Hon. Danièle Henkel: Honourable senators, Bill C-5 reflects a major commitment to kick-start the Canadian economy after years of underinvestment.

As the chamber of sober second thought, the Senate has a unique opportunity to ensure that the bill creates value for the entire economy.

I want to thank and congratulate all colleagues who have already taken part in the debate and helped to shed light on the key issues raised by this bill.

In Committee of the Whole, legitimate concerns were raised on the environment, the ancestral rights of Indigenous peoples, and the scope of the concept of “project of national interest.”

However, let me point out one disturbing paradox: No one can claim to be kick-starting the economy without enlisting the full participation of those who are the driving force behind it every day. I’m talking about our SMEs.

Bill C-5 cannot ignore SMEs, and nor can we.

With over 30 years of experience as an entrepreneur, I’ve come to understand, deeply and personally, the central role that small- and medium-sized businesses, or SMEs, play in our economy. It’s one of the key reasons why I chose to serve in the Senate. I wish to be a voice for SMEs and to ensure they have a seat at the table when major economic decisions are made.

The numbers speak for themselves: SMEs represent 98% of all businesses in Canada, account for 54% of total employment and contribute nearly half of our GDP.

However, they are conspicuously absent from calls for tenders and government procurement.

According to figures published by Public Services and Procurement Canada, the volume of federal contracts awarded to small and medium-sized enterprises was 38% in 2008, 32% in 2022, 24% in 2023, and 20% in 2024.

It should be noted that, during this period, some SMEs may have been absorbed by larger companies or bought up internationally. That said, the number of SMEs has continued to increase, which makes these figures even more alarming.

This decline is no accident. It is the result of systemic barriers that have been identified for years.

Several high-quality parliamentary reports — in particular those of the Standing Committee on Government Operations and Estimates, or OGGO, published in 2009 and 2018 — have highlighted some major barriers.

The committee in the other place identified the following barriers, to name but a few. First, the excessive complexity of procurement processes and the large number of documents required. What is the delay in simplifying these procedures and finally adapting them to the realities of SMEs?

Second, unequal access to information and the complexity of the language used. Why are tender documents not always identical in French and English? Also, why is the terminology so complex?

Third, our SMEs don’t have the human resources to respond to calls for bids. How can they bid when the cost of participating is sometimes more than the contract is worth?

Fourth, the government systematically prioritizes the lowest bid over quality or innovation.

Lastly, the lengthy waits for payment cause serious cash flow difficulties for our SMEs.

These systemic barriers affect all of our SMEs, but their impact is felt even more by under-represented groups, such as women-owned businesses.

The government is clearly aware of the issue. It has already set a target of 15% for women-owned businesses. While this goal was met in terms of contract volume from 2023 to 2024, no data has been released regarding the value of these contracts. It is crucial that women-owned businesses are not confined to low-value contracts especially in high-value sectors.

Another systemic bias that is still holding women-owned SMEs back in 2025 is access to financing. Lenders ask women subjective questions that they would never dare ask a man. I’ve experienced this myself, as have many other women.

A man will be asked about his business’ growth potential, but a woman will be asked to justify what she has achieved so far and to detail her expansion plans. Then she’ll be asked questions such as “How do you plan to maintain work-life balance while running a business?” or “Is there someone who could act as your guarantor?”

Visible minority women entrepreneurs are frequently asked whether they have ever bid on public contracts. Most of them say no, not because they lack the will or the skills, but because they haven’t yet been given the chance. Because they’re excluded from the outset, they end up not trying anymore.

Those questions have nothing to do with the capacity or credibility of their business. Still, the same doubts persist. Are these women really capable of meeting the contract requirements? Can they meet the specifications?

Is it rational to think that an SME would invest the time and money to submit a bid if it weren’t able to fulfill it? That line of reasoning is totally obsolete in 2025.

On top of all that, women lack access to investor networks and are under-represented on decision-making committees. The data speak for themselves. According to the 2024 report from the Women Entrepreneurship Knowledge Hub, women-owned businesses receive only 4% of venture capital funding in Canada.

Despite extensive efforts to inform small to medium-sized enterprises, or SMEs, why did the results still fall short? We know that the Office of Small and Medium Enterprises, the Business Development Bank of Canada and numerous regional organizations have invested heavily in training sessions and informational events. And yet, accessing public procurement remains a daunting challenge for most SMEs.

If the information is readily available and widely shared, then the issue isn’t communication; it’s the bidding process itself that needs a complete overhaul.

Here are a few examples of meaningful levers that could trigger real positive change.

I decided to compare two government procurement platforms. The American platform, GSA Advantage, centralizes information and allows federal agencies to make purchases from a single source, similar to an online catalogue. The Canadian platform, CanadaBuys, which was launched in 2022, simply posts tender opportunities without providing any direct transactional functionality. The Canadian system creates a lot more red tape for our SMEs.

I am therefore proposing that the federal government require large companies and Crown corporations that obtain public contracts to work with SMEs by setting quotas or reserving a minimum percentage of subcontracting for them.

I also propose including provisions that feature indicators to measure real gains for SMEs and that implement tax or other incentives to actively encourage such partnerships.

The government could also take inspiration from positive examples, such as WEConnect or Aéro Montréal, which are already strengthening supplier networks and support much more inclusive procurement.

Finally, in order for these changes to produce positive results, calls for tenders must place greater emphasis on quality and innovation, rather than using the lowest price as the only criterion. This would allow innovative SMEs to better position themselves. It would also prevent contracts from always going to the same bidders.

Honourable colleagues, Bill C-5 could be a perfect opportunity to turn federal procurement into a true engine of national prosperity. Public contracts represent 13% to 20% of Canada’s GDP. Governments hold a powerful lever to boost the economy nationwide without leaving anyone behind.

We need a new mindset — one that connects economic performance with social responsibility. I call for an economy that wins without exclusion, that grows without forgetting SMEs and that prospers by supporting those who innovate every day, often behind the scenes.

It’s high time that we recognized the people working quietly behind the scenes to keep our economy going. Behind every SME is a face, a story, a desire. We have a responsibility to reach out to them to build prosperity that is both sustainable and shared.

This challenge affects us all. Let’s use Bill C-5 as a true springboard for our SMEs and our communities.

Thank you for listening. Meegwetch.