Val-d'Or, Quebec, September
6, 2006 The Honourable Jean-Pierre Blackburn, Minister of Labour and
Minister of Canada Economic Development for the Regions of Quebec,
today unveiled two new measures that will contribute to the economic
diversification of vulnerable regions:
"The Venture Capital Fund for
Business Start-ups in the Regions"
"The Capital Fund for Business
Succession"
Designed for entrepreneurs, these new measures have been
initiated with the collaboration of partners. Together, they will make available
on a regional basis funds totalling more than $50 million for business start-ups
and business succession in Quebec regions experiencing slow economic growth.
"Since being named Minister, I've made a point of
travelling to all the regions of Quebec. I've drawn several conclusions from my
many discussions with local decision-makers and workers. In many regions, the
local economic fabric is weakened by demographic decline. We need to support the
development of new enterprises and make special efforts, using flexible
measures, to keep young people in the regions," explained Minister Blackburn.
"Similarly, we must also support the continued development of our
entrepreneurial capacity. Nearly 70% of entrepreneneurs will retire within
10 years. We have to act now to facilitate the local transfer of business
ownership," added Minister Blackburn.
New tools
The two capital funds will be created in partnership with
Quebec's Community Futures Development Corporations (CFDCs) and Business
Development Centres (BDCs), the Fondation de l'entrepreneurship, and with the
support of Desjardins Venture Capital. Other venture capital firms operating in
Quebec will join as well.
The "Venture Capital Fund for Business Start-ups in
the Regions" targets SMEs looking for their first round of outside investments.
This new Fund will help create enterprises that could not have been launched
without this new source of capital sponsored by
Canada Economic Development (CED).
To this end, CED will contribute $5 million and
entrepreneurs will match that amount. Venture capital firms, including
Desjardins Venture Capital, will invest at least double that. The CFDCs will
contribute to the start-ups from their own investment funds. In all, over
$20 million will be made available to entrepreneurs for business
start-ups.
The "Capital Fund for Business Succession" is aimed at
maintaining existing enterprises, jobs and decision-making centres in the
regions. It targets SMEs in Quebec regions serviced by CFDCs and BDCs.
To the $8 million contributed by CED, buyers will
add an equivalent amount in the form of assets. Venture capital firms, including
Desjardins Venture Capital, will invest at least double the amounts advanced,
respectively, by CED and the buyer. The CFDCs will contribute to transfer costs
from their own investment funds. In all, over $30 million will be made available
to entrepreneurs purchasing an existing enterprise.
"We are delighted to be a partner in this endeavour. This
initiative, developed by the Government of Canada and Desjardins Venture
Capital, allows for the implementation of two measures aimed at strengthening
the economic fabric of the regions," stated Louis L. Roquet, President
and Chief Operating Officer, Desjardins Venture Capital.
"Over the past several months, a special
committee of Quebec's Network of Community Futures Development Corporations
(CFDCs) has been developing unique measures to support regions that are remote
from economic centres," added Gratien LeBel, Network President, who believes
this initiative will have a real leverage effect on CFDCs and venture capital
firms in their work with entrepreneurs.
The new measures announced today are part of
the regular programming of CED, whose mission is to promote the long-term
economic development of the regions of Quebec, paying special attention to those
where slow economic growth is prevalent or where opportunities for productive
employment are inadequate.
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Two backgrounders are attached:"The Venture Capital Fund for Business
Start-ups in the Regions" "The Capital Fund for Business Succession"
Sources:
François BelisleCommunicationsCanada Economic
DevelopmentTel. : 1-800-567-6451, ext. 235francois.belisle@dec-ced.gc.ca
Roxane MarchandPress SecretaryOffice of the Honourable Jean-Pierre BlackburnCanada Economic DevelopmentTel.: 819-953-5646Cell.: 613-816-5094roxane.marchand@hrsdc-rhdcc.gc.ca
