Russia-Canada National Community Futures Project
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Transcript Russia-Canada National Community Futures Project
Business Climate and Opportunities
for SME Development in Canada
For Presentation at:
Natural Resources for the Future
Syktyvkar, Komi Republic, February 2004
What is a Small Business?
In Canada:
“SMEs” < than 500 employees and <$50 million in annual
revenues.
“Small businesses” < 50 employees and those with no
employees (self-employed)
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Characteristics of SME’s in Canada
99.7% of all employer businesses in Canada.
Key sectors:
Agriculture (13%)
Professional services (11%)
Wholesale/retail industries (11%)
10.6% export
All Canadians are part of the process:
54.7% are owned by men
14.9% are owned by women
8% are owned by young entrepreneurs.
Broad and balanced geographic representation:
Rural 20% ■ Towns/Villages 30% ■ Urban 50%.
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Characteristics of SME’s in Canada
2.2 million small businesses in Canada and > 80% of them
employ four employees or less.
50.0%
no
employees
45.0%
40.0%
1 to 4
employees
35.0%
30.0%
25.0%
20.0%
5 to 19
employees
15.0%
10.0%
5.0%
20 to 99
employees 100 to 499
employees
0.0%
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Characteristics of SME’s in Canada
Stages of Development of Canadian SMEs
13%
Slow Grow t h Firms
9%
5%
21%
Mat ure Firms
Fast Grow t h Firms
Dec lining Firms
Seed/ St art up Firms
52%
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Economic Impact of SMEs in Canada
SME’s:
43% of GDP
56% of employment in Canada
Small businesses
23% of GDP
2/3 of all new jobs created
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The Future of Canada’s SME Sector
Business Climate
Motivation
Opportunity
Skills
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Trends in SME Development in Canada
Factors that are improving the business climate:
Greater privatization of government services
More contracting out by large companies
Affordable technology for SME’s
Keeping skills in the market
Greater entrepreneurial awareness
Greater access and interest in export markets
More interest in joint ventures and strategic alliances
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Barriers to SME Development in Canada
Factors that are hindering the business climate:
Government taxes, regulations and fees (80%)
Shortage of qualified labor (44%)
Access to financing (30%)
High failure rate of new businesses
Being your own boss
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What is Canada Doing to Support SME
Development
National Policy on Entrepreneurship
Canada’s SME Policy Agenda:
Removing Obstacles
2. Promoting Interests
3. Supporting Startups and Growth
Business information and business support programs
Special SME development initiatives
Regulatory improvements/changes
1.
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