Entrepreneurship

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Entrepreneurship Small Business Policy in Canada

• Small Business Policy Branch
• Industry Canada

• Presentation to
• OECD Entrepreneurship Indicators Workshop
• October 27, 2005

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Contents of Presentation

• Context
• Entrepreneurship Policy in Canada
• Canadas Small Business Policy Agenda
• Indicators of Entrepreneurship and Small Business
  in Canada

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Entrepreneurship 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

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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

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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

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Canadas 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

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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)

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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 http//strategis.ic
  .gc.ca/sbresearch

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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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