The global pandemic has caused devastating economic impacts, including high levels of unemployment. As during the 2008 recession, self-employment is encouraged as a path to economic participation and revival of the labor market.
Yet marginalized groups, including women and indigenous people, proceed to do so they encounter barriers in starting and developing a business. IN 2022only 18 per cent of small and medium-sized businesses in Canada were majority-owned by women, only 16 per cent by visible minorities, and only two per cent by indigenous people.
According to the Organization for Economic Co-operation and Development, helping marginalized groups arrange their very own businesses will bring significant economic and social advantages.
Small and micro-enterprises run by women, e.g. contribute to communities around the world. They use their resources to reinvest in the health, education and well-being of their families and neighbors.
For this reason, an increasing variety of studies are recognizing the importance startups that are born out of necessity, not profit. Despite this, most entrepreneurship resources and support proceed to focus primarily on high-growth entrepreneurship.
Barriers to inclusivity
The Kauffman Foundation, a private organization supporting and researching entrepreneurship, is guided by the principle ““zero barriers” mantra.. He argues that when certain groups encounter obstacles to entrepreneurship, the entire system is stunted. This isn’t just an empty slogan – it’s one supported by research.
There are three essential barriers to inclusion in entrepreneurship. First, many have a narrow view of entrepreneurship that focuses on technology, enterprise capital, profit, and individual achievement. This approach often results in support systems that exclude marginalized communities.
The second barrier is unequal access of entrepreneurs to information about existing support and resources. Finally, insufficient support for marginalized communities and lack of trust in those providing assistance.
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Effective removal of obstacles
Despite widespread understanding of the broader barriers to inclusive entrepreneurship, there is a lack of expertise of the specific barriers needed to effectively address these barriers.
For example, how can information on business support be made more accessible? How should these support systems be adapted to satisfy the needs of marginalized people? How to build trust and credibility of the support offered? What is a more inclusive technique to support entrepreneurship?
These issues can only be effectively addressed at the systemic level. Research shows this entrepreneurship increases when strong systems are in place – resembling incubators, accelerators, funding opportunities, networks, policy frameworks and market access – exist.
In other words, increasing entrepreneurship among marginalized people requires the development of more inclusive entrepreneurial ecosystems.
System transformation
Creating a more inclusive entrepreneurial ecosystem involves transforming the existing one. Such a transformation requires the commitment and cooperation of people and groups supporting inclusive entrepreneurship.
Working on a larger scale will help Canadian policymakers and organizations help people from diverse communities maximize their economic and social potential through entrepreneurship.
Some key features define an inclusive entrepreneurial ecosystem. First, it involves searching for the opinions of entrepreneurs from marginalized communities. These insights should shape policy decisions and public initiatives.
Another necessary aspect is educating government officials and the media on a more inclusive definition of entrepreneurship that goes beyond typical high-growth ventures. By improving their knowledge, policymakers can develop more inclusive policies and allocate funds more equitably.
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It is also crucial to support grassroots initiatives supporting entrepreneurs from marginalized communities. These initiatives ought to be led by entrepreneurs in these communities, which is able to likely mean diverting resources away from existing power players.
It is also essential to make sure that everyone has access to inexpensive, culturally specific education that develops entrepreneurial skills. It is equally necessary to know how trauma impacts startup aspirations and success, and to adopt a trauma-informed approach to supporting inclusive entrepreneurship.
Ecosystem creators
Supporting creators of entrepreneurial ecosystems is a key technique to create a more inclusive startup environment. Ecosystem builders are organizations that work to remove existing barriers in the startup system.
On MacEwan University Institute for Social Innovation, we attempt to be ecosystem creators by organizing roundtables with key groups. These groups include innovation body Edmonton Unlimited, not-for-profit organizations supporting marginalized entrepreneurs, government and financial institutions.
Participants work to create a shared vision for inclusive entrepreneurship by identifying community strengths and barriers and considering what steps must be taken to rework Edmonton’s startup ecosystem. A key aspect of this transformation is collaborative efforts to influence and shape policy decisions.
Edmonton’s efforts to create an inclusive entrepreneurial ecosystem is not going to only profit the area people, but will hopefully lead other cities in transforming their entrepreneurial ecosystems. By making these changes, we’ll support fairer participation in economic life in all areas.