Download 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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