Click Here for Diversity Online September 11, 2020
A Big News for Canada and a Mega Step for its “Weakest” Link.
Support for Black Economic Empowerment took a big step forward by the announcement this week, prompted by the requests in a June letter of the Parliamentary Black Caucus calling on governments across Canada to immediately address systemic racism.
But what challenges does the Black community, resilient, and over educated, face in Canada and why?
Blacks communities in Canada face one of the highest levels of systemic racism, further amplified by lack of recognition of their foreign earned credentials, and the impacts of COVID-19 that have led to chronic unemployment and underemployment, as well as, lack of financing for Black Entrepreneurs through the major Canadian banks.
According to Statistics Canada…
In 2016, close to 7 in 10 of the over 1.2 million Blacks in Canada had a post-secondary diploma.
In 2016, the employment rate was 78.1% for Black men and 71.0% for Black women, compared with 82.6% and 75.5%, respectively, for their counterpart in the rest of the population.
In 2016, the unemployment rate for the Black population was 9.2%, compared to 5.3% for those in the rest of the population. Imagine what these numbers will look like in a pandemic?
“These gaps between the groups in employment and unemployment rates persist even after controlling for the effects of various socioeconomic factors, suggesting that other factors, not measured in the census, may be at work (Houle 2020). Canadian studies (e.g., Oreopoulous 2011 and Eid 2012) used fictitious resumes and found that, among other things, ‘racialized’ candidates were significantly less likely to be interviewed than other candidates with the same levels of qualification and equivalent experience,” Ethnicity, Language and Immigration Thematic Series Canada’s Black population: Education, labour and resilience, by Statistics Canada, released in February 2020.
Black employees were more likely than their counterparts in the rest of the population to report having experienced unfair treatment or discrimination at work.
Political Leaders Know This Too…
“For too long, Black entrepreneurs and business owners have faced systemic barriers to their success, and the COVID-19 pandemic has had a disproportionate effect on them…,” The Hon. Mary Ng, Minister of Small Business, Export Promotion and International Trade.
The future is bright, from the bottomless pit of slavery, through draconian colonial rule, to racism and discrimination as you know it today has built a Black resilience second to none.
Statistics Canada data showed that Black individuals demonstrated strong levels of resilience, even when faced with hard times. In 2016, 44% of Black individuals said they were “always” able to bounce back quickly after hard times, compared to 33% among the rest of the population.In 2016, compared with the rest of the population (55%), more Black individuals (75%) felt that their employment opportunities were better than those of their parents.
The Big Announcement…
Prime Minister Justin Trudeau announced support for Black entrepreneurs and business investments of close to $221 million in partnership with Canadian financial institutions – including up to nearly $93 million from the Government of Canada over the next four years – to launch Canada’s first-ever Black Entrepreneurship Program.
The New Program Being Proposed by the Government…
The program will include: $53 million to develop and implement a new National Ecosystem Fund to support Black-led business organizations across the country. It will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services, and business training.
The program will provide $33.3 million in support through the new Black Entrepreneurship Loan Fund that will provide loans of between $25,000 and $250,000 for Black business owners and entrepreneurs.
The Major Banks Playing…
The Government of Canada is also partnering with financial institutions, including RBC, BMO Financial Group, Scotiabank, CIBC, National Bank, TD, Vancity, and Alterna Savings, to make up to $128 million available in additional lending support.
There will be $6.5 million to create and sustain a new Black Entrepreneurship Knowledge Hub that will collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs’ barriers to success as well as opportunities for growth. The Hub will be run by Black-led community and business organizations, in partnership with educational institutions.
When to Apply?
The Government of Canada will launch a call for proposals for Black-led organizations to join and help deliver the National Ecosystem Fund for Black entrepreneurs. More details, including eligibility criteria and how to apply, will follow in the coming weeks. Diversity Magazine will keep you updated.
Canada’s Regional Development Agencies will deliver the National Ecosystem Fund, and work with selected partner organizations to assist them in implementing their services.The Black Entrepreneurship Loan Fund will be available through Black-led business organizations supported through the National Ecosystem Fund. Further details on eligibility requirements and how to apply for loans will follow from the Government of Canada. The initial commitments made by financial institutions are subject to final development of the Loan Fund.
Data Collection by Statistics Canada on Black Business…
To better understand the barriers faced by and needs of Black entrepreneurs in Canada, Statistics Canada will work to improve disaggregated data collection on Black entrepreneurship.
Something Missing…
This new program builds on the Government of Canada’s Anti-Racism Strategy. There’s more expected of justice reforms, modern policing structures, standards, and enhanced local community support for young Black Canadians.
Mayors Iveson, Nenshi, and Premier Kenney Yet to Play…
The municipal and provincial governments are yet to follow the Prime Minister’s leadership on tackling Black racism through economic empowerment.
“Our commitment to diversity and inclusion is unwavering, and the new Black Entrepreneurship Program reflects this. This program was created through collaboration with Black-led organizations, because Black Canadians know what their communities need best. This is another step towards removing the systemic barriers that exist within our society to create a truly inclusive Canada,” The Hon. Bardish Chagger, Minister of Diversity and Inclusion and Youth.
