Small business big movers

BY BRENT FOX

Kings County Register



Entrepreneurs are an integral part of the Canadian economy, says Canadian Federation of Independent Business president and CEO Catherine Swift.

Entrepreneurs are more tuned into social needs.

Swift spoke to students, faculty and the public Nov. 7 on “Canadian Entrepreneurship in the 21st Century.� The presentation was part of the Acadia Distinguished Business Speakers Series

The CFIB has been around for 35 years and has a membership of 105,000. The organization's views reflect feedback received through surveys.

“We're certainly seeing some very profound changes in the economy, as well as the entrepreneurial sector in Canada,� she said.

One change is younger people are looking more and more to entrepreneurship than in the recent past. A few decades ago, young people were looking at jobs in government or large corporations.

“Now we see a lot going into entrepreneurialism right out of the gate.�

Swift noted Canadians are on par with Americans when it comes to the entrepreneurial spirit and risk-taking.

“We're actually a very entrepreneurial country…. We certainly believe this is a very opportune time to promote the entrepreneurial sector.�

Though it has tapered a bit, the sector's growth continues - and there is room for more.



Economy is good

The Canadian economy is good. Despite high energy prices, the high dollar and a minority government, the small business sector is still holding its own in employment creation, rising from a quarter of the economy 30 years ago to just about half now.

There are two economies in the country: the stock market economy and the smaller and medium business one. “

“Our economy is growing quite well.�

Swift pointed out technology has been comparatively more of a benefit for small businesses than larger companies, and technology costs continue to decline.

Entrepreneurs tend to share a number of common qualities: a desire for independence, self-reliance, the will to develop a better society and to contribute to it, they’re anti-establishment - among others.

Money is not one of their top motivating factors, she said

Swift noted government has an important role to play in determining where the sector is going. The CFIB supports no particular political party. A challenge, however, is to ensue people don't get cynical because of turmoil at the federal level of government.



Need tax reform

Swift said government could help small business by reforming taxation, including reducing profit-insensitive taxes. Levies such as payroll and property taxes are taken, regardless of if a company makes a profit or not.

“They are real killers.�

Government could also help get rid of red tape or regulatory burdens.

“Small businesses don't have time for it.�

Other issues facing small businesses include the need for skilled labour at a time when demographics don't support it.

As well, insurance costs have increased since 9/11, she noted.

“In Canada we don't have a lot of competition.�

The same goes for banking, she said. The more options, the better for small and medium business.

Responding to a question on whether university business schools are reflecting the growth of the sector, Swift acknowledged they have generally not - yet. But, some MBAs are staring to form around entrepreneurialism.

“It's coming.�

Wolfville is the home of the Acadia Centre for Small Business and Entrepreneurship, and former CFIB Atlantic representative Peter O'Brian had been a frequent visitor to the Fred C. Manning School of Business.

Swift pointed out, however, “it's hard to teach entrepreneurialism - it's not like other skill sets.�

As for social responsibility, unlike larger companies, smaller businesses are rooted in the community. Employers often work with employees, who are sometimes family and friends.

As well, employees of smaller businesses seem to be more content and satisfied with their jobs.