What Help Does The Government Give To Small Businesses
Does the government give help to small businesses? In what form?
This article will talk about some of the programs the government has for helping small businesses. The information provided here will be made up of the links provided in the article as a reference point.
This article should be read as more of a reference than it should be read as an authoritative source.
In terms of tax credits and other types of programs to help small businesses, the most obvious one is the Small Business Job Credit.
The credit is meant to help small businesses retain and hire new employees. The program is available to all businesses with annual revenues between $1 million and $10 million.
Small businesses have the advantage of benefiting from the following programs for small business taxation.
The new Bank of Canada interest rate is actually very good for small businesses.
The new 10-year bond, which is actually a federal bond, actually has a 10-year interest rate as opposed to the standard 5 years.
In terms of taxes, there are various relief programs for small businesses, such as for various credit types (Earned Income Tax Credit), Income Tax Benefits for Employers, and Other Benefits.
Who does the government help?
The question remains as to whether this is enough for the changing marketplace. The economy is very sensitive to change and thus, it is even more important for the government to be as effective as possible.
Statistics Canada defines micro-small businesses to be those with fewer than 20 employees.
Here are some of the stats.
The world average business size is 10 employees
A whopping 46.6% of Canada’s businesses are micro-small businesses. According to Statistics Canada, there are 839,300 micro businesses in Canada.
There are approximately 12,700,000 businesses in Canada. 4.1% of all Canada’s businesses are micro-small businesses.
Canada’s small business employment
According to Statistics Canada, 82.9% of all businesses employ fewer than 20 people. The remaining 18.1% employ between 20 and 49, 51 to 99, and more than 100 people.
This demonstrates that the majority of small businesses are micro-businesses.
Businesses of all sizes in Canada employ 15% of their employees as temporary help and 29% have a temporary worker.
29% of all businesses have a temporary worker.
The number of Canadian small businesses with fewer than 10 employees increased 2.4% between January 2000 and January 2011, while the number of businesses with fewer than 50 employees increased 1.2%.
A lack of training, a lack of direction, and a lack of support are some of the reasons for the collapse of many businesses in the last recession.
The Canadian government has tried to provide greater support for small businesses, specifically small businesses through various programs.
In terms of training, the Canadian Small Business Agency (CSBA) offers training and supports for small businesses to help them overcome several challenges. Small Business Innovation Research Program (SBIR).
CSBA launched this program in 1992 to support the commercialization of research conducted by Canadian small businesses. Innovation, Science, and Economic Development Canada (ISED) provides grants to SBIR applicants.
In a CSBA news release, Don Anderberg, the vice president of marketing and strategic partnerships at CSBA, explained that they can provide support to businesses and universities:
The Government of Canada recognizes that our small businesses are the engine behind innovation and economic growth in Canada.
We provide opportunities for them to compete and succeed while working to identify and mitigate challenges faced by small businesses.
The SBIR program assists Canadian small businesses with high-risk commercialization activities to commercialize innovations in a sustainable and commercially relevant way.
We also help our small businesses engage in more international markets.
Small business venture capital investment
The number of funds seeking new investments from 2007 to 2011 has been rising.
The Canadian Venture Capital and Private Equity Association reported in the Canadian Venture Capital Journal in 2011 that: In 2011, there were 91 VC funds started, increasing from 71 in 2010, and 29 from 2006 to 2010.
Canada’s Venture Capital sector has experienced the most recent post-recession upturn in VC investments.
For the year 2011, Canada’s VC sector posted an 11% increase in total VC investments and a 19% increase in VC-backed private companies compared to the previous year.
Canada is the leading country in terms of total VC investments in 2011 and has surpassed the U.S. to maintain the largest share of the international market.
Top VC funds by a number of investments
1. iNovia Capital
iNovia Capital is a joint venture between iNovia Capital and OMERS Ventures that targets early-stage technology companies focused on cyber, healthcare, and telecom.
iNovia Capital is one of the best-performing VC funds in Canada.
2. OMERS Ventures
With over $3 billion under management, OMERS Ventures is Canada’s largest pension fund, with a $29 billion endowment.
In 2011, OMERS Ventures invested $110 million in 29 new or renewed investment rounds and raised a total of $352 million.
3. Osler Capital Partners
Osler Capital Partners was co-founded in 1999 by Ed McCaffrey, the former Managing Partner of Northstar Capital. Osler has more than $600 million in assets under management.
In the last ten years, Osler has invested in over 160 companies.
4. 8VC
8VC, formerly known as Wall Street Collective, was co-founded in 2009 by Shawn Savage, Dale Behar, John Martin, Paul Nanak, and Alex Barker.
8VC invests in tech companies at the early stages and supports entrepreneurs with early-stage capital.
8VC invested in over 75 companies in 2011, including Skully, Stride Health, BlaBlaCar, Toutiao, etc.
5. Garneau Ventures
Garneau Ventures was founded in 2007 by Glenn Couzin, Norman Garneau, and Didier Vézina.
Garneau Ventures has $100 million in assets under management and has been invested in over 100 companies.