Women entrepreneurs are winning the race to start new businesses in Canada.

Men still greatly outnumber women business owners, but women have been launching companies much more frequently than men over the past quarter-century, says a Canadian Federation of Business (CFIB) report.

"The primary reason that women are starting businesses, regardless of their age or station, is that they're looking for a different quality of life so that they can balance more," says Carissa Reiniger, incoming president of Toronto-based Women Entrepreneurs of Canada (WEC), which acts as a hub for women's business groups.

Between 1981 and 2006, the number of women who incorporated businesses jumped 243.5 per cent to 196,300 from 57,140, while male-managed incorporated operations climbed 93.9 per cent to 522,905 from 269,670.

Photo courtesy of The Bargains Group
Jody Steinhauer was 'very strategic' about family when she was setting up her Toronto-based clothing company, The Bargains Group Ltd.

The increase between 2001 and 2006 was much less, with the number of businesses operated by women rising 19 per cent over that period, compared to 18.4 per cent for those managed by men.

Adrienne Warren, a senior economist with Toronto-based Scotia Economics, says in most areas of the country, new female entrepreneurs are entering service-oriented areas rather than traditional businesses such as manufacturing.

She adds the growth in the number of female entrepreneurs is more rapid because they have a smaller base and much of Canada's economic growth has involved small business-to-business firms.

"I suspect it's still probably going to be the higher-growth area going forward as well," she says.

Taking unincorporated operations into account, women-operated businesses rose 234 per cent to 683,575 from 204,665 from 1981 to 2006, while male-operated ventures increased 47.2 per cent to 1.3 million.

But, in all parts of the country, the number of incorporated businesses grew faster than traditional employment or unincorporated self-employment.

"A large part of the reason for that (increase in female entrepreneurs) is that women are starting to realize that they can create their own flexible work options and work within a culture that is more friendly to their style - by creating that themselves," says Tara Cree, a Vancouver-based leadership-development consultant.

Cree says women have succeeded in creating their own flexible work environments because organizations have been slow to respond to female employees who want to balance work and family "It's really hard for women, especially those with small children who are in child care, to be really effective in their role when they aren't given the tools that they need to do it. It's a constant challenge for them," says Cree.

Alberta (27.2 per cent) and Manitoba (23.6 per cent) recorded the largest increases in new incorporated businesses between 2001 and 2006.

Tom Mallett, the CFIB report's author, attributes the increases to the maturing of previously informal businesses, tax and regulatory polices that encouraged business formation, more mature technologies and continued movement of Baby Boomers toward retirement.

Reluctance to deal with gender-based barriers in the corporate world could be another reason why women start their own businesses, says Cree. But the flexible schedules and non-traditional methods do not deter profitability.

"Don't get me wrong," says Cree. "Women work very hard and put in a lot of hours, I would say, no less than men. But they might get up early and (work) before the kids get up and then spend some time with the kids and then go into the office. It all comes out in the wash. It may not be your typical nine-to-five day."

Most new entrepreneurs of either sex are in the 45-64 age range, partly because more Baby Boomers are approaching retirement and looking for new ventures, and rookie business owners require significant technical and management skills.

WEC president Reiniger, also president and founder of Toronto-based business development company Silver Lining Ltd., says many young women entrepreneurs face major challenges on the job and at home.

"My age and my gender have been challenging - for sure - in that it's harder to gain respect," says Reiniger, 26. "Typically, (a) client will talk to my male employee over me, thinking that they're the dominant."

Sherri Olsen, a Calgary-based business coach, says many young women who try to start a business after college or university face more difficulties than those who leave other jobs.

But Olsen doesn't believe that any one sector is more suitable than another.

"Women in business can be women in business with anything," says Olsen. "I've met with women who are in typical male-dominated industries, like car sales, heading up search firms, and theatre producers."

But she says there is a growing trend of stronger, independent women who want to be in charge of their own careers.

"They are breaking free of the notion that they have to work for somebody else, put up with the glass ceiling and stay at home and raise babies," says Olsen. "We've had a culture shift, so that women can grab onto a career and home life, whereas before I think they felt they had to decide one or the other."

She says many female executives that she coaches are able to succeed because they have nannies or someone else who takes care of their home life so that they can concentrate on the business.

Jody Steinhauer, 41, whose Toronto-based clothing company The Bargains Group Ltd. (TBG), is celebrating its 20th anniversary, says a supportive household is a big factor.

After starting her firm with $1,000, she has grown it into a multimillion-dollar national operation.

"Having a family (when you're) younger, I think it is easier in some cases," says Steinhauer, a mother of two children, aged nine and four. "But it's that whole dynamic of: If you're going to start your business, how do you do it and what part do you want it to play in your life? Do you want to have a family or don't you?" Steinhauer says she was "very strategic" about when to have children. She waited until she could afford a full-time nanny and a certain lifestyle.

After giving birth for the first time, Steinhauer brought her child and nanny to work - earlier than expected, because an employee had unexpectedly quit.

"I was tired - and sore - but, I have to tell you, I was also extremely happy because, for me, I love what I do and I'm passionate about what I do," she says. "I couldn't sit home and play goo-goo-gah-gah and go for lunch with the girls. That's not me."

Steinhauer then waited five years before having another child because she wanted her company to expand before her belly did.

Lindsay Smith, president of Wired Woman, a national group that links women involved in technology through mentorship, education and networking, says business partners can also play a critical role for women entrepreneurs. She merged her former Vancouver-based company, Massive Events, into Blink Media Works, partnering with Mike Agerbo and A.J. Vickery, producers of the national Get Connected radio and TV shows.

"On a personal level, there's a lot to be said for having partners in crime when you're entrepreneuring," says Smith. "It's nice to be able to bounce ideas off people and share that journey, because you devote your life to the business and it can be lonely if you're out there on your own."

Her biggest challenge is to maintain enough energy to do everything in a company's early years, because "you're a slave to your business."

"(The key) is being able to have that endurance to just keep on going and keep on pushing through the hard times," she says.

Even with support, suggests TBG's Steinhauer, women entrepreneurs never stop the business-home juggling act. "When the kids are sick, they all run to be with Mommy. We really do have to be octopuses."

In her view, the best energy source is organization.

"As long as you're a very organized woman, you can have it all," she says.

(Monte Stewart can be reached at monte@businessedge.ca)