A federal program touted as a driver of women-led business growth failed to produce a single start-up or create any net new jobs despite more than $130 million in spending, according to a Department of Industry audit.The Women Entrepreneurship Fund, launched in 2018 and promoted as a cornerstone of government efforts to boost women in business, gave grants of up to $100,000 to 322 companies. Auditors found all of them were already operating before receiving funding.“Fund recipients reported using funds for startups even though not funded for this purpose,” the audit said. “No new businesses were funded.”.The program was publicly championed by then-Prime Minister Justin Trudeau and then-Trade Minister Mary Ng, who told Parliament as recently as 2023 that the fund was helping Canadian entrepreneurs grow. Ng claimed the initiative had supported 500 women in starting new businesses, though auditors reported otherwise.Out of more than 3,000 applications, fewer than half of successful recipients reported using the money to create jobs. The audit concluded there was no measurable job creation, with the pandemic cited as a factor..“Performance data were lacking for the Women Entrepreneurship Fund due to COVID-19,” auditors wrote. They added that many businesses receiving grants were themselves downsizing, with 62% of women-owned companies laying off more than 80% of their staff, compared to 45% of other small and medium-sized enterprises.The report criticized program managers for weak oversight, noting that common performance targets were never set. “Insufficient and inconsistent data was collected to fully demonstrate progress towards the medium term outcomes,” the audit said.
