Québec, Quebec, September 6, 2007 The Honourable Jean-Pierre Blackburn, Minister of Labour and Minister of Canada Economic Development, today presented a progress report on the Capital Fund for Business Succession and Venture Capital Fund for Business Startups in the Regions set up nearly one year ago. These measures, established to help develop business succession and foster the creation of new enterprises in the regions of Quebec, generated a total of $84 million in investment.
Canada Economic Development created these funds in partnership with Quebec's Community Futures Development Corporations (CFDCs) and Business Development Centres (BDCs), and with the support of venture capital firms operating in the province.
In terms of enterprise creation, the 12 projects selected for funding to date are in the process of generating some 250 jobs. The $3.3 million in total funding granted by the Agency under this initiative resulted in $26.6 million in overall investments.
With respect to business succession, Canada Economic Development and its partners helped increase the number of successful small and medium-sized enterprises (SMEs) transfers and helped maintain existing businesses in their present regions. The 15 projects funded to date are expected to lead to the maintenance of 929 jobs. Under this initiative, the $3.98 million in total funding awarded by the Agency resulted in $57.8 million in overall investments.
"Canada's new government is committed to ensuring the vitality of our regions. These business startup and succession funds are intended to compensate for the shortage of venture capital and provide financial leverage that will directly benefit entrepreneurs. We are taking concrete action on the ground level with our partners to ensure the regions of Quebec can build strength, retain their decision-making centres and create employment," stated Minister Blackburn.
According to the Canadian Federation of Independent Business (CFIB), more than 40% of Quebec entrepreneurs plan to retire within the next five years. Implementing a succession fund will help prevent the closing of many enterprises that already enjoy firm roots in their communities. SMEs account for 98% of all Quebec businesses and some 64% of all jobs in the province. Canada Economic Development is committed to supporting men and women wishing to start their own businesses and create employment.
"These two measures represent concrete action taken by Canada's new government to rally together partners at the ground level and make a real difference for entrepreneurs. I wish to underscore the important contribution these partners have made to the development of these initiatives. Without them, it would be impossible for our action to be as far-reaching as it is," Minister Blackburn added.
The Venture Capital Fund for Business Startups in the Regions is intended for SMEs in the initial stage of seeking outside investors. This Fund helps foster the emergence of businesses that would otherwise be unable to be created without this new source of capital.
The Capital Fund for Business Succession is aimed at helping to keep existing enterprises, jobs and decision-making centres in their present regions. This Fund is open to SMEs in Quebec regions served by CFDCs and BDCs.
These new tools are offered in addition to the regular programs of the Agency, the mandate of which is to promote the long-term economic development of the regions of Quebec by paying special attention to those where slow economic growth is prevalent or opportunities for employment inadequate.
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Sources:
Guylaine Beaudoin
Communications
Canada Economic Development
Tel.: 418-648-7464
E-mail: guylaine.beaudoin@dec-ced.gc.ca
Roxane Marchand
Press Secretary
Office of the Honourable Jean-Pierre Blackburn
Canada Economic Development
Tel.: 819-953-5646
Cell.: 613-816-5094
E-mail: roxane.marchand@hrsdc-rhdsc.gc.ca
