Small Business Policy Branch
Industry Canada
Presentation to
OECD Entrepreneurship
Indicators Workshop
October 27, 2005

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Context
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Entrepreneurship Policy in Canada
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Canada had a National Entrepreneurship Policy 1989-1993
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Goal was to encourage an entrepreneurship culture
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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
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Comprehensive review of small business policy in 1994 developed by departments of Industry and Finance shifted emphasis
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Entrepreneurship policy funded federally but developed and delivered at regional and local level
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Small business policy revamped at national level, with emphasis on encouraging growth of small businesses
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Diverse pattern across Canada regarding information, delivery and development
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National information system for potential and actual entrepreneurs
(Business Canada) via entrepreneurship centres also provide path-finding
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Programs administered by four (federally funded) regional agencies (Atlantic, Western, North Ontario, Quebec)
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Delivery vehicles for programs are typically Community Futures
Development Corporations
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Community development is an important objective for encouraging entrepreneurship
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While funded federally, program content and delivery thus reflect local diversity
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Activities include
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Business planning and start-up
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Technical assistance;
Financial assistance; repayable loans, loan loss guarantees
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Improving telecommunications infrastructure in remote areas
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Target groups:
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Aboriginal entrepreneurs
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Women entrepreneurs
Young entrepreneurs
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Rural businesses; community development
Francophone entrepreneurs
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Canada’s Small Business Policy Agenda (Federal)
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Based on two underlying principles
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Non-intervention
– let markets function freely; fill market gaps
 Subsidies program and grants have been largely eliminated
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Use business-like principles of management e.g. partnering, tracking program effectiveness; client-oriented services
 Shift towards cost-recovery and repayable contributions
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Focus is now on creating the right environment for business start-up and firm growth.
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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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Supporting Innovation
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Improve investment & adoption of advanced technologies by small businesses; support networks for commercialization
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Bridging Financing Gaps
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Improve access to debt financing by start-ups, young entrepreneurs, knowledge-based firms and aboriginal entrepreneurs
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Easing Regulatory Burden
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Public-private sector advisory committee tasked with making measurable reductions in regulatory burden (Paperwork Burden Reduction Initiative)
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Expansion into International Markets
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Reduce financial risks of exporting; improved information on exporting opportunities, through export development & trade commissioners
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Investing in Skills
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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
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Current data available
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General surveys number of firms, entry/exit; employment, selfemployment, remuneration
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New specialized surveys
 Financing Data Initiative;
 Survey of Regulatory Compliance Costs
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Long term research projects
 Growth firms (universe of firms) characteristics
 Innovation in services, manufacturing
 Exporting activities
 Links between exports, innovation, finance and growth
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Further information on Website http://strategis.ic.gc.ca/sbresearch
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Developing Small Business & Entrepreneurship
Indicators
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Potential other entrepreneurship indicators
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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
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Has the potential to provide finer information on entrepreneurship
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To what extent are these measures relevant to this project?
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