New focus for small business development

The Minister of Development and Rural Renewal, Judy Foote, said yesterday that the business activities of the former Enterprise Newfoundland and Labrador will take a new focus within her department.

Traditionally, significant resources have been devoted by the province to the provision of direct financial support to businesses. Financial support will remain an important tool of business development within the new Department of Development and Rural Renewal, as reflected in the recent budget which provides $8.1 million for such purposes. However, it is recognized today that business failures often result from a lack of management skills and counselling rather than from a lack of capital alone.

Ms. Foote said: "My department therefore intends to refocus its available resources more sharply on the provision of business information and counselling services, with its financial programs targeted predominantly on seeding the start up of new small businesses, with particular attention to be given to the needs of rural Newfoundland and Labrador."

The department also intends to form more effective partnerships with other levels of government and community-based economic development agencies in achieving small business growth and economic diversification in all areas of the province. The department will assist small businesses by providing seed funding and business development services to enable them to reach a stage where they can lever commercial business financing from other sources. This approach will complement, rather than duplicate, the activities of other governmental agencies such as ACOA, the Business Development Bank of Canada and the newly formed Atlantic Investment Fund, as well as the role served by commercial lending institutions.

"My department will also be more proactive," said Ms. Foote. "Staff will help people and communities identify business opportunities, and will, through the department's regional office network, work with them to bring these opportunities to reality."

Ms. Foote expressed confidence that this new approach will be more effective in stimulating employment opportunities throughout the province, and will form an integral part of the government's plan to revitalize in particular the rural economy of Newfoundland and Labrador.

Contact: Judy Foote, Minister, Department of Development and Rural Renewal, 729-4728.