Ottawa, October 17, 2010 - Today, the Honourable Rob Moore, Minister of State (Small Business and Tourism), issued the following statement to launch Small Business Week 2010 in Canada:
"I invite all Canadians to join me in celebrating Small Business Week in Canada from October 17 to 23. This special week provides an opportunity to acknowledge the outstanding contributions of our country's small businesses to the nation's economy.
"For the past 30 years, the Business Development Bank of Canada has organized Small Business Week to pay tribute to Canadian entrepreneurs. This year's theme is 'Power Up Your Business. Invest. Innovate. Grow.' Creativity and innovation are two important drivers of successful small businesses.
"Canada's small business policy is about putting in place the right conditions for business success, and the Government of Canada continues to support small businesses through various programs and initiatives to enhance their competitiveness and long-term prosperity. We have cut taxes, reduced red tape and increased access to both important information and to financing.
"The goal of these initiatives is simple: we want to make it easier for small businesses to invest and create jobs. The Government of Canada will continue to take responsible, affordable and practical steps to help Canadian small businesses contribute to our economic recovery.
"Today, there are over 1 million small businesses across Canada that employ almost half of our private sector workforce. Each year, 130 000 more small businesses are created in Canada. Small businesses are providing the impetus that will drive our economy forward.
"Please join me this October in honouring our Canadian small business owners as they continue to contribute to the economy, our communities and the quality of life of Canadians."
For further information (media only), please contact:
Catherine Godbout
Office of the Honourable Rob Moore
Minister of State (Small Business and Tourism)
613-943-7023
Media Relations
Industry Canada
613-943-2502
Backgrounder
Small Business Week: Celebrating and Supporting Small Businesses
Small and medium-sized enterprises (SMEs) are the foundation of the economy because they account for 98 percent of all businesses in Canada. As of 2009, SMEs employed approximately 5.1 million Canadians. A quarter of Canada's gross domestic product is provided by small businesses with fewer than 50 employees, and this amount has been increasing.
Industry Canada defines small businesses as having fewer than 100 employees, while medium-sized businesses consist of 100 to 499 employees. Canada has one of the highest rates of small businesses entering the marketplace among industrialized countries - approximately 130 000 new small businesses are created annually. Small businesses employed 48 percent of the labour force in 2009. In the same year, small business employees in Canada earned around $723 per week.
The survival rate for small businesses in Canada is strong. About 96 percent of small businesses in Canada survive for one full year after they enter the marketplace, 85 percent survive for three years and 70 percent survive for five years. Three quarters of SMEs operate in the service industries, while one quarter is in the goods-producing sector.
SMEs encourage the expansion and prosperity of the Canadian economy and have helped secure a more stable position for Canada during the economic recession. These enterprises extend Canadian international trade because small businesses account for 21 percent of the total value of Canada's exports.
The Government of Canada is committed to supporting small businesses and has established programs and services to stimulate economic growth, create more jobs for Canadians and help businesses compete and succeed in the global marketplace.
Access to Financing
As the economy recovers, one of the greatest concerns for business is access to credit.
The Canada Small Business Financing (CSBF) Program makes it easier for businesses to obtain loans from financial institutions by sharing the risk with lenders. Annually, the CSBF Program delivers approximately $1 billion in financing through thousands of loans that support start-up businesses and help established enterprises improve and expand. As part of Canada's Economic Action Plan, the program's maximum loan amount was increased from $250 000 to $350 000. And for real estate, the maximum loan amount was raised to $500 000.
The Business Development Bank of Canada (BDC) provides 28 000 clients across Canada with complementary financing, venture capital, and consulting and financial services tailored to SMEs. In this capacity, the BDC plays a key role in creating the right conditions for SMEs to grow and prosper.
Young entrepreneurs are the future of Canadian business. Canada's Economic Action Plan provided the Canadian Youth Business Foundation (CYBF) with $10 million in 2010 to give young entrepreneurs access to business loans and mentoring services to help them start up and operate new businesses. Since 1996, the CYBF has helped more than 3500 young entrepreneurs. Their businesses have generated more than $300 million in sales revenues in this country and have created more than 17 000 new jobs.
The Small Business Internship Program (SBIP) enables SMEs to hire qualified student interns to assist with e-business and communications projects by reimbursing up to 75 percent of the students' wage and benefit expenses. At the same time, the SBIP offers promising post-secondary students valuable, hands-on job experience working on e-business and information technology projects under the guidance of entrepreneurs.
Tax Relief
The Government of Canada is providing tax relief measures to help SMEs invest more earnings in development and expansion, which helps to create more jobs. Canada's Economic Action Plan raised the amount of business income eligible for the small business tax rate of 11 percent to $500 000 from $400 000. It provided a two-year temporary 100-percent capital cost allowance rate for computers acquired after January 27, 2009, and before February 1, 2011. The government has also extended for two years the accelerated capital cost allowance for business investments in machinery and equipment.
Business Services
The Canada Business network consolidates business resources into one convenient service, providing a single point of access to relevant information from multiple levels of government and not-for-profit organizations to aid in the start-up and growth of small businesses. Renewed funding for Canada Business - $30 million over two years - ensures the continuation of this valuable resource and enhanced service, including the new national Canada Business website.
Another time-saving service for business is BizPaL, which offers entrepreneurs and businesses simplified access to permit and licence information from multiple levels of government. To date, 11 provinces and territories are participating in BizPaL, with more than 460 municipalities offering the service, making it available to over 50 percent of the Canadian population.
Advisory Committee on Small Business and Entrepreneurship
Announced in Budget 2010, the Advisory Committee on Small Business and Entrepreneurship (ACSBE) is a private sector committee mandated to advise the government on a wide range of issues of importance to SMEs, such as reducing paperwork burden and improving business access to federal programs and information. ACSBE will provide the government with information, advice and recommendations on the most important concerns facing Canada's small businesses.
SMEs are the backbone of the Canadian economy. The government is working closely with entrepreneurs and business owners to strengthen this foundation and make Canada an innovative and competitive leader on the global stage.
