Every year our Government recognizes the third week of October as Small Business Week.  Small businesses play a vital role in our society and are a major contributor to long-term prosperity.  It is important that we remind ourselves of the contribution small and medium-sized businesses continue to make as we emerge from the global economic downturn. 

Small and medium-sized businesses form the backbone of the Canadian economy. Over half of all Canadian businesses are small businesses. It is often said that these businesses are the “first to hire and the last to fire.”  It is no wonder then that they employ over half of all working Canadians.  Small business owners are willing to take risks, are loyal to those who work for them, and make important contributions in communities across Canada. 

Our interactions with small business owners form a significant part of our daily lives, and their impact on our community cannot be understated.  They hire locally and pay municipal taxes.  They provide many of us with our first job opportunity, and volunteer their services to local fundraisers.  Small business owners are champions of their communities.

Since we were first elected, our government has taken many steps to help ensure the success of small businesses.  We lowered the small business income tax rate to 11 percent and raised the threshold for small business income from $400,000 to $500,000. We introduced a 100 percent capital cost allowance for computer equipment purchased by small businesses.  We have reduced time consuming and job killing government red-tape by 20 percent. These initiatives have allowed entrepreneurs to focus more of their energy and resources on growing their businesses instead of wasting it on inefficient and unnecessary government regulations.

The economy remains the number one priority for our Conservative Government.  While there have been some positive signs, the recovery remains fragile.  Our Government knows that Canada’s long-term prosperity is driven by the creativity, ingenuity, and common-sense of entrepreneurs, small business owners and hard-working families across the country. 

As the Member of Parliament for Vegreville-Wainwright, I would like to congratulate all of our small businesses for their ongoing hard work and wish them success in the future.  

Leon Benoit, MP
Vegreville-Wainwright
 




Backgrounder
Small Business Week: Celebrating and Supporting Small Businesses

Small and medium-sized enterprises (SMEs) are the foundation of the economy, as 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 expansion and prosperity of the Canadian economy and have helped secure a more stable position for Canada in the economic recession. These enterprises extend Canadian international trade, as 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 Program (CSBF) makes it easier for businesses to obtain loans from financial institutions by sharing the risk with lenders. Annually, the CSBF 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 size 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 exclusively for SMEs. In this capacity, the BDC plays a key role in creating the right conditions in which SMEs can 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 2800 young entrepreneurs. Their businesses have generated more than $300 million in sales revenues in this country and have created more than 15 000 new jobs.

The Small Business Internship Program (SBIP) allows 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 has 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-per-cent Capital Cost Allowance rate for computers 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 (CBN) consolidates business resources into one convenient service, providing a single point of access to relevant information from multi-levels of government and not-for-profit organizations to aid in the start-up and growth of small businesses. Renewed funding for CBN — $30 million over two years — ensures continuation of this valuable resource and enhanced service, including the new national CBN website.

Another time-saving service for business is BizPaL, which offers entrepreneurs and businesses simplified access to permit and license information from multiple levels of government. To date, 11 provinces and territories are participating in BizPaL, with more than 420 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 small and medium-sized businesses.  These include issues 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.