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BC Needs to Encourage Small Businesses to Grow

Jock Finlayson's article, BC Needs to Encourage Small Businesses to Grow was published in this month's Chartered Professional Accountants of British Columbia publication CPABC in Focus.

Canada ranks as one of the best places in the world to start a new business, according to an annual survey done by the World Bank. But the country does less well when it comes to encouraging its enterprises to grow—and in generating private sector innovation.

The two phenomena are linked: An economic and public policy environment that stimulates and rewards business growth should also foster a high level of innovation, since the evidence shows that growth-oriented companies are more likely to develop and adopt innovative technologies and business practices.

In thinking about these issues, government policy-makers in both Ottawa and Victoria would be wise to pay close attention to the out sized economic contributions made by the sub-group of fast-growing small and medium sized enterprises (SMEs)—sometimes called “gazelles.” A 2010 study by the Kauffman Foundation in the US estimates that the top performing
5% of all American businesses — measured by their rates of employment growth—are responsible for two-thirds of net employment gains. And the top-performing 1% account for a remarkable 40% of US job growth.

Download the full article HERE