Capital Skills Evaluation Report

Despite the availability of financing and procurement opportunities, access to financial capital remains one of the most significant barriers for equity-deserving entrepreneurs. Multiple studies suggest that women entrepreneurs face more challenges to receive funding from private equity, institutional capital, and banks. Black entrepreneurs often encounter systemic barriers within financial institutions, including higher loan rejection rates and less favourable lending terms compared to their white counterparts. The challenges that Indigenous entrepreneurs face when accessing financing for their businesses are well-documented. Moreover, the disconnect between traditional Indigenous business practices and Western financial systems makes it difficult for Indigenous entrepreneurs to navigate funding processes effectively.

The Capital Skills program was designed to address the financial capital needs of equity-deserving entrepreneurs, with a particular focus on women, Black individuals, and Indigenous Peoples. Phase 1 was implemented by four partners with longstanding expertise in serving equity-deserving entrepreneurs: the Canadian Council for Indigenous Business (CCIB), Mount Saint Vincent University (MSVU)’s Centre for Women in Business (CWB), the Black Business and Professional Association (BBPA) and the Canadian Aboriginal and Minority Supplier Council (CAMSC). It included 13 targeted modules delivered between November 2022 and June 2023 aimed at enhancing participants’ capacity to access financial resources. While some modules were tailored to specific grant opportunities, the primary emphasis was on grant and proposal writing, financial and business planning, and strategies for accessing capital.

Building on the lessons learned from Phase 1, Phase 2 launched in July 2024 as a small pilot project led by CCIB in partnership with the Diversity Institute (DI), Jelly Digital Marketing and PR Firm and the Ontario Chamber of Commerce (OCC). This phase provided targeted support to assist participants in applying for the Canada Digital Adoption Program (CDAP) Grow Your Business grant, with the goal of achieving 25 successful applications. Phase 2 adopted a more hands-on approach by collaborating directly with grant administrators to streamline processes and offer tailored support. This strategy aimed to position participants as successful grantees while addressing barriers to accessing funding.

A key part of the Capital Skills program was a rigorous evaluation of the program. The evaluation used quantitative and qualitative methods to assess program delivery and outcomes, including three sequential surveys and semi-structured interviews with program participants and staff.

The results of these evaluations revealed both successes and continued challenges that diverse entrepreneurs face. Participants and program staff noted improvements in a range of business, financial and networking competencies. However, the improvements varied. Many competencies saw significant improvement, including the ability to develop contingency plans, approaching investors or starting a professional conversation. Other competencies saw moderate improvement and a few competencies saw little improvement. The evaluation revealed that one-on-one coaching, accessible instructors and program administrators, and developing a network were the most effective program components.

In spite of the focus on preparing businesses to secure financing, many participants continued to face barriers in securing financing. These included complex application processes, insufficient support for funding identification and identity based challenges. These were exacerbated by the fact that most participants were in earlier stages of business development, which made it more difficult to become investment ready due to demanding day-to-day responsibilities. In spite of these challenges, participants reported an overall level of satisfaction with the Capital Skills, with 57% of participants saying the program fully or very much met their expectations while the remainder said the program somewhat met their expectations.

Based on the findings, the report provides detailed recommendations for improving future programs and initiatives meant to support entrepreneurs, especially equity-deserving entrepreneurs. Read the report for detailed information about the findings and recommendations.