Supplementary Information of the
2024–25 Departmental Results Report

2024–25 Operating context

Quebec's economy returned to growth in 2024, although at a slower pace than the average of recent years. This recovery occurred against a backdrop of slowing inflation and a rebound in household consumption. However, momentum slowed at the end of the year due to resurgent geopolitical and trade tensions. Although the impacts remain difficult to assess, this clouded outlook is hampering international trade; uncertainty is also affecting business investment decisions, particularly in the export-oriented manufacturing sector. Furthermore, despite the trend toward stabilization of interest rates, borrowing costs remain high, hampering expansion and modernization projects.

In the medium term, several structural issues continue to moderate economic development in Quebec, including low levels of business investment, which limit the adoption of innovative technologies and, consequently, productivity gains and even growth potential. Still affected by an aging population and growing demand for specialized skills, the labor market will remain tight in the coming years. Furthermore, the low rate of entrepreneurship risks limiting industrial renewal and business takeovers at a time when the number of business owners looking to sell is increasing, thereby compromising regional economic development. Finally, the imbalance in the housing market, characterized by strong demand, continues to weigh on affordability and residential mobility.

Details on transfer payment programs

Regional Economic Growth through Innovation (REGI)

Transfer payment program or funding agreement: Quebec Economic Development Program (QEDP)

Start date: April 1, 2012

End date: Ongoing– permanent program

Type of transfer payment: Grants and contributions

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2017–18

Link to departmental result(s): Departmental result 2: Quebec communities are economically diversified.

Link to the department’s program inventory: The QEDP falls under the Community Vitality and Targeted Temporary Support programs.

Purpose and objectives of transfer payment program: The QEDP supports regional economic development and diversification and helps the regions pursue promising economic development opportunities going forward. The program also aims to help promote the regions and foster the development of local economies. Specifically, it is intended to:

• encourage spending by tourists from outside Quebec;
• increase the presence of international organizations;
• strengthen economic activity in the regions through support for local business projects; and
• generate investment and economic benefits through the acquisition of community economic facilities.

CED has also been implementing the Economic Development Initiative – Official Languages (EDI-OL) in Quebec since 2008. This national initiative, which shares the same terms and conditions as the QEDP, supports the economic development of official language minority communities (OLMCs).

In addition to the regular QEDP streams, five temporary initiatives have also been implemented for the regions of Quebec under the QEDP:

1. The Tourism Relief Fund (TRF) is a national initiative that helps regional tourism organizations and businesses adapt their activities in light of public health requirements, while investing in products and services to facilitate their growth going forward.
2. The Hurricane Fiona Recovery Fund (HFRF) supports local communities and businesses affected by Hurricane Fiona and assists them in their long-term recovery efforts.
3. The Northern Isolated Communities Initiatives (NICI) Fund, designed to support existing and new food initiatives that strengthen and diversify economic activity in the North. In Quebec, the target territory is Nunavik.
4. Through its funding to Montréal International, CED supported the establishment in Montréal of an office of the International Sustainability Standards Board (ISSB), an initiative of the International Financial Reporting Standards (IFRS) Foundation. The ISSB’s mandate is to set IFRS standards for sustainability-related disclosures.
5. The Initiative to Support Economic Development in Montréal's East End (ISEDMEE), which aims to promote development opportunities that foster the revitalization, attractiveness and sustainable reindustrialization of the region.

Results achieved: Through the QEDP, CED provided $68.9M in funding for 237 projects in 2024–25.

Regular programs accounted for 202 projects for a total of $56.4M in funding, including $1.8M for 14 projects under the EDI-OL; the temporary initiatives accounted for a total of $12.5M in funding (35 projects), broken down as follows:

• TRF: $7.8M; 31 projects
• HFRF: $2M; 2 projects
• NICI: $97,608; 1 project
• ISSB: $2.7M; 1 project
• ISEDMEE: Initiative funded through CED's regular programming—the number of projects and expenditures are listed in the targeted programs.

Three indicators are used to measure CED’s progress in achieving this result. These indicators are primarily based on economic statistics and data from projects that received funding. The data (targets and results) is as follows:

• Percentage of SMEs in Quebec that are majority-owned by:
  • Women––Target: 16% and result: 15.6%
  • Indigenous peoples–– Target: 1.1% and result: 0.8%
  • Youth–– Target: 14.4% and result: 16.8%
  • Visible minorities–– Target: 4.3% and result: 6.1%
  • Persons with disabilities: Target: 0.4% and result: 0.3%
• Percentage of professional jobs in science and technology in the Quebec economy: target: 38.6%, and result: 37.5%
• Amount leveraged per dollar invested by CED in community projects: target: $2.20, and result: $4.66

Findings of audits completed in 2024–25: N/A

Findings of evaluations completed in 2024–25: N/A

Engagement of applicants and recipients in 2024–25: CED keeps the public, SMEs and economic development players in Quebec’s regions continually informed about QEDP’s opportunities by means of a wide range of activities and communications tools that target the profile and information needs of various stakeholders.

Explanation of variances:

The Quebec Economic Development Program (QEDP) incurred higher expenses than anticipated at the beginning of the year due to an increased number of projects approved during the year. The funds to support these expenses come from the surplus generated by the CERI.

Transfer payment program or funding agreement: Community Futures Program (CFP)

Start date: May 18, 1995

End date: Ongoing– permanent program

Type of transfer payment: Contributions

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2010–11

Link to departmental result(s): Departmental result 2: Quebec communities are economically diversified.

Link to the department’s program inventory: The CFP falls under the Community Vitality program.

Purpose and objectives of transfer payment program: The CFP supports local economic development and helps rural communities build their capacity to realize their full potential in a sustainable manner.

The program’s main objectives are:

• stability, economic growth and job creation;
• diversified and competitive local economies in rural areas; and
• sustainable communities

The recipients CFP funding are Community Futures Organizations and their non-profit shared structures (network, funds). They are awarded non-repayable contributions.

Results achieved: Through the CFP, CED provided funding for the following Community Futures Organizations in 2023–24.

• the 57 Community Futures Development Corporations (CFDCs)
• the 8 Business Development Centres (BDCs)
• the Network of CFDCs and BDCs
• Réseau Capital

CED provided a total of $34.9M in funding for 70 projects by these organizations.

Findings of audits completed in 2024–25: Not applicable

Findings of evaluations completed in 2024–25: Not applicable

Engagement of applicants and recipients in 2024–25: CED keeps the public, SMEs and economic development players in Quebec’s regions continually informed about CFP’s opportunities by means of a wide range of activities and communications tools that target the profile and information needs of various stakeholders.

Explanation of variances:

Contracts with CFDCs and BDCs were revised following the publication of the 2024–25 Departmental Plan, which explains the increase in CFP expenditures.

Transfer payment program or funding agreement: Regional Economic Growth through Innovation (REGI)

Start date: October 18, 2018

End date: Ongoing– permanent program

Type of transfer payment: Grants and contributions

Type of appropriation: Appropriated annually through the Estimates

Fiscal year for terms and conditions: 2018–19

Link to departmental result(s): Departmental result 1: Quebec businesses are innovative and growing; Departmental result 3: Businesses invest in the development and commercialization of innovative technologies in Quebec

Link to the department’s program inventory: The QEDP falls under the Regional Innovation and Targeted Temporary Support programs.

Purpose and objectives of transfer payment program: The REGI is a national program that supports the economic growth of businesses through innovation. In Quebec, it is managed by CED, taking into account the needs of Quebec’s businesses and regions. The REGI program has two streams:

• Business scale-up and productivity: investment in businesses, including high growth companies, and support for businesses at various stages of their development, in order to accelerate their growth and help them scale up and enhance their productivity and competitiveness on domestic and global markets.
• Regional innovation ecosystems: set up, growth and maintenance of inclusive regional ecosystems that meet business needs and foster an entrepreneurial environment conducive to innovation, growth and competitiveness.

In addition to the regular REGI program streams, five temporary initiatives have also been implemented for the regions of Quebec under the REGI program:

1. The Black Entrepreneurship Program (BEP) is a national initiative that supports the Black community entrepreneurship ecosystem by strengthening the capacity of Black community-led business associations to provide services such as mentoring, networking, financial planning and business training for entrepreneurs in the Black community.
2. The National Quantum Strategy (NQS) is a national initiative designed to help SMEs and non-profit organizations (NPOs) adopt, develop and commercialize quantum technologies and products based on these technologies.
3. The Regional Artificial Intelligence Initiative (RAII), which aims to support product development, commercialize new AI-related technologies and solutions, and accelerate the adoption of AI in critical sectors of the Canadian economy across the country, including agriculture, cleantech, life sciences and manufacturing.
4. The Regional Homebuilding Innovation Initiative (RHII), which aims to advance innovative housing solutions and boost productivity in the construction sector, by encouraging the development, adoption and scaling-up of new methods and technologies in Quebec.
5. The Initiative to Support Economic Development in Montréal’s East End (ISEDMEE), which aims to promote development opportunities that foster the revitalization, attractiveness and sustainable reindustrialization of the region.

Results achieved: Under the REGI, CED provided $178.6M in funding for 606 projects in 2024–2025.

Regular programs accounted for 554 projects for a total of $159.6M in funding; the temporary initiatives accounted for a total of $19M in funding for 52 projects, broken down as follows:

• BEP: $6.4M; 10 projects
• NQS: $7.8M; 14 projects
• RAII: $1.7M; 22 projects
• RHII: $3.1M; 6 projects
• ISEDMEE: Initiative funded through CED's regular programming—the number of projects and expenditures are listed in the targeted programs.

The six indicators used are primarily based on economic statistics and data from projects that received funding. The data (targets and results) is as follows:

• Number of high-growth businesses in Quebec (based on revenue): target: 3,400, and result: NA*
• Value of Quebec’s goods’ exports: target: $100B, and result: $122B
• Value of Quebec’s clean tech exports: target: $2.4B, and result: $2.4B
• Revenue growth rate of businesses supported by CED programs: target: 4.0%, and result: NA*
• Amount of R&D spending by businesses receiving funding under a CED program: target: Non-forecasted**, and result: NA*
• Percentage of businesses that collaborate with Quebec institutions of higher learning: target: 22.0%, and result: NA

*“Not available” means that Statistics Canada did not publish any new data in the fiscal year in question (or since the last time the table was updated).

**“Non-forecasted” indicates a target for which CED could not commit at the time of drafting the 2024–25 Departmental Plan, due to the ongoing refinement of its methodology.”

Findings of audits completed in 2024–25: Not applicable

Findings of evaluations completed in 2024–25: Not applicable

If the department has a TPP for which it did not conduct an evaluation for the TPP, explain why.

Engagement of applicants and recipients in 2024–25: CED keeps the public, SMEs and economic development players in Quebec’s regions continually informed about the REGI’s opportunities by means of a wide range of activities and communications tools that target the profile and information needs of various stakeholders.

Explanation of variances

Several initiatives were approved as part of Supplementary Budget B and began during the year. These initiatives are the supplement for the Regional Economic Growth through Innovation (REGI) Program, the Regional Homebuilding Innovation Initiative (RHII), and the Regional Artificial Intelligence Initiative (RAII). These new approvals explain the increase in REGI spending compared to the spending forecast at the beginning of the year.

Gender-based analysis plus

Section 1: institutional GBA Plus governance and capacity

Coordination of GBA Plus: Under the leadership of DEC's champion, the ACS Plus Accountability Center, composed of a single point of contact, consolidated the integration of DEC's ACS Plus framework, adopted in 2018, ensuring its continued integration into decision-making processes and programs.

DEC participates in several forums and committees that allow it to share and exchange best practices and stay abreast of opportunities for improvement, including:

• GBA Plus Interdepartmental Committee (Women and Gender Equality Canada)
• Women Entrepreneurship Strategy Interdepartmental Steering Committee (Innovation, Science and Economic Development Canada)
• Federal network for the advancement of gender equality in Quebec and Nunavut (Women and Gender Equality Canada)
• Human Trafficking Taskforce (Public Safety Canada)
• Equity, Diversity and Inclusion (EDI) Working Group (Inter-RDA [regional economic development agencies])
• Partner Group for the Economic Development Initiative – Official Languages (Innovation, Science and Economic Development Canada)
• The Interdepartmental Working Group on Labor and Economic Development in OLMCs

In line with its new EDIA governance launched last year, CED supported the creation of two new employee networks representing diversity: READEC – the Network of Asian Employees at CED, and the Network of Employees with Disabilities. These networks provide employees with a safe space to advance respect for diversity within the Agency. CED also established the EDI Committee, which brings together all partners involved in GBA Plus as well as in the fight against racism and discrimination. The Committee’s mandate is to address, head-on, issues related to diversity and inclusion.

In 2024, CED also developed its new Departmental Equity, Diversity and Inclusion Plan. Pursuant to the Employment Equity Act, this plan aims to create and maintain a workplace that is fair, inclusive, and representative of Canada’s diversity. Under the leadership of the People, Culture and Workplace Branch (PCWB), CED employees were invited to take part in consultations to share their experiences, concerns, and ideas regarding diversity and inclusion at CED, with the goal of identifying EDI challenges and opportunities for improvement.

Capacity

Client Approach in EDI: CED continued rolling out its EDI approach across all clients and programs, with the aim of understanding how its clients integrate EDI components into their business models and organizational practices. The  CED website pages promoting EDI as a growth driver and explaining the steps involved in developing an EDI plan rank among the most visited pages on CED’s website.

Staff Awareness and Training: As part of GBA Plus Awareness Week, CED, in collaboration with Women and Gender Equality Canada (WAGE), held a case study–based training session to deepen understanding of the practical application of GBA Plus at CED. Around thirty employees took part in this session.

Updating GBA Plus for CED’s Main Programs: CED proactively undertook the update of the GBA Plus analyses for its two main existing programs in order to measure progress in supporting the full participation of underrepresented groups, and to ensure that no new barriers or negative impacts arise for different groups within its programs. The findings are intended to support the ongoing management of CED’s programs to foster the full participation of underrepresented groups across all regions of Quebec.

Including GBA Plus Considerations in Programs: CED is continuing its work on implementing the Inuit Nunangat Policy by advancing its action plan, which aims to strengthen the accessibility, impact, and relevance of its programs in response to the aspirations of Indigenous peoples.

Human resources (full-time equivalents) dedicated to GBA Plus

In 2024–2025, the GBA Plus Responsibility Centre consists of a designated resource person responsible for implementing CED’s GBA Plus framework, adopted in 2018, and for ensuring the integration of GBA Plus into decision-making processes and programs.

Section 2: gender and diversity impacts, by program

Core responsibility: Develop Quebec’s economy

Program name: Regional Innovation

Program goals: Help Quebec businesses grow and be more competitive

Target population: Specific regions or sectors of the economy

Specific demographic group(s) to be monitored

This program primarily supports SMEs in the science, technology, innovation, and manufacturing/fabrication sectors, which are predominantly owned by men and in which underrepresented groups face barriers or are underrepresented, even though they often run businesses outside this economic sphere. However, the manufacturing sector has a significant ripple effect on other sectors of Quebec's economy: manufacturing companies are major customers of the resource, energy, and service sectors, where they generate other jobs and wealth. The sector generates indirect jobs in other sectors where there is increased representation of women and underrepresented groups. The table below shows that CED supported 112 SME projects (26% of all SME projects supported) and 47 NPO projects (41% of all NPO projects supported) whose organizations were led by people from underrepresented groups. The EDI approach deployed with CED's clientele also aims to raise awareness of these barriers in order to support their shift toward inclusion in their business practices and increase the participation of underrepresented groups in all sectors of Quebec's economy.

Key program impacts* on gender and diversity

Not applicable

Other key program impacts

Distribution of benefits by gender: The distribution identified corresponds to CED's direct support based on its client profile and does not include support provided by CED-supported intermediary groups, which in turn provide services to entrepreneurs from underrepresented groups. Furthermore, this distribution does not take into account the economic spinoffs generated by projects supported in other sectors where the economic participation of women or other individuals from underrepresented groups may be more prevalent. In this regard, out of a total of $159.6 million spent on 554 projects supported under the Regional Innovation program, $23.6 million (15%) was invested in 97 (18%) projects from SMEs or NPOs owned or managed by women.

Organizational EDI practices: Of the 323 projects led by SMEs and NPOs that were approved under the Regional Innovation program in 2024–25:

• 43% (140 projects) are led by proponents who indicated that an EDI component is present in their organizational practices;
• 77% (249 projects) are led by proponents who intend to begin or continue EDI efforts.

GBA Plus data collection plan

Members of underrepresented groups: The data and information collected are part of CED's established processes for ACS Plus and relevant indicators, which were strengthened in 2021 to include new categories of underrepresented groups. The underrepresented groups identified by CED are women, youth, Indigenous peoples, newcomers to Canada and immigrants, persons with disabilities, or members of OLMCs, Black communities, racialized communities, or 2SLGBTQI+ communities. For more details, please consult our glossary available on our EDI webpage.

Targets: In the 2024–25 Departmental Plan, CED has set targets for supported SMEs owned by women, Indigenous peoples, youth, visible minorities, and persons with disabilities. Additional targets for other individuals from underrepresented groups may be established in the future.

Data source: Data is collected from customers when financing applications are received and analyzed, in particular through the voluntary self-declaration form in which customers can indicate their membership in one or more underrepresented groups.

Core responsibility: Develop Quebec’s economy

Program name: Community Vitality

Program goals: Promote community vitality

Target population: Specific regions or sectors of the economy

Specific demographic group(s) to be monitored

This program mainly targets non-profit organizations and certain small and medium-sized businesses in sectors involved in local development, regional tourism development, community economic development and diversification, and the economic development of official language minority communities (OLMCs), sectors in which people from underrepresented groups are disproportionately represented. In addition, this program includes support for intermediary organizations, CFDCs (under the PDC), which in turn support entrepreneurship among youth, Indigenous communities, and women, in addition to working to revitalize attractions in rural and remote areas. The table below shows that CED supported 18 SME projects (53% of all SME projects supported) and 131 NPO projects (55% of all NPO projects supported) whose organizations were led by individuals from underrepresented groups.

Key program impacts* on gender and diversity

Not applicable

Other key program impacts

Distribution of benefits by gender: The distribution identified corresponds to CED's direct support based on its client profile and does not include support provided by CED-supported intermediary groups. Furthermore, this distribution does not take into account the economic spinoffs generated by projects supported in other sectors where the economic participation of women or other members of underrepresented groups may be more prevalent. In this regard, out of a total of $91.3 million spent on 272 projects supported under the Community Vitality program, $33.1 million (36%) was invested in 111 (41%) projects from SMEs or NPOs owned or managed by women.

Organizational EDI practice: Of the 168 projects led by SMEs and NPOs that were approved under the Community Vitality program in 2024–25:

• 44% (74 projects) are led by promoters who indicated that an EDI component is present in their organizational practices;
• 73% (123 projects) are led by promoters who intend to begin or continue EDI efforts.

Community Futures Program (CFP): As part of the CFP, CED contributed indirectly to support for young people, including entrepreneurial succession, through its financial support to CFDCs and CAEs, particularly as part of the Youth Strategy: 546 young entrepreneurs received funding.

GBA Plus data collection plan

Members of underrepresented groups: The data and information collected are part of CED's established processes for ACS Plus and relevant indicators, which were strengthened in 2021 to include new categories of underrepresented groups. The underrepresented groups identified by CED are women, youth, Indigenous peoples, newcomers to Canada and immigrants, persons with disabilities, or members of OLMCs, Black communities, racialized communities, or 2SLGBTQI+ communities. For more details, please consult our glossary available on our EDI webpage.

Targets: In the 2024–25 Departmental Plan, CED has set targets for supported SMEs owned by women, Indigenous peoples, youth, visible minorities, and persons with disabilities. Additional targets for other individuals from underrepresented groups may be established in the future.

Data source: Data is collected from clients when funding applications are received and analyzed, in particular through the voluntary self-identification form in which clients can indicate their membership in one or more underrepresented groups.

Core responsibility: Develop Quebec’s economy

Program name: Targeted or Temporary Support

Program goals: Support the economic resilience of businesses and the regions

Target population: Specific regions or sectors of the economy

Specific demographic group(s) to be monitored

This program includes several initiatives, as follows: The Black Entrepreneurship Program (BEP) directly benefits entrepreneurship among people from Black communities. It also includes initiatives targeting sectors in which people from underrepresented groups are significantly represented, including tourism businesses, businesses seeking to undertake their green transition and inclusive growth, and the Northern Isolated Community Initiatives (NICI) Fund, which benefits food production systems in Nunavik and Indigenous communities. The implementation of the EDI approach deployed with CED's clientele also aims to raise awareness of these barriers in order to support their shift toward inclusion in their business practices and increase the participation of underrepresented groups in all sectors of Quebec's economy. For this program, the table below shows that CED supported 13 SME projects (31% of all SME projects supported) and 27 NPO projects (60% of all NPO projects) whose organizations were led by individuals from underrepresented groups.

Key program impacts* on gender and diversity

Not applicable

Other key program impacts

Distribution of benefits by gender: The distribution identified corresponds to CED's direct support based on its client profile and does not include support provided by CED-supported intermediary groups. Furthermore, this distribution does not take into account the economic spinoffs generated by projects supported in other sectors where the economic participation of women or other members of underrepresented groups may be more prevalent. In this regard, of a total of $31.6 million spent on 87 projects supported under the Ad Hoc and Targeted Support program, $7.1 million (23%) was invested in 19 (22%) projects from SMEs or NPOs owned or run by women.

Organizational EDI practices: Of the 118 projects led by SMEs and NPOs that were approved under the One-Time or Targeted Support program in 2024–25:

• 41% (48 projects) are led by promoters who indicated that an EDI component is present in their organizational practices;
• 79% (93 projects) are led by proponents who intend to begin or continue EDI efforts.

GBA Plus data collection plan

Additional notes for drafters

Members of underrepresented groups: The data and information collected are part of CED's established processes for ACS Plus and relevant indicators, which were strengthened in 2021 to include new categories of underrepresented groups. The underrepresented groups identified by CED are women, youth, Indigenous peoples, newcomers to Canada and immigrants, persons with disabilities, or members of OLMCs, Black communities, racialized communities, or 2SLGBTQI+ communities. For more details, please consult our glossary available on our EDI webpage.

Targets: In the 2024–25 Departmental Plan, CED has set targets for supported SMEs owned by women, Indigenous peoples, youth, visible minorities, and persons with disabilities. Additional targets for other individuals from underrepresented groups may be established in the future.

Data source: Data is collected from clients when funding applications are received and analyzed, in particular through the voluntary self-identification form in which clients can indicate their membership in one or more underrepresented groups.

Scales

Gender scale

• First group: predominantly men (80% or more men)
• Second group: 60% to 79% men
• Third group: broadly gender-balanced
• Fourth group: 60% to 79% women
• Fifth group: predominantly women (80% or more women)

Income-level scale

• First group: strongly benefits low-income individuals (strongly progressive)
• Second group: somewhat benefits low-income individuals (somewhat progressive)
• Third level: no significant distribution impacts
• Fourth group: somewhat benefits high income individuals (somewhat regressive)
• Fifth group: strongly benefits high-income individuals (strongly regressive)

Age-group scale

• First group: primarily benefits youth, children or future generations
• Second group: no significant intergenerational impacts or impacts on generations between youths and seniors
• Third group: primarily benefits seniors or the baby boom generation

Response to parliamentary committees and external audits

Response to parliamentary committees

There were no recommendations for CED.

Response to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development)

There were no recommendations for CED.

Response to audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages

There were no recommendations for CED.