Download Overview of Key Industry Canada Programs

SMEs in Canada
Facts
Federal Role
Outline
Overview of SMEs in Canada
Roles of Government
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Overview of SMEs in Canada – Key Statistics
Are
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–
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defined as firms that have fewer than 500 employees
99.8% of the 1.1 million businesses with employees are SMEs
98% are small businesses (less than 100 employees)
75% have fewer than 10 employees
SMEs employ 2/3 of the private sector work force (6.4 million employees)
SMEs account for 40% of the GDP (or 54 percent of private sector GDP)
SMEs are in constant renewal (about 100,000 new firms created every year) 51% of Canadian businesses survive their first 5 years.
SMEs regularly account for more than 50% of net job creation (small
businesses 43%)
SMEs account for 41% of the value of export (small businesses 25%)
Source of data: Key Small Business Statistics, July 2012, Industry Canada; Statistics Canada.
2
Overview of SMEs in Canada - employment
Number of Employees (thousands)
Retail Trade
Five sectors account for 60 percent of
total SME employment:
Manufacturing
Accomodation and Food
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–
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Construction
Professional Services
Wholesale Trade
Other Services
Administration, Waste Management
Transportation and Warehousing
Retail trade
Manufacturing
Accommodation and food
Construction
Professional Services
On average, SMEs with less than 20
employees accounted for 40 percent
of total employment in these sectors
Finance and Insurance
Health
Real Estate and Rental
Arts, Entertainment & Recreation
Firms in the manufacturing sector tend
to be larger
Information and Cultural
Mining
Management of Companies and Enterprises
Forestry
Utilities
0
0-4
200
5-19
400
20-49
600
50-99
800
100-499
1000
Source: Key Small Business Statistics, July 2012, Industry Canada; Statistics Canada
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Federal Government Support for SMEs
Support for SMEs involves over 20
government departments including:
– Industry Canada
– Public Works and Government Services
Canada
– National Research Council
– Finance Canada
– Citizenship and Immigration Canada
– Federal Regional Economic Development
Agencies
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Overview of Key Industry Canada Programs
Business Development Bank of Canada (BDC)
The BDC is a Crown financial institution, reporting to the Minister of
Industry, with a mandate to support Canadian entrepreneurship by providing
financing, consulting and venture capital to SMEs
In 2012, as part of the Government's Digital Economy Strategy, the BDC
launched a strategy to promote the adoption of information and
communications technologies by SMEs
Canada Small Business Financing Program (CSBFP)
Loan-loss sharing program that increases the availability of asset based
debt financing for small businesses
Industry Canada and commercial lenders share the risk of providing term
loans to small businesses of up to $500K
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Overview of Key Industry Canada Programs Continued
Canada Youth Business foundation (CYBF)
The CYBF is a non-profit organization founded in 1996 that provides loans
and mentoring services to young entrepreneurs
In Budget 2011, the government provided CYBF $10M in both 2011-2012
and 2012-2013. Since 2002, the CYBF has received $57.5M in funding
from the federal government
BizPaL
Launched in 2006, BizPaL is an online service that benefits Canadian
businesses by helping them identify which permits and licences they require
to start and/or run a business and how to obtain them
BizPaL is currently available to 60% of the Canadian population and
includes all the provinces and two territories and over 645 municipalities
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Overview of Key Industry Canada Programs Continued
Canada Business Network (CBN)
CBN provides Canadian entrepreneurs and SMEs with reliable, up-to-date
and relevant information
Services are offered through a national website, a toll-free telephone
service, and in-person service centres located across Canada
National Research Council Industrial- Research Assistance Program
(NRC-IRAP)
NRC-IRAP is designed to stimulate innovation in Canadian SMEs by helping
them access, develop and apply technologies to create new products,
services and industrial processes
The 2012-13 Budget includes the Digital Technology Adoption Pilot Program
(DTAPP) funding of $80M over three years announced in
Budget 2011. DTAPP provides digital technology adoption and adaption
support to firms and supports up to $100,000 in costs per project
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Overview of Key Support Agencies & Programs
Canadian Innovation Commercialization Program (CICP)
The CICP is a Public Works and Government Services Canada initiative aimed at helping
Canadian businesses by testing their innovative products and services within the
Government of Canada before taking them to the marketplace.
It targets innovations in four priority areas, namely the environment, enabling
technologies, health, safety and security
Funding limit is $500K per bid opportunity with provisions for proposals exceeding $500K
on a case-by-case basis.
Western Economic Diversification Canada (WD)
WD is mandated to promote the development and diversification of the economy of
Western Canada and advance the interests of Western Canada in national economic
policies and programs.
It is currently delivering Infrastructure Canada programs such as the Building Canada
Fund - Communities Component, and the Community Infrastructure Improvement Fund
announced in Budget 2012.
WD will soon be launching the Western INNovation Program which was announced in
Budget 2102 and which will provide support to SMEs in Western Canada for technology
commercialization activities
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Overview of Key Support Agencies and Programs
Federal Economic Development Initiative in Northern Ontario (FedNor)
FedNor is a regional development organization in Ontario with a mandate to promote
economic diversification and expansion of the Northern Ontario economy. The Northern
Ontario Development Program (NODP) is FedNor’s main contribution program
Through the NODP, FedNor invests in projects that support community economic
development, business growth and competitiveness, and innovation
Since April 2006, FedNor has approved more than $238 million in support of 1,224
projects through the NODP to benefit Northern Ontario’s economy
Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
FedDev was created in 2009 in response to southern Ontario’s economic challenges.
Its current focus is on creating a southern Ontario advantage by strengthening the
region’s economy and positioning southern Ontario to compete globally
FedDev supports SMEs by providing funding to Community Futures Development
Corporations to support local business and community development initiatives, via the
Eastern Ontario Development Program and the Southern Ontario Fund for Investment
in Innovation
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Overview of Key Support Agencies and Programscontinued
Canada Economic Development (CED)
The Quebec Economic Development Program (QEDP) contributes to entrepreneurship
support, business performance, regional engagement and regional investment, while
providing temporary support for economic activity in Quebec communities to stabilize or
strengthen their economies
The Community Futures Program (CFP) supports local economic development and
builds the capacity of communities to sustainably realize their full potential
CED delivers the CFP in Quebec through regional development agencies, including the
56 Community Futures Development Corporations and the 10 Business Development
Centres
Atlantic Canada Opportunities Agency (ACOA)
ACOA works to create opportunities for economic growth in Atlantic Canada, by helping
businesses become more competitive, innovative and productive, and by working with
communities to develop and diversify local economies
ACOA supports Community Business Development Programs (CBDP) through the
Community Futures Program which helps them provide essential investment capital,
business counselling and skills development
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Annex A Other Government Support for SMEs
Challenges
and Needs
Competitive
market place
Support for
Innovation
Access to New
Markets
Department
Website
Finance
Canada
www.fin.gc.ca/n11/11-080-eng.asp
www.reducingpaperburden.gc.ca
Industry
Canada
www.canadabusiness.ca
Measures
Small business taxation
Paper burden reduction
BizPal and Canada Business
Network
National
Research
Council
www.nrc-cnrc.gc.ca
Industrial Research Assistance
Program (IRAP)
Finance
Canada
www.fin.gc.ca/n12/12-086-eng.asp
Scientific Research and
Experimental Development
(SR&ED) -Tax Incentive Program
www.tradecommissioner.gc.ca
Canadian Trade Commissioner
Service
Foreign Affairs
and
International
Trade
Export
Development
Canada
Business
Development
Bank of Canada
www.edc.ca/EN/OurSolutions/Financing/
www.bdc.ca/en/solutions/financing/
Financing services for smaller
capital goods exporters
Market Xpansion Loan
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Annex A Other Government Support for SMEs
(continued)
Challenges
and Needs
Human Capital
Department
Website
Measures
Citizenship and Immigration
Canada
www.cic.gc.ca/english/hire/work
er.asp
Temporary Foreign
Worker Program
Human Resources and
Social Development
Canada
To come
Workplace Skills
Initiative
Industry Canada
Culture of
Entrepreneurship
Regional Agencies
Business Development
Bank of Canada
www.cybf.ca
www.womensenterprise.ca
www.bdc.ca
Canadian Youth
Business Foundation
Women Entrepreneurs
Small Business Week
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