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| SFU's Segal Centre |
Small and Medium Businesses: Huge importance to Canada
Heading to the Segal Centre later this week to discuss SME's and their importance to the Canadian government. According to statistics, SME's represent more than 98% of businesses in this country and employ more than half of the work force. While the employment numbers sound a little askew as individual corporations do employ, by far, more than a single SME but taken together, it's the little guy driving the economy in this country and we just don't get enough credit. Or enough help.
Doing internet searches, reading up on small business development or even taking courses at the government sponsored small business help centers across the country still don't get enough entrepreneurs through the staggeringly difficult first 5 years. From personal experience, I still find access to financial capital to be the main obstacle. Moving a business from the subsistence 'scratching out a living' scale to a thriving business headed towards growth is no small feat; the fact that small business owners are expected to do it on the backs of their children and spouses is frankly, what keeps most entrepreneurs out of business.
The uninitiated wonder why businesses need access to dollars. At a common sense level, it seems contradictory that a profit venture doesn't make enough profit to sustain itself without help but that is the reality of business and the larger corporations have the banks' ear, not to mention, all the professionals necessary who speak 'bank speak'. Although the main problem of the financial meltdown of 2008 was the banks and their business dealings, don't look to them for the self-analysis that would lead to new thinking and more openness to financial models for business. On that score, the banks are 'closed'.
The federal government has started taking a lot more interest in SME's since 2008. The reality of our economic importance to the country cannot be stressed enough and if Canada wants to maintain its reputation for stability, helping one of the biggest economic drivers is good, strategic thinking. It's also why they are considering changes to the rules around social finance. As many of the present rules and regulations also discourage the development of social enterprises and the sector of social finance, the government is witnessing the proverbial 'shooting itself in the foot'. Either we get it together and support SME's and the development of social finance or our economy will soon show all the wear and tear of every other major country in the world. And this would line us up for the next proverbial cliche 'Egg all over our faces.' You can't be shown to have the 'most stable economy in the world' and then, undercut yourself. Well you could, but I don't think we want to.
So I'm off to the Segal Centre, that most beautiful building where I did my first live web program. It's got great memories for me and is an inspiration to be in. I'll be delivering the message of 'add something new' on behalf of SME's and social finance in Canada and I'm looking forward to the possibilities. Will catch you up if anything 'new' does come out of it.
