Two-part
presentation:
• The changing face of
rural Newfoundland
• The role of the
entrepreneur in the
rural economy
Overview
97 of 102 communities
are coastal (within 2
kilometres of the sea)
39 incorporated
municipalities
6 towns w/ population
>2,000
40% of the total
population lies in
those six communities
Population Dynamics for Kittiwake
Zone
1986-2001 SOURCE: CANADIAN CENSUS
60000
58,276
57,020
55000
54,200
52,030
50000
48,164
45000
40000
35000
30000
1986
1991
1996
1998
2001
Town
1996
Appleton
+9.51%
2001
526
% Change
576
Carmanville
687
565
-15.29%
Change Islands
524
360
-18.40%
Cottlesville
375
297
-20.80%
Gambo
2,496
2,084
-16.51%
Gander
10,339
9,651
-6.65%
Glovertown
2,276
2,163
-4.96%
Hare Bay
1,387
1,065
-23.22%
Lewisporte
3,848
3,312
-13.93%
New-Wes-Valley 3,230
2,832
-12.32%
St. Brendan’s
378
251
-33.60%
Terra Nova
38
30
-21.05%
Twillingate
2,969
2,611
-12.06%
ZONE 14
57,040
48,164 -14.7%
PROVINCE
568,474 512,156 -9.7%
Major Demographic
Trends
•Between 1996 and 2001, the
Kittiwake Zone’s population
dropped by 8,876 people, or
14.7 per cent, compared to a
provincial average of 9.7 per
cent.
•Labour force declining but will
stabilize
•Losing more young (18-24 than
we realize)
•Death rate exceeded birth rate
in 2001
•Labour force is aging
•All regions are losing
population save for “satellite”
What next?
• Proximity to regional service centres and the level
of economic activity and job creation will very
much dictate a community’s ability to retain
population
• We have an excess of lower educated, less mobile
workers. Many young workers with the skills and
education required of emerging sectors have
already left
• Buy 2016, we will lose another 10.3% of our
population, against a provincial average of 4%
The rural-urban
connection
•
Areas most heavily
dependent on fishery have
been greatest impact by
demographic change
• Newfoundland’s urban areas
i.e. St. John’s will have to
enlarge to compete with
businesses between the
Halifax-Moncton corridor
• Technology/aging workforce
will continue to reduce
employment in the fishery
and the population in rural
In Short
…
Demographic trends are
l o n g - t e r m and not easily
changed
To manage this change, we
need long-term s t r a t e g i c
p l a n n i n g which accounts
for demographic shift
rural
c o m m u n i t i e s is to
The challenge for
stabilize the population base
by providing employment and
business opportunities that
can thrive in a rural setting
The Big Picture:
Challenges
Difficulties associated with lowerskilled workforce
Attracting and retaining skilled
employees is becoming problematic
EI is proving to be a deterrent to
economic development (labour
market saturation)
Not generating jobs fast enough to
employ young graduates
Fishery is in a period of severe
transition
Economic growth largely focused in
Avalon Peninsula and service centres
The Big Picture:
Opportunities
Tremendous unrealized private
sector opportunities
Tourism industry has capacity to
grow
Strategic sectors including light
manufacturing, aviation/aerospace,
innovative fisheries, agrifoods,
mining all have strong growth
potential
High level of education among
college, trade school and university
graduates: can we generate
opportunities to keep them?
Can we ignite the entrepreneurial
spark among an aging population?
Growing the Economy
Private sector is primary
industry for growth
Import substitution
Develop balanced economy
Get more from natural
resources
Develop human/physical
infrastructure
Export market development
Import substitution
Create globally-competitive
business
Exploiting Traditional
Resources
Find New Uses/Processes
for Traditional Resources
Selling Unprocessed Raw
Material
Value added processing
Competitive Locally
Competitive Globally
Based on Availability of
Resources
Based on Availability of
Skills
Relevance to the Private Sector
Business drives our
economy
Only the private
sector can create
long-term,
sustainable jobs
The KEDC works to
create the right
climate for business
growth:
Tools and Resources
Skills Development
•Global
competitiveness is
critical to the growth
and survival of many
manufacturing firms
•Huge mutation in
domestic market
means customers are
aging, demands are
changing
•Rural firms are facing
competition from
around the world
•Difficult to compete
in manufacturing
Biotechnology
Biotechnology is a broad
term referring to all
practical uses of living
organisms – from beer
fermentation to gene
therapy
Opportunities here
revolve around use of
natural resources –
berries, marine proteins,
bycatch
Can thrive in rural setting
but research takes place
at universities
Small Fruit Development
Encourage establishment of
new farms
Research potential of valueadded products
Education component being
designed with CONA
Undertake antioxidant
assessment
European organic market
growing at 20% annually
Establish 5 demonstration plots
at varying degrees of progress
2,000 acres can produce an $1
million annual farmgate and 20
full-time jobs
Customer Contact Centres
Flourish in fringe centres
Labour comprises 2/3rds cost of
running a centre (lower wages
attractive)
Thrive in areas of high
unemployment (requires at least 2%
unemployment)
Employ a high percentage of women
(55-70%), modest education
requirements
In-bound enjoys greater worker
retention
Train-first concept: $2,000-$5,000
per workstation
$75 million industry in province
Growth Sectors
Plenty of room for growth for small- and
medium-sized enterprise:
-Agrifoods
-Nutraceuticals
- Light manufacturing
-Commercial fisheries and aquaculture
(underutilized)
- peat, dimension stone, etc.
- cultural industries, ecotourism
- Information management
- Environmental industries
ISSUES: Business Growth
• Newfoundland and Labrador has the lowest
number of patent applications per capita in
Canada
• Newfoundlanders tend to be very innovative,
but not so much in terms of commercial
applications
• Access to venture capital is poor
• More work done needed to foster a culture of
entrepreneurs, particularly at a young age
• Transportation/communications infrastructure
needs improvement
• Technical, human and physical resources are
clustered in urban centres (i.e. business best
located adjacent to R&D facilities, universityfueled labour pool)
In summary: the sustainability of rural
Newfoundland is very much dependent on
the ability for an innovative
private
sector to create long-term
employment and wealth.
[ Your Growth Is Our Business. ]
P.O. Box 2222 Gander, NF, Canada
A1V 2N9
Toll-free: (877) 256-2595
Phone: (709) 256-2741 Fax: (709) 256-3835
kedc@nfld.net www.kittiwake.nf.ca