challenges they had faced. The top three challenges were developing a broader client base (4), dealing with red tape/ government/taxes (3), and financing a growing business (3). A summary of the ratings appears in Figure 4. Complete information is provided in the Appendix.

IV. ANALYSIS Export-Related Strengths and Weaknesses Strengths Respondents were asked what their firm’s greatest strengths were in regards to exporting. Out of 91 respondents who are currently exporting, or are interested in exporting, 55 answered the question. Seventeen themes emerged from the responses. The most common strengths mentioned were product or service offerings (18.2 percent) and experience or expertise (14.5 percent). Two other strength areas, tied with 7.3 percent of responses, were networks, contacts or partnerships, and willingness or drive. Three more strengths, tied at 5.5 percent of responses included cultural openness, distribution or logistics and accessibility (including online access), and having a good reputation. The remaining strengths were listed by less than 5 percent of respondents. The results are summarized in Figure 5. Complete information is also provided in the Appendix.

Although there was no statistically significant difference between overall work experience and the propensity to export, there were statistically significant differences in entrepreneurial experience between those who export and those who do not (p=.009). Those who are exporting had an average of 12.3 years of entrepreneurial experience compared to an average of 8.5 years for those not exporting.vi In reviewing firm size only 3.6 percent reported size as a strength. However, there was a general trend that as firms became more established (older) they were more likely to be export. However, the differences are only statistically significant between start-ups (less than one year old) and those that are between the ages of 6 and 20 years so it could also be an overlap with experience.vii

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Figure 5: Export-Related Company Strengths Products/services

18.2

Experience/expertise

14.5

Willingness/drive

7.3

Networks/contacts/partnerships

7.3

Good reputation

5.5

Distribution/logistics/accessibility

5.5

Cultural openness

5.5

Flexibility/innovativeness

3.6

Customer service

3.6

Size

3.6

Target markets

3.6

Gov/t support

1.8

Location/infrastructure

1.8

Staff

1.8

Production scale

1.8

Blingualism

1.8

Selling skills

1.8 0

5

10

15

20

(Sample size = 55 out of 91 who are already exporting, or are interested in exporting) Respondents could list more than one strength.

Weaknesses Respondents were asked what the greatest weaknesses were for their company in regards to exporting. Out of 91 respondents who are currently exporting, or are interested in exporting, 60 provided feedback for this question. Production, capacity to produce, and infrastructure set-up was the most commonly listed constraint (5 percent). Three other weaknesses were tied with 3.3 percent of responses, including type of product or service, travel requirements, and financial constraints. All of the remaining weaknesses were listed by only one respondent each (1.7 percent). These included weaknesses imposed by the value of the Canadian dollar and the economy, regulations, getting financing, lack of experience, advertising and branding issues, as well as other limitations. This

32

information is summarized in Figure 6. Complete information is also provided in the Appendix.

Figure 6: Export-Related Company Weaknesses Production/capacity/infrastructure Type of product/service Travel requirements Financial constraints Finding customers Advertising/branding Inadequate technical skills Being a small business Being female Need to be more firm The economy Regulations Financing Time constraint Planning required Research required Family/work balance Lack of staff Customers Contacts/networks Lack of experience/knowledge Value of Canadian dollar

5.0 3.3 3.3 3.3 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 0

1

2

3

4

5

6

(Sample size = 60 out of 91 who are already exporting, or are interested in exporting.)

Respondents could list more than one weakness.

Identification of export opportunities and existing and emerging trends Current export markets focused primarily on the United States (71.8 percent) and Europe (60.8 percent). The next popular export markets included South America (11.6 percent), Australia/New Zealand (11.3 percent), Asia (10.8 percent), and Mexico (10.7 percent). Lesser served markets accounting for about one-third of all export markets included the Middle East, Africa, Russia, India, and the Caribbean.

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Current exporters, and those planning to begin exporting, also had their sights set on future exports in the United States (83 percent), followed by followed by Europe (45.2 percent), Asia (14.4 percent), South America (14.2 percent), the Caribbean (12.2 percent), and Mexico (10.8 percent). The Middle East, Africa, Australia/New Zealand, Russia, and India, collectively made up 40.6 percent of responses.

The literature reviewed for this study saw trends in where governments sent trade missions. For example, the Canadian government is currently highlighting that WBO should consider doing business in BRIC countries (Brazil, Russia, India, and China). This contradicts the research by Larson and also the comments made by Mary Anderson of WeConnect Canada that WBOs should look at “easy entry roads” and they both support American firms as the best export market for WBOs. This is not to say, of course, that BRIC countries are to be ignored. It is simply an observation that perhaps the comments by some respondents in this study that government export programs do not “fit” their needs could be, in part, caused by the selection of trade mission locations and promotional efforts by the government.

The economic outlook as reported by the Conference Board of Canada remains positive on all of Canada’s major trading partners namely the United States, the United Kingdom, the Eurozone, China, Brazil, Mexico, Japan and India. However, the Board predicts that the United States will remain Canada’s largest export market by a considerable margin.

Firms expected to increase their percent of sales from export markets. Most planned to increase their export sales by 10 percent to less than 24 percent (26.9 percent), but the estimates were wide-ranging. Twenty-two percent expected to increase their export sales by less than 10 percent over the next five years and 23.4 percent expected to increase export sales by 25 percent to less than 50 percent.

About 20 percent expected to exceed 50 percent sales growth in export markets.

However, 7.5 percent did not anticipate increasing their percent of export sales over the next five years.

In analyzing these growth numbers it is important to note that there were no statistically significant differences in growth intentions between exporters and nonexporters. However, if the findings in the literature review are accurate, stated 34

growth-intention is a firm characteristic that leads to exporting and the numbers reported by the respondents in this study are encouraging.

Eight out of ten respondents who are currently exporting, or planning to export, had used direct sales, including online sales. Joint ventures accounted for 27.5 percent of current, or future, export arrangements. Also preferred were distributors (16.1 percent) and shippers (11.8 percent). Less popular choices included brokers (7.3 percent), licensing agreements (4.1 percent), and consignment sales (2.8 percent). No one used foreign direct investment.

Challenges, barriers and constraints for Atlantic Canada women-owned businesses with regards to exporting For those respondents not exporting, the main reasons given for not wanting to export were 1) the belief that the business was service-based, 2) exporting was not applicable to the business, and 3) a lack of knowledge to do so.

For those that were exporting or interesting in exporting, respondents were presented with 29 different potential export constraints. They were asked to indicate whether or not each constraint had an impact on their decision whether or not to export by rating each as having no impact at all (1), some impact (2), or great impact (3). A complete listing of results for each constraint is included in the Appendix. This section of the report contains an overview of the analysis based on the percentage of respondents who rated each factor as having some impact (2) or great impact (3) on their decision making. Figure 7 contains a summary of the relative impact of each of the 29 potential constraints on the export decision of firms surveyed.

Nine of the twenty-nine factors were rated as having the greatest impact on the export decision. Each of these factors was rated as having some impact or great impact on the decision making process by 70 percent to 80 percent of respondents.

The high cost of developing export markets was the single greatest concern. Eighty percent of respondents rated this as having an impact on their export decision. The time constraint in having to travel abroad was second in terms of importance with 79 percent. Obtaining information on foreign markets was the third-most 35

constraining factor with 76 percent of those rating it as having an impact. The other constraints in this critical group included other concerns dealing with capital, risk, knowledge limitations, the need to build relationships and find trading partners, as well as concerns about being paid by foreign buyers.

In analyzing these highest impact concerns, any recommendations that follow in this report should address the cost of developing export markets and the limited time that individuals have to travel abroad. The concept of using supplier diversity programs to launch into exporting could mitigate the high development cost and if dealing with American organizations the travel time could be significantly reduced compared with travel to say China or India. It might be reasonable to suggest that the U.S. markets be used as the springboard and once export knowledge and confidence gained WBOs could broaden their foreign scope into longer-distance markets.

The next group of nine factors were rated as having considerable impact on the export decision, although fewer firms rated these constraints as having some or great impact. Each of these factors was rated as having some impact or great impact on the decision making process by 60 percent to 69 percent of respondents.

These constraints dealt heavily with the realities of handling logistical problems, staffing, dealing with rules and red tape, accessing distribution channels, foreign exchange risk, making the business case for exporting, and getting capital to finance the exporting process. The most compelling issues in this group were the complexity of rules, red tape, and regulations with 69 percent of respondents rating it as having some impact, or great impact, on their export decision. Close behind in ratings was transportation channels or logistics with 68 percent.

The next group of six factors presented as having had some impact on the export decision, but to a much smaller percent than the previous constraints listed. This group of constraints were rated as having some or great impact by 50 percent to 59 percent of firms. The most critically rated of this group was the protection of intellectual property with 59 percent of responses. Family responsibilities (57 percent) and foreign government relations (56 percent) rounded out the top three factors in this group.

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The fourth group of constraints had the least impact on the export decision and were made up of factors ors where fewer than 50 percent of respondents indicated the constraint had some impact or great impact the export decision. The top considerations in this listing were cultural or language differences (47 percent), lack of production capability (45 percent), ), and having a product or service that cannot be easily exported (42 percent). ). Of note was the fact that obtaining export insurance and being female in a foreign country were rated the lowest, with only 37 percent rating those factors as having some or great impact on their export decision.

Figure 7:: Export Constraint Ratings

Greatest Impact 70% to 80% rated constraint as having some impact or great impact on decision to export

Considerable Impact 60% to 69% % rated constraint as having some impact or great impact on decision to export

Some Impact 50 to 59% % rated constraint as having some impact or great impact on decision to export

Less Impact Less than 50% rated constraint as having some impact or great impact on decision to export

•f)High f)High cost of developing export markets •h)Time h)Time consuming to travel abroad •c)Obtaining c)Obtaining information on foreign markets •g)Hard g)Hard to find trading partners •l)Building l)Building relationships with foreign firms •w)Concerns w)Concerns about getting paid by foreign buyers •e)Limited e)Limited exporting knowledge •m)Lack m)Lack of capital •s)concerns s)concerns about overall risk

•t)Complexity t)Complexity of rules/ red tape/regulations •ac) ac) transportation channels or logistics •p)Lack p)Lack of staff •z)Access z)Access to distribution channels •v)Concerns v)Concerns about the overall advantages of exporting for my company (making the business case) •x)Inability x)Inability to get capital from banks or other investors •a)Foreign a)Foreign exchange risk

• b) intellectual property protection • y)Family responsibilities • b)Foreign government relations • r)Concerns about losing control over product/service • i)Poor advice from government agencies • o)Concerns about tariffs or quotas in distant markets

• n)Cultural or language differences • q)Lack of production capability • d)Product/service cannot be easily exported • u)Concerns about political instability in distant markets • j)Poor advice from non non-government consultants • k)Obtaining export insurance • aa)Being a female in foreign countries

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To further examine the notion of export challenges, respondents were asked to list the top three challenges that they faced in becoming export ready. Between 39 and 46 out of the 91 respondents who either exported, or were interested in exporting, listed up to three challenges. The key challenges revealed by these respondents in becoming export ready were: financing/funding (19), developing partnerships or relationships/finding trustworthy companies (8), becoming familiar with export regulations/duties (8), finding contacts/opportunities (3), travelling to new markets (3), and production capacity (3). Respondents were asked how they overcame such challenges. Feedback was provided by three out of 91 respondents who either exported, or were interested in exporting. Six indicated that they didn’t feel like they had overcome their challenges yet. Those who have focus on simplicity, selling direct to customers, and being prepaid through Paypal. Other ways of dealing with challenges included limiting travel and seeking advice from services provided by NLOWE, IBRD, and ACOA. The main reason for choosing to export was to expand the business (40.3 percent).

Twenty-three percent had obtained a request for their good or service from outside of Canada. Thirteen percent were familiar with a target market located outside of Canada. Less than 3 percent had decided to take advantage of an export development service. Six out of eight individuals provided other reasons for choosing to export. These included being able to sell a product that is established in the Canadian market (1), interested in cultural experiences while selling (1), focusing on international education (1), wanting to share lifestyle wellness knowledge globally (1).

Of those who were already exporting, 52.5 percent had been doing so for 3 to 10 years. There were newer exporters, with 3.4 percent having only exported for less than one year, and another 22.1 percent having exported between one and two years. About 21 percent had been exporting for over 10 years. Most (49.4 percent) received less than 10 percent of their sales revenues from exports. About one in three exporters earned at least half of their sales revenue from export markets.

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Export Growth Factors Respondents were asked to rank 17 key growth factors in current, or future, export activities. Average ranks ranged from 2.6 to 9.0 out of 17. The most highly ranked were contacts, innovative goods and services, access to markets, access to market research, export financing, innovative business strategy. Many factors were not rated highly, including family support, protection from exchange risk, and language skills. A summary appears in Figure 8. Complete information is included in the Appendix.

Figure 8: Key Growth Factors in Export Activities (Average Rank)

Available Programs and Services for Women-Owned Businesses and Gap/Satisfaction Assessment Just over half said that they had obtained export advice (54.2 percent). Most obtained export advice from ACOA (61.2 percent), personal acquaintances and family (36.3 percent), consultants (26.1 percent), the Export Development Bank of 39

Canada (25.7 percent), the Regional Development Authority (25 percent), Foreign Affairs and International Trade (23.5 percent), Women’s Business Centre (21.9 percent). Other organizations were used less frequently. Some of these included the Business Development Bank of Canada (13.8 percent), an accountant (14.4 percent), We-Connect Canada (15.9 percent), Industry Canada (18.6 percent), and the Dept. of Innovation, Business and Rural Development (19.2 percent). Banks were only consulted by 3.4 percent of those surveyed. One other information source used was Canadian Customs. The list of organizations consulted is shown in Figure 9.

Figure 9: Organizations Providing Assistance for Export Decisions ACOA

61.2

Personal acquaintances, including family

36.3

A consultant

26.1

Other

26.0

Export Development Canada

25.7

Regional Development Authority

25.0

Foreign Affairs and International Trade

23.5

Women's Business Centre

21.9

Dept. of Innovation, Business & Rural‌

19.2

Industry Canada

18.6

We-Connect Canada

15.9

Nova Scotia Business Inc.

14.9

An accountant

14.4

Business Development Bank of Canada

13.8

University Business Centre

9.8

CIDA

5.8

Banks

3.4

Innovation PEI (Export Channel Development)

1.8 0

10

20

30

40

50

60

70

(Sample size=40 out of 198 who sought help with export decisions.) Respondents could list more than one organization.

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Respondents were asked about their service experiences with six selected services: skills development, export counselling, market entry support, export assistance, inmarket assistance, and government export programs. Respondents were asked if they had used the service and whether or not it had met their needs. No additional information was provided in this part of the survey to better explain service gaps or concerns. However, very few had used the services and the results may not be reliable.

The most well subscribed service were government export programs which were used by 72.1 percent of respondents. Not all responded as to whether or not the service met their needs. Those who did were almost evenly split between those who felt it met their needs and those who did not. Export counselling was the used second-most frequently with 56.5 percent having used the service. Less than onethird felt that the service met their needs. Nearly 54 percent felt that their needs had not been met by the service. Skills development was third in order of use with 53.1 percent having used this service. Over 43 percent of those who used the service felt that it had met their needs.

Export assistance was used by 47.5 percent of respondents. Only 29.7 percent felt that the service had met their needs, while 51.7 percent said that it did not meet their needs. Similar trends were evident for market entry support services, which had been used by 40.6 percent of those interviewed. Over 34 percent felt that the service had met their needs, while 53.8 percent felt that it did not.

In-market assistance had the lowest uptake with 31.7 percent having used the service. Generally, they were not pleased with the service with only 21.6 percent reporting that it had met their needs. Nearly 72 percent said that it had not met their needs. The summary is shown in Figure 10.

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Figure 10:: Service Use and Quality Measures Used Skills Development (53.1%) Service met needs: 43.2% Service did not meet needs: 32.8% Used Export Counselling (56.5%) Service met needs: 32.1% Service did not meet needs: 53.2% Used Market Entry Support (40.6%) Service met needs: 34.4% Service did not meet needs: 53.8% Used Export Assistance (47.5%) Service met needs: 29.4% Service did not meet needs: 51.7% Used In-Market In Assistance (31.7%) Service met needs: 21.6% Service did not meet needs: 71.7% Used Government Export Programs (72.1%) Service met needs: 44.6% Service did not meet needs: 43.5% Sample sizes: Skills development=23, Export counselling=25, Market entry support=18, Export assistance=21, In-market market assistance=14, Government export programs=32.. Sample sizes are small. Results may not be reliable.

Respondents were asked if there were gaps in the programs and services needed to support export development for women in Atlantic Canada. Nearly half of those who are either exporting, or are considering exporting, commented that there are gaps in the assistance provided (45.5 percent). Twenty-one one percent believed there were no gaps, and one-third third did not know. Thos Thosee who commented that there were no gaps in services spoke very highly of the assistance that was provided.

Examples of such comments include the following: “I have not encountered any significant gaps. I am so grateful for all of the help.”

“The program I was part of did a very good preparation and although I did not have long term business develop from the program I did receive knowledge and skills that I continue to carry with me and will assist me in the current ventures.”

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Those who did feel that there were gaps in service offerings listed the following types of needs: lack of preparation and follow up by government departments that organize service offerings, direct procedures relating to USA taxes and customs regulations, lack of support for specific sectors, more of a focus on products than services, lack of child care cost support to attend programs or trade missions, lack of fit to the business needs (rather than to programs or specific consultants), cost of programs, poor matchmaking for trade missions. A complete list of comments is included in the Appendix.

Gender as a Help, or Hindrance, for Exporters?

Those who have exported, or are considering exporting, were asked if they believed their gender had helped or hindered, or would help or hinder, their export activities. Most (60 percent) believed that gender had no impact one way or the other. They stated that customers in export markets did not care about their gender, even though it was stated that business growth is largely due to network connections and relationships.

Of those who stated that gender influenced their success most felt that it was actually helpful being a woman in exporting (25 percent). Some examples of feedback included the following: “I would say that being a female has helped and will help my export activities. I have become certified as a woman business owner, and this will help in the supplier diversity field”.

“I think it will help. People tend to trust women more.”

“International intergovernmental org are accustomed to working with women...Therefore (it’s an) advantage.”

Others commented that they catered to a female target market so their gender was well suited to the business.

Fifteen percent believed that being a woman would put them at a relative disadvantage, or has already done so, in regards to exporting. Issues that emerged 43

in the comments from these respondents included: being a woman in a technical field, balancing family responsibilities with running the business (“raising kids and running a business is very much like running in sand!”), concerns about traveling and working with other cultures while being a single female, and concerns about running up against the “old boys’ network”. There was also a concern that men and women network differently and that this was not recognized by the business networks.

Research and Technology Investment, and Technology Use, in Women-Owned Businesses Technology Adaptation Analysis and Assistance Used About one-third of firms anticipated investing in technology over the next two years. The types of technology that firms expected to acquire included online, Internet or wireless technology (72.2 percent), customized software or computerrelated investments (62.3 percent), technology designed to increase productivity (45.3 percent), and technology to link global supply chains (3.3 percent). Nearly 12 percent of respondents indicated that they planned to invest in other kinds of technology in the next two years. These technologies included photographic equipment, production equipment, online services, and computer technology. The complete list of other technology investments is included in the Appendix.

Only 9.4 percent reported having obtained help or guidance about their investment in technology. The most common resource used by the firms was ACOA (29.9 percent), following by personal acquaintances and family members (28.8 percent), banks (18.8 percent), university business centres (16.7 percent), and consultants (15.5 percent). The remaining service providers were used by less than 15 percent of respondents. Over half indicated that they had used other resources to obtain guidance for technology investment. Half of those who listed “other” as a resource provided more information about the other resources used. These resources included relatives, CBDC, CEED, NLOWE, real estate course, and a company head office. The list of key resources used appears in Figure 11. Complete information is provided in the Appendix.

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Figure 11: Organizations Providing Guidance for Technology Investment Other

50.2

ACOA

29.9

Personal acquaintances, including family

28.9

Banks

18.8

University Business Centre

16.7

A consultant

15.5

Industry Canada

13.2

An accountant

11.3

Business Development Bank of Canada

11.1

Dept. of Innovation, Business & Rural‌

6.9

We-Connect Canada

6.9

Women's Business Centre

5.7

Innovation PEI (Export Channel Development)

4.2 0

10

20

30

40

50

60

(Sample size=8 out of 17 that listed other resources for organizations providing guidance for technology investments.)

Respondents could list more than one organization.

The findings in this study reflect that the use of technology to improve productivity and efficiency is an area of strength for WBOs. Almost 70 percent use technology to have a positive impact on administrative and productivity efficiency and 90.6 percent do not need help or guidance when making decisions regarding technology investment. The reasons why women do not seek help or guidance for technology decisions was not captured in this study but the fact that almost 70 percent use technology for efficiency agrees with the findings from the literature review that WBOs are hands-on and involved with understanding and being involved with the technology needs of their respective organizations.

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Investment in Research and Development Thirty-two percent of the firms interviewed had plans to invest in research and development (R&D) over the next two years. Twenty-six firms also reported that they had invested in R&D in the last two years. Less than 15 percent of firms reported seeking help or guidance regarding this investment. Those firms that did seek assistance were likely to have contacted ACOA (45.4 percent), a Women’s Business Centre (28.3 percent), personal acquaintances including family (26 percent), consultant (22.1 percent), or accountant (21.9 percent). The remaining organizations were used by less than 19 percent of the respondents. Over 56 percent reported using other types of advisers. Only two respondents listed other sources of assistance. These included partner tourism agencies (1) and the government of Canada for IRAP (1). The list of R&D information sources appears in Figure 12. Complete information is provided in the Appendix.

As reported in the literature review, innovation is a critical activity for exporting because it aids in competitiveness and survival in global markets. Exporters typically spend more than 20 percent of total expenditures on R&D and the fact that only 32 percent of our respondents had plans to invest in R&D over the next two years is worthy of concern. This could be tempered by the fact that servicebased organizations generally undertake less R&D than manufacturing-based organizations and the majority of our respondents were service-based, but it does not mitigate the fact that in order to remain competitive in our global economy innovation and R&D need to be a pervasive activity. In other words the saying, “If it ain’t broke don’t fix it,” needs to be translated into, “If it ain’t broke how can we improve it?” in the minds of every WBO until it becomes pervasive and becomes an inherent part of their business strategy.

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Figure 12: Organizations Providing Guidance for Research & Development Investment Other

56.7

ACOA

45.4

Women's Business Centre

28.3

Personal acquaintances, including family

26.0

A consultant

22.1

An accountant

21.9

Foreign Affiars and International Trade

18.9

University Business Centre

18.3

Dept. of Innovation, Business & Rural Development

14.9

Regional Development Authority

14.6

Export Development Canada

14.4

Banks

12.8

Industry Canada

12.2

We-Connect Canada

8.2

Nova Scotia Business Inc.

7.4

Business Development Bank of Canada

5.9

Innovation PEI (Export Channel Development)

2.7 0

10

20

30

40

50

60

(Sample size = 26 out of 198 who sought advice about investments in R&D.) Respondents could list more than one organization.

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V.

SUMMARY AND RECOMMENDATIONS

This study has undertaken research targeted at better understanding the needs of women-business owners as they relate to exporting, supplier diversity and the use of technology in their businesses.

The fact that half of those surveyed (52.8 percent) were not exporting and were reluctant to do so in the future fits with the current low numbers reported by Industry Canada relative to number of small businesses engaged in exporting activities. The seemingly endless literature and research testifying to the positive benefits of exporting should speak for itself. It is likely, however, that WBOs are not overly motivated by such research to seek out the benefits of exporting and it is very probable the majority have never accessed or read it. For those participants in this study who stated that exporting is not relevant to their business or it is too difficult to become involved in exporting, there needs to be a systematic approach for making them more aware of the benefits of exporting and to encourage them to at least investigate the potential opportunities.

In regards to women already exporting, the top three challenges reported were 1) financing/funding, 2) developing partnerships or relationships, and 3) becoming familiar with export regulations. Other challenges included finding opportunities/contacts, travelling to new markets, and production capacity. These findings are consistent with those in the current literature except that family support and the life-work balance were not as prevalent as expected. This could be due to the fact that the women in this survey had an average age of 45 which might indicate that the time constraints posed by having a young family were no longer an issue.

In response to how women already exporting overcame their challenges, the majority indicated they had not overcome their challenges yet and those that indicated they had overcome the challenges stated that they focused on simplicity, selling direct to customers and using services such as Paypal to ensure they received payment for their services or merchandise.

Supplier diversity appears to offer a unique methodology for WBOs to enter foreign markets. It could be used as the gateway to making exporting relevant. In a personal interview conducted for this study, one woman-business owner reflected 48

that she would never have engaged in exporting had it not been for the services offered by the Centre for Women in Business and her introduction to supplier diversity through the Centre’s sponsored trade mission to the United States. The challenges she faced as a potential exporter were “drastically reduced” as WeConnect Canada had already made the connections and done the networking for trade mission participants. Her realization that exporting was relevant to her business and offered tremendous opportunities to grow her business propelled her to the next step in getting certified as a WBO under the supplier diversity program.

She has subsequently found an experienced and successful mentor from a large Ontario organization and has signed contracts for her services with U.S. organizations. Only 32.4 percent of respondents in this survey were aware of supplier diversity and less than 10 percent of those respondents were certified.

There is significant work to be done in the area of supplier diversity awareness as it appears to be able to minimize many of the challenges cited by WBO as reasons why they do not export or are currently facing as women exporters. The Toronto 2015 Pan Am Games offer an excellent opportunity for the Canadian government to mainstream supplier diversity.

The notion of supplier diversity and taking the first step to exporting by connecting with an American partner ties in with the current literature. The economic outlook as reported by the Conference Board of Canada remains positive on all of Canada’s major trading partners namely the United States, the United Kingdom, the Eurozone, China, Brazil, Mexico, Japan and India. However, the Board predicts that the United States will remain Canada’s largest export market by a considerable margin.

Respondents were asked if there were gaps in the programs and services needed to support export development for women in Atlantic Canada. Nearly half of those who are either exporting, or are considering exporting, commented that there are gaps in the assistance provided (45.5 percent). Twenty-one percent believed there were no gaps, and one-third did not know. The most well subscribed services were government export programs which were used by 72.1 percent of respondents. Not all responded as to whether or not the service met their needs. Those who did were almost evenly split between those who felt it met their needs and those who did not. Export counselling was the used second-most frequently with 56.5 percent having used the service. Less than one-third felt that the service met their needs.

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Nearly 54 percent felt that their needs had not been met by the service. Skills development was third in order of use with 53.1 percent having used this service.

Over 43 percent of those who used the service felt that it had met their needs.

Technology adaptation did not appear to present any major challenges. This is consistent with the literature review that WBOs are hands-on when managing the technology used in their businesses.

Recommendation #1: Pull the critical mass of exporting information into one central registry. The respondents in this study reported not being able to find information as one of the drawbacks to exporting. This is not surprising as a search for information on exporting leads to an array of choices from different federal and provincial government sites. In fact, it is an overwhelming array of choices and time constraints, lack of confidence, and complete frustration that can result in a withdrawal from the process. If the Canadian government is serious about advancing business growth through exporting it needs to have a central registry where businesses can do “one-stop-shopping.” In doing a sample search we found several government departments and reports such as the Step-by-Step Guide to Exporting 2011 from the Canadian Trade Commissioner Service and while all were well done, one central access point would aid in the information gathering stage.

Recommendation #2: Support Certification and Use Supplier Diversity as the WBOs entry to exporting. The high cost of developing export markets and the difficulty in building relationships with foreign firms can be directly reduced by encouraging the Canadian government to pay for WBOs to become certified for supplier diversity programs. Agencies such as WeConnect Canada have high-level connections to procurement officers in many international firms, especially in the United States. Finding new clients through supplier diversity purchasing practices allows for a WBO to have a “soft landing” into exporting. The large number of WBOs who are exporting but not certified (90.5 percent) could access opportunities and increase growth through certification. Promotion of success stories and offering government assistance or grants to become certified are necessary. There is a need to increase the number of WBOs who export, and although more than half of the respondents in this study stated they had no intention of exporting, this recommendation has the potential to help expose non50

exporters to new markets and relationships even if they think they are not interested in exporting.

Recommendation #3: Federal, provincial and local governments need to champion supplier diversity procurement programs and have a stated policy similar to that of United States governments. As one of the major purchasers in the Canadian economy, the different levels of government in Canada need to develop and enforce its own supplier diversity checklist and have a stated percentage of purchasing dedicated to visible minorities and WBOs. The government should also reward Canadian corporations that actively promote and use supplier diversity procurement programs.

Recommendation #4: Develop a metric for measuring the return on investment for supplier diversity programs. The government is making a significant expenditure on the Toronto 2015 Summer Games. It can use the supplier diversity program in place for the Games as its test market for developing the ROI metric for supplier diversity. Without such a metric, it will be unlikely that supplier diversity will advance past the stage of being used as a promotion tool for large organizations.

Recommendation #5: Program support for Innovation and Research and Development. The need to stay competitive in a global environment requires WBOs to be more innovative and engage in more research and development activities. The Women’s Business Centres in Atlantic Canada can support this area by offering more programs and expert advice that will encourage WBOs to move past being satisfied with existing products or services and into the pervasive reality that they must continuously be improving their product or service offering.

Recommendation #6: Program support for Production and Capacity Challenges. One of the challenges reported by WBOs was their inability to overcome production or operational capacity issues for exporting. However, this constraint was reported only anecdotally. As a result, it is not possible to determine how many women were impacted by this challenge. Production and Operations management is a very specialized area and there appears to be a need for programs to assist WBOs with gaining knowledge in the areas of forecasting, scheduling, project management, inventory management, proponents of supply chain 51

management and how to manage supply chain risks. These programs could be part of the program delivery by the Women’s Business Centers in Atlantic Canada.

Recommendation #7: Program support to ensure export awareness and export-readiness for WBO firms. The research revealed that the majority of WBO firms lacked a marketing strategy plan and did not employ marketing research in a proactive or systematic way. There were statistically significant differences in these activities based on whether or not the women were exporting, planning to export, or not planning to export. The trend was that women who were exporting, or planning to export, were more likely to engage in marketing strategy planning and marketing research than were those who had no intention of exporting. However, many reported not engaging in either of these activities and there considerable room for improvement among women exporters, and would-be exporter. This lack of planning will limit the ability of WBOs to anticipate market opportunities, including those involving exporting. Failure to use marketing research will further limit the ability of such firms to grow domestically or internationally. It is important to continue to offer basic programs in strategic planning and market intelligence to WBO as a part of the educational process surrounding successful entrepreneurship and export-readiness.

Recommendation #8: Program support for service business owners to facilitate export growth for WBO service firms. The research revealed a large contingent of WBOs that do not believe that services are exportable. This belief was represented in the significantly lower percent of service firms involved in exporting, as well as in anecdotal responses that indicated that firms were “not suitable� for export. There is a need to subsidize information so that WBOs can realize lucrative export opportunities in the service sector.

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VI. APPENDICES The Survey Results Tables Anecdotal Response Tables

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The Survey Survey ID: ______________ Province: NS NB PE NL Atlantic Canada Women in Export Survey

Part A: Tell Us about Your Business 1. Please indicate which of the following sector(s) your business is in (check all that apply): a. Agriculture and Fisheries b. Manufacturing c. Wholesale/retail d. Professional services e. Knowledge-based industry f. Tourism/hospitality g. Oil and Gas h. Information Technology, & Communication (ITC) i. Education j. Health Care k. Bioscience l. Food/Specialty Foods m. Mining n. Other (specify: ________________________________________________ ) 2. The following issues are challenging for some women entrepreneurs. Please indicate whether or not you feel that these issues are challenges for you in your business by rating them on the following scale: 1) Not challenging, 2) Somewhat challenging, 3) Very challenging, 4) Irrelevant Challenge

1) Not challenging

2) Somewhat challenging

a)Work-life balance b)Leadership skills c)Lack of mentors d)Lack of career advancement e)Management skills f)Networking opportunities g)Information on financing h)Finding qualified staff i) Time management 54

3) Very challenging

4)Irrelevant

3. Are there any other challenges that you that you believe are important? ____________________________________________________________________________ 4. Is your business product-based or service-based? a. Product-based b. Service-based c. Both product and service based 5. Is your primary market: a. Business b. Consumer c. Combination of business and consumer 6. How long have you owned this business? a. Less one year b. 1 to 2 years c. 3 to 5 years d. 6 to 10 years e. 11 to 15 years f. 16 to 20 years g. More than 20 years 7. How did you take possession of your business? a. Started from scratch b. Bought or acquired from a family member c. Bought or acquired from a non-family member d. Other (Specify): ____________________________________________ 8. What percentage of your business ownership is held by women? (Specify: _____%) 9. What is the structure of your business? a. Sole proprietorship/self-employed b. Partnership c. Incorporated d. Co-operative e. Other (Specify): _____________________________________

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10. What is/are your current role(s) in the company: (Check all that apply): a. CEO b. President c. Vice-President d. Executive e. Manager f. Professional g. Other (Specify): _________________________ 11. How many full-time employees do you have? (Specify: ___________________ ) 12. How many part-time employees do you have? (Specify: ___________________ ) 13. Do you have subcontractors? a. Yes b. No 14. Do you anticipate hiring any employees in the next year? a. Yes b. No c. Don’t know 15. Do you anticipate laying any employees off in the next year? a. Yes b. No c. Don’t know 16. How often do you conduct formal market research? a. Do not conduct formal marketing research b. Conducted annually c. Only done for new products or services 17. Do you have a formal marketing strategy? a. Yes b. No

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18. Please indicate your company’s total annual gross sales for last year (before tax): a. Under $100,000 b. $100,000 to under $500,000 c. $500,000 to under $1 million d. $1 million to under $5 million e. $5 million and over 19. Approximately how much did last year’s sales change from those of the year before? a. Increased by 100% or more b. Increased by 50% to less than a 100% c. Increased by less than 50% d. Stayed about the same (Go to Q. 19) e. Decreased by 100% f. Decreased by 50% to less than 100% g. Decreased by less than 50% h. Do not know how much sales changed from the previous year 20. If you indicated that your sales had changed from the previous year, either higher or lower, what do you think caused the change in sales? ________________________________________________________________________ 21. Please indicate your company’s approximate profit as a percent of sales for the last year: a. Under 10% b. 10% to less than 25% c. 25% to less than 50% d. 50% to less than 75% e. 75% or above f. Don’t know Part B: Tell Us about Business Growth 22. This year, do you have plans to expand the size or scope of your business? a. Yes b. No (Go to Q. 24) 23. What is your target percent for sales growth for this year? (Specify: ________________________________________________________________) Go to Q.25 24. Why don’t you have plans to expand the size or scope of your business this year? (Specify: ________________________________________________________________)

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25. Overall, what stage of development would you say that your business is currently experiencing? a. Start-up b. Fast growth (growing at rate faster than the economy as a whole) c. Moderate growth (sales are slowly increasing) d. Maturity (sales have stopped growing) e. Decline (sales have started to decrease) 26. Where do you sell your products and/or services in Canada? Click all that apply. a. Newfoundland b. Nova Scotia c. Prince Edward Island d. New Brunswick e. Quebec f. Ontario g. Manitoba h. Saskatchewan i. Alberta j. British Columbia k. Yukon l. North West Territories m. Nunavut

Part C: Tell Us about Exporting 27. With regards to exporting (selling goods or services outside of Canada), are you: a. Not exporting at this time and are not inclined to do so in the future (Go to Q.28) b. Interested in exporting in the future, but not doing so at this time (Go to Q.32) c. Already exporting (Go to Q.29) 28. If you are not exporting at this time, and you are not inclined to do so in the future, what is the main reason why you do not export? _____________________________________________ (Go to Q.51) 29. Approximately how long have you been exporting? a. Less one year b. 1 to 2 years c. 3 to 10 years d. 11 to 20 years e. More than 20 years

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30. Approximately what percent of your total sales come from exports? a. Under 10% b. 10% to less than 25% c. 25% to less than 50% d. 50% to less than 75% e. 75% or above f. Don’t know 31. How much do you expect to increase your percent of sales from exports over the next five years? a. Under 10% b. 10% to less than 25% c. 25% to less than 50% d. 50% to less than 75% e. 75% or above f. Do not expect to increase 32. Which of the following do you believe are and have been, or will be, key factors in initiating growth of your exporting activities (Rank your choices starting with 1 being the most significant key factor): a. Contacts b. Innovative goods/services c. Access to markets d. Access to market research e. Export financing f. Innovative business strategy g. Good export planning h. Good match with foreign partners i. Publicity j. Language skills k. Protection from foreign exchange risk l. Professional export advice m. Family support n. Availability of marketing activities like missions and trade shows o. Availability of government export programs p. Other (Specify): _________________________________________________

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33. Which of the following areas do you currently export to? (Check all that apply) a. United States b. Mexico c. Europe d. Asia e. Middle East f. Africa g. Australia/New Zealand h. Russia i. South America j. India k. Caribbean l. Other ______________________

34. Which of the following areas do plan to export to? (Check all that apply) a. United States b. Mexico c. Europe d. Asia e. Middle East f. Africa g. Australia/New Zealand h. Russia i. South America j. India k. Caribbean l. Other ______________________

35. How are you exporting, or how do you plan to export (check all that apply): a. Direct (including online) b. Via joint venture c. Shippers d. Brokers e. Distributors f. By licensing agreement g. Consignment sales h. By foreign direct investment

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36. How has your firm financed, or how does it plan to finance, exporting activities (check all that apply): a. Personal funds b. Retained earnings c. Credit cards d. Loans from family or friends e. Loans from institutions f. Individual investors g. Venture capital h. Public funding i. Lines of credit j. Letters of credit k. International banking l. Guarantees of receivables (insurance) m. Trade accounts/account payable or buyer financing n. Foreign currency trading o. Bid/performance guarantees p. Discounted letters of credit q. Other (Specify): ________________________________________ 37. What is/was your main reason for deciding to export, or for considering pursuing exporting? a. Obtained a request for your good/service from outside of Canada b. Was familiar with a target market outside of Canada c. Took advantage of an export development service d. Wanted to expand the business e. Other (Specify): ____________________________________________________ 38. Are there any inviting exporting opportunities available to your business right now? ____________________________________________________________________________ 39. Are there any threats facing your firm’s export strategy, or potential export strategy? If yes, please specify. ____________________________________________________________________________

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40. Some business owners have experienced difficulties when making export decisions. A list of potential exporting constraints appears in the table below. Please rate each constraint based on how much you feel they impacted your decision whether or not to export, using the following scale: 1) No impact at all, 2) Some impact, 3) Great impact.

Constraint

1) No impact at all

a)Foreign exchange risk b)Foreign government relations c)Obtaining information on foreign markets d)Product/service cannot be easily exported e)Limited exporting knowledge f)High cost of developing export markets g)Hard to find trading partners h)Time consuming to travel abroad i)Poor advice from government agencies j)Poor advice from non-government consultants k)Obtaining export insurance l)Building relationships with foreign firms m)Lack of capital n)Cultural or language differences o)Concerns about tariffs or quotas in distant markets p)Lack of staff q)Lack of production capability r)Concerns about losing control over product/service s)Concerns about overall risk t)Complexity of rules/ red tape/regulations u)Concerns about political instability in distant markets v)Concerns about the overall advantages of exporting for my company (making the business case) w)Concerns about getting paid by foreign buyers x)Inability to get capital from banks or other investors y)Family responsibilities 62

2) Some impact

4) Great impact

z)Access to distribution channels aa)Being a female in foreign countries ab) intellectual property protection ac) transportation channels or logistics 41. What were the top three challenges that you face/faced in getting export ready?

1. ________________________________________________________________________ 2. ________________________________________________________________________ 3. ________________________________________________________________________ 42. If you experienced challenges in your exporting or export planning, how did you overcome them? __________________________________________________________________________ 43. Did you obtain any help or guidance from organizations, agencies or businesses about exporting? a. Yes b. No (Go to Q.45) 44. The list below contains names of organizations that provide guidance to exporters. Please indicate which you consulted with, adding any that you did consult with, but that do not appear on the list. Check all that apply. a. Bank b. Export Development Canada c. ACOA d. Industry Canada e. We-Connect Canada f. Regional Development Authority g. Business Development Bank of Canada h. CIDA i. Foreign Affairs and International Trade j. University business centre k. Women’s business centre l. An accountant m. A consultant n. Nova Scotia Business Inc (Nova Scotia respondents) o. Innovation PEI (Export Channel Development) (PEI respondents) p. Department of Innovation, Business and Rural Development (Newfoundland-Labrador respondents) q. Personal acquaintances, including family 63

r. Other (Specify): _____________________________________________ s. Other (Specify): _____________________________________________ 45. Did you use any of the following government export services? If so, please indicate whether or not they met your needs.

Export Services

Used the Service

Met your needs

Did not meet your needs

a)skills development b)export counseling c)market entry support d)export assistance e)in-market assistance f)government export programs 46. Have you ever attended trade shows outside of Canada? a. Yes b. No 47. Are there any gaps in the services and programs needed to support export development for women in Atlantic Canada and what are those gaps? __________________________________________ 48. Do you think that being a female has helped/will help, or hindered/will hinder, your export activities? (Explain: ____________________________________________________________________________) 49. What would you say are your firm’s greatest strengths in regards to exporting?

50. What would you say are your firms’ greatest weaknesses in regards to exporting?

Tell us about your knowledge and/or experience with Supplier Diversity 51. Supplier diversity programs, both domestically and internationally, provide women-owned and other minority-owned businesses with the opportunity to sell their goods or services to companies that have a stated commitment to buy from minority and women-owned businesses.

Were you aware of the concept of supplier diversity prior to this survey? a. Yes b. No (Go to Q. 56)

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52. Have you ever attended a trade mission to meet companies who have a stated supplier diversity program? a. Yes b. No (Go to Q. 54) 53. Did the trade mission result in new opportunities or sales? a. Yes b. No 54. In order to do business with companies who have a stated supplier diversity program, most require that your company is certified as a women-business enterprise (WBE) which means you have submitted your business to a certification body who has confirmed that 51% of your business is owned, managed, and controlled by a woman or women. Are you certified as a WBE through any certification body? a. Yes b. No 55. If you are not certified as a women-business enterprise (WBE) why not? ______________ Part D. Tell Us about Research and Development 56. Has your firm invested in research and development (R&D) over the last two years? a. Yes b. No 57. Do you anticipate investing in R&D in the next two years? a. Yes b. No c. Don’t know 58. Did you obtain any help or guidance from organizations, agencies or businesses about investing in R&D? a. Yes b. No (Go to Q.60)

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59. The list below contains names of organizations that provide guidance to businesses for R&D investment. Please indicate which you consulted with, adding any that you did consult with, but that do not appear on the list. (Check all that apply) a. Bank b. Export Development Canada c. ACOA d. Industry Canada e. We-Connect Canada f. Regional Development Authority g. Business Development Bank of Canada h. CIDA i. Foreign Affairs and International Trade j. University business centre k. Women’s business centre l. An accountant m. A consultant n. Nova Scotia Business Inc (Nova Scotia respondents) o. Innovation PEI (Export Channel Development) (PEI respondents) p. Department of Innovation, Business and Rural Development (Newfoundland-Labrador respondents) q. Personal acquaintances, including family r. Other (Specify): _____________________________________________ s. Other (Specify): _____________________________________________

Part E. Tell Us about Technology 60. Does your firm use any specialized technology? a. Yes (Go to Q.61) b. No (Go to. Q. 62) 61. If yes, what kind of specialized technology does your firm use?

(Specify): ______________________________________________________ 62. Do you anticipate investing in technology in the next two years? a. Yes b. No (Go to Q.64) c. Don’t know (Go to Q.64)

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63. If yes, what kind of technology do you anticipate investing in? a. Online, Internet, or wireless technology b. Technology to link into global supply chains c. Technology to increase productivity d. Customized software or other computer investment e. Other (Specify): _______________________________________________ f. Other (Specify): _______________________________________________ 64. Did you obtain any help or guidance from organizations, agencies or businesses about investing in technology? a. Yes b. No (Go to Q.66) 65. The list below contains names of organizations that provide guidance to businesses for technology investment. Please indicate which you consulted with, adding any that you did consult with, but that do not appear on the list. Check all that apply. a. Bank b. Export Development Canada c. ACOA d. Industry Canada e. We-Connect Canada f. Regional Development Authority g. Business Development Bank of Canada h. CIDA i. Foreign Affairs and International Trade j. University business centre k. Women’s business centre l. An accountant m. A consultant n. Nova Scotia Business Inc (Nova Scotia respondents) o. Innovation PEI (Export Channel Development) (PEI respondents) p. Department of Innovation, Business and Rural Development (Newfoundland-Labrador respondents) q. Personal acquaintances, including family r. Other (Specify): _____________________________________________ s. Other (Specify): _____________________________________________ 66. Have you used technology to impact administrative or productive efficiency? a. Yes b. No

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Part F. Tell Us about You 67. What age range contains your age? a. Under 18 b. 18 to 24 c. 25 to 34 d. 35 to 44 e. 45 to 54 f. 55 to 64 g. 65 and over 68. What is your highest level of education? a. Less than Grade 12 b. High school graduation c. Some vocational/trade school d. Vocational/trade school diploma e. Some university f. Bachelor’s degree g. Master’s or Doctorate degree h. Other (Specify): ___________________________________ 69. How many years of industry and work experience do you have? (Specify: ______________ ) 70. How many years of business ownership or self-employment experience do you have? (Specify: ____________) 71. What was the primary motive for starting your business? a. To pursue a market opportunity b. To provide income source

That concludes the survey. Thank you for your co-operation.

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Results Tables Province

Valid

Number 81

Percent 40.8

Valid Percent 40.8

Cumulative Percent 40.8

New Brunswick

63

31.6

31.6

72.4

Prince Edward Island

16

7.8

7.8

80.3

Newfoundland & Labrador

39

19.7

19.7

100.0

198

100.0

100.0

Nova Scotia

Total

1) Business Sector Number 8

Percent 4.2%

1b Manufacturing

24

11.9%

1c Wholesaler/Retail

36

18.1%

1d Professional services

75

37.9%

1e Knowledge-based industry

11

5.4%

1f Tourism/hospitality

19

9.8%

1h Information technology & communication (ITC)

10

5.1%

1i Education

12

6.1%

1j Health care

29

14.4%

1k Bioscience

2

.9%

1l Food/specialty foods

10

5.0%

1n Other sector

47

23.5%

Number 22

Percent 11.3

Valid Percent 11.3

2) Somewhat challenging

96

48.5

48.7

60.0

3) Very challenging

79

39.8

40.0

100.0

197

99.5

100.0

1

.5

198

100.0

1a Agriculture & Fisheries

Sample size = 198

2a Work-life balance

Valid

1) Not challenging

Total Missing

4) Irrelevant Total

Scale Statistics: Range=1 to 3. Average= 2.3, Std. Deviation=.66

69

Cumulative Percent 11.3

2b Leadership skills

Valid

Number 83

Percent 41.8

Valid Percent 44.2

Cumulative Percent 44.2

2) Somewhat challenging

85

43.0

45.5

89.7

3) Very challenging

19

9.8

10.3

100.0

187

94.6

100.0

4) Irrelevant

10

4.8

No response

1

.6

Total

11

5.4

Total

198

100.0

Number 62

Percent 31.4

Valid Percent 33.2

Cumulative Percent 33.2

2) Somewhat challenging

79

40.1

42.4

75.6

3) Very challenging

46

23.1

24.4

100.0

187

94.6

100.0

4) Irrelevant

9

4.8

No response

1

.6

198

100.0

Number 69

Percent 34.7

Valid Percent 44.7

2) Somewhat challenging

66

33.5

43.1

87.8

3) Very challenging

19

9.5

12.2

100.0

154

77.6

100.0

4) Irrelevant

40

20.1

No response

5

2.3

Total

44

22.4

Total

198

100.0

1) Not challenging

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.7, Std. Deviation=.66

2c Lack of mentors

Valid

1) Not challenging

Total Missing

Total Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.76

2d Lack of career advancement

Valid

1) Not challenging

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.7, Std. Deviation=.68

70

Cumulative Percent 44.7

2e Management skills

Valid

Number 66

Percent 33.4

Valid Percent 34.7

Cumulative Percent 34.7

2) Somewhat challenging

92

46.4

48.1

82.8

3) Very challenging

33

16.6

17.2

100.0

191

96.4

100.0

4) Irrelevant

6

3.0

No response

1

.6

Total

7

3.6

Total

198

100.0

Number 57

Percent 28.9

Valid Percent 30.3

Cumulative Percent 30.3

2) Somewhat challenging

92

46.6

48.9

79.3

3) Very challenging

39

19.7

20.7

100.0

189

95.2

100.0

4) Irrelevant

7

3.6

No response

2

1.2

198

100.0

Number 57

Percent 28.7

Valid Percent 31.6

2) Somewhat challenging

68

34.3

37.8

69.5

3) Very challenging

55

27.7

30.5

100.0

180

90.7

100.0

4) Irrelevant

14

7.0

No response

5

2.3

198

100.0

1) Not challenging

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.8, Std. Deviation=.70

2f Networking opportunities

Valid

1) Not challenging

Total Missing

Total Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.71

2g Information on financing

Valid

1) Not challenging

Total Missing

Total Scale Statistics: Range=1 to 3. Average= 2.0, Std. Deviation=.79

71

Cumulative Percent 31.6

2h Finding qualified staff

Valid

Number 36

Percent 18.1

Valid Percent 23.4

Cumulative Percent 23.4

2) Somewhat challenging

61

31.0

40.0

63.4

3) Very challenging

56

28.4

36.6

100.0

154

77.6

100.0

4) Irrelevant

42

21.3

No response

2

1.2

198

100.0

Number 34

Percent 17.4

Valid Percent 17.9

Cumulative Percent 17.9

2) Somewhat challenging

77

39.0

40.0

57.9

3) Very challenging

81

41.0

42.1

100.0

193

97.4

100.0

4) Irrelevant

3

1.5

No response

2

1.1

Total

5

2.6

Total

198

100.0

Product-based

Number 27

Percent 13.6

Valid Percent 13.6

Cumulative Percent 13.6

Service-based

102

51.5

51.5

65.0

69

35.0

35.0

100.0

198

100.0

100.0

1) Not challenging

Total Missing

Total Scale Statistics: Range=1 to 3. Average= 2.1, Std. Deviation=.77

2i Time management

Valid

1) Not challenging

Total Missing

Scale Statistics: Range=1 to 3. Average= 2.2, Std. Deviation=.74

4 Business Base

Valid

Both product and service based Total

72

5 Primary Market

Valid

Number 62

Percent 31.1

Valid Percent 31.2

Cumulative Percent 31.2

Consumer

56

28.2

28.3

59.6

Combination of business and consumer

80

40.2

40.4

100.0

197

99.4

100.0

1

.6

198

100.0

Number 26

Percent 13.3

Valid Percent 13.3

Cumulative Percent 13.3

1 to 2 years

36

18.1

18.2

31.5

3 to 5 years

34

17.2

17.3

48.8

6 to 10 years

42

21.4

21.5

70.3

11 to 15 years

28

14.1

14.2

84.4

16 to 20 years

9

4.5

4.5

89.0

22

11.0

11.0

100.0

197

99.7

100.0

1

.3

198

100.0

Number 159

Percent 80.4

Valid Percent 81.6

Cumulative Percent 81.6

8

4.2

4.3

85.8

Bought or acquired from a non-family member

17

8.6

8.7

94.5

Other (specify)

11

5.4

5.5

100.0

195

98.6

100.0

3

1.4

198

100.0

Business

Total Missing

No response Total

6 How long owned business?

Valid

Less than one year

More than 20 years Total Missing

No response Total

7 How gained possession of business?

Valid

Started from scratch Bought or acquired from a family member

Total Missing

No response Total

8 Percentage of Business Ownership Held by Women 8 Percentage of Business Ownership Held

by Women

Number

Minimum

192

0

73

Maximum 100

Average 89.3

Std.Deviation 21.54

9 Business Structure

Valid

Number 95

Percent 48.2

Valid Percent 48.4

Cumulative Percent 48.4

Partnership

16

8.0

8.0

56.5

Incorporated

81

40.9

41.1

97.6

Co-operative

1

.5

.5

98.0

Other (specify)

4

1.9

2.0

100.0

197

99.5

100.0

1

.5

Total

198

100.0

CEO

Number 27

Percent 13.8

Valid Percent 13.8

Cumulative Percent 13.8

45

22.6

22.6

36.4

7

3.6

3.6

40.0

Manager

13

6.6

6.6

46.7

Professional

18

9.2

9.2

55.9

Other (specify)

33

16.8

16.8

72.7

Combination of roles

54

27.3

27.3

100.0

198

100.0

100.0

Sole proprietorship/self-employed

Total Missing

No response

10 Position

Valid

President Vice-President

Total

11/12 Employee Statistics

Number

Minimum

11 Number of Full-time Employees

192

0

Maximum 250

Average 5.2

Std.Deviation 21.35

12 Number of Part-time Employees

185

0

70

2.5

8.17

13 Have Subcontractors

Valid

Missing

Number 82

Percent 41.5

Valid Percent 42.4

Cumulative Percent 42.4

No

111

56.3

57.6

100.0

Total

194

97.8

100.0

4

2.2

198

100.0

Yes

No response Total

74

14 Anticipate Hiring in Next Year

Valid

Number 61

Percent 30.9

Valid Percent 31.9

Cumulative Percent 31.9

No

82

41.5

42.8

74.6

Don't know

49

24.6

25.4

100.0

192

97.0

100.0

6

3.0

198

100.0

Yes

Total Missing

No response Total

15 Anticipate Layoffs in Next Year

8

Percent 4.2

Valid Percent 4.3

Cumulative Percent 4.3

163

82.2

83.5

87.8

24

12.0

12.2

100.0

195

98.5

100.0

3

1.5

198

100.0

Number 134

Percent 67.8

Valid Percent 68.4

Cumulative Percent 68.4

21

10.5

10.6

79.0

41

20.8

21.0

100.0

196

99.1

100.0

2

.9

198

100.0

Number 72

Percent 36.1

Valid Percent 36.3

Cumulative Percent 36.3

No

125

63.2

63.7

100.0

Total

197

99.4

100.0

1

.6

198

100.0

Number Valid

Yes No Don't know Total

Missing

No response Total

16 How often conduct formal market research?

Valid

Do not conduct formal marketing research Conducted annually Only done for new products or services Total

Missing

No response Total

17 Have a formal marketing strategy?

Valid

Missing

Yes

No response Total

75

18 Annual Gross Sales Before Taxes (Last Year)

Valid

Number 117

Percent 58.8

Valid Percent 59.6

Cumulative Percent 59.6

$100,000 to under $500,000

46

23.2

23.5

83.1

$500,000 to under $1 million

15

7.6

7.7

90.8

$1 million to under $5 million

13

6.5

6.6

97.4

5

2.6

2.6

100.0

196

98.7

100.0

3

1.3

198

100.0

Number 20

Percent 10.1

Valid Percent 10.5

Cumulative Percent 10.5

Increased by 50% to less than 100%

17

8.4

8.7

19.2

Increased by less than 50%

54

27.4

28.5

47.8

Stayed about the same

44

22.0

22.9

70.6

Under $100,000

$5 million and over Total Missing

No response Total

19 Approximate Change in Sales Last Year over Previous (%)

Valid

Increased by 100% or more

Decreased by 50% to less than 100%

5

2.3

2.4

73.0

Decreased by less than 50%

27

13.7

14.2

87.3

Do not know how much sales changed from the previous year

24

12.3

12.7

100.0

191

96.2

100.0

7

3.8

198

100.0

Number 56

Percent 28.5

Valid Percent 30.4

Cumulative Percent 30.4

10% to less than 25%

37

18.7

20.0

50.4

25% to less than 50%

25

12.8

13.7

64.1

50% to less than 75%

11

5.4

5.8

69.9

75% and more

12

6.1

6.5

76.5

Don't know

44

22.0

23.5

100.0

185

93.5

100.0

13

6.5

198

100.0

Total Missing

No response Total

21 Approximate Profit Last Year (Percent of Sales)

Valid

Under 10%

Total Missing

No response Total

76

22 Have plans to expand the size/scope of business this year?

Valid

Yes No Total

Missing

No response Total

Number 136

Percent 68.7

Valid Percent 71.1

Cumulative Percent 71.1

55

27.9

28.9

100.0

191

96.6

100.0

7

3.4

198

100.0

23 Target Sales Growth for 2012

Number 23 Target sales growth for this year (%)?

Minimum

118

Maximum

.0

Average

250

Std.Deviation

39.4

42.79

25 Current Development Stage of Business

Valid

Missing

Number 50

Percent 25.2

Valid Percent 26.0

Cumulative Percent 26.0

Fast growth (growing at rate faster than the economy as a whole)

25

12.7

13.0

39.0

Moderate growth (sales are slowly increasing)

86

43.6

44.8

83.8

Maturity (sales have stopped growing)

20

10.2

10.5

94.3

Decline (sales have started to decrease) Total

11

5.6

5.7

100.0

193

97.2

100.0

5

2.8

198

100.0

Start-up

No response Total

77

26 Domestic Markets Number 63

Percent 33.2%

118

62.3%

26c Prince Edward Island

59

31.2%

26d New Brunswick

89

47.2%

26e Quebec

29

15.4%

26f Ontario

55

29.1%

26g Manitoba

24

12.4%

26h Saskatchewan

23

12.3%

26i Alberta

41

21.7%

26j British Columbia

26

14.0%

26k Yukon Territory

11

5.6%

26l Northwest Territories

11

6.0%

9

4.6%

Number 102

Percent 51.4

Valid Percent 52.8

Cumulative Percent 52.8

Interested in exporting in the future, but not doing so at this time

53

26.7

27.4

80.2

Already exporting

38

19.3

19.8

100.0

193

97.4

100.0

5

2.6

198

100.0

26a Newfoundland/Labrador 26b Nova Scotia

26m Nunavut Sample size = 198

27 Export Activities

Valid

Not exporting at this time and reluctant to do so in the future

Total Missing

No response Total

29 Approximately how long exporting?

Number Valid

Less than one year

1

Valid Percent 3.4

Cumulative Percent 3.4

1 to 2 years

8

4.2

22.1

25.5

3 to 10 years

20

10.0

52.5

78.0

11 to 20 years

7

3.6

18.7

96.6

More than 20 years

1

.6

3.4

100.0

38

19.1

100.0

155

78.3

5

2.6

198

100.0

Total Missing

Percent .6

Not applicable (do not export) No response Total

78

30 Percent of total income from exports?

Valid

Number 19

Percent 9.4

Valid Percent 49.4

Cumulative Percent 49.4

10% to less than 25%

5

2.5

12.9

62.3

25% to less than 50%

1

.5

2.5

64.8

50% to less than 75%

7

3.7

19.6

84.4

75% or above

6

3.0

15.6

100.0

38

19.1

100.0

155

78.3

5

2.6

198

100.0

Under 10%

Total Missing

Not applicable (do not export) No response Total

31 How much expect to increase percent of sales from exports over next five years?

8

Percent 4.2

Valid Percent 22.0

Cumulative Percent 22.0

10% to less than 25%

10

5.1

26.9

49.0

25% to less than 50%

9

4.5

23.4

72.4

50% to less than 75%

2

1.1

5.5

77.9

75% or above

6

2.8

14.6

92.5

Do not expect to increase

3

1.4

7.5

100.0

38

19.1

100.0

155

78.3

5

2.6

198

100.0

Number Valid

Under 10%

Total Missing

Not applicable (do not export) No response Total

79

32 Key Growth Factors in Export Activities Number

Minimum

Maximum

32a Contacts

56

1

8

2.6

Std. Deviation 2.1

32b Innovative goods/services

48

1

17

4.5

3.6

32c Access to markets

45

1

13

4.7

2.9

32d Access to market research

39

1

13

5.9

3.8

32e Export financing

39

1

15

6.2

4.1

32f Innovative business strategy

42

1

15

5.7

3.7

32g Good export planning

40

1

12

6.0

3.1

32h Good match with foreign partner

41

1

14

6.0

3.9

32i Publicity

37

1

15

7.1

4.1

32j Language skills

33

1

16

9.0

4.9

32k Protection from foreign exchange risk

29

1

16

8.7

4.3

32l Professional export advice

44

1

14

5.7

3.7

32m Family support

33

1

15

9.0

4.8

32n Availability of marketing activities like missions and trade shows

42

1

15

6.9

4.4

32o Availability of government export programs

38

1

15

6.4

4.4

Sample size = 91 out of 198 who are either currently exporting, or are interested in exporting.

80

Average Rank

33 Current Export Markets N 31

Percent 71.8%

33b Mexico

5

10.7%

33c Europe

26

60.8%

33d Asia

5

10.8%

33e Middle East

3

6.5%

33f Africa

1

3.0%

33g Australia/New Zealand

5

11.3%

33h Russia

4

8.6%

33i South America

5

11.6%

33j India

4

8.6%

33k Caribbean

2

4.3%

33l Other export market

5

11.3%

Number 64

Percent 83.0%

34b Mexico

8

10.8%

34c Europe

35

45.2%

34d Asia

11

14.4%

34e Middle East

6

7.5%

34f Africa

7

9.5%

34g Australia/New Zealand

6

7.6%

34h Russia

5

6.4%

33a United States

Sample size = 38 out of 198 who are exporting

34 Potential Export Markets 34 Potential Export a Markets

34a United States

34i South America

11

14.2%

34j India

7

9.5%

34k Caribbean

9

12.2%

34l Other export market

6

7.8%

Sample size = 91 out of 198 who are either currently exporting, or are interested in exporting

81

35 How are you exporting, or how do you plan to export?

35a Direct (including online)

N 67

Percent 88.0%

35b Joint Venture

21

27.5%

35c Shippers

9

11.8%

35d Brokers

6

7.3%

12

16.1%

35f Licensing agreement

3

4.1%

35g Consignment sales

2

2.8%

35h Foreign direct investment

0

0.0%

35e Distributors

Sample size = 91 out of 198 who are either currently exporting, or are interested in exporting

36 How have you financed, or plan to finance, exporting activities?

36a Personal funds

N 52

Percent 68.2%

36b Retained earnings

32

41.9%

36c Credit cards

22

28.5%

6

7.6%

17

22.9%

36f Individual investors

6

7.9%

36g Venture capital

3

4.1%

36h Public funding

10

13.1%

36i Lines of credit

23

29.7%

36j Letters of credit

1

1.2%

36k International banking

1

1.7%

36l Guarantees of receivables (insurance) 36m Trade accounts/account payable or buyer financing

3

3.7%

3

4.1%

36d Loans from family or friends 36e Loans from institutions

36o Bid/performance 1 1.7% guarantees Sample size = 91 out of 198 who are either currently exporting, or are interested in exporting

82

37 Main reason for exporting/considering exporting

Valid

Number 17

Percent 8.7

Valid Percent 23.1

Cumulative Percent 23.1

10

5.0

13.1

36.3

2

1.1

2.8

39.0

Wanted to expand the business Other (specify)

38

19.0

50.3

89.3

8

4.0

10.7

100.0

Total

75

37.8

100.0

Not applicable (not interested in exporting) No response

102

51.6

21

10.6

Total

198

100.0

Frequency 28

Percent 14.1

Valid Percent 40.5

2) Some impact

32

16.4

47.0

87.4

3) Great impact

9

4.4

12.6

100.0

69

34.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

27

13.6

Total

198

100.0

Frequency 31

Percent 15.4

Valid Percent 44.3

Cumulative Percent 44.3

2) Some impact

29

14.8

42.4

86.6

3) Great impact

9

4.7

13.4

100.0

69

34.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

22

11.2

Total

198

100.0

Obtained a request for your good/service from outside of Canada Was familiar with a target market outside of Canada Took advantage of an export development service

Missing

40a Foreign exchange risk

Valid

1) No impact at all

Total Missing

Cumulative Percent 40.5

Scale Statistics: Range=1 to 3. Average= 1.7, Std. Deviation=.7

40b Foreign government relations

Valid

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.7, Std. Deviation=.7

83

40c Obtaining information on foreign markets

Valid

Missing

Frequency 17

Percent 8.5

Valid Percent 24.3

Cumulative Percent 24.3

2) Some impact

34

17.3

49.1

73.4

3) Great impact

19

9.3

26.6

100.0

Total

70

35.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

26

13.3

Total

198

100.0

Frequency 40

Percent 20.3

Valid Percent 57.9

Cumulative Percent 57.9

2) Some impact

18

9.2

26.1

84.1

3) Great impact

11

5.6

15.9

100.0

Total

69

35.0

100.0

Not applicable (not interested in exporting) No response

102

51.6

26

13.4

Total

198

100.0

Frequency 20

Percent 9.9

Valid Percent 28.9

Cumulative Percent 28.9

2) Some impact

25

12.7

37.2

66.1

3) Great impact

23

11.6

33.9

100.0

Total

68

34.1

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.3

Total

198

100.0

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.0, Std. Deviation=.7

40d Product/service cannot be easily exported

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.6, Std. Deviation=.8

40e Limited exporting knowledge

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.1, Std. Deviation=.8

84

40f High cost of developing export markets

Valid

Missing

Frequency 14

Percent 7.3

Valid Percent 20.4

Cumulative Percent 20.4

2) Some impact

24

12.1

34.0

54.3

3) Great impact

32

16.3

45.7

100.0

Total

71

35.6

100.0

Not applicable (not interested in exporting) No response

102

51.6

25

12.8

Total

198

100.0

Frequency 18

Percent 9.3

Valid Percent 28.0

Cumulative Percent 28.0

2) Some impact

30

15.1

45.5

73.5

3) Great impact

17

8.8

26.5

100.0

Total

66

33.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

30

15.2

Total

198

100.0

Frequency 14

Percent 7.2

Valid Percent 20.7

2) Some impact

27

13.8

39.6

60.3

3) Great impact

27

13.8

39.7

100.0

Total

69

34.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

27

13.6

Total

198

100.0

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.3, Std. Deviation=.8

40g Hard to find trading partners

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.0, Std. Deviation=.7

40h Time consuming to travel abroad

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.2, Std. Deviation=.8

85

Cumulative Percent 20.7

40i Poor advice from government agencies

Valid

Frequency 32

Percent 16.3

Valid Percent 48.7

Cumulative Percent 48.7

2) Some impact

25

12.4

37.0

85.7

3) Great impact

9

4.8

14.3

100.0

66

33.5

100.0

Not applicable (not interested in exporting) No response

102

51.6

30

14.9

Total

198

100.0

Frequency 39

Percent 19.9

Valid Percent 60.1

Cumulative Percent 60.1

2) Some impact

22

10.9

32.9

93.0

3) Great impact

5

2.3

7.0

100.0

66

33.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

30

15.3

Total

198

100.0

Frequency 42

Percent 21.1

Valid Percent 62.7

2) Some impact

16

7.8

23.2

85.9

3) Great impact

9

4.8

14.1

100.0

67

33.7

100.0

Not applicable (not interested in exporting) No response

102

51.6

29

14.7

Total

198

100.0

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.7, Std. Deviation=.7

40j Poor advice from non-government consultants

Valid

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.5, Std. Deviation=.6

40k Obtaining export insurance

Valid

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.5, Std. Deviation=.6

86

Cumulative Percent 62.7

40l Building relationships with foreign firms

Valid

Missing

Frequency 19

Percent 9.7

Valid Percent 28.1

Cumulative Percent 28.1

2) Some impact

27

13.9

40.3

68.4

3) Great impact

22

10.9

31.6

100.0

Total

68

34.4

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.0

Total

198

100.0

Frequency 20

Percent 10.3

Valid Percent 29.0

Cumulative Percent 29.0

2) Some impact

18

8.9

24.9

53.9

3) Great impact

33

16.4

46.1

100.0

Total

71

35.6

100.0

Not applicable (not interested in exporting) No response

102

51.6

25

12.8

Total

198

100.0

Frequency 35

Percent 17.6

Valid Percent 52.7

2) Some impact

21

10.5

31.5

84.3

3) Great impact

10

5.3

15.7

100.0

Total

66

33.3

100.0

Not applicable (not interested in exporting) No response

102

51.6

30

15.1

Total

198

100.0

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.0, Std. Deviation=.8

40m Lack of capital

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.2, Std. Deviation=.9

40n Cultural or language differences

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.6, Std. Deviation=.7

87

Cumulative Percent 52.7

40o Concerns about tariffs or quotas in distant markets

Valid

Missing

Frequency 34

Percent 17.4

Valid Percent 50.0

Cumulative Percent 50.0

2) Some impact

19

9.4

27.0

77.0

3) Great impact

16

8.0

23.0

100.0

Total

69

34.7

100.0

Not applicable (not interested in exporting) No response

102

51.6

27

13.7

Total

198

100.0

Frequency 24

Percent 12.3

Valid Percent 35.9

Cumulative Percent 35.9

2) Some impact

26

12.9

37.5

73.4

3) Great impact

18

9.1

26.6

100.0

Total

68

34.4

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.0

Total

198

100.0

Frequency 38

Percent 19.2

Valid Percent 54.9

Cumulative Percent 54.9

2) Some impact

19

9.4

27.0

81.9

3) Great impact

12

6.3

18.1

100.0

Total

69

34.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

27

13.6

Total

198

100.0

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.6, Std. Deviation=.7

40p Lack of staff

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.8

40q Lack of production capability

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.6, Std. Deviation=.8

88

40r Concerns over losing control over product/service

Valid

Frequency 33

Percent 16.7

Valid Percent 48.5

Cumulative Percent 48.5

2) Some impact

27

13.6

39.5

88.0

3) Great impact

8

4.1

12.0

100.0

68

34.4

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.0

Total

198

100.0

Frequency 21

Percent 10.4

Valid Percent 30.3

Cumulative Percent 30.3

2) Some impact

31

15.5

45.3

75.6

3) Great impact

17

8.4

24.4

100.0

Total

68

34.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

34

17.2

Total

198

100.0

Frequency 21

Percent 10.4

Valid Percent 30.5

2) Some impact

20

10.2

29.9

60.4

3) Great impact

27

13.4

39.6

100.0

Total

67

33.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

29

14.5

Total

198

100.0

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.6, Std. Deviation=.7

40s Concerns about overall risk

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.7

40t Complexity of rules/red tape/regulations

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 2.1, Std. Deviation=.8

89

Cumulative Percent 30.5

40u Concerns about political instability in distant markets

Valid

Frequency 41

Percent 20.5

Valid Percent 59.9

Cumulative Percent 59.9

2) Some impact

24

12.0

35.1

95.0

3) Great impact

3

1.7

5.0

100.0

68

34.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.2

Total

198

100.0

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.5, Std. Deviation=.6

40v Concerns about the overall advantages of exporting for my company (making the business case)

Valid

Missing

Frequency 24

Percent 12.1

Valid Percent 36.5

2) Some impact

32

16.3

48.8

85.3

3) Great impact

10

4.9

14.7

100.0

Total

66

33.3

100.0

Not applicable (not interested in exporting) No response

102

51.6

30

15.1

Total

198

100.0

Frequency 20

Percent 9.9

Valid Percent 28.8

Cumulative Percent 28.8

2) Some impact

32

16.3

47.5

76.3

3) Great impact

16

8.2

23.7

100.0

Total

68

34.4

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.0

Total

198

100.0

1) No impact at all

Cumulative Percent 36.5

Scale Statistics: Range=1 to 3. Average= 1.8, Std. Deviation=.7

40w Concerns about getting paid by foreign buyers

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.7

90

40x Inability to get capital from banks or other investors

Valid

Missing

Frequency 27

Percent 13.7

Valid Percent 40.4

Cumulative Percent 40.4

2) Some impact

23

11.6

34.2

74.6

3) Great impact

17

8.6

25.4

100.0

Total

67

33.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

29

14.5

Total

198

100.0

Frequency 29

Percent 14.5

Valid Percent 43.1

Cumulative Percent 43.1

2) Some impact

28

14.4

42.7

85.8

3) Great impact

9

4.8

14.2

100.0

67

33.6

100.0

Not applicable (not interested in exporting) No response

102

51.6

29

14.8

Total

198

100.0

Frequency 23

Percent 11.7

Valid Percent 36.2

2) Some impact

25

12.7

39.3

75.5

3) Great impact

16

7.9

24.5

100.0

Total

64

32.4

100.0

Not applicable (not interested in exporting) No response

102

51.6

32

16.1

Total

198

100.0

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.8, Std. Deviation=.8

40y Family responsibilities

Valid

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.7, Std. Deviation=.7

40z Access to distribution channels

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.8

91

Cumulative Percent 36.2

40aa Being a female in foreign countries

Valid

Frequency 42

Percent 21.2

Valid Percent 63.1

Cumulative Percent 63.1

2) Some impact

18

9.0

26.6

89.7

3) Great impact

7

3.5

10.3

100.0

67

33.6

100.0

Not applicable (not interested in exporting) No response

102

51.6

29

14.8

Total

198

100.0

Frequency 28

Percent 14.0

Valid Percent 40.8

Cumulative Percent 40.8

2) Some impact

25

12.8

37.5

78.3

3) Great impact

15

7.4

21.7

100.0

Total

68

34.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.2

Total

198

100.0

Frequency 22

Percent 11.0

Valid Percent 32.2

2) Some impact

33

16.5

48.2

80.4

3) Great impact

13

6.7

19.6

100.0

Total

68

34.2

100.0

Not applicable (not interested in exporting) No response

102

51.6

28

14.2

Total

198

100.0

1) No impact at all

Total Missing

Scale Statistics: Range=1 to 3. Average= 1.5, Std. Deviation=.7

40ab Intellectual property protection

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.8, Std. Deviation=.8

40ac Transportation channels or logistics

Valid

Missing

1) No impact at all

Scale Statistics: Range=1 to 3. Average= 1.9, Std. Deviation=.7

92

Cumulative Percent 32.2

43 Did you obtain any help or guidance for exporting?

Valid

Missing

Number 40

Percent 20.0

Valid Percent 54.2

Cumulative Percent 54.2

No

33

16.9

45.8

100.0

Total

73

36.9

100.0

Not applicable (not interested in exporting) No response

102

51.6

23

11.5

Total

198

100.0

Yes

44 Organizations that Provided Assistance for Export Decisions Number 1

Percent 3.4%

10

25.7%

23

61.2%

44d Industry Canada

7

18.6%

44e We-Connect Canada

6

15.9%

44f Regional Development Authority 44g Business Development Bank of Canada

9

25.0%

5

13.8%

44h CIDA

2

5.8%

44i Foreign Affairs and International Trade 44j University Business Centre 44k Women's Business Centre 44l An accountant

9

23.5%

4

9.8%

8

21.9%

5

14.4%

10

26.1%

44n Nova Scotia Business Inc. 44o Innovation PEI (Export Channel Development)

6

14.9%

1

1.8%

44p Dept. of Innovation, Business & Rural Development 44q Personal acquaintances, including family

7

19.2%

14

36.3%

44r Other 1

9

23.5%

44s Other 2

1

2.5%

44a Banks 44b Export Development Canada 44c ACOA

44m A consultant

Sample size = 40 of 198 who sought help with export decisions

93

45 Government Service Use and Quality Measures Used Service

Service Met Needs

45a1 Skills development

Number 23

Percent 53.1

Number 10

Percent 43.2

45b1 Export counselling

25

56.5

8

45c1 Market entry support

18

40.6

45d1 Export assistance

21

45e1 In-market assistance 45f1 Government export programs

8

Percent 32.8

32.1

13

53.2

6

34.4

10

53.8

47.5

6

29.4

11

51.7

14

31.7

3

21.6

10

71.7

32

72.1

14

44.6

14

43.5

46 Have you ever attended trade shows outside of Canada?

Valid

Missing

Frequency 35

Percent 17.5

Valid Percent 45.3

Cumulative Percent 45.3

No

42

21.2

54.7

100.0

Total

77

38.7

100.0

Not applicable (not interested in exporting) No response

102

51.6

19

9.7

Total

198

100.0

Yes

Service Did Not Meet Needs

94

Number

No response for service quality Number

Percent

6

24.1

4

14.6

2

11.7

4

18.9

1

6.8

4

11.9

51 Aware of supplier diversity prior to this survey?

Valid

Missing

Number 59

Percent 29.6

Valid Percent 34.2

Cumulative Percent 34.2

No

113

57.1

65.8

100.0

Total

172

86.7

100.0

26

13.3

198

100.0

Yes

No response Total

52 Ever attended trade mission to meet companies with supplier diversity program?

Valid

Missing

Number 9

Percent 4.7

Valid Percent 15.2

Cumulative Percent 15.2

No

52

26.5

84.8

100.0

Total

62

31.2

100.0

113

57.2

23

11.6

198

100.0

Number 5

Percent 2.6

Valid Percent 55.5

Cumulative Percent 55.5

No

4

2.1

44.5

100.0

Total

9

4.7

100.0

151

76.2

38

19.1

198

100.0

Number 6

Percent 3.0

Valid Percent 9.5

Cumulative Percent 9.5

No

57

29.0

90.5

100.0

Total

63

32.0

100.0

113

57.2

21

10.7

198

100.0

Yes

Not applicable (Not aware of supplier diversity) No response Total

53 Did trade mission result in new opportunities/sales?

Valid

Missing

Yes

Not applicable (Did not attend a trade mission & not aware of supplier diversity) No response Total

54 Certified as women's business enterprise (WBE)?

Valid

Missing

Yes

Not applicable (Not aware of supplier diversity) No response Total

95

56 Invested in R&D over last two years?

Valid

Missing

Number 45

Percent 22.9

Valid Percent 26.1

Cumulative Percent 26.1

No

129

64.9

73.9

100.0

Total

174

87.8

100.0

24

12.2

198

100.0

Number 57

Percent 28.8

Valid Percent 32.2

Cumulative Percent 32.2

No

71

35.9

40.1

72.3

Don't know

49

24.8

27.7

100.0

177

89.5

100.0

21

10.5

198

100.0

Number 26

Percent 12.9

Valid Percent 14.6

Cumulative Percent 14.6

No

149

75.1

85.4

100.0

Total

174

88.0

100.0

24

12.0

198

100.0

Yes

No response Total

57 Anticipate investing in R&D in next two years?

Valid

Yes

Total Missing

No response Total

58 Obtain any help/guidance about R&D investment?

Valid

Missing

Yes

No response Total

96

59 Organizations Providing Guidance for R&D Financing Number 3

Percent 12.8%

4

14.4%

12

45.4%

59d Industry Canada

3

12.2%

59e We-Connect Canada

2

8.2%

59f Regional Development Authority

4

14.6%

59g Business Development Bank of Canada

1

5.9%

59i Foreign Affairs and International Trade 59j University Business Centre

5

18.9%

5

18.3%

59k Women's Business Centre

7

28.3%

59l An accountant

6

21.9%

59m A consultant

6

22.1%

59n Nova Scotia Business Inc.

2

7.4%

59o Innovation PEI (Export Channel Development)

1

2.7%

59p Dept. of Innovation, Business & Rural Development

4

14.9%

59q Personal acquaintances, including family

7

26.0%

59r Other 1

12

48.5%

59s Other 2

2

8.2%

Number 60

Percent 30.5

Valid Percent 34.2

Cumulative Percent 34.2

No

116

58.6

65.8

100.0

Total

176

89.0

100.0

22

11.0

198

100.0

59a Banks 59b Export Development Canada 59c ACOA

Sample size = 26 out of 198 who made investments in R&D

60 Use specialized technology?

Valid

Missing

Yes

No response Total

97

62 Anticipate investing in technology in next two years?

Valid

Number 59

Percent 29.8

Valid Percent 33.1

Cumulative Percent 33.1

No

63

31.8

35.4

68.5

Don't know

56

28.4

31.5

100.0

178

90.0

100.0

20

10.0

198

100.0

Number 41

Percent 72.2%

2

3.3%

63c Technology to increase productivity

26

45.3%

63d Customized software or other computer investment

35

62.3%

7

11.8%

Number 17

Percent 8.4

Valid Percent 9.4

Cumulative Percent 9.4

No

160

80.6

90.6

100.0

Total

176

89.0

100.0

22

11.0

198

100.0

Yes

Total Missing

No response Total

63 Anticipated Technology Investments 63a Online, Internet or wireless technology 63b Technology to link global supply chains

63e Other technology Sample size = 59 out of 198 who plan to invest in technology

64 Obtain help/guidance about technology investment?

Valid

Missing

Yes

No response Total

98

65 Organizations Providing Guidance for Technology Investment 65a Banks

Number 3

Percent 18.8%

65c ACOA

5

29.9%

65d Industry Canada

2

13.2%

65e We-Connect Canada

1

6.9%

65g Business Development Bank of Canada

2

11.1%

65j University Business Centre

3

16.7%

65k Women's Business Centre

1

5.7%

65l An accountant

2

11.3%

65m A consultant

3

15.5%

65o Innovation PEI (Export Channel Development)

1

4.2%

65p Dept. of Innovation, Business & Rural Development

1

6.9%

65q Personal acquaintances, including family

5

28.9%

65r Other

8

50.2%

Sample size = 17 out of 198 who plan to seek guidance for technology investment

66 Used technology to impact administrative and productivity efficiently?

Valid

Number 120

Percent 60.6

Valid Percent 68.3

Cumulative Percent 68.3

56

28.1

31.7

100.0

176

88.7

100.0

22

11.3

198

100.0

25 to 34

Number 21

Percent 10.4

Valid Percent 11.6

Cumulative Percent 11.6

35 to 44

44

22.1

24.7

36.3

45 to 54

48

24.0

26.8

63.1

55 to 64

56

28.4

31.8

94.9

9

4.6

5.1

100.0

177

89.4

100.0

21

10.6

198

100.0

Yes No response Total

Missing

No response Total

67 Age

Valid

65 and over Total Missing

No response Total

99

68 Education

Valid

Number 1

Percent .5

Valid Percent .5

Cumulative Percent .5

High school graduation

4

2.1

2.3

2.8

Some vocational/trade school

6

3.3

3.6

6.5

Vocational/trade school diploma

21

10.6

11.8

18.3

Some university

25

12.6

14.1

32.3

Bachelor's degree

76

38.3

42.7

75.1

Master's or Doctorate degree

36

18.1

20.2

95.2

8

4.3

4.8

100.0

177

89.6

100.0

21

10.4

198

100.0

Less than Grade 12

Other (specify) Total Missing

No response Total

69/70 Experience Number

Minimum

Maximum

69 How many years of industry & work experience do you have?

172

0

50

Average 22.2

11.19

70 How many years of business ownership & self-employment do you have?

177

0

40

10.0

8.85

Number 50

Percent 25.0

Valid Percent 28.6

Cumulative Percent 28.6

To provide an income source

124

62.4

71.4

100.0

Total

173

87.4

100.0

25

12.6

198

100.0

71 What was the primary motive for starting your business?

Valid

Missing

To pursue a market opportunity

No response Total

100

Std.Deviation

Anecdotal Response Tables 1) Other Sectors Construction Art Business counselling/project mgt/training Insurance/Financial Services Real Estate Photography Accounting/bookkeeping Communications Construction Management Custom clothier/costumer Dance school Database marketing services Landscape Non-Profit Personal services Residential Cleaning Skincare Tourism Training and coaching managers.

Travel health Visual Art & Education Wine Advertising

Number 5 5 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Percent* 11.4 11.4 4.5 4.5 4.5 4.5 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3

Land use planning for climate change & organizational change & scenario planning

1

2.3

Management consulting/conflict resolution

1

2.3

Marketing Medical hair loss solutions Quilting Retreat & Conference Spa and Beauty Transportation and warehousing Video Production

1 1 1 1 1 1 1

2.3 2.3 2.3 2.3 2.3 2.3 2.3

44

100.0

Total Sample size = 44/47 (Unweighted analysis)

101

3 Challenges Developing a broader client base.

Number

Percent

Dealing with red tape, Government and taxes

4 3

6.3 4.8

Financing for growing the business

3

4.8

Developing the systems and processes necessary to be successful

2

3.2

Marketing

2

3.2

Networking

2

3.2

Managing growth

2

3.2

Access to high speed broadband from home. We have wireless bb but it can't handle video conferences, which I would like to be able to do from home office to Europe, Asia and US.

1

1.6

Business planning and strategic approach to business ownership

1

1.6

1

1.6

1

1.6

Confusion in the marketplace about organizations.

Dealing with financial institutions, and dealing with government agencies; particularly dealing with government agencies. We hire accounting firms to do the work, pay them a lot of money, but when they make a mistake the government's answer is 'you hired them' the buck always stops with the business owner.

Feeling overwhelmed by the responsibility and decisions that are needed.

1

1.6

Financial management - financial growth when margins are diminishing due to escalating transport costs and volume, clients price, increased intolerance

1

1.6

Financial Management. Keeping up with Demand

1

1.6

Finding profitable venues for display / sale of paintings

1

1.6

Finding the time to develop a useful strategic plan, while doing all the selling, delivering, and managing it takes to keep a business profitable enough to support me.

1

1.6

For the sole proprietor, knowing how and when to outsource is a biggie for me. I can't hire employees but I need help. What are my options?

1

1.6

Generating new business; marketing

1

1.6

Getting information on customs and taxes in export

1

1.6

Getting it all done when we are two people!

1

1.6

102

3 Challenges (Continued)

Number

Percent

Getting recognition for what my industry contributes to the local economy. Immigration department making it very challenging for the language training industry with respect to visas.

1

1.6

Government competition clause has caused us not to be considered for funding for our manufacturing facility from the provincial government even though there is no other certified facility in the province seeking the upgrades we are pursuing.

1

1.6

Government not returning phone calls and not helping with marketing.

1

1.6

I will call the challenge "regulatory". In start up phase there are a lot of regulatory challenges.

Learning these, and the fastest way to navigate through regulations and what I must do vs should do, to get my business up and running. This has been a challenge for me.

1

1.6

Keeping up with the newest business marketing and business technology advancements, finding the training and finding competent people/partners to set up and implement these new initiatives.

1

1.6

Long term planning and goal setting

1

1.6

Loss prevention

1

1.6

My business is seasonal, so trying to find a way to keep the money coming in during the off season is a worry.

1

1.6

One challenge I face is being paid the same as my male counterparts. I have had this come up twice in the last year of business and on both occasions I stood my ground and am being paid what I have asked for but it is still beneath the fee a man might be able to charge. Also there is absolutely no reason for being paid less. I guess that is what happens when you challenge a male dominated industry.

1

1.6

Personal branding is a must for any women in business.

1

1.6

Salaries?

1

1.6

Staff recruitment and retaining

1

1.6

1

1.6

Succession planning.

This year the biggest challenge for a lot of business owners in Atlantic Canada will be dealing with the changes to the EI system and trying to operate a semi-seasonal business. Many of their highly trained staff members may be forced to take other jobs.

103

3 Challenges (Continued)

Number

Percent

Trades shortage.

1

1.6

Access to financial assistant.

1

1.6

Access to professional development relevant to my profession

1

1.6

Accessing government programs has been challenging, though I have my feet under me now, I don't know what I would have done without Enterprise South East!

1

1.6

Cutbacks in government programs and forward thinking projects.

1

1.6

Drawing local (100 mile radius) customers to our location

1

1.6

Feeling isolated and not having finances for community programs/networking. Not wanting to go into financial debt.

1

1.6

Financial grants for women only.

1

1.6

Finding adequate studio space that is affordable and has modern facilities.

1

1.6

1

1.6

Finding the most efficient methods of communicating a new service.

1

1.6

Funding from supplementary health care

1

1.6

I would love to participate in some of the workshops, but I am still working full time at a paid job and building my business in my off hours. It is impossible to take in courses/workshops/events in the HRM area during the daytime or evening during the week. It is impossible to take in these things during the work week.

1

1.6

Identifying appropriate target markets

1

1.6

Keeping a constant flow of work. It's feast or famine in my world.

1

1.6

Finding cost appropriate training for small businesses. Plenty of government and beginning "101" courses for under $100. But after that, courses jump to $2,000 for a day! It’s crazy. I have no budget for anything close to that. HR management is beginning to [be] a SERIOUS issue. Everyone is stressed, so many people have anxiety and depression and trouble balancing their lives.

104

3 Challenges (Continued)

Number

Percent

Maybe this is part of work-life balance. Beyond the [business] plan, what about scheduling your time?

Monday morning, make 10 clients or potential client call. Or Friday afternoon is admin day. How do we organize our lives? Because no matter what I am doing, there are 100 other things that still need to be done.

1

1.6

Not many people doing what I'm doing; my market is well-defined (professional caregivers)

1

1.6

Starting my business as a single mother with (then) three young LD children was very challenging. I had no start-up capital and started my translation business on an old PC loaned by a family member, on dial-up internet. I cared for my children and other children in the family (the latter to bring in extra money at a time at which I earned very little) and learned about how to find clients, etc. on my own. Somewhere to go for bookkeeping and management advice would have been very helpful at that time, and may be of significant help to women starting businesses on their own. I could also see childcare support being of great importance.

1

1.6

63

100.0

Total Sample size = 63 (Unweighted analysis)

105

10 Other Positions

Number

Percent

Owner Owner/operator The business is only me All Owner/artisan Sole Director Co-Owner

11 6 5 5 2 2 2

21.2 11.5 9.6 9.6 3.8 3.8 3.8

AR/AP, marketing, EDI ordering/invoicing Broker/sales CFO, Owner Counselor Executive Director Financial Consultant Nurse operator Operator Principal Salesman Secretary Technician

1 1 1 1 1 1 1 1 1 1 1 1

1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.9

Candle maker, research & development, sales Co-Director Director of operations Janitor and handywoman Manufacturer Partner Secretary, etc.

1 1 1 1 1 1 1

1.9 1.9 1.9 1.9 1.9 1.9 1.9

Sample size = 33. (Unweighted analysis) Respondents could list more than one role.

106

20 Reasons for Changes in Sales Marketing/advertising Word of mouth / referrals Changes in the economy Increased awareness New business / first year

Number 11 11 11 9 7

Percent 8.9 8.9 8.9 7.3 5.6

Exposure through networking / trade shows / craft fairs

6

4.8

Growth New business start up More projects Government cuts Innovation, social media, online sales Product development

4 4 3 3 3 2

3.2 3.2 2.4 2.4 2.4 1.6

More college students and seniors moving to the area.

2

1.6

Personal health More repeat customers A new retail location Expansion of facility Building my reputation Change in Tourism funding model Demand, niche services Housing market conditions

2 2 2 2 2 1 1 1

1.6 1.6 1.6 1.6 1.6 0.8 0.8 0.8

It depends on the economy and the number of people who travel internationally.

1

0.8

Shift from management consulting to executive coaching, team training and speaking.

1

0.8

Consumers don't seem to be spending on "luxury" items like original art

1

0.8

1

0.8

1

0.8

I work in theatre and the funding crashed so two of the shows I've been involved in did not run.

Home activities necessitated a focus on that area and not "growing" the custom part of the business.

Am also trying to slide into retirement

1

0.8

Many clients in contraction business phase due to economy. My business is shifting so there is some client development going on.

1

0.8

1 1 1

0.8 0.8 0.8

1

0.8

I am currently operating two businesses, sitting on the Board of Directors of a large PEI company, and committed to the Prince County Hospital Auxiliary, and PCH Foundation. Therefore I have made the decision to scale back on client work load.

I work by contract. Less contracts available.

Recession Better at choosing products Better hiring Construction industry boom

107

20 Reasons for Changes in Sales (Continued) Extra large project in previous year.

Increase in the selling price of the product More established business More traffic My personally getting back in the field to work New project funding.

Reduced expenses. Retail sales improved.

The robust Economy. Our product & service.

Hard work. Focused approach on my business.

Time of year when the business had been started and additional clients have been introduced to the business therefore adding operating revenue.

Clarified niche and defined services

Number 1 1 1 1 1 1 1

Percent 0.8 0.8 0.8 0.8 0.8 0.8 0.8

1

0.8

1

0.8

1

0.8

Contract opportunities spurred on by [government] policy change

1

0.8

Diversification Increased tuition for most courses / workshops international opportunities Location of sales New market we developed New ownership New hands on management style New product

1 1 1 1 1 1 1 1

0.8 0.8 0.8 0.8 0.8 0.8 0.8 0.8

People are leery of investing in volatile stock market & the local economy is down.

1

0.8

Shift in focus from consulting to speaking Type of projects - more long term

1 1

0.8 0.8

US dollar value against CDN dollar

1

0.8

We got involved with booking.com

1

0.8

Sample size = 124 (unweighted analysis)

24 Reasons for Not Having Plans to Grow the Business

Number

I have as much business as I can handle.

Percent

10

20.4

I'm planning to retire soon

6

12.2

Financing any expansion

3

6.1

I have to get better at what I'm doing now and then I'll make plans to grow. Taking on more clients and customers without a way to support them leads to disappointment on both sides.

2

4.1

Concerned I might not be able to manage my time well enough to be a happy, healthy mother, wife, educator and member of my community

2

4.1

Not ready

2

4.1

108

24 Reasons for Not Having Plans to Grow the Business (Continued)

Number

Percent

Am looking to sell the businesses, due to health challenges Expanded last year and sales have dropped

1 1

2.0 2.0

I am an employee of a non-profit organization. I do not make those decisions.

1

2.0

I don't want staff. I offer a wide range of services which I enjoy and my clients respond well to.

1

2.0

I just opened my business in March 2012; this question doesn't really apply to me.

1

2.0

It was sufficient to do the same level of sales as last year based on the number of staff

1

2.0

Need to streamline as expanding takes away from time put into maintaining current client base.

1

2.0

Our economy is in a mess, wages are too high and the American economy is flat. Therefore no one will have any disposable income for my products.

1

2.0

The business is not there, and I am only one person trying to do everything.

1

2.0

The market share is decreasing

1

2.0

This year is one of laying a firm foundation.

1

2.0

We are in the growth phase and do not plan to add further initiatives just now

1

2.0

With all the government’s cuts, we have to address changes in the next year. We plan to have a day of strategic planning in January to address these concerns.

1

2.0

Working on a succession plan and the transfer of responsibilities to staff members. Do not want to bring on new clients in the midst of training.

1

2.0

Would not be profitable Because I'm consolidating

1 1

2.0 2.0

I wish to expand in terms of growth but not in terms of service offerings.

1

2.0

Just starting the business

1

2.0

109

24 Reasons for Not Having Plans to Grow the Business (Continued)

Number

Percent

Mainly because the only way to do so would be to find another qualified translator, which has proven to be very difficult. Bringing in someone from another country would require paying them such a high salary that they would have to be extremely good at their work to justify the pay rate. Persons who worked for me in the past did not have that level of qualifications, and were not willing to work at the pace which my business requires.

1

2.0

Time constraints

1

2.0

We are a bed and breakfast--we only have five rooms to rent-and in this business it is all about beds available, food and customer service--in other words the personal touch

1

2.0

We can't find qualified staff to hire and it is impeding our growth

1

2.0

We have gone through a very rough patch this year and are being very careful with spending, staffing. Our focus will be on stabilizing and aligning our different business units to ensure that each obtains an acceptable margin. We have completely transformed the company in the last two years and the process is ongoing. In short, we're not done yet and are working very hard to move forward in a very uncertain and unpredictable economy.

1

2.0

Working on developing a strong customer base and growth

1

2.0

Sample size = 49 (Unweighted analysis)

110

28 Reasons for Not Wanting to Export

Number

Percent

Service based business

32

32.3

Exporting is not applicable to my business

29

29.3

Lack of knowledge

6

6.1

Professional licence is for NB only

4

4.0

Product is of local interest only

4

4.0

Busy enough in current market

2

2.0

Lots of business for my company in Canada

2

2.0

Not needed

2

2.0

Just starting my business

2

2.0

Ability to produce product

1

1.0

Because of regulations for professionals outside Canada

1

1.0

Corporate restructuring in 2000. Two separate entities (no longer hold any percentage of ownership in these) now serve US and global market. This company is now focused on building Atlantic Canada market.

1

1.0

Do not have the means or resources to expand

1

1.0

Fear of legal and cost of doing business

1

1.0

I should say, I am not sure if I will export. My product is garden boxes for raised vegetable beds with an emphasis on local market and local product. I think the shipping costs and the bulk of the material (8 foot lengths) might make it too difficult for export.

1

1.0

I have been involved in export in the past and it was a huge headache. New customs rules are intimidating; the decline in the US economy has had an impact on the wholesale market; I am moving out of wholesale and having a larger focus on my retail market.

1

1.0

I import my products from the United States and other countries.

1

1.0

1

1.0

1

1.0

I'm a graphic designer. I am able to provide designs globally but don't consider myself an exporter in the traditional sense .

Not interested

111

28 Reasons for Not Wanting to Export (Continued)

Number

Percent

Seems like too much hassle to deal with different business laws and currencies. Would sooner sell direct to the customer (ie: through online orders).

1

1.0

1

1.0

1

1.0

1

1.0

1 1

1.0 1.0

Some of our products are not permitted in the US so we do not export yet.

We do internet marketing My liability insurance will not cover products sold outside Canada.

Personal connection with clients Planning to retire Sample size = 99 (Unweighted analysis)

36 Other Export Financing

Number

Percent

1 1

5 5

Government grants In existence for 37 years, just cash flow

Sample size = 2 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

37 Other Reasons for Exporting

Number

Percent

Always have offered subscriptions abroad

1

16.7

Interested in exploring it once I feel I am selling enough in the Maritimes and across Canada

1

16.7

Interested in other cultural experiences while providing services

1

16.7

Our whole business is based on international education Looking into it

1 1

16.7 16.7

Want to share lifestyle wellness knowledge around the globe.

1

16.7

Sample size = 6 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

112

41 Top Three Challenges in Becoming Export Ready - First Listed

Number

Percent

Developing relationships/partnerships

5

10.9

Financing

5 3

10.9 6.5

3

6.5

3

6.5

3

6.5

3

6.5

2

4.3

2

4.3

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

1

2.2

Custom work

1

2.2

Deciding what to export

1

2.2

I am referring to our activity as export because it involves bringing travellers into Canada who then bring their foreign currency with them to improve our economy. I don't know if this fits into your definition of 'Export’.

1

2.2

Travelling to new markets Becoming familiar with export regulations Production Capacity Finding a trustworthy company to develop our website Finding time Family I am not export ready!

Concerns about getting paid by foreign buyers Developing a suitable business model Figuring out where to start Having the conviction that it would be worth my time and energy.

Knowledge of Market Labelling Not a big issue....

Not worth it. Easier and just as lucrative to do business in Canada.

Regular personal contact is key so it was challenging to physically so the trips and to finance them.

Research re paid opportunities for my services Shipping costs

113

41 Top Three Challenges in Becoming Export Ready - First Listed (Continued)

Number

Percent

I translate online. My first major challenge was acquiring clients and experience without any knowledge of the market.

1

2.2

POOR government advice. Ask Barb Touchie. I got the WORST advice EVER from the Canadian Team in France. "Ignore the VAT"

1

2.2

Product certification/compliance testing.

Expensive and time consuming.

1

2.2

Sample size = 46 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

41 Top Three Challenges in Becoming Export Ready - Second Listed

Number

Percent

Securing financing

7

16.3

Customs/duties/regulations

5

11.6

Finding contacts/opportunities

3

7.0

Staff to oversee management

2

4.7

Time

2

4.7

Intellectual property protection/copyright

2

4.7

Building a knowledge base about exporting in general

1

2.3

Concerns about losing control over product/service

1

2.3

Cost to travel and time away from home

1

2.3

Creating demand for my work

1

2.3

Credibility in foreign markets

1

2.3

Feel I have not developed my business in Canada as well as I could yet.

1

2.3

Getting our materials translated into many different languages - it was very expensive.

1

2.3

Internationally recognized certifications

1

2.3

Language challenges

1

2.3

Long pipeline time

1

2.3

N/A

1

2.3

Production/manufacturing

1

2.3

Working out the logistics of transporting goods

1

2.3

114

41 Top Three Challenges in Becoming Export Ready - Second Listed (Continued) A strategic plan for exporting

Number

Percent

1

2.3

Concerns about overall advantages Cost of the start up fee

1 1

2.3 2.3

Developing distribution network for technical product sales.

1

2.3

Equipment (computers, printer, internet service) to work on and capital to buy it.

1

2.3

Expense of shipping fragile product that is often the same or more than the value of the product.

1

2.3

Lack of bilateral agreements between NB and other countries

1

2.3

Lack of understanding of my product. Art Jewellery. There are NO Revenue Canada classification codes for ART jewellery. Period. No one, including a Level 2 Government advisor with Carnet, could tell me exactly what to do. Culture is being held up by the government, using a 20 year old definition without any support in terms of actual business support. It all bogs down in red tape. I can tell you horror stories of potters being lumped in toilet bowel manufactures. Of artists buying supplies from US and then being denied entrance at the border due to "unknown" origin of supplies purchased in the US.

1

2.3

Social media relationship building

1

2.3

Sample size = 43 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

115

41 Top Three Challenges in Becoming Export Ready - Third Listed

Number

Percent

Costs / funding Time and resources to nurture partnerships

7 4

17.9 10.3

Foreign market research Limited export knowledge staffing Childcare/family A strong export strategy Allowing other staff members to represent the company abroad.

2 2 2 2 1 1

5.1 5.1 5.1 5.1 2.6 2.6

Buy local Concerns about tariffs or quotas in distant markets

1 1

2.6 2.6

Getting direct information on procedures for export including taxes Having the product ready to distribute I have a new service that I am learning how to sell and deliver

1

2.6

1

2.6

1

2.6

Identifying opportunities N/A Not knowing how my services would be exportable

1 1 1

2.6 2.6 2.6

Publicity Communication Developing strategy Advertising to potential buyers Distributors Fear and self doubt if ready Lack of international experience of my HR

1 1 1 1 1 1 1

2.6 2.6 2.6 2.6 2.6 2.6 2.6

Shipping fragile product to avoid breakage

1

2.6

The skills to update the existing product

1

2.6

Transport logistics

1

2.6

Sample size = 39 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

116

42 How Exporting/Export Planning Challenges were Overcome Have not done it yet

Number 3

Percent 10.0

Haven't overcome them

3

10.0

Made multiple calls to government agencies

1

3.3

N/a

1

3.3

New business model with accompanying website support a partnership/distributor model for international markets. Financing and human resources are challenges still.

1

3.3

Participating in trade show in Ontario May 2013

1

3.3

Partnered with a company in Maine

1

3.3

Perseverance, asking for help from colleagues

1

3.3

Seeking help. I have received incredible support and advice from NLOWE,IBRD, and ACOA.

1

3.3

Still working on the challenges

1

3.3

Tripled my domestic price to make it worth my while. Just took the risk without getting the insurance coverage I wanted to get before exporting.

1

3.3

When I was the only one doing the trips, I limited myself to 2 to 3 trips a year and did the rest by emails and Skype. We found an online translation company that can turn materials around very quickly. Finally admitted that with training, younger staff members can represent us well and have a lot more energy and are focused on only that task rather than trying to run a company as well as drink endless cups of tea in certain cultures.

1

3.3

Work!

1

3.3

Would like to have more opportunities to make a living while travelling and experiencing other cultures. Have not started to check it out yet but have worked/volunteered in Central America already so would like to see what is possible. Central, South America, Caribbean, Italy, Greece???

1

3.3

Communicate concerns and solve them with trading partner. Design workable "shoe-string' budgets

1

3.3

Found CDN partners from X country.

1

3.3

Here’s the God's honest truth: artists do anything they can... photograph their work and weasel a customs agent to put their signature to it. Got customs to issue me a photocopy of a possible loophole. Explain, explain, explain at the France border that there [are] no diamonds, rubies or emeralds only sterling and glass beads. Carry in my samples personally as personal jewellery and bring them back as personal jewellery.

1

3.3

I am currently looking for assistance inform of experts to help and funding to pay for the upgrades

1

3.3

I limit orders to amounts I can manage to fill. I take extreme care in packaging shipments to reduce damages.

1

3.3

117

42 How Exporting/Export Planning Challenges were Overcome (Continued)

Number

Percent

I went online, researched my market, gradually acquired more clients as I learned on a trial and error basis, and gradually earned money to buy equipment and pay for childcare. Due to the lack of support, it was a struggle of several years to bring my business to a level at which it supported my family and did not require me to work nights as well as looking after my children in the daytime.

1

3.3

In process. Early days for our newest product being targeted to the U.S.

1

3.3

Just looking at the potential

1

3.3

Mentors, hiring a professional coach

1

3.3

Partnering with someone more experienced

1

3.3

Start small Sample size = 30 out of 91 who are already exporting, or are interested in exporting

1

3.3

44 Other Organizations that Provided Assistance for Export Decisions Canadian Customs

Number

Percent

1

100%

Sample size = 1 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

118

47 Gaps in the Services and Programs Needed to Support Export Development for Women in Atlantic Canada

Number

Percent

No, there are no gaps: I have not encountered any significant gaps. I am so grateful for all of the help.

2

6.1

It is no different for women than it is for men. If anything, there is more support for women through the CWB and We-connect.

2

6.1

I can't think of anything specific. As my business is a bit different - it's an export business - but we bring students here to study so it doesn't really fit into the norm - that makes it a little more difficult for us to take advantage of any programs. EduNova has been the most useful program.

1

3.0

The program I was part of did a very good preparation and although I did not have long term business develop from the program I did receive knowledge and skills that I continue to carry with me and will assist me in the current ventures.

1

3.0

I don't see any real gaps for export development for women...other than maybe a few women only seminars or courses. A lot of export is "the old boys" network. Even when I was one of Atlantic Canada's top 50 CEO's, .the men treated us women winners like fluff and ignored us mostly. I think there is a TERRIBLY HUGE gap in Culture. Everyone gives us lip service, uses 20 year old definitions and does NOTHING about Revenue Canada classification codes for MOST of what Culture does. It’s always a room of horror stories when we get together as a group of Culture people and organizations and talk.

1

3.0

Total

7

21.2

119

47 Gaps in the Services and Programs Needed to Support Export Development for Women in Atlantic Canada (Continued)

Number

Percent

Yes, there are gaps: Not enough preparation and follow up by government departments who organize it.

2

6.1

Direct procedures relating to taxes in USA exports and customs regulations

1

3.0

How to export a service. Everything I see is based on products.

1

3.0

There is a lack of information available for artists. Programs are in place that offer incentives for young, emerging artists but nothing for "older" artists

1

3.0

Being informed to participate & time.

1

3.0

Child care - though that may be a pipe dream. Or the ability to claim child care expenses as a self employed woman to attend trade missions, etc. Figuring out who to call in the first place is like a dog chasing her tail!

1

3.0

More opportunities in French speaking countries

1

3.0

Need to make and acquire contacts in the industry. No one seems to be knowledgeable in this industry or have contacts in international health related agencies.

1

3.0

The biggest gap I have found is that any program has tight guidelines and a list of consultants on a roster. Regardless of needs of the client, they are matched with and given only that within the tight guidelines and therefore the outcome is not perfect.

1

3.0

The CWB was very helpful for the initial meetings; however, as I have been very aware of finances, I was not able to sign up and participate in the networking opportunities or for courses/programs.

1

3.0

The trade shows are for people already experienced in exporting plus our product is not the usual "export" product, it being a video game. There is little knowledge about selling this in the US although we hope to do well with our new partner.

1

3.0

There seem to be a lot of organizations trying to connect businesses to foreign market opportunities. We have found that matchmaking is often offered but is rarely well executed. It really requires the business to do their own homework to ensure that the matchmaker gets it right.

1

3.0

Went through all the motions, and then found a simpler route. I think the program has to be designed to fit the business, not the business to fit the programs.

1

3.0

Yes, there are gaps (not specified)

1

3.0

15

45.5

Don't know

Total

11

33.3

Total

33

100

Sample size = 33 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

120

48 Has/Will Being Female Helped/Help, or Hindered/Hinder, Export Activities

Number

No, it will not influence: No I don't think so.

Percent

14 3

35.0 7.5

Neither helped nor hindered.

3

7.5

In the art field gender doesn't seem to matter

1

2.5

No, but re-entering Canada, Canada Border Services has given me a hard time understanding that I am a woman, travelling alone, and I own my own business.

1

2.5

No. Customers from the export markets came to me, I did not attempt to seek them out. It has nothing to do with gender.

1

2.5

Do not think it will hinder my export activities, when I decide to move into the sector. I do, however, believe that the base of my business growth is dependent on my networking relationships and connections.

1

2.5

24

60.0

Yes, it will be a positive influence: I think it will help

Total

2

5.0

I would say that being a female has helped and will help my export activities.

I have become certified as a woman business owner, and this will help in the supplier diversity field.

1

2.5

I believe it will help especially through the WE Connect organization. My certification is in the works.

1

2.5

It is definitely an advantage when it comes to supplier diversity. I find myself well-respected in the business world and I am sure that will carry over into export.

1

2.5

Not at all, I think it will help. People tend to trust women more

1

2.5

Being female does help in my business as we help other women with our products are services

1

2.5

Helped in that as a woman, I have knowledge of fashion industry

1

2.5

I market to women so I believe that's the draw that has helped my business.

1

2.5

International intergovernmental org are accustomed to working with women, therefore advantage.

1

2.5

10

25.0

Being female and over 45 in a field that is technical is a barrier for sure

1

2.5

Female business owners often have family responsibilities they are balancing and often that is what led to their self-employment in the first place. As a result, there will always be added challenges to reaching your goals as raising kids and running a business is very much like running in sand!

1

2.5

Total Yes, it is a negative influence:

121

48 Has/Will Being Female Helped/Help, or Hindered/Hinder, Export Activities (Continued) Hindered. I don't belong to the "old boys" network. Women don't network the same way as men. I often feel I'm not being taken as seriously by Customs and others...being a woman and in the Arts. I expect that not having a Revenue Classification code for my work will continue to hinder. And please don't recommend a binding ruling. Honestly. In the 6 months it takes to get one, my work has completely changed by then.

Number

Could hinder as single female travelling/working within other cultures.

Total

Percent

1

2.5

3

7.5

6

15.0

Total 40 100.0 Sample size = 40 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

49 Greatest Company Strengths in Regards to Exporting Activities Our products/services

Number

Percent

14

25.5

Willingness to explore opportunities, interest in travel and culture, wide range of services available

4

7.3

Versatility and ability to adapt

3

5.5

Education, knowledge and expertise.

2

3.6

Quality

2

3.6

Updated website with e-commerce and a good business model for international markets

1

1.8

Great service, experience, good network

1

1.8

I keep it simple; direct prepaid sales

1

1.8

In place assets, location, NL mystique

1

1.8

Knowledge of the local market

1

1.8

Knowledge of the product competition

1

1.8

Knowledge of the target area and bilingual status.

1

1.8

Our cultural understandings

1

1.8

Our new service, teaching managers how to support direct reports and peers who may be dealing with depression and be as productive as they can while they get treatment and go through recovery.

1

1.8

Previous experience in assisting SMEs with exporting; previous experience in investment attraction.

1

1.8

Producing the product at a high rate if there is big demand for it

1

1.8

Sheer determination

1

1.8

122

49 Greatest Company Strengths in Regards to Exporting Activities (Continued)

Number

Percent

Small, professional, relationship based firm

1

1.8

Targeted at the grandparent market

1

1.8

The interest of our culture and our survival.

1

1.8

Wonderful staff and the support of organizations such as NLOWE, IBRD and ACOA.

1

1.8

We have developed a solid service with a good reputation. We have done this slowly and steadily over the years and most of our contacts see this as a very good thing as we have stayed true to our original philosophy of small and personal. We have developed excellent strong partnerships with other educational institutions to add more choice and credibility for students.

1

1.8

Being entirely online.

1

1.8

Deliverables -on time and on budget

1

1.8

Historically significant, unique, prime for branding

1

1.8

I offer writing and editing services and do a great job meeting deadlines, solving clients’ problems and providing top-quality work.

1

1.8

I'm not afraid to ask for the sale. I have a very good gut sense of who is genuine and who is just going to waste our company's time. I’m not afraid to cut someone loose if they don't perform.

1

1.8

1

1.8

1

1.8

Our Canadian reputation and the willingness of our wholesale partners to vouch for us!

1 1

1.8 1.8

Skills in research. Access to good research sources and to Canadian information and models.

1

1.8

My international experience My product is more high end and one of a kind. I can send to galleries and collectors and with unique style of pottery.

My tenacity for this project and my global connections

Solid reputation 1

1.8

The originality and innovativeness. The fact that my product changes constantly. I know how to photograph my work, go to customs and beg for paperwork that MIGHT work for me. I pray a lot. I have a brand name that is recognized across Canada and into the states. People love the work.

1

1.8

Willingness

1

1.8

55

100.0

Total Sample size = 55 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

123

Greatest Company Strengths in Regards to Exporting Activities (Key Themes)

Number

Percent

Products/services 10 18.2 Experience/expertise 8 14.5 Networks/contacts/partnerships 4 7.3 Willingness/drive 4 7.3 Cultural openness 3 5.5 Distribution/logistics/accessibility 3 5.5 Good reputation 3 5.5 Target markets 2 3.6 Size 2 3.6 Customer service 2 3.6 Flexibility/innovativeness 2 3.6 Selling skills 1 1.8 Bilingualism 1 1.8 Production scale 1 1.8 Staff 1 1.8 Location/infrastructure 1 1.8 Gov/t support 1 1.8 Sample size = 55 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

124

50 Greatest Company Weaknesses in Regards to Exporting Activities

Number

Percent

Lack of experience/knowledge

12

20.0

Finances

11

18.3

Contacts / networking / clients

7

11.7

Not enough staff to meet demands

5

8.3

Time

2

3.3

Production capacity

2

3.3

Family/work balance

2

3.3

Developing the brand message; ensuring that I can meet demand

1

1.7

Distance work

1

1.7

Finding interested communities

1

1.7

Getting the manufacturing set up and the funding available.

1

1.7

Having the funds for travel. You need to travel back and forth to the market to establish contacts. Flights, taxis, hotels and meals cost a lot when you are a sole proprietorship.

1

1.7

Having the product ready, all are hand made goods

1

1.7

It is a big step to move into the export market. It takes a lot of planning, research and courage to make that step.

1

1.7

There is adequate opportunity domestically.

1

1.7

Not relevant at this time

1

1.7

Being a woman

1

1.7

Being a cultural export that no one at any level of government can ever tell me if it will get through or not.

1

1.7

The economy

1

1.7

Value of the Canadian dollar

1

1.7

Not pursuing it to date.

1

1.7

Regulations

1

1.7

SME VS big market

1

1.7

Sometimes we're too nice. We have to be more firm in establishing terms that are as beneficial for us as our customers.

1

1.7

The technical skills to built the website and mobile applications

1

1.7

Visual arts and commercial photography is used to create branding or imaging of a company. That company is the one who goes to trade shows and exports their goods.

Total

1

1.7

60

100.0

Sample size = 60 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

125

Greatest Company Weaknesses in Regards to Exporting Activities (Key Themes)

Number

Percent

Value of Canadian dollar Lack of experience/knowledge Financial constraints Contacts/networks Customers Lack of staff

1 1 2 1 1 1

1.7 1.7 3.3 1.7 1.7 1.7

Production/capacity/ infrastructure

3

5.0

Family/work balance Research required Planning required Travel requirements Time constraint Type of product/service Financing Regulations The economy Need to be more firm Being female Being a small business Inadequate technical skills Advertising/branding Finding customers

1 1 1 2 1 2 1 1 1 1 1 1 1 1 1

1.7 1.7 1.7 3.3 1.7 3.3 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7

Sample size = 60 out of 91 who are already exporting, or are interested in exporting (Unweighted analysis)

61 Type of Specialized Technology Used

Number

Non-specialized technology (smart phones, laptops, internet connections, mass-market software)

Percent

15

26.3

Specialized software

6

10.5

Low intensity laser and digital thermal imaging

2

3.5

Cash registers / POS system

2

3.5

Billing system for PT clinics

1

1.8

Brewing equipment

1

1.8

ECM - People Soft

1

1.8

EDI system for ordering/invoicing and a national registry database (ECCNET) for product GTINs and UPC

1

1.8

e-Learning system

1

1.8

126

61 Type of Specialized Technology Used (Continued)

Number

Percent

Fabrication systems

1

1.8

Graphic layout, photography

1

1.8

Intense pulsed light

1

1.8

Ion cleanse machine

1

1.8

Laser hair removal equipment

1

1.8

Laser therapy

1

1.8

Online assessment tech, adaptive tech

1

1.8

Professional testing- audiometric and spirometry

1

1.8

Proprietary formulation

1

1.8

Server

1

1.8

Specialized travel health package

1

1.8

We have developed our own online registration system

1

1.8

Photo and video editing software and equipment

1

1.8

Programming

1

1.8

Reference manager, insightful CRM, Harvest

1

1.8

AAC devices for communication

1

1.8

Clay processing

1

1.8

Computer based equipment for physical assessment.

1

1.8

Computerized reservations and booking companies

1

1.8

Lasers

1

1.8

Not enough space to explain.

1

1.8

Optical

1

1.8

Presses, digital machines

1

1.8

Production equipment

1

1.8

Rapid immunoassays We are well versed on online delivery plus have developed video games as well as videos We would like to use CAD CAM and we would like to use laser welding.

1

1.8

1

1.8

1

1.8

57

100.0

Total

127

Sample size = 57 out of 60 who used specialized technology (Unweighted analysis) 63 Other Technology Investment in the Next Two Years

Number

Percent

Camera and video gear

1

16.7

Machines for making jewellery and clay ceramics

1

16.7

Online Service to outreach communities

1

16.7

Product demonstration

1

16.7

Technical equipment

1

16.7

Upgrade computers

1

16.7

Total

6

100.0

Sample size = 6 out of 7 who planned to invest in other types of technology over the next two years (Unweighted analysis)

65 Other Resources Providing Advice for Technology Investment

Number

Percent

A sister company that is entirely online

1

12.5

CBDC

1

12.5

CEED in Halifax

1

12.5

Industry and business associates

1

12.5

My company head office

1

12.5

NLOWE

1

12.5

Real Estate Course

1

12.5

Stan Cassidy Center for Rehabilitation

1

12.5

Total

8

100

Sample size = 8 out of 17 who have used, or plan to use, advisory resources for technology investment. (Unweighted analysis)

128

68 Other Responses for Education

Number

Percent

CFP

2

25.0

Registered nurse

2

25.0

CHRP

1

12.5

Have taken part in many courses offered by colleges, etc. not leading to a degree

1

12.5

International Diploma in Travel Medicine

1

12.5

Military Service

1

12.5

Spirometry and Audiometric Technician, Drug and Alcohol Testing Certificate

1

12.5

Art college

1

12.5

PG diploma

1

12.5

Sample size = 8 who had listed other types education (Unweighted analysis)

129

VII. REFERENCES Anderson, M., WeConnect Canada. Phone interview December, 2012.

Black, J., e-SourceEvent Registration, Phone interview December, 2012.

Business Women in International Trade (2012), accessed from www.tradecommissioner.gc.ca/eng/businesswomen/document.jsp?did=1 3645.

Canadian Trade Commissioner Service, Step-by-Step guide to exporting 2011, Government of Canada.

Conference Board of Canada, What might Canada’s Future Exports Look Like? Briefing November 2012.

Conference Board of Canada, Workplace Diversity and Inclusiveness Forum, December 2010.

Cukier, W., Increasing and Capitalizing on Supply Chain Diversity, Presentation at the Workplace Diversity and Inclusiveness Forum, December 2010, Toronto.

Home Depot, Message from Supplier Diversity Leadership, retrieved from https://corporate.homedepot.com/suppliers/diversity/pages/default.aspx, November 2012 Hughes, K.D. (2003). “Pushed or pulled? Women’s entry into selfemployment and small business ownership.” Gender, work and Organization 10(4), pp. 433-454.

Industry Canada (2012), SME Research and Statistics, How many small business entrepreneurs are women? July 2012, retrieved November 18, 2012 from www.ic.gc.ca.

130

Industry Canada (2012), SME Research and Statistics, What is the contribution of small businesses to Canada’s exports? July 2012.

Industry Canada (2011), Small Business Branch, Canadian Small Business Exporters, Special Edition: Key Small Business Statistics, June 2011.

Jung, O. (2010). Financing profile: women entrepreneurs. Ottawa: Industry Canada Small Business and Tourism Branch, October 2010.

Kariv, D. (2011). “Entrepreneurial orientations of women business founders from a push/pull perspective: Canadians versus non-Canadians – a multinational assessment.” Journal of Small business and Entrepreneurship 24(3), pp. 397-425.

Larson, P. D., (2012). Supplier Diversity in the GTA: Business Case and Best Practices. Available at www.diversecitytoronto.ca/counts.

Lefebvre, E. & Lefebvre, L. (2000). SMEs, exports and job creation: A firm-level analysis (Occasional Paper, No. 26). Ottawa, Canada: Industry Canada Research Publications Program.

Orser, B.J. & Carrington, C. (2006) Exporter SMEs.Ottawa, Canada: Industry Canada. Available at http://www.ic.gc.ca/epic/site/sme_fdiprf_pme.nsf/en/h_02015ehtml, accessed November 15, 2012.

Orser, B., Spence, M., Riding, A., & Carrington, C. (2009) Gender and Export Propensity, Entrepreneurship Theory and Practice, September 2010.

Royal Bank of Canada, Supplier Diversity, retrieved from www.royalbankofcanda.ca, November 2012.

131

Smallbone, D., Kitching, J., Athayde, R., & Xheneti, M. (2008), Procurement and Supplier Diversity in the 2012 Olympics, Small Business Research Centre, Kingston University, London, England.

Stoian, M.C., & Rialp-Criado, A. (2010) Analyzing export behavior through managerial characteristics and perceptions: a multiple casebased research. Journal of Global Marketing 23:4, 333-348.

TD Bank Group, Supplier Diversity, retrieved from www.tdcanadatrust.ca., November 2012.

The Trade Commissioner Service, Step-by-Step Guide to Exporting 2011, accessed at www.tradecommissioner.gc.ca/eng/step1.jsp December 2012.

Toronto 2015 Pan/Parapan American Games, TO2015 Releases First Annual Report on Diversity, retrieved from www.newswire.ca/en/story/1072815/to2015-releases-first-annual-reporton-diversity. www.SMEToolkit.com. Interesting Facts About Women Owned Businesses, accessed November and December, 2012

132

VIII.

ENDNOTES: STATISTICAL TESTS

Test results for significant associations in survey research: i

Chi-Square =19.973, df =2, p =.000.

Chi-Square = 6.871, df=2, p=.031. iii Chi-Square = 9.345, df =4, p =.053. iv Chi-Square = 10.112, df =2, p =.006. v Chi-Square = 9.878, df =2, p =.007. vi t-statistic = -2.356, df =70.3, p =.009. vii Chi-Square = 21.403, df =6, p =.002. ii

133