Canada is currently undergoing the biggest wave of business succession in the country’s history. At the same time, Canada is facing a sharp decline in business formation and entrepreneurship. Without intervention, these twin trends are poised to weaken the vibrancy of Canada’s economy and damage local economies for the indefinite future.
Social Capital Partners and Venture for Canada made a joint submission to Innovation, Science, and Economic Development Canada (ISED) as part of its work to finalize its mandated 5-year review of the Canadian Small Business Financing Program (CSBFP).
We recommend that the CSBFP should be amended to allow for increased Entrepreneurship through Acquisition (ETA). ETA is a model whereby existing or aspiring entrepreneurs purchase and grow existing small businesses, rather than build them from scratch. This approach plays an important role in facilitating a transition to a new generation of entrepreneurs, keeping wealth in Canadian communities and unleashing local, private sector innovation.
Share with a friend
Related reading
Watch the video: Why do Canadians work so hard and get so little?
Low productivity means lower wages and a lower standard of living. Canada does need to boost productivity—but we keep trying the wrong things. Watch SCP CEO Matthew Mendelsohn explain the productivity conversation Canada actually needs to have.
Market study submission: Competition in financing for Canada’s SMEs
Small- and medium-sized businesses (SMEs) face significant barriers to accessing capital and we believe that the lack of competition in the banking sector is one of several important contributing factors. We provided comment on the Competition Bureau's upcoming market study on SME financing because we believe that unlocking capital for SMEs and entrepreneurs will strengthen the Canadian economy, bolster our sovereignty and provide more Canadians with pathways to building wealth. We look forward to seeing how the evidence collected will help inform policymakers interested in tackling this issue.
Watch the video: Why would a company sell to its employees?
Canada is facing a $2-trillion business handoff. What if employees owned more of it? In this video, our Director of Policy Dan Skilleter explains why a company would sell to its own employees, how it happens and who stands to benefits. Spoiler alert: employee-owned companies are shown to be 8-12% more productive, share more wealth with their workers, keep businesses Canadian-owned and shore up the resilience of local communities and the broader economy.