1. Getting Small- and Medium-sized Business More Involved
Andreea Dulipovici, Manager Research, CFIB
Presentation to Passport to Prosperity Coordinators Forum
November 26, 2004
Toronto, Ontario

2. Canadian Federation of Independent Business ~Key Facts~
Founded in 1971, CFIB is a not-for-profit, non-partisan, non-government lobbying organization representing independent, Canadian-owned businesses
CFIB has more than 105,000 small and medium-size enterprises (SMEs) members across Canada, of which 42,000 are in Ontario. It represents all sectors and all regions.
Members decide our policy stance via surveys;
“1 member = 1 vote”
CFIB delivers value-added benefits and help via the telephone
The head office is located in Toronto, and it has regional offices in all other provinces.

3. Ontario Business Profile: “ It’s a Small Business World”
Source: Statistics Canada, Employment Dynamics (2002), Ontario Data
Almost three-quarters of Ontario’s businesses employ fewer than five people.
96 per cent of Ontario businesses have fewer than 50 employees—the upper limit most often used in defining small business.

4. SMEs create about two-thirds of the net new jobs in the economy
SMEs Create Most of the New Jobs in the Ontario Economy
Source: Statistics Canada, Employment Dynamics (2002) , Ontario Data
SMEs create about two-thirds of the net new jobs in the economy

5. Factors that are important for the growth of the SME sector
Small Business Priorities
Factors that are important for the growth of the SME sector
Source: CFIB Our Members’ Opinion No.55, Ontario Results (July-Sept. 2004)

6. Ontario Business Concern over Shortage of Qualified Labour, 1989-2004
Source: CFIB, Our Members’ Opinions Surveys #24-55, Ontario ( ); and Statistics Canada
SMEs are concerned about finding the right person for the job
Even in times of high unemployment, one-fifth of SMEs cannot find qualified labour

7. Ontario Business Concern over Shortage of Qualified Labour in 2004, by Sector
Industry Sector
(%)
Agriculture
48.9
Manufacturing
45.0
Construction
62.0
Transportation and Communication
49.1
Wholesale
46.1
Retail
39.4
Finance, Insurance, Real Estate
42.0
Business services
40.0
Community services
32.0
Hospitality
39.8
Total
44.1
Source: CFIB, Our Members’ Opinions Survey #55. This survey reflects the views of 3317 business owners in Ontario interviewed during July-September 2004

8. Ways SMEs Can Help Reduce the Shortage of Labour
Source: CFIB, Survey on Labour Availability and Training (Sept-Oct 2002)

9. Ways Education Institutions Can Help Reduce Shortage of Labour
Source: CFIB, Survey on Labour Availability and Training (Sept-Oct 2002)

10. SMEs’ Most Effective Hiring Methods
Source: CFIB, Survey on Labour Availability and Training (Sept-Oct 2002), 2672 responses in Ontario

11. Most Important Skills and Qualities in Employees
Source: CFIB, results of 1997 Hard Facts Survey (Oct-Nov 2000)

12. What Small Businesses Need
SMEs are looking for all levels of education (% of SMES):
Less than high school
High school diploma
Private training instit.
Community college
University
4.2
25.2
20.1
32.7
17.8
SMEs need all levels of experience: 50% are looking for entry & low level; 50% are looking for mid to high levels of experience
Based on a 2002 CFIB survey, SMEs have experience hiring youth:
73.3% have hired youth
13.7% have tried, but candidates lacked the required experience or skills
1.1% have tried, but have not received applications from youth
11.9% have no experience hiring youth

13. Top Youth Occupations Small Business Are Likely to Hire
Table 2 Youth Occupations Small Businesses are Likely to Hire
Source: Canadian Federation of Independent Business, results of 1997 Hard Facts Survey, (October 1997)
Table 2 Youth Occupations Small Businesses are Likely to Hire
Source: Canadian Federation of Independent Business, results of 1997 Hard Facts Survey, (October 1997)
Top Youth Occupations Small Business Are Likely to Hire
% response
Labourers, other unskilled occupations
35.5%
Sales clerks and customer service
25.0%
Secretarial, reception and office work
20.0%
Material handling
13.0%
Construction and the trades
12.8%
Mechanics and repair occupations
12.4%
Food and beverage serving and preparation
8.1%
Processing and machinery operations
7.6%
Farming and horticulture occupations
6.6%
Bookkeeping and accounting
Computer programming, systems analysis
5.9%
Sales agents and representatives
3.8%
Transport, communication occupations
3.3%
Other
8.3%
Source: CFIB, results of 1997 Hard Facts Survey (October 1997)

14. Most Powerful Predictors of Future Youth Hiring
Satisfaction with past youth hires
Sectors (agri, hospitality, construction + likely)
(Business and community services – likely)
Higher expectation for firm sales growth
Higher number of youths currently employed
Higher total employment
Younger business
Expected growth in employment

15. What Young People Can Do to Plan for Their Future
1. As soon as possible, look for work experience any work experience
2. Apply your interests into the work world
3. Build a network
4. Be proactive
5. Be your own source of information
6. Focus on the other "3 Rs" of landing a job: respect, reliability
and references
7. Ensure that you have the necessary skills
8. Examine the non-monetary benefits of a job as well
9. Don't ignore the benefits of volunteering
10. Don't overlook private technical and vocational schools

16. What Education Institutions Can Do to Help Youth Find Jobs
Encourage as much student contact with the business sector as possible and vice versa
Focus on relevant guidance and support
Encourage contact between employers and all staff, without limiting it to those in guidance or career development departments
Co-op programs are important in bringing students and employers together
Reduce barriers to students switching programs or institutions
Ensure that basic skills and qualities are fully integrated into the student’s education
No action is too small.

17. What Education Institutions Can Do to Help Small Employers Hire More Youth
Sell them the option of hiring youth (co-op, trial placements)
Help employers determine what roles within the firm would be suitable for young employees
Help employers search out qualities not just skills
Sell them on the advantages of having young employees: fast learners, and enthusiastic
Keep in contact with small employers