Entrepreneurship & Small Entrepreneurship & Small Business Policy in CanadaBusiness Policy in Canada

Presentation toOECD Entrepreneurship

Indicators WorkshopOctober 27, 2005

Small Business Policy Branch

Industry Canada

2

Contents of PresentationContents 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: ContextEntrepreneurship Policy in Canada: Context

Canada had a National Entrepreneurship Policy 1989-1993 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 PolicyCurrent 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: ActivitiesEntrepreneurship 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)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 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 Developing Small Business & Entrepreneurship Indicators in CanadaIndicators 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 http://strategis.ic.gc.ca/sbresearch

9

Developing Small Business & Entrepreneurship Developing Small Business & Entrepreneurship IndicatorsIndicators

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?

10