With the job loss figures out, does Canada need a Job Summit? Obama will be holding a job summit, what about here in Canada?
Turns out that our Canadian government has been doing a great deal to support job growth for years. Except our government recognizes that jobs come from small and mid-sized businesses, not government. Obama needs a better marketing expert because his Job Summit should actually be called Entrepreneur Summit or Small Business Summit because these are the sustainable jobs that grow a country’s future wealth.
Our Canadian government is sending junkets to India where our entrepreneurs can meet Indian business owners interested in Canada and the trade consulate to smooth the way. In addition, we have the Export Development Corporation (EDC) which helps even further by guaranteeing 80% of bank loans for export cash flow. Entrepreneurs appreciate the risk being carried by government, and banks love it because they can continue providing cash but with an 80% reduction in risk. Canadians appreciate it because this government support means jobs for Canadians. How great is that synergy?
One of my clients has begun to sell motors to China and it is stretching his cash flow. His bank would not take on that risk. Quite right. The EDC, though, worked with the business owner and his business plan and backed 80% of the loan. Then the bank was confident that the risk was better and gave the loan. The entrepreneur has the comfort that the risk of doing business in China will not bankrupt him and now he can take the small steps to grow.
The government gave CYBF $20 million. I work with this foundation and we give loans of $10,000 to young entrepreneurs along with a mentor. Many of those entrepreneurs went on Dragons’ Den and got deals with the Dragons and those create good jobs for businesses. Thanks to our government. I was at a business summit in Toronto and heard Tony Clement say, "We in the government want to help business and then get the hell out of the way."
Sounds good, Tony! I think the government s doing a great job and this is one entrepreneur who appreciates it.