Breaking down barriers: Empowering Black-owned businesses to go global

Black exporters: Successes amidst challenges

There are a lot of things Dave Hale could discuss about his journey to landing on the Ottawa Business Journal’s 2024 list of fastest-growing companies. Things, like being the only Black man at business networking events, or growing up Black in a predominantly white rural community.

But as the owner of Craft&Crew, a marketing network company that’s experienced 196.2% three-year revenue growth and is on track to hit $15 million in 2024, he’d rather talk about success.

“In my opinion, there’s never been a better time to be a Black business owner. I spend a lot of time thinking about that—there’s so much access to information and knowledge,” says Hale, whose clients include Booster Juice, Google Canada and YouTube Canada.

“We’ve had access to financing through a unique opportunity with our bank because of EDC. Our bank took an outsized risk because of the support, underwriting and backing of EDC. They played a critical role as our business went through hyper-growth and greater capital needs,” he says, adding, “At the end of the day, my takeaway in the business and entrepreneurial communities is that if you can inspire people with what you’re trying to do, you’ll succeed.”

Black-owned businesses are inspiring others with their success in a wide range of industries, including finance and insurance, food and beverage, clothing manufacturing, construction, retail trade and IT (information technology).

Even so, export by Black-led enterprises is a microcosm of Canada’s overall $768.2-billion  annual export trade. Of that, EDC facilitated $131.4 billion in exports, foreign investment and trade development activities, including $27.7 billion in emerging markets.

To dig further into the story behind Black-led exporters, Jennifer Topping, principal of EDC Market Research, did the first breakdown of EDC’s total addressable market (TAM) for Black, Indigenous, racialized and women-owned businesses.

“This is a Canadian snapshot. We used a plethora of data sources from StatsCan, Industry Canada and our own EDC data. I’ve created a model where we were able to break down the audiences by size to have a better idea of each category,” Topping says. “For the majority of Black-owned, small- to medium-sized enterprise (SMEs) exporters, 77% post annual sales of less than $2 million, 10% generate between $2 million and $10 million, and 12% post between $10 million and $300 million,” she says.

Black exporters also focus on four  main markets—the United States (77%), Central America and the Caribbean (38%), Eastern Europe and Central Asia (41%), Mexico (33%)—with South America (35%) as another target.

Planting seeds for growth

Barriers to success for Black-led businesses are both historic and systemic. Access to finance and funding, mistrust in the banking system, lack of information, and fragmented networks are all part of the overall picture.  

Barriers are compounded by other dimensions of diversity such as gender, sexual orientation, and even the types and sectors of businesses Black owners tend to create, says Femi Aiyegbusi, investment manager with EDC Investments. 

“A big challenge is that, until a few years ago, there weren’t many recognizable venture-scale businesses in the Black community in Canada. Startups were not well supported by stakeholders within and outside the community for various reasons. The implication is that the conditions and systems required for a thriving entrepreneurial ecosystem weren’t there,” says Aiyegbusi.  

“These are challenges, and they didn’t just arise— they’re historical. But on the flipside, they represent opportunities for the future. The good news is that we’re starting to see progress. To build a strong community of entrepreneurs and investors, we need to have a few early successes to inspire people and break down barriers,” he adds. 

Another major challenge, as data shows, is that the majority of decision-makers in venture capital (VC) are not from minority communities and some of them may have unconscious or conscious biases against Black-owned businesses. Known as pattern matching, this issue may disproportionately affect Black women entrepreneurs.  

Breaking down barriers also requires data to contextualize them and measure their impact. In 2020, Canada’s Parliamentary Black Caucus identified a critical gap in information when it comes to understanding Black enterprise, noting that “it’s hard to change what one cannot measure.”  

Since then, the federal government created the Black Entrepreneurship Knowledge Hub (BEKH) to conduct qualitative and quantitative research into Black business ownership in Canada. With that research and the creation of BEKH’s national entrepreneurial ecosystem map, which geolocates other Black businesses, networks and organizations, Black-owned businesses can be visible not just for their struggles, but as suppliers to potential customers, government agencies and investors.  

Through EDC’s Inclusive Trade Investments Program (ITIP), supplier diversity program and ongoing venture capital investments in Black-owned companies, like ethical design retailer Goodee and B2B (business-to-business) cybersecurity platform, Protexxa, Aiyegbusi says the seeds of change are being planted.  

Snapshot of Black-led businesses in Canada

2.1% of Canadian businesses have Black owners

29.6% of Black-led businesses are owned by women

64.8% of Black male business owners are immigrants

47 The average age of Black and racialized business owners

32.4% of Black Canadians, including Black business owners, have a bachelor’s degree or higher; but more than 40% of African-born Canadians and their children hold a bachelor’s degree or higher

The barriers they face

Of all incorporated businesses in Canada:

1.6% are Black owned

80% of Black entrepreneurs fund their businesses with personal money

81% of Black business owners have been asked for collateral in applying for a term loan

86% of Black business owners have used a personal asset such as a home as collateral, the highest rate even amongst other visible minorities and Indigenous businesses

Two-thirds of Black entrepreneurs have reported difficulty in getting $10,000 in financial support

70% of Black business owners believe “good advice” is key to accessing funding, but only 10% are getting the support they need

25% of Black businesses cite a lack of trust in financial institutions as a barrier to accessing financing and loans

19% of Black entrepreneurs feel banks do what’s right for them and their community 

35% of Black business owners aren’t aware of external organizations that could support their companies; less than 25% were aware of programs from EDC and BDC

Why exporters do better

The definition of an exporter: A person selling goods or services to another country in exchange for payment. With Canada’s 15 international free trade agreements giving companies preferential access to 51 countries (and more in various stages of negotiation) and 1.5 billion consumers, Canadian exporters can bank on a competitive advantage in the world marketplace. Reduced trade barriers, together with lower tariffs and duty charges, play a significant role in Canada’s $759.3-billion annual export trade.

“Exporters do better. They grow 45% more than businesses focused on the domestic market. They have access to bigger markets, customer bases, better trade tools. And when you export effectively, leveraging the right instruments and proper channels, you can achieve substantial benefits,” says Myriam Francisque, EDC’s national lead for Black and racialized exporters, Inclusive Trade.

Despite the doors to the world being opened to Canadian businesses, Black-owned businesses are still under-indexed. More than half of these 144,980 Black business owners are immigrants, many of whom are exporters who focus on trade with their countries of origin and countries of greater familiarity (the United States, Africa, Caribbean, Europe to name a few).

“Foreign-born Canadians immediately think of export; they’re the risk-takers. They bring new ideas from other markets and although they don't initially rely on the services and financing available, as they scale, they use Canadian infrastructure, talent, tools and assets to leverage those resources for export,” says Francisque.

Alternatively, Canadian-born entrepreneurs are “more focused on domestic market growth and are later interested in foreign markets, particularly when they perceive interprovincial business as export,” she says.

Among existing exporters, or businesses that are export-ready, several factors contribute to their success:

• Exporters often specialize in their production processes, achieving economies of scale that reduce costs and increase efficiency.
• Interacting with diverse global markets helps companies learn from international consumers and suppliers, fostering innovation.
• Exposure to stronger competitive pressures compels exporters to continuously improve their business practices and make strategic investments.

Exporting can significantly bolster a company’s bottom line. Companies that engage in international trade tend to increase revenue and profit margins, build resiliency through diversification of markets and experience cumulative performance improvements.

• Exporting opens doors to larger markets, or even foreign niche markets, leading to higher sales volumes and profit margins.
• By diversifying to an international trade model, exporters reduce exposure to single marketplace perceptions and behaviours.
• New exporters typically enjoy the largest initial benefits, but as a company’s global connectedness increases, so does its cumulative performance improvement in terms of output, employment and investment in physical, human and R&D capital.

Are you a future exporter?

Is there demand for your product or service outside Canada? There are a few questions to help guide the answer:

• Is your product or service for general use or niche?
• Does it attract a specific demographic or age group?
• What climate or geographical factors could impact the use or export of your product?
• Are there modifications needed to get your product ready for global consumers?
• What documentation or certification is required by your target trade country?
• How efficiently does the country handle export shipments?
• Do you require local representation?
• Do your goods or services need to accommodate other languages, cultures or business environments?
• Do you need to protect your intellectual property (IP)?
• Is your business scalable to accommodate domestic and international demand?

Are you ready to export? Take the quiz!

Getting to know your export market

An ethnically diverse population. A robust economy. An intensely consumer-focused marketplace. For these reasons, it’s not surprising that the United States is the primary focus for Canadian exporters, particularly Black entrepreneurs— 47% of whom already do business with our closest neighbours. Another 27% plan to export to the U.S.

For Dave Hale, owner of marketing network company, Craft&Crew, the allure of export trade with the U.S. comes down to numbers. Currently, about 20% of his revenue derives from American clients, but the benefit comes from being based in Canada.

“When a certain financial climate exists, it’s cheaper to do business in Canada than the U.S. for American companies,” Hale explains. “We charge 20% less than our American competition and we’re still 10% to 15% more price competitive. We’re actually generating better margins for our clients who don’t use domestic suppliers. We’re the lower-priced option in the U.S., but here in Canada, we’re still more expensive,” he says.

Having that market insight has led to exponential growth for his company over the past few years, illustrating the importance of understanding export demand, customer behaviour and the economic landscape. This is, particularly, important for exporters thinking about getting into the rapidly-growing Indo-Pacific region, which 43% of Black exporters identify as a key market.

For example, Francisque says familiarity with the culture doesn’t always translate to business acumen in that region. Exporters must adapt to local business practices, understand the competitive landscape and comply with import regulations.

“Immigrant founders typically have the knowledge, the network, the business environment and the tactics. The only issue is that they’re hyper-focused on a specific opportunity, so they’re less likely to innovate and diversify,” she says. “The result is that they don’t cover all the bases, or think about growing strategically, aided with Canadian resources and they stall at some point.”

Delving into local demand for a product, who the competitors are, the regulatory environment and how cultural differences could impact consumer behaviour can lead to better outcomes, as well as potential new areas of growth.

Leveraging the Canadian Trade Commissioner Service

Canada’s Trade Commissioner Service (TCS) is an invaluable resource for exporters. Trade commissioners provide in-market expertise, helping businesses navigate the complexities of international trade. They offer services such as:

• Market intelligence and insights
• Guidance on regulatory requirements
• Connections to potential partners and clients
• Support in overcoming trade barriers

In addition to the TCS, many Canadian provinces have their own trade missions and representatives abroad. For example, British Columbia and Quebec have established representation in various international markets, providing additional support to exporters.

The role of trade missions

Trade missions are organized visits to foreign markets, typically led by government agencies or trade organizations. These missions offer a unique opportunity for incorporated exporters by bringing together suppliers and potential customers in intensive, well-planned visits. Missions can focus on specific sectors and are designed to open doors for export-ready Canadian firms of all sizes—from small- and medium-sized enterprises to large companies generating millions in revenue.

There are several good reasons to join a trade mission:

• Delegates are introduced to reputable local companies, partners and distributors by an experienced team of trade experts. Introductory meetings are particularly important in some regions, where the business world is relationship driven.
• Before joining a trade mission, delegates are interviewed and screened, to ensure business goals, products and potential clients are a good fit. Other benefits include having an elevated profile from being part of a missions and developing relationships with representatives from the TCS, EDC, Canadian Commercial Corporation (CCC) and other government agencies that can offer practical tips and advice, as well as deep regional market knowledge.
• Trade missions include networking events, seminars and workshops conducted by experienced professionals and experts who share best practices and insights. Many participants also come back from trade missions with strong relationships with other Canadian exporters.
• Visiting new markets on trade missions also exposes delegates to firsthand market intelligence such as insights into trends, regulations, business practices and consumer preferences. Differences within broader regions, like the Indo-Pacific or Africa, can be complex, so market intelligence can be a game-changer in developing marketing, distribution and product development strategies.

Participating in trade missions can open doors to new business opportunities and foster valuable relationships that might be difficult to establish remotely.  Learn more about how the TCS can help you get to know your export market here. 

Why you should consider incorporating your business

For most small businesses with revenues of less than $30,000, being a sole proprietor makes a lot of sense.

Setup costs are low, losses can be written off against other income and there are fewer tax reporting requirements than for corporations. In fact, 69.5% of Black-led businesses in Canada are sole proprietorships.

On the other side of the ledger, sole proprietors face unlimited liability for debt. They’re also taxed at a personal rate. Once a business begins earning more than $138,586 a year, the tax rate jumps from 39% to 54.9%.

The alternative is to incorporate your business. For just $200, federal incorporation means lower tax rates, limited liability for debt or bankruptcy, easier access to capital and the flexibility to have a business address anywhere in Canada.

Here are more compelling reasons to incorporate—and they all have to do with growing your business and getting it ready for export trade.

1. Incorporated companies can get credit insurance (also known as accounts receivable insurance) from EDC.  Why does this matter? Companies selling internationally can ask for upfront payments, or they might consider open payment terms which can be risky. EDC Select Credit Insurance protects you by mitigating the risk of not getting paid and enabling you to be more competitive with overseas buyers by offering them more favourable payment terms. Note: Banks are more likely to loan money to a corporation already holding accounts receivable insurance.
2. Incorporated companies can go on trade missions. Far more impactful than a self-directed business tour of a potential trade partner’s country, Team Canada Trade Missions are structured, intensive one-week tours of one or more countries. They not only give potential exporters access to economic and government decision-makers, networking opportunities, future partners and support from the TCS, but trade mission members often return to Canada to do business with each other. Sole proprietors don’t qualify for trade missions.
3. Incorporated companies get access to financial resources not available to sole proprietorships. Businesses using their own assets also pay higher personal taxes and don’t have access to key financing resources, government programs, tax credits and small business deductions.
4. Incorporated businesses have a higher negotiating power for their payment terms when exporting.  

Read more about how to incorporate a business.

How supplier diversity certification can benefit your business

Scaling up a business requires a great product or service, a strong business plan, including a robust, yet flexible go-to market strategy, and an expanding list of new customers.

For business owners, supplier diversity certification can mean developing relationships with a whole new demographic of B2B (business-to-business) customers who have created procurement streams for diversity and inclusion.

“Supplier diversity certification can give you a competitive edge in the market because some corporations have, or are trying to build in, environmental, social and governance (ESG) structures, and supplier diversity is a component of these systems,” says Francisque.

What’s supplier diversity?

Supplier diversity ensures that businesses owned or controlled by women, Indigenous, visible minorities, including Black and racialized Canadians, people with disabilities and those who identify with the 2SLGBTQI+ community, have equal access to opportunities and procurement contracts. For companies adopting ESG strategies, supplier diversity is often a measuring stick for success.

What are the benefits?

The upside to obtaining certification includes:

• access to an increased supply chain of opportunities;
• access to a broader community of organizations and professionals supporting diverse suppliers;
• new revenue streams;
• greater visibility;
• enhanced brand image; and
• new networking prospects.

It also opens opportunities through public procurement contracts on Merx.com for goods and services of more than $627,200 and construction projects valued at more than $6.272 million.

Who’s eligible to be certified?

Diversity certification can be obtained by a company with at least a 51% majority ownership held by women, minorities, Indigenous peoples, 2SLGBTQI+ members, veterans, or a person with physical limitations, or other disabilities. Applicants must submit articles of incorporation, financial statements and proof of business ownership, as well as information about company operations.

Certification can also be eligible for certified B Corps—companies that meet the highest standards of verified social and environmental performance, public transparency and legal accountability while balancing profit and purpose.

Where can I get certified?

• Canadian Aboriginal & Minority Supplier Council (CAMSC)
• Women Business Enterprises Canada (WBE)
• WeConnect International
• Canadian Gay and Lesbian Chamber of Commerce (CGLCC)
• National Minority Supplier Development Council (NMSDC)
• Inclusive Workplace and Supply Council of Canada (IWSCC)
• Canadian Council for Indigenous Business (CCIB)

How do I make the most of certification?

Certification is just the first step. It’s important to research companies with public ESG strategies and network with their procurement officers, as well as government agencies and other stakeholders at business events and conferences. Leveraging community and industry networks, like the Canadian Black Chamber of Commerce (CBCC), Black Opportunity Fund (BOF), Black Founders Network (BFN), Groupe 3737, Black Business Association of British Columbia (BBABC), Black Canadian Women in Action (BCWA) or Black Entrepreneurs and  Businesses of Canada (BEBC) may also lead to collaborations on business that would otherwise be out of reach for one company.

 The Goodee diversity story

As a multimillion-dollar Canadian success story, Goodee founders and designers, Dexter and Byron Peart, have a lot to celebrate.

The Ottawa-born twin brothers established Goodee after launching their first venture, WANT Les Essentiels in 2007, with the goal of elevating ethical brands, good design and a higher purpose. Since then, they’ve also led by example, not only by supplying the world with sustainable products, but by elevating diversity supplying to an artform.

Around 50% of Goodee’s suppliers are women and another 40% are Black, Indigenous, people of colour (BIPOC)-owned companies, noted Dexter Peart in an EDC podcast with entrepreneur Joe Mimran. Internally, 67% of Goodee’s leadership are female and 50% are BIPOC.

“Part of Goodee is about discovery. And so, it was really exciting for us to say there’s so many great female creators, there’s so many great BIPOC creators, what if we created a platform for them to be able to showcase their creations, alongside some of the most well-known or well-aspired brands from around the world? And so, it’s shown up in the business as 40% or 50%,” he says, adding, “I think these are the things that we find consistent with what the general thesis was and why we wanted to do Goodee in the first place.”

Even so, their own initial experiences as the only Black suppliers in buyer showrooms exposed them to systemic and unconscious bias by purchasers, says Byron Peart.

“So yes, we’ve seen it from the customer side. But from our brand and partners, they’re very excited to be part of something that feels different and feels much more global. We’re diverse, but it’s really changing the landscape of what design looks like. That’s a rewarding thing for us, as well.” 

Finding the right financing for your stage of growth

Every business on the cusp of expanding—or in the thick of it— needs access to capital. There are plenty of options, depending on requirements, the size of your business, the industry you’re in and the stage of your growth and export cycle.

For Black-owned companies, systemic barriers to capital are real, with 60% of Black entrepreneurs saying they’d feel more comfortable approaching a financial institution with greater Black representation, according to a 2023 study by global consultants, Bain & Company. But changes are underway.

There are several options to match the right kind of financial support for your business journey.

Bootstrapping

Black entrepreneurs, historically, engage in “bootstrapping” or building their businesses from scratch using their own finances—not outside investment capital.

In the Canadian Black Chamber of Commerce (CBCC) 2021 survey, Building Black Businesses in Canada: Personas, Perceptions and Experiences, 71% of respondents bootstrapped their startup capital, in part, because the ability of family and friends to contribute was limited. It wasn’t seen as a positive option, but rather a last recourse when all else failed: Very few reported having access to angel, venture or private equity financing.

Pros

• No one to impress, but customers. Without investors to consider, this type of financing means greater control over your products and how you spend capital.
• Easier to change direction. Self-financing means responding to changes in the marketplace or demand can be quicker to implement.
• You own your business fully. You may have all the risk, but you also get all the reward and full ownership of your enterprise.

Cons

• Time becomes your scarcest currency. Because bootstrappers use personal capital, they often have to fund their business with a “day job” or even additional part-time work.  This can mean a continual time crunch to meet deadlines and longer lead times to benchmarks.
• No outside support. Not all support from investors is financial. Connections and advice obtained through investors can play an important role in a company’s success.
• The risk is all on you. While you may gain more if you succeed, you also stand to lose more if you don’t succeed. Even growth costs money to sustain, in terms of paying bills, staff and other overheads. This is a risky scenario unless your company is profitable.
• Financial strain and credit impact. Bootstrapping can damage your credit score, making it challenging to secure future loans. Rebuilding your credit and regaining lenders’ confidence will demand strategic financial planning, discipline and consistent relationship-building skills.

If bootstrapping is the most viable option, manage the risk by:

• Paying off high-interest debts to reduce financial constraints
• Using secured credit cards, or become an authorized user to build credit
• Making timely payments to maintain a positive credit history
• Monitoring your credit report, disputing errors and maintaining low credit utilization

As your credit score improves, explore traditional credit options to strengthen your financial foundation.

According to Doug Minter, CBCC partnership manager, the chamber has historically provided educational resources to empower entrepreneurs with enhanced financial literacy and credit management skills to help them strengthen their personal credit. The advisor-led program covers 12 topics, including budgeting, banking, saving, credit management, mortgages, insurance, investing, taxes, retirement, financial planning and fraud protection. These modules are available online through the Federal Consumer Agency of Canada (FCAC).

Family and friends financing: Love money

Often called “love money,” family and friends are frequently the first source of financing for startups that can’t self-fund. The term “family and friends” is used loosely, as this group of informal supporters can include everyone from immediate family to co-workers and their contacts.

Research shows that 27% of Canadian companies plan to sell their products or services outside Canada in the next year or two and 25% of current exporters have this financing.

Family and friends financing takes many forms, ranging from a capital outlay for as little as $1,000, to cash in exchange for an equity stake in your company. Either way, this type of financing doesn’t automatically mean your business is now “family owned.” It’s just that your personal network is backing you.

 Pros

• Cheapest form of financing. Whether it’s a loan or equity agreement, you can likely determine the terms yourself.
• Easiest money to raise in the early stages. It doesn’t require much more than a sound idea, a business plan and a compelling pitch.
• Flexibility in returning dividends or loan repayments. Unlike a bank, family and friends can be more accommodating about payout deadlines.
• Everyone wins. When you succeed, you share your financial rewards with family and friends for their trust in your business.

Cons

• Everyone’s at risk. A vast number of startups fail which can jeopardize relationships with family and friends. Make sure they only invest what they can afford to live without.
• Financing is limited. The amount of capital available to you is limited. Eventually, you’ll have to source it from other places.
• Power struggles. You may get more than money. This type of financing often leads to family and friends feeling entitled to offer advice, guidance and opinions on how you run your business.

There’s consistent narrative about Black generational wealth buildout and intergenerational benefits. In this article, Shawnnette Fraser explains why generational wealth is key to changing the narrative for Black Canadians.

Equity financing

Early in a company’s lifecycle, access to capital is critical to growing a business. As a company is commercializing, or even before it’s generating revenue and becomes cash positive or has cash flow, it’s harder to raise traditional debt financing from a lending institution, unless there are assets or credit deemed worthy of backing as security for repayment.

Pre-seed or seed round financing

The goal of seed round financing is to raise enough capital from outside investors to get a company off the ground, or develop a product prototype. This financing is offered in exchange for equity in your company and can range from $50,000 to $2 million. This is particularly attractive if you can’t self-fund, or don’t have access to a credit line. Lack of working capital is a primary reason why a high number of startups fail.

Pros

• Angel investors are putting up their own money, so they’re often willing to negotiate and are less risk-averse than banks.
• Typically, angel investors take an ownership stake in your business rather than interest payments, or repaying the loan. If you fail, they receive nothing.
• Angel investors can be an incredible resource for networking, guidance and expert support in growing your business because they’re already successful in business. Having their backing can also lead to bigger opportunities.
• Angel investors, typically, have deep pockets and will invest anywhere from hundreds of thousands to millions of dollars.
• Angel investors see the value of backing a local enterprise that can be groomed for international markets.

 Cons

• This class of investors is backing you to make money, so their expectations of your performance and pressure to success can be intense.
• Every angel investment dollar you access means you’re trading off your future business earnings, based on their ownership stake. In other words, your future profit is shared.
• Angel investors aren’t just giving you money; they’re buying a stake in your decision-making, too. Most angel investments are one-time deals and rarely lead to second-round financing.
• Black-led businesses find it more challenging to find a suitable angel investor in Canada, leading some to venture to the larger U.S. market.

What to include in your seed funding pitch:

• Concept development details
• Market research viability (MVP)
• Your business vision and mission
• Market and demographics research
• Founding team with clear roles

Venture capital/private equity (Series A, Series B, Series C rounds)

As a company reaches commercialization and achieves initial market traction, they’ll likely need to raise more equity capital to continue to scale the business and grow sales.

Beyond angel investment, entrepreneurs can raise money through venture capital (VC), or private equity in which institutional investors, investment banks and other financial institutions back startups and small businesses with long-term and high-growth potential.

 In other words, VC investors are betting on your profitability and generally, get partial ownership and a vote as equity for their investment.

• Series A funding is important during the early growth stages, but because a startup hasn’t had time to develop a consumer base, Series A investors can be hard to land.
• With Series B, companies are more established, so the investment is aimed at product development, talent acquisition, business development and marketing.
• Series C funding is focused on upscaling an already successful company even further.

Pros

• Series funding offers your company a cash injection, builds your connection to investors and demonstrates your backers’ confidence that your company or product has high-growth potential.
• The greater rigour required in financial controls, analytics and securities compliance will only strengthen your company.
• With more capital, you can become more competitive through talent acquisition, visibility through more robust marketing and expansion to overseas markets.

Cons

• By accepting VC funding and handing over a stake, or voting rights, in your company, you risk losing control.
• The cash injection may be used to grow, but if revenue never catches up, you may be victim to premature upscaling, or spending resources on customer acquisition that never comes through.
• Companies face greater stress over performance, new levels of bureaucracy and loss of ownership control, as well as the increase in growth risk.

Specialized financing options for Black-owned business

• BKR Capital specializes in making early and transformational investments in innovative Black-founded tech companies such as Goodee, Treepz, Aarternal and Protexxa. EDC also invests in BKR Capital as a way of indirectly supporting smaller enterprises.
• The Black Opportunity Fund is a charitable organization that supports Black enterprise by facilitating access to capital and through grants to charities and not-for-profit organizations.
• EDC Investments offers venture capital funding to exporters, businesses and funds with annual revenues of $10 million to $300 million, as well as later-stage investments for those doing $5 million to more than $50 million in revenue. Strategic initiatives include cleantech and inclusive trade.
• Tribe Ventures is a $20-million venture capital fund launched by Tribe Network to invest in pre-seed and seed-stage businesses led by racialized founders.
• The Business Development Bank of Canada (BDC) is investing $250 million in financing and training for Black-, Indigenous- and women-led businesses.

Lise Birikundavyi, managing partner at BKR Capital, advises Black business owners looking to secure funding to “be highly intentional about who you’re pitching to. Building an investor persona (the same way you build a customer persona) can be helpful to optimize your time and land funding faster.”

She emphasizes that making a strong first impression is crucial, so be prepared to discuss all aspects of your business thoroughly. “Demonstrate your traction and how defensible your business is with concrete evidence,” says Birikundavyi. It’s also important to build and maintain relationships with investors, she says, noting that a “no” today can turn into a “yes” tomorrow if you keep a great relationship, and showcase your ability to execute your business. 

Funding from financial institutions or debt financing

While bank financing appears to be accessible, Black business owners, at times, feel a mistrust in Canada’s largest banking institutions. The 2023 survey by Bain & Company found that 25% of Black Canadian entrepreneurs don’t trust banks, while another 19% said they didn’t think banks would do the right thing by them or their communities.

Even those who do approach banks are faced with systemic barriers. A 2020 Industry Canada survey of financing for small- and medium-sized enterprises (SMEs) examined interest on loans and found that 81% of Black entrepreneurs were asked for collateral, compared to 62% of other applicants. Where 77% of other applicants put up a business asset as collateral, 86% of Black entrepreneurs used a personal asset such as their home.

Pros

• Predictable monthly payments
• Build business credit ratings
• Professional banker relationships can help add weight to other forms of financing in the future.
• Financial support can be used for a variety of purposes and isn’t tied to one aspect or another.

Cons

• Applications for business loans can take time.
• Requires a strong credit rating and may require incorporation
• Usually requires specific collateral

Things to know about dealing with banks

How your creditworthiness is evaluated: Financial institutions (FI) determine creditworthiness based on data from companies similar to yours and how they perform, an analysis of your business history, including borrowing, repayments, cash cycle and payment terms.

Why foreign assets are not always recognized: Foreign-held assets, including overseas accounts, aren’t often assigned a value by banks in Canada because they’re hard to liquidate, or make claims against, should a loan be defaulted.

Competition for loans: Your idea may be worthy, but is it competing against other equally valuable companies? That makes it even more important to have your business case, projections, profit-loss statements and other information in order.

Bankable versus lendable: Companies with financial data are called bankable, meaning they can open a business account, deposit revenue and pay bills. Being termed lendable requires three years of statements for assets, financials, inventory and accounts receivable. You also need a minimum risk rating.

Small business bank loan versus commercial bank loan: A small business loan requires strong personal credit and cash flow; a commercial bank loan is typically used for major capital expenditures, or operational costs, and works as a debt-based arrangement between a bank and commercial business.

Bank financing for Black businesses 

Many financial institutions offer programs designed to meet the needs of Black entrepreneurs.

• RBC Black Entrepreneur Business Loan offers Black business owners loans of up to $250,000 through an online form. To apply, a company must submit a one-page business plan, financial projections for startups, or a year-end financial statement for those in business for more than two years. Startups can also apply through RBC to the Futurpreneur Black Startup Program.
• BMO for Black Entrepreneurs is a program that offers loans of up to $150,000 for businesses that are 50% majority-owned by a Black Canadian and has an annual revenue of more than $10 million. Loans can be used for capital investments, working capital and short-term accounts receivable financing.
• CIBC Black Entrepreneur Program Loan offers up to $250,000 with a variable rate loan and flexible terms. CIBC also backs the Black Opportunity Fund’s non-repayable grant of up to $2,000.
• TD Black Entrepreneur Credit Access Program aims to make products and services more accessible to Black businesses by waiving setup fees on new credit and credit increase requests under $50,000, offering interest only for certain products for up to 12 months and offering access to the Black Customer Experience team.
• BDC Inclusive Entrepreneurship Loan offers up to $350 million for businesses that are majority-owned by women, Indigenous and Black entrepreneurs with revenues under $3 million. The program aims to support growth objectives and create a more diverse and equitable landscape for entrepreneurs.

Since 2021, several Black-focused loan programs have emerged, offering growth options through capital injections, mainly term loans. But according to the Canadian Black Chamber of Commerce, more education and options around lines of credit are still needed.

While loans are typically used to purchase assets, lines of credit are ideal for short-term working capital needs and managing cash flow gaps. Protecting the credit and net-worth position of business owners is crucial, whether they’re startups or scaling firms.

Five things banks need to assess a loan application

1. Have a clear definition of your objectives and how the money would be used to achieve them. This will help the FI account manager guide the conversation towards a loan, line of credit, or other solution.
2. Bring three years of financial statements to illustrate your company’s viability. A business plan, projections and creditworthiness are also important. Tip: Borrowing money is easier when you’re making money. Waiting until you record a poor performance year may present too much risk for some FIs.
3. Make a list of collateral, which may include real estate, equipment, inventory and accounts receivable. Note: Banks typically look for $2 in collateral for every $1 borrowed. Likewise, in-hand inventory is usually assessed at 50 cents on the dollar, while domestic accounts receivable are assigned 65 cents on the dollar. With credit insurance that rises to 90 cents on the dollar.
4. Bring your pitch deck, ensuring it captures both your vision and bottom line. Be prepared to discuss your export market, the risks and opportunities, short-term plans and long-term projections.
5. Work with your FI’s risk appetite, so they can understand how they’ll recoup their losses. EDC Credit Insurance and EDC’s working capital guarantees are designed to reduce risk for banks on your behalf. Learn more here.

Government agencies and bodies

While there are myriad places to start looking for support from government programs, the sheer number of websites, pages and applications can be daunting.

Innovations Canada has developed the Business Benefits Finder, a quick tool for entrepreneurs and exporters to narrow the options based on a few quick questions about business goals and financing needs.

EDC Inclusive Trade Investments Program (ITIP)

Through EDC’s Inclusive Trade Investment Program (ITIP) and broader inclusive trade strategy, several key initiatives are underway:

• A $200-million commitment in equity support to address lack of access to capital for equity-seeking groups
• Collaboration with BKR Capital, a venture capital firm that focuses on investing in Canadian pre-seed and seed stage technology companies founded by Black entrepreneurs
• Creation in 2020 of the supplier diversity program, which partners with organizations that certify diverse-owned businesses and has led to $3.4 million in procurement from diverse suppliers

Developed specifically for investing in women-led companies, or diverse management teams, that are raising or recently raised equity funding to grow exports, ITIP reduces the barriers to capital for women, Indigenous, Black and others. EDC is contributing as a co-investor, or syndicate partner alongside other qualified venture funds, to support international growth. We participate on market terms, but don’t provide grants or subsidies under the ITIP.

To access ITIP, export-focused companies need:

• An overview of your company and sector
• Trailing 12 months (TTM) revenue and run rate
• Transaction term sheet (if available)
• Use of proceeds and export profile

In addition, ITIP has published program criteria for applicants:

• Must be a Canadian company owned or led at the C-suite level by those who identify as women, Indigenous, Black or other racialized peoples, 2SLGBTQI+ or people living with disabilities
• Must have a C-suite whose diverse members have equity ownership consistent with other C-suite members
• Must have commercial revenue growth of $500,000, with significant export growth potential
• Demonstrates commitment to establishing a diverse board of directors

Learn more here.

Small business loans from Business Development Bank of Canada (BDC)

Revenue-generating, Canadian-led businesses that have been operational for more than 24 months may qualify for a small business loan from BDC, a Crown corporation and national development bank mandated to help create and develop Canadian business. You must also have a good credit rating and have reached the age of majority where you live.

• Apply online
• No application fees
• Affordable rates, terms and conditions
• No personal assets taken as collateral
• Capital payments can be postponed for the first six months.
• The loan can be repaid over five years, with no penalties for early lump sum payments.
• Up to $100,000 

Learn more here.

BDC Inclusive Entrepreneurship Loan

Designed for incorporated Canada-based businesses in operation and revenue generating less than $3 million, this program creates a more diverse and equitable landscape for entrepreneurs.

Must be at least 51% owned and led by members of underserved communities (Indigenous, women and Black).

• Apply online
• No application fees
• Affordable rates, terms and conditions
• No personal assets taken as collateral
• Capital payments can be postponed up to 24 months.
• Up to $350,000

EDC’s working capital guarantees

For exporters whose financial institution isn’t willing to support the risks associated with your international trade plans, EDC offers working capital guarantees. These guarantees mean that, with EDC backing, the financial institution may be able to offer business loans to match your needs. These may include plans to broaden your international customer base, go big on global contracts, purchase new equipment, open a remote office, or require assets as collateral. 

Grants and other funding

Black Entrepreneurship Loan Fund

The Black Entrepreneurship Loan Fund is a partnership between the Federation of African Canadian Economics (FACE), the federal government, BDC and private sector financial institutions. The fund loans up to $250,000 to support Black businesses across Canada. Applicants can expect to submit:

• A detailed business plan
• Current financial statement
• Two- to three-year financial projections
• Current tax returns and Notice of Assessment for business
• Personal statement of affairs
• Government-issued photo ID
• Certificate of incorporation or registration

Black Entrepreneur Startup Program

For young entrepreneurs aged 18 to 39, Futurpreneur offers the Black Entrepreneur Startup Program, providing mentorship, resources and loans for startups. Click here to learn more about eligibility as well as requirements and ineligible businesses.

Black Opportunity Fund

The Black Opportunity Fund, part a five-year, $10-million investment by TD Bank, also offers support and loans to Black Canadian entrepreneurs with a sustainable business model, who have been declined for a loan by a Canadian financial institution in the past two years. Qualified applicants could receive up to $50,000 in financing.

Desjardins Créavenir Youth Entrepreneurship Program

• Offered by Desjardins Créavenir, this program is intended for Montreal-based entrepreneurs, aged 18 to 39, who are just starting out. A line of credit of up to $15,000 at prime + 0.5%, for a five-year period.
• If necessary, a grant of up to $5,000, which can be used as leverage for obtaining financing from other sources.

To be eligible for a loan and subsidy, you must:

• Both reside and launch your business on Montréal Island
• Be at the launch phase, or have operated a business, for less than three years
• Ages 39 or less
• Be a member of a participating Desjardins caisse or prepared to join one
• The financial aid received must be used as leverage to access other sources of financing.

From basketball to biotech: Akeem Gardner

Back when Akeem Gardner wore the No. 22 basketball jersey at the University of Ottawa, his position was forward and his goal was to be a coach.

But the two-time entrepreneur and CEO of biotech firm, Canurta Therapeutics, is more of a point guard than anything else: Strategic, skilled, adaptable and able to see and direct the next move from the middle of the game.

Despite setbacks—COVID-19, mid-stream pivots and barriers to financing—Gardner has run with the ball: He’s raised more than $10 million in capital to date through investors, government grants, and funding.

The next round of seed financing, to run clinical trials, is pivotal to Canurta becoming a Canadian pharmaceutical company focused on botanical therapeutics.

“We’re preparing for the next jump,” says Gardner, whose drug development program integrates digital technology and machine learning with botanical science.

“Our goal is to take rare molecules found in nature and develop them into botanical drugs to help in the areas of neurodegenerative disease, with a better safety profile than synthetic medicines on the market today,” he says.

The first clinical trials will focus on a particular patented formulation derived in part, from botanical by-product. The therapeutics are poised to improve the quality of life and slow disease progression for patients with amyotrophic lateral sclerosis (ALS), a degenerative disease that affects nerve cells and causes loss of muscle control. ALS is typically fatal within 18 to 24 months of diagnosis.

“So far, our capital has gone into scaling our technology, protecting first-moving IP (intellectual property) and developing the data to justify forward progression of our programs. We know that we can produce these products at an industry-leading standard. Now is our time to show the world — we’ve been working not only to serve Canadians, but a global population with a Canadian-made innovation,” he says.

For Gardner, a major incentive in getting into biotech was the federal government’s shift in attitudes towards medical cannabis in 2016, with the Access to Cannabis for Medical Purposes Regulations (ACMPR), followed by legalization in 2018. Through the inception of a legal cannabis industry, Canadian scientists have been able to undertake research and development into therapeutics that wasn’t previously possible.

“I can say that, especially being a young Black entrepreneur in Canada building our company, we’re the beneficiary of a lot of decisions our country made about being open about botanical therapeutics. The ability to ask questions we couldn’t ask before allowed us to get a head start at developing our intellectual property portfolio that is now becoming interesting to other countries and markets around the world.”

Throughout his journey, Gardner has connected with EDC, BDC and Farm Credit Canada (FCC). Although initially he may have been “either too early or not exactly on track,” he grew to become a leader in the ever-expanding life sciences domain. His persistence and growth have not only positioned him as a peer to sister companies but also allowed him to forge lasting relationships, which he now strategically leverages to help facilitate the buildout of a Canadian research and manufacturing headquarters and the development of Canurta’s global export business.

The future looks bright, but getting there hasn’t been without setbacks. After graduating from university then earning a bachelor of law in the United Kingdom (U.K.) Gardner saw opportunity in the form of an Orangeville, ON, hemp farm.

Armed with passion for the project and “nothing, but garden clippers,” he asked farmers questions, learned everything he could and raised formative amounts of capital from friends and family. He also joined networks and incubator programs, like Altitude Accelerator and Innovate Niagara.

The pandemic, while at first a major obstacle, provided an unexpected opportunity to pivot: It forced Gardner to shelve plans for his hemp products and shift his focus to health care. By then, he’d been introduced to bio-scientists at the University of Guelph, Lambton College and George Brown College, all of whom were focused on biotherapeutics.

Backed by University of Guelph research, Gardner was able to raise his first $500,000 to launch Canurta Therapeutics. As he works towards his next goal, Gardner says he makes it a point to share what he’s learned to help uplift other Black business owners.

“One, you always have to be the hardest working person and know everything about your business, right? That’s not to say you must know everything. It means you’re smart enough to know what you know and what you don’t know—and to ask for help,” he says.

“Second is about having a non-victim mentality. We can’t victimize ourselves and allow that to hold us back. We have every opportunity in the world, although we may start from a different place,” he says, adding, “And it may mean we have to work a little harder to earn the opportunity, but it’s there for you.”

Gardner’s story is one of vision, tenacity and agility, achieving continued success through strategic thinking and collaboration.

Mitigating risk: Tools to protect your business

For most exporters, risk mitigation is all about aiming for success but planning for speedbumps and detours along the way. But for Black entrepreneurs, the topic of risk comes very early, starting with how they get financed.

“The biggest issue is where bootstrapping as capital is prevalent. Structures within banks aren’t necessarily conducive to understanding the early-stage entrepreneur taking that risk. So, a lot of documentation may be required for even the smallest loans,” says Agatha Alstrom, vice president, Insurance and Working Capital Solutions at EDC.

Even when educated about the pool of private and government funding or grants, a complicated application system stops many from advancing through the process.

“There is a need for the further development of a single door for entrepreneurs to go through to get funding. There’s also a need for more awareness of the amount of information that’s required and making that more efficient for entrepreneurs,” she adds.

To learn more, EDC conducted a survey of Black entrepreneurs, looking at the application process and how to simplify it both within EDC and for other agencies, like BDC.

Another risk factor faced by Black exporters, particularly from immigrant backgrounds, is a reluctance by financial institutions to back trade with some emerging economies.

“Most likely, they’re shipping to countries that they’re from, and those are not necessarily understood by traditional financial institutions, so the banks may not wish to take that risk. The banks may not understand the products being shipped, either, particularly if they are products specific to the community,” says Alstrom.

For Black-owned businesses working with EDC, there are several risk-mitigation products, tools and strategies to guide them to success. 

1. Market intelligence: In addition to offering advice, insight and support, EDC helps exporters mitigate risk in several ways, starting with market knowledge. EDC regularly publishes Global Financial Markets reports with the latest financial and economic information for established and emerging markets.

Understanding a potential market from many angles—including its tariffs, sanctions, shipping and customs—are all critical in alleviating or forestalling issues later on. Trade with other countries will also attract domestic and import taxes. EDC offers expert information and resources through our TradeInsights guides, webinars and articles. (TradeInsights also has several excellent resources for exporters seeking information on building a business and export plan, growing sales, entering markets and security.)

2. Insurance for non-payment of accounts: Once in new markets with new customers, exporters run the risk of non-payment of accounts. To counter that, EDC Portfolio Credit Insurance is available to all Canadian exporters, to mitigate the risk. That means if a client defaults on their account, refuses to accept goods, terminates the contract before shipment, or there are in-market hostilities that prevent payment, EDC covers up to 90% of insured losses. In many cases, financial institutions are more willing to lend with this guarantee in place.

Get a free quote here.

3. Access to working capital: For businesses with annual revenues greater than $10 million, EDC can help with direct lending. Through the program, EDC works with lenders to fill gaps in financing, with pricing commensurate with risk.  Our Trade Expansion Lending Program (TELP) is a working capital guarantee. We work with financial institutions to take on some of the international risk they wouldn’t manage on their own. This maximizes the amount of working capital available to a borrower.

To understand your need for working capital through a cash flow plan, check out BDC’s free cash flow statement template and the cash flow calculator. 

4. Foreign currency fluctuations: Changing currency rates are a key issue facing exporters. Currency fluctuations can be caused by unpredictable forces, like extreme weather or political instability, as well as inflation, interest rates and balances of trade between countries.

Keeping track of the value of the Canadian dollar and using that knowledge strategically can help reduce costs and protect against dramatic changes. By using a foreign exchange (FX) hedging strategy, exporters can more accurately predict fluctuations and protect profit margins with more precise product pricing. Learn more about FX hedging tools here.

EDC’s Foreign Exchange Facility Guarantee protects profit margins by locking in exchange rates. Learn more about eligibility and how it works here. 

Compliance and understanding export regulations

When you’re exporting across the border to the U.S. or around the world, red tape is part of business—whether it’s understanding import regulations governing shipping, or managing customs at the border. There are several resources to guide the way.

• The Trade Commissioner Service has a Step-by-Step Guide to Exporting, that provides a 10-step process from assessing your export potential to understanding the legal side of international trade.
• Canada Border Services Agency’s Guide to Exporting Commercial Goods from Canada contains reporting requirements, application forms, what to expect when your export goods are inspected and your responsibilities.
• In partnership with the Forum for International Trade Training (FITT), EDC offers the EDC x FITT Lite Learning Series, with articles on establishing sales channels internationally, understanding foreign currency risks and crossing borders and managing customs, amongst many other useful topics.
• EDC’s article, Understanding Incoterms, outlines everything you need to know about these three-letter acronyms that describe the obligations, risks and costs between buyers and sellers as part of a global sales contract.
• Shipping internationally can lead to major headaches with the wrong freight company. EDC InList draws on our global network to find the best freight forwarders internationally. EDC partners, including the Canadian International Freight Forwarders Association (CIFFA), can be of great support.
• Wondering about how to build your own trade and compliance program? Learn more with Compliance & logistics: What you don’t know could cost you.  

Cast your net wide: The value of networking

“Opportunities are like doors; they're very quick to close as fast as they open. Take advantage of every single opportunity that's presented to you. Period.”

– Wes Hall, Founder of WeShall Investments private equity firm and 2022 Canadian Business Leader of the Year

How important is networking to your business?

Almost 80% of business professionals said networking was critical to career success, according to a global survey by LinkedIn. Leveraging your network can lead to new customers, better information and game-changing mentors.

Yet for Black business owners, accessing business networks, or finding those with diversity representation, is a major barrier to landing mentors and financial backing.

“We know that venture capital funding is going to only 1% of Black men, and 0.1% to Black and Latina women. Statistically, white male founders get 76% of funding while white women get the majority of diversity funding,” says EDC’s Myriam Francisque.

What’s more, while 86% of organizations surveyed in 2022 have formal board diversity policies, only 10% of board directors in Canada are Black, Indigenous or people of colour (BIPOC).

“Networking is a barrier—it’s as simple as that,” Francisque says. “Business trickles down by forging relationships and getting access to relationships. That’s how you get contracts, but how to you get access?”

Even when a business owner feels hesitant about engaging in networks where participants aren’t familiar, she says it’s important to see past the roadblocks to success.

“Don’t let other people’s biases be your barriers. If you want to run a solid, successful business, be intentional about it. Your customer base is everyone. You want all the clients you can get, so pitch yourself. Sell your ideas to anyone who listens. Go where you feel like you don’t belong,” Francisque says. “There is discomfort in that, but it’s critical to overcome it.”

Understanding the discomfort and the barriers Black exporters face as they navigate their way through EDC’s own network is the driving force behind EDC’s Black Employee Resource Group.

“This came along right around the time of George Floyd’s death (which triggered the Black Lives Matter movement in 2020), recognizing the need for organizations to do better, to create fairer opportunities, recognize systemic issues that exist and support our inclusive trade efforts,” says group co-chair Gwladys Tapsoba, advisor for International and Export Credit Agencies at EDC.

The group also consults with some Black exporters to share their experiences, create a community to support goals and positively impact how young entrepreneurs view business and exporting, Tapsoba says.

“At EDC, we take care of our customers and we also care about our Black employees shining a light on their experience. We bring together customers and staff to share their knowledge, which re-creates our EDC ecosystem,” she adds.

“The more we do that, the more we can showcase EDC business and how EDC can better understand the needs of clients. For example, we have amazing Black exporters, but they don’t always fit in a box. So, we need to see the relationship as, ‘Here’s financial support, but you’ll face more challenges because of your skin colour, or your products, so how can we support and empower you?’ I think that’s what EDC is doing, end to end.”

Who should be in a business network?

Whether finding or building a network to grow your business, there are several key people whose advice, support and specialized knowledge will be critical. They include:

• Mentor or executive coach who works either formally, or as an informal advisor
• Industry experts, members of associations and leading members of your business community willing to share their successes and connections
• Professional advisors who specialize in financial, legal and accounting industries to build support, a knowledge base and resiliency when facing challenges or financial and legal issues
• Government organizations such as EDC, BDC and TCS that can offer an incredible wealth of resources, funding, and potential partnerships
• Potential strategic partners who can help you extend your reach in communities and obtain stronger intelligence about markets

Networking in the online era

While networking is important, it also requires determination and the courage to put yourself in situations where you feel out of place, or have to start your networking from scratch.

That scenario may not suit every person, so it’s important to play to your strengths, notes Dave Hale, who says he often found himself to be the only Black business owner in the room.

“Networking only works for people of a certain personality, where you get gravitational pull. But there are so many ways to grow a business and sometimes, people from other backgrounds can do it their way,” says the founder of Craft&Crew, an Ottawa-based network marketing company.

Having a savvy and strategic online presence can help create and strengthen a personal or business brand and develop networks. Here are a few key virtual networking groups worth considering.

• LinkedIn. With more than 740 million members in 200 countries, LinkedIn has emerged as more than a warehouse for your resumé or business profile. Posting content, including articles, thought pieces and updates, as well as joining groups organized around professional categories, can lead to a greater following and fruitful conversations.
• Facebook. Facebook groups are an excellent informal and quite democratic network when it comes to knowledge-sharing. Start by using the search function to look for potential groups associated with keywords representing your interests. Also try searching for Facebook groups through a search engine. Once in, participate by sharing news, asking questions, or posting queries about business issues. Whatever you post, ensure it follows the group’s rules.
• X (Formerly Twitter). Although X can be a rabbit hole, it’s very easy to locate key players in your industry and follow them for regular, up-to-the-minute updates, or even post a question or ask them for recommendations.
• Virtual events. Virtual events have matured since they first emerged out of necessity at the start of the pandemic. Your online social network, industry associations and government organizations such as EDC will have a constant flow of virtual events from which to choose.
• Most importantly, remember to sign up for a free MyEDC account for access to webinars, guides and articles on a vast range of topics—from networking to mastering international contracts.

Key networks

• Black Entrepreneurship Knowledge Hub (BEKH) is a national network of six research hubs, conducting research and studies focused on helping Black businesses reach their full potential. A key deliverable is the Ecosystem Mapping Project, which gives national visibility to participating individuals, organizations, and investors. Click here to learn more or join the BEKH community. 
• Sedulous Women Leaders is an entrepreneurship ecosystem committed to empowering, mentoring, supporting and educating immigrant women in management and entrepreneurship. It also has a retail incubator and entrepreneurship school and the award-winning REAP+iLaunchHERproduct retail readiness incubator program.
• Canadian Black Chamber of Commerce (CBCC) advances the economic development of Black-owned business in Canada and offers resources, programs and networking events.
• The Federation of African Canadian Economics (FACE) is a national, bilingual organization offering a network, resources and information for Black businesses.
• Groupe 3737 is a Montreal-based non-profit with 12 offices across Canada that offers free entrepreneurial support programs and initiatives aimed at promoting businesses led by ethno-diverse entrepreneurs.
• CORALUS (formerly SheEO) is global community supporting and empowering women and non-binary people with one million “activators” helping women achieve their business goals.
• Startup Canada connects Canada’s entrepreneurs with the tools, community and support to start and build their businesses.
• EDC’s Trade Accelerator Program (TAP) is a unique and innovative program that helps small- and medium-sized enterprises (SMEs) gain knowledge and a network of contacts to support their export goals.

There are also several provincial associations that offer networking, including:

• Black Business Association of BC
• Atlantic Canada Black Entrepreneurship Ecosystem Program
• Black Canadian Women in Action (AB)
• Black Entrepreneurs and Businesses of Canada Society
• Black Founders Network
• Black Opportunity Fund
• Audace au Féminin
• Fonds Afro-Entrepreneurs
• Black Canadian Women in Action
• Black Entrepreneurship Alliance

Your international trade team

No matter the size of your company, or where you are in your journey, Canada has a trade team ready to help.  

This interconnected group of federal government partners works together to support international growth. Whether you need research and development assistance, financing strategies, solutions to overcome risk, access to market intelligence, or introductions to solidify your in-market presence, Canada’s trade team can help. 

Canada’s Trade Commissioner Service (TCS)

For more than 120 years, the TCS has helped Canadian businesses make connections, understand foreign markets and find in-country support. The TCS operates in more than 160 cities worldwide. Among its most valuable services are trade missions to countries with export potential.

• Discover the world of Team Canada Trade Missions.
• Connect with a trade commissioner in Canada or abroad by visiting here.
• Read the TCS’s Step-by-step Guide to Exporting.
• Learn about the CanExport program and how the Canada’s inclusive trade strategy can help your business.

Business Development Bank of Canada (BDC)

Known as the bank for entrepreneurs, BDC has worked with small- and medium-sized businesses for more than 75 years, offering financing and advice at every stage of growth.

Regional Development Agencies (RDA)

As part of the Government of Canada’s Innovation and Skills, there are seven RDA nationally that can help guide business development in each region. Learn more about Canada’s regional development hubs here.

National Research Council’s Industrial Research Assistance Program (NRC IRAP)

The National Research Council Industrial Research Assistance Program helps small- and medium-sized businesses expand their innovation capacity with financial assistance, advisory services and connections to business and R&D expertise in Canada. 

Innovation, Science and Economic Development Canada’s Accelerated Growth Service

The Innovation Canada Accelerated Growth Service helps entrepreneurs and businesses access the tools they need to grow and scale up. The service has innovation advisors who conduct tailored searches for resources.

Agriculture and Agri-Food Canada’s international trade services

Explore international agri-food market intelligence, trade show services, marketing resources and a range of other international agri-food focused services here.

How EDC can help

Financial solutions

EDC Credit Insurance helps protect your bottom line if your U.S. or international customer doesn’t pay you. 

EDC working capital solutions help maximize the working capital you can access through your financial institution by take on some of the international risk that your financial institution would not be comfortable with alone. 

EDC Inclusive Trade Investment Program (ITIP) is a program tailored for women and other diverse exporters who are raising, or have recently raised, equity funding to support international growth.

International trade expertise

EDC webinars: Our live and on-demand webinars feature world-class trade experts and delve into an array of must-know trade topics, like how to target and win new customers, where to find your next market (and trustworthy agents within it), how to get more money to grow, and more.

EDC Export Help Hub:  Find the answers to all of the most important questions that Canadian companies ask—instantly and for free.  And if you can’t find an answer to your question, you can ask it directly to an EDC advisor. 

EDC x FITT Lite Learning Series (Forum for International Trade Training): Build your skills, confidence and business with free learning resources—directly from FITT’s online training (in video or PDF format), the global standard in international business readiness.  Topics include International Contracts and Partnership Agreement, Crossing Borders and Managing Customs, and Selecting a Market Entry Strategy. 

EDC TradeInSights: From the early stages of exporting to global trade trends, our experts share their knowledge and insights on topics that will help you take your business beyond borders. 

EDC Global Economic Outlook: Get expert insights, including overviews of key countries, to help you make better business decisions.

Just one more thing…

Although the resources available to Black exporters and entrepreneurs can be overwhelming, challenging to access, or seem out of reach, we hope this guide has offered some insights and guidance for your next step in growth. We’re here to help.

Have any questions?

There’s an entire team at EDC available to help. Contact us here.

Media inquiries: media@edc.ca or 1-888-222-4065

ABOUT EXPORT DEVELOPMENT CANADA

Export Development Canada (EDC) is Canada’s export credit agency. Our job is to support and develop Canada’s export trade by helping Canadian companies respond to international business opportunities. We’re a self-financing Crown Corporation that operates at arm’s length from the Government of Canada.

Legal disclaimer

EDC doesn’t represent or warrant the accurateness, timeliness or completeness of the information contained herein. EDC isn’t liable in any manner whatsoever for any loss or damage caused by or resulting from any inaccuracies, errors or omissions in the information contained in this document. This document isn’t intended to and doesn’t constitute legal, financial or tax advice, nor should it be relied upon. For legal, financial or tax advice, please consult a qualified professional. 

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