Mary Nguyen Student ID
Student ID: 1641926
Work presented to
Constantina KavadasIntegrative Project
300-301-VA section 00009
Friday March 16th, 2018
In today’s world, we plan for our future, for the future generations. We want to leave something behind for our children, grandchildren, and so on. One of the many things we have thought of is a stable and strong economic growth, therefore, enhancing the standards of living. This future lies in with the role of entrepreneurship in our communities. Throughout the world, many have recognized the importance and leading role of entrepreneurship in our future. They believe that it is the key to our economic growth and many leaders have taken measures to support it. For example, Barack Obama recognized that entrepreneurship would have a high-growth impact on the society and invested in the domain during his presidency. This enabled the United-States to become the topmost entrepreneurial country in the index’s 14 pillars of a healthy entrepreneurship ecosystem. Our country, Canada, follows suit right behind, we are second. The question to ask is what are we missing to be first? What can we do as citizens, as well as what can our government do to help the numerous upcoming entrepreneurs? While we have seen the utility of entrepreneurship in Canada during the latest economic crisis, entrepreneurs need additional support from the government to flourish and maximize any positive outcomes tp to support our society and consolidate our economy. The government currently have many support policies as well as the favorable conditions to encourage entrepreneurship. However, these policies are rather inefficient in the long-term of nascent businesses.
Entrepreneurship is a field that was recognized as an essential economic drive factor in Canada from the year 1987. In fact, from 1987-2007, entrepreneurship was a leading source of regional growth in Canada. More importantly, as Canada came forth from the Great Recession, a question came to mind. How could they successfully guarantee a strong economic growth that will raise employment rates and further increase our quality of life for future generations? As it happens, in 2011, our last Prime Minister, Stephen Harper, stated that 2011 was “Year of the Entrepreneur” and used entrepreneurship to boost back our economy. This statement alone showed entrepreneurship’s recognition as being the center of our future economic drive. This was the time for nascent businesses to develop and they have become critical to our quest in stabilizing a strong national wealth.
Another way to see start-up firms is gazelles. Gazelles are small innovative companies that provide a stable and remarkable growth in employment and revenue. According to Terry B. and al., gazelles are any nascent businesses, that have been around for at least five years, that have an average mean of employment increase of 20% per year over a three-year period and that has a minimum of 10 employees at the beginning of this period. They offer many benefits as they increase employment, they encourage international dealings as well as innovations and economic diversification. Economic diversification will not only lead to new markets or industries but also diversify the Canadian market which would enhance its ability to resist to further financial crashes. If one market would crash in the future, for whatever reasons, our economy would still stand due to the existence of plenty of other major markets that also contribute to our economy.
To add to the point of entrepreneurial benefits, according to the study “The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from Canada”, self-employment income is often looked over when it brings back so much in our economy. In other words, entrepreneurship has been one of the leading forces in the labor market throughout the country. In fact, self-employment has become the primary source of employment in the economy. According to Statistics Canada, ever since the between 1989 and 1996, 75% of the new jobs were part of the self-employment sector. They have come so far as to surpass the growth of the private and public sector of employment. Furthermore, as stated by to economists, entrepreneurs are the future drive and changers of the economy.
One of the many scenarios where we fail in supporting entrepreneurship is when Canadian policymakers ignored the capabilities of entrepreneurship for so many years considering the many gaps in development throughout the country. Indeed, entrepreneurship can reduce the disparities between provinces by using a considerable amount of federal funds and by fueling regional income growth. In other words, it has been studied that entrepreneurship not only gets some economic stimulation from the initial shock of the policies but also have a long-term effect on the economic income growth. It is then safe to state that entrepreneurship can also be a long-term leading force in our economy. Therefore, this pushes us to take gazelles even more seriously not only to boost the general economy of the whole country but also the economy of those lower developed provinces.
This comes without saying that Canada is one of the most appropriate countries to start a business. In fact, according to the Government of Canada, Canada possess four qualities to that are essential to start-ups businesses. Firstly, we are categorized as the top country to do business in the G-20 according to Forbes magazine. Even better, we possess the highest fiscal placement in the G-7, and if we look into the G-20, we have the best fiscal expectations. Secondly, we possess the smallest tax rates and the most moderate cost of start-ups. These conditions help boost the chances of success in welcoming new entrepreneurs. We are known to be the center competitor for taxes out of all the countries in the G-7 according to KPMG. Thirdly, Canada is renowned for its excellent domain in research and innovation such as R;D investments, scientific talent, and innovation incentives. What makes Canada, even more, attracting to entrepreneurs, is that up to a mean of 30% of foreign investors’ investment R&D can be returned to them if we combine both federal and provincial financial installments. Fourthly, a very attracting condition is the quality of life in our country. We can offer entrepreneurs’ family the best standards of living out of all of the G-20 countries, which includes high education and flexible and multicultural workforce. However, even with all these advantages, Canada produces way too little gazelles – start-up firms. We have so much more entrepreneurial potential, and we must do more to support future enterprises which are the sole key to Canada’s economic future.
Not only, would gazelles be advantageous for Canadian’s economy, but entrepreneurs could also give back to the community. In this field of work, they have two options to give back. One way an entrepreneur can do so is through mentoring. The other one is through charity donations, in other words, the entrepreneurs could also be philanthropists.
Firstly, mentoring is not simply training someone to become a good business person. It goes beyond that; mentoring requires a share of experience. Being a mentor is about advising and transferring their knowledge of the business world to the nascent entrepreneur to help him, or she succeeds in his or her business. Mentoring is usually by volunteering. Hence, it would work by older entrepreneurs, or even any career-oriented related with business volunteering to share all their knowledge or experience with the younger generations, in a personal way as much as a profession way ensuring the growth of the young entrepreneurs as well as their businesses, therefore giving back their knowledge to the community. Indeed, according to Etienne St-Jean study on Canadian-mentor entrepreneurs, mentoring help novice’s entrepreneurs to enhance their cognitive and active learning, their capabilities in identifying opportunities and to attain a clear vision of their business project. It also helped them to easily identify the solutions according to their problems as well as reinforce their competences, therefore, they have better chances at thriving with their businesses. This not only shows how good fostering entrepreneurship can benefit the community, but it could also help the novices businesspersons as most of them lack capital for resources let alone, could they afford training costs.