1. SME FINANCING DATA USER NEEDS: CANADIAN PERSPECTIVE
OECD Workshop On SME Statistics
September 17-19, 2003
Tim Davis
Agriculture, Technology and Transportation Branch
Statistics Canada

2. Overview Recognizing the role of SMEs SME Finance Data – What We Had
Review of the Financial Services Sector
The Canadian SME-FDI
SME Financing data: Users and Needs
SME-FDI Data Collection Programs
Highlights of Findings
User Reactions and Outstanding Needs
September 17, 2003

3. Evolution: SME Sector Gains Respect
Prior to 1980s-Little attention to SMEs
1980s: Political awareness but little Policy interest
Low-job recovery from 90s recession and SMEs were “discovered”
SMEs seen as engine for job creation and growth
September 17, 2003

4. Evolution: SME Sector Gains Respect
SMEs lobbied for more substantial support
“Financing” was a frequent complaint
1966: Government mandated a Financial Services TF to address SME financing
The “MacKay TF” eventually led to data…. And more
September 17, 2003

5. SME Finance Data: The Way We Were
Several ad hoc “proprietary” data sets
Bankers, Venture Capitalist, SME Groups all cited data to support their positions
No comparability; Perceptions of bias
Data generated debates, but
Much confusion; Little direction
September 17, 2003

6. Review of the Financial Services Sector
Government explicitly requested recommendations on SME financing
MacKay TF: Unable to make recommendations
Insufficient data for credible analysis
Hence: Improve data first!
The SME Finance Data Initiative was borne
Innovative partnership of policy Departments ands statistical agency
September 17, 2003

7. The Canadian SME-FDI
Partnership of Statistics Canada, Industry Canada, Finance Canada
Comprehensive and objective data sets
Both demand for and supply of financing
Standard concepts and definitions
Analysis supports policy and drives data design
New base funding
September 17, 2003

8. SME Financing data: Users and Needs
Three User Groups
SMEs and Their Associations
Objective data to substantiate their case
Drive policy changes; improve access
Financial Services Sector
Also to substantiate case
Understand potential market
Learn to serve the SME client
September 17, 2003

9. SME Financing data: Users and Needs
Researchers and Policy-makers
Need is greatest here
Guide beneficial interventions
Avoid market distortions
Identify real gaps
Isolate market bias against specific target groups
September 17, 2003

10. A Summary of User Needs Type of financing used by SMEs
Financing requests, by amount, by source
Financing “success” by size and characteristics
Financing supply by business size
Impact of financing decisions on SMEs
Geographic and characteristic detail if possible
September 17, 2003

11. SME-FDI Data Collection Programs
Supply-side survey by Statistics Canada
By authorisation level not size of business
Demand-side survey by Statistics Canada
Characteristics of firms and their financing experience
Needs and attitudes of SME owners re: financing
September 17, 2003

12. Highlights of Survey Findings
82% of SMEs seeking loans, obtained them
Only 23% sought loans
Larger SMEs -> more requests
Larger SMEs -> more successful
Banks accounted for 2/3 of requests made
September 17, 2003

13. Highlights of Survey Findings
Only 18% sought loans
80% successful
September 17, 2003

14. Small and medium-sized enterprises financing in Canada
2000
Thank you. It is a pleasure to be here with you all today.
I would like to tell you about Statistics Canada’s experience in measuring information and communications technologies (ICTs) or information society indicators.
I will briefly describe to you what our division does, and how we define, collect, measure, analyze and disseminate ICT indicators.
I will also discuss our involvement in international harmonization of concepts and definitions

15. Outstanding Data Needs
Demand Side
Detailed firm characteristics
Age, Stage of development
Location, Industry
Firm owner characteristics
Education, Experience,
Age, Gender, Ethnicity
Financing impacts on unsuccessful SMEs
September 17, 2003

16. Outstanding Data Needs
Supply Side
Financing by size of firm, not authorisation
Detail by: Size, Location, Industry, Sector
Angel financing
Longitudinal studies of financing and impacts
Continued development of concepts and definitions
September 17, 2003

17. Conclusions Vital data program Users satisfied
Active research program leading to more data demands
Avoid complacency; Even successful data programs are in jeopardy
September 17, 2003