Canada’s future in the business world and economic prosperity relies on their ability to innovate. Sadly, this economic and social process of development and implications of ideas to produce new or improved strategies is ranked as the country’s second most problematic factor. This report will support the opinions and information from Kevin Lynch’s article, as well include outside sources to reinforce Mr. Lynch’s arguments. It will cover the competitiveness and motivation of small and medium sized enterprises (SMEs) as well as the lack of government policies to incentivize these SMEs to export and participate in global innovation.
It is both recognized and often-cited fact that companies of fewer than 100 employees primarily populate Canada’s economic setting. Over 98 percent of companies in Canada are categorized as small and medium sized enterprises, “over 75 percent of which are termed micro-enterprises, each employing fewer than 10 people”. Additionally, the country’s economic potential is to be fulfilled in the years ahead, policy-makers must practice greater urgency and precision in designing strategies that encourage SME development in Canada. Before finding the solution, the problem must be identified, multiple recent trends in the SME sector. While the collective statistics of
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Additionally, the amount of mid-sized firms in Canada is decreasing, causing the economy additional dependency on a very small sum of high-growth firms to carry the burden of creating employment. “In 2006 and 2010, 17 percent of mid-sized firms diminished. Those of the mid-sized firms that diminished, 14.9 percent closed or resorted to the classification of a small firm”. In particular, these challenges weaken the ability of small businesses to progress into world-class firms with the ability to develop their operations and give meaning to economic growth and
Especially those that do e-business. Many small businesses start out and struggle to survive the first year with saturated markets or being shut down due to shopping malls or Walmarts popping up everywhere. If a company can establish themselves online and provide a product that can influence those outside of our borders, then many can sustain themselves for the long-term. In Target’s case, I had no idea they were not more globally situated in other countries. I think those responsible for the expansion into Canada were too quick to penetrate a market that was not readily accepting of Target’s overall performance. Unfortunately, many of the errors the retailer encountered could have been avoided. If another attempt is made at going global, Canadian Target should be a valuable lesson of what should be
Competition is an important driver of innovation and productivity growth. Looking at the domestic Canadian economy, perhaps one of the most significant barriers to a strong domestic economy is the lack of intense competition among domestic firms. There are many reasons for this. First of all, the size of the Canadian economy is too small to support the development of large corporations. The US on the other hand, has about a ten times larger population, and therefore, a much larger market and demand are in place for larger multinational companies to build. As a result of the lack of sufficient domestic demand in Canada, only a small number of larger firms are developed in each industry. Furthermore, Canadian firms seldom treat research and development as a priority. Unlike in the US, innovation is not a corporate culture in Canada. This can be partly due to the lack of intense domestic competition, causing firms to spend resources on other areas instead of R&D because there is no real urge to innovate and maintain competitiveness.
eMARKTER INC. (2006, July 6). E-commerce thrives in Canada. Retrieved March 25, 2011, from http://www.ebusinessforum.com/index.asp?layout=rich_story&doc_id=8809&categoryid=&channelid=&search=canada
Tim Hortons launched in United Arab Emirates in December 2011, and they have been vastly successful ever since. Nonetheless, this report proposes a business growth strategy that Tim Hortons may implement in order to increase its market share for the sake of matching its competitors’ progress and sustain its growth strategy in the region.
Protecting innovation is important and governments should be working to create an environment that fosters innovation. However, the current legislation in Canada goes past what is necessary and impedes its own function.
As time passes Canada is becoming an unsustainable economy from its reliance on natural resources. This unsustainability creates volatility in the Canadian economy, missing out on market share opportunities, and it is creating a negative ripple affect to other sectors of the economy. Canada should move forward and expand its spectrum and play an aggressive role in the global marketplace. Canadians need to adopt a long-term approach that will benefit the growth in Canada, as opposed to the short-term gains, that currently exist. Canada has many opportunities to exceed in today’s globalized economy and it should act now, since Canada’s future depends on it.
As Canadian's fertility rate fells, baby boomers retires, immigration and foreign workers becomes very important for the increase of labor demands in the Canadian's job market. The government is planning to reduce the application waiting time and therefore there will be more newcomers coming in the next fewer years. Canadian companies will then have many experienced and foreign trained applicants where they can help Canadian companies to increase their foreign trade and to build a better relationship with the other country. However, new comers have difficulties in finding employment because of their unrecognized foreign qualifications, non Canadian work experienced and the lack of support in the settlement programs where they get help to find employment.
There are over 28 million small locally owned businesses in the United States and 70 % of these businesses are owned and operated by a single person. Owning a small business is not an easy task it takes hard work and dedication, Steve Jobs once said “you need a lot of passion for what you’re doing because it’s so hard”, people don’t realize
Growth in the small and medium business in Canada and other developed countries has been very significant. This sector of the business community now represents about 40 percent of GDP and accounts more than half of total employment. Today small businesses are more diverse and more vigorous than ever, but they also faces newer and more challenges or inhibitors to their growth than their older conter parts. This research will attempt to find the answer to the following hypothetical question:
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.
Entrepreneurship - a special kind of activity. Its constant conditions are limited resources, competition and uncertainty of the situation. The main tools of the entrepreneur are: thrift, cooperation and innovation. Consequently, enterprise is the independent economic entity, with rights of a legal entity, which is based on the use of labor collective property produces and sells products, works, and provides services.
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
Small businesses have been considered the mainstay in countries around the world. In many European countries for example, the small business has been considered crucial to the success and flourishment of the country in general. Most individuals start upon a small business venture in the hopes of realizing ownership, independent profits and personal success. Small businesses can prove extremely successful when planned properly. Studies suggest that several small businesses, however, close or fail within the first few years of operation. This failure suggests that a majority of small business owners may not have as yet realized the crucial success factors necessary for successful implementation of a small business.
Throughout Europe, great attention has been paid to the small business area and to the contribution that entrepreneurial small businesses can bring beneficial to transforming the economy (EiM, 1994).The concept of entrepreneurship is often considered with new venture creation and small enterprise management, and the terms of owner-manager and self-employment (Gibb, 1996). While Kirby (2003) has argued that entrepreneurship is far broader than these concepts mentioned above. Not all owner-managers can be considered as entrepreneurs, nor are all small business entrepreneurial (Carland et al., 1984). Carland also has argued that entrepreneurial small business is aiming at profitability and growth, and the business is regarded to be innovative.
Small businesses have a clear relationship with the economy in general, and if we take an example like the U.S. where over 86% of businesses ...