How do we create the next generation of good Canadian jobs? That's the big question facing policymakers across Canada.
From Ontario's manufacturing heartland, to B.C.'s lumber towns, the layoffs just keep coming. Meanwhile, good new jobs have become harder and harder to find, especially for young people. These days it seems everyone has a son, daughter, niece or nephew, who has the education and skills but can't find the kind of work that could support a family or buy a home. It's not anecdotal – for years the unemployment rate for young Canadians has been stuck at approximately twice the national average.
A recent study by Accenture found that new business owners have the potential to create 10 million new jobs across the G-20, but their survey of Canadian entrepreneurs suggests that in order to get there, governments at all levels need to look at updating the programs and services they provide to small businesses.
Canada's entrepreneurs are resourceful and innovative by nature. They are well-positioned to succeed in the twenty-first century economy, but to help them create the jobs we need in Canada, we need to make sure government is providing new entrepreneurs with the services and supports they need to succeed.
Take international expansion: Over half of new Canadian business owners reported that it is critical, or very important to their businesses. However, it's not easy to develop the connections and local knowledge necessary to get into foreign markets – and the financing and insurance is difficult for many small businesses to obtain.
There are government services to help businesses with these challenges, but as the Canadian Chamber of Commerce has pointed out, they are offered by many different governments, agencies and departments. Finding and applying for the right service is so time-consuming that many small business owners are forced to hire expensive consultants to navigate the bureaucracy – or conclude that going international simply isn't worth the effort. That needs to change.
Another obstacle cited by new business owners is the lack of support for innovation in Canada. While other governments recognize the importance of supporting innovative small businesses and helping them succeed, Canada lags behind. Currently the U.S. sets aside a portion of federal government R&D contracts to help small businesses bring new technologies to market.
Finally, when asked by Accenture what was stopping their company from recruiting more young people, 70 per cent of new Canadian business owners replied "lack of incentives."
Making it easy for small businesses to hire, innovate, and compete in foreign markets – that's one of the ways we're going to create the next generation of good jobs in Canada. To get there, governments at all levels need to coordinate, adapt to the needs of entrepreneurs, and ensure the incentives and services they are providing are accessible and relevant.
Glenn Thibeault, MP for Sudbury and NDP Small Business Critic Twitter @GlennThibeault
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