Entrepreneurship & Small Business Policy in Canada Presentation to OECD Entrepreneurship Indicators Workshop October 27, 2005 Small Business Policy Branch Industry Canada

2 Contents of Presentation 1. Add title of section 1 2. Add title of section 2 3. Add title of section 3 4. Add title of section 4 5. Add title of section 5 6. Add title of section 6  Context  Entrepreneurship Policy in Canada  Canada’s Small Business Policy Agenda  Indicators of Entrepreneurship and Small Business in Canada

3 Entrepreneurship Policy in Canada: Context  Canada had a National Entrepreneurship Policy  Goal was to encourage an entrepreneurship culture  Promote entrepreneurship as an option  Income support, e.g. Self-employment Assistance Program  Community development e.g. Community Futures for rural regions to encourage self-sufficiency  Comprehensive review of small business policy in 1994 developed by departments of Industry and Finance shifted emphasis  Entrepreneurship policy funded federally but developed and delivered at regional and local level  Small business policy revamped at national level, with emphasis on encouraging growth of small businesses

4 Current Entrepreneurship Policy  Diverse pattern across Canada regarding information, delivery and development  National information system for potential and actual entrepreneurs (Business Canada) via entrepreneurship centres also provide path-finding  Programs administered by four (federally funded) regional agencies (Atlantic, Western, North Ontario, Quebec)  Delivery vehicles for programs are typically Community Futures Development Corporations  Community development is an important objective for encouraging entrepreneurship  While funded federally, program content and delivery thus reflect local diversity

5 Entrepreneurship Policy: Activities  Activities include  Business planning and start-up  Technical assistance;  Financial assistance; repayable loans, loan loss guarantees  Improving telecommunications infrastructure in remote areas  Target groups:  Aboriginal entrepreneurs  Women entrepreneurs  Young entrepreneurs  Rural businesses; community development  Francophone entrepreneurs

6 Canada’s Small Business Policy Agenda (Federal)  Based on two underlying principles  Non-intervention – let markets function freely; fill market gaps  Subsidies program and grants have been largely eliminated  Use business-like principles of management e.g. partnering, tracking program effectiveness; client-oriented services  Shift towards cost-recovery and repayable contributions  Focus is now on creating the right environment for business start-up and firm growth.  Provision of strategic information  Framework policies that protect the public interest while fostering innovation and competitiveness, fiscal situation; taxation measures for small business; government regulations

7 Small Business Policy: Current Priorities  Supporting Innovation  Improve investment & adoption of advanced technologies by small businesses; support networks for commercialization  Bridging Financing Gaps  Improve access to debt financing by start-ups, young entrepreneurs, knowledge-based firms and aboriginal entrepreneurs  Easing Regulatory Burden  Public-private sector advisory committee tasked with making measurable reductions in regulatory burden (Paperwork Burden Reduction Initiative)  Expansion into International Markets  Reduce financial risks of exporting; improved information on exporting opportunities, through export development & trade commissioners  Investing in Skills  Addressing management skills via Mentoring and training programs delivered through the regional development agencies (RDAs); youth mentoring (CYBF)

8 Developing Small Business & Entrepreneurship Indicators in Canada  Current data available  General surveys number of firms, entry/exit; employment, self- employment, remuneration  New specialized surveys  Financing Data Initiative;  Survey of Regulatory Compliance Costs  Long term research projects  Growth firms (universe of firms) characteristics  Innovation in services, manufacturing  Exporting activities  Links between exports, innovation, finance and growth  Further information on Website

9 Developing Small Business & Entrepreneurship Indicators  Potential other entrepreneurship indicators  Local and regional bodies can provide the following  Number of clients;  Nascent or aspiring entrepreneurs;  Stage of business  Medium of inquiry;  Financial assistance;  Program utilization;  Business planning  Has the potential to provide finer information on entrepreneurship  To what extent are these measures relevant to this project?

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