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NLIS 5
October 25, 2000
(Development and Rural Renewal)

 

Following are speaking notes for Ernest McLean, acting Minister of Development and Rural Renewal from an address delivered today at the Small Business Week Awards Luncheon hosted by Conception Bay South Chamber of Commerce and Town of Conception Bay South:

There�s Nothing Small about Small Business

Good day everyone.

It is a pleasure for me to be here today during this very special week, Small Business Week. I consider it a privilege to be here as the newly appointed Minister of Development and Rural Renewal. I thank the Conception Bay South Chamber of Commerce and the Town of Conception Bay South for the opportunity to speak to you today.

It was the previous minister, the Honourable Beaton Tulk, who originally received the invitation to be here. But a lot can happen, and has happened, on the political scene in a very short time � not the least of which is the swearing in of a new Premier � Premier Beaton Tulk.

Our new premier has asked me to extend to you his very best wishes, as well as his sincere congratulations to the winners of the awards being presented today.

I know that the creation and growth of our small business sector is something in which he takes a great personal interest. It is something that, as mnister, he worked hard to promote, encourage and develop.

I can assure you, that in his capacity as premier, he is as committed to the development of small business as he was as Minister of Development and Rural Renewal.

I also assure you that my commitment is equally strong. I give you my commitment, that as the new Minister for Development and Rural Renewal, I will work very hard to fulfill the department�s mandate to stimulate economic growth and create job opportunities in all areas of the province.

That will include work to encourage the growth of small and medium sized businesses throughout the province.

This brings me to the reason why we are here today � Small Business Week.

We are here to celebrate. More importantly, we are here to salute the army of entrepreneurs who are the driving force of our economy, in all regions of the province.

In this regard, the term "small business" is a bit of misnomer. "Small business" does not even come close to describing the significant contribution the small business community makes to creating a stronger and better Newfoundland and Labrador.

There�s nothing small about the role of small business in our economy.

Consider this:

  • Small businesses have created more than 80 per cent of all new jobs in Newfoundland and Labrador since the 1980s.

    There�s nothing small about that.

  • Small businesses account for one-third of all employment in the province today.

    There�s nothing small about that.

  • Almost 95 per cent of all businesses in our province employ fewer than 50 people � the upper limit most often used in defining small business.

    There�s nothing small about that.

  • About two-thirds of all our businesses fall into the smallest category � employing fewer than five people.

  • That is higher than the national average.

    There�s nothing small about that.

Yes, from small beginnings, small businesses make a big difference to our economy.

This fact was clearly recognized by the hundreds of individuals and organizations that made presentations to the Cabinet Committee on Jobs and Growth when the committee began its public consultations last fall.

The committee was repeatedly told that one of the keys to continuing the economic momentum that has been building in our province is for Government to create the right environment to attract new investment and keep business competitive.

Numerous individuals who made presentations to the Cabinet Committee echoed the words of one presenter, who said:

"Businesses create products and jobs, the workers actually make it happen, and government�s role is to provide the environment and infrastructure necessary to encourage and assist both new and expanding businesses."

Government has listened. We took the recommendations we received seriously, because the Government of Newfoundland and Labrador supports the view that the private sector is the engine that drives our economy.

When the Interim Report on Jobs and Growth was released with the Budget in March, we announced what we would do to put the advice we received to work immediately.

  • We eliminated the payroll tax for small businesses with payrolls of $400,000 or less. This means that more than 90 per cent of all businesses are no longer subject to that tax. It means that businesses are able to reinvest the savings back into their businesses to create new jobs and growth.

  • We responded to repeated calls to assist small business take advantage of new growth opportunities in our economy. We did this by creating two new programs in the Department of Development and Rural Renewal � a $2 million Small Business Seed Capital Equity Program, and a $500,000 Small Business Market Development Program.

  • In partnership with the Federation of Co-operatives, we expanded the Collective Enterprise Development Program that provides loans from $500 to $5,000 to very small businesses and self-employed entrepreneurs.

  • We established, in partnership with the federal government and community economic development organizations, a new $10 million small business investment program that is focused specifically on the needs of rural communities impacted by the collapse of the groundfish fishery.

  • We also made additional investments, with the federal government, to strengthen and expand the network of federal-provincial-community business service centres in each of the 20 economic zones in the province. These centres are designed to provide more accessible and streamlined "one stop" support services to small businesses in all areas of the province.

As a matter of fact, a new business service centre is being opened today in Ferryland. Another was officially opened yesterday in Trepassey.

Ladies and gentlemen, in our Interim Report, we made some other commitments to support the growth of the business sector. We will honour those commitments.

One of them is a commitment to introduce a venture capital tax credit program that will encourage private investment in new or expanding small businesses. In making that commitment, we were responding to what the Cabinet Committee was told has been a major impediment to small business growth � namely, lack of access to venture capital.

I am pleased to tell you today that a venture capital tax credit program we promised will soon be announced. In fact, based upon consultations we held with the private sector since the Interim Report was released, we are seriously considering an idea that one venture capital tax credit program may not be enough. We may need two venture capital tax credit programs if we are to address the diverse needs of the business community in all regions of the province.

We are also considering whether enhanced venture capital incentives should be available to those areas of the province most in need � namely, areas outside our capital region. Decisions on these issues will be made in the very near future so that we can get on with the job.

Ladies and Gentlemen, access to a venture capital tax credit program, removing the payroll tax for many businesses, and introducing new small business support programs were some of the recommendations the Cabinet Committee on Jobs and Growth heard.

However, as important as access to financing is for small business start-up and growth, it is not the biggest challenge facing our province.

The biggest challenge is attitude. Too few people think it can be done.

Time and time again, presenters to the Cabinet Committee on Jobs and Growth told us that attitude is as much an impediment to business growth as access to financing has been. We heard it from business owners. We heard it from youth. We heard it from people involved in community economic development in all parts of the province.

Having a positive attitude is essential to successful entrepreneurship. Without it, without a firm belief in ourselves and our own ability to succeed, we limit our chances to move forward. Presenters to the Jobs and Growth Committee drove that point home quite forcefully.

Ladies and Gentlemen, the numerous comments we heard on this issue during the public consultations reinforced what Government already knew: Having the right attitude is essential to economic and entrepreneurial success. Not having it will place severe limits on how successful we can be.

That is why the Government of Newfoundland and Labrador a few years ago introduced two programs � one aimed at all residents of the province, and one designed specifically with our youth in mind.

I�m sure you�ve see the first one. It�s called We�re doing it. Right here. By showcasing and celebrating the successes of businesses and individual entrepreneurs such as yourselves, we want to let Newfoundlanders and Labradorians know about some of our best kept secrets.

We want people to know that our entrepreneurs are making their own way, right here at home. We want people to know about and take pride in our entrepreneurs who are creating jobs here at home, who are inventive and skilled, and who are marketing their products and services to the four corners of the globe.

We want to encourage more people, especially our young people, to have faith in themselves and their abilities, and in the exciting opportunities our province has to offer.

We want people to know that many entrepreneurs who are successful are running their businesses in small communities in rural Newfoundland and Labrador.

The second program - this one in partnership with the federal government - is called Getting the Message Out � GMO for short. This one was designed specifically with youth in mind.

Our research has shown some of our youth feel that there�s no career future for them here in their own province. That attitude has been based on a mistaken belief that this province does not have opportunities they can pursue. More importantly, it is based on lack of information about what is happening, and what opportunities are available.

The GMO program is offered mainly in high schools. The program is essentially a multi-media presentation conducted by university business co-op students who receive special training before they hit the road to schools in all corners of the province each fall and spring.

The feedback we receive from students and teachers is nothing short of extremely positive. It has been so successful, that we have expanded the program to include presentations to post-secondary students and community groups. The results there have been equally positive.

Government was very encouraged during the jobs and growth consultations to hear recommendations to continue both programs. Clearly, people believe that attitude is a key factor in advancing our economic growth.

It is time for everyone, particularly during Small Business Week, to focus on our entrepreneurial successes.

We have a lot to take pride in. There�s nothing small about what the business community is doing.

From Nain to Cottle�s Island to Ramea and Trepassey and Conception Bay South and other communities right around our province, we have an army of business owners who are clear proof that we have an entrepreneurial culture that is making a difference.

From right here at home, in small communities and large ones, our entrepreneurs are finding their way in the global marketplace:

  • We�re building an entire community in Chile from pre-fabricated homes made right here.
  • We�re marketing highly prized dimension stone with its spectacular blue Labradorite crystals to Europe and Asia.
  • We quenched the thirst at last year�s Pan-Am Games with water bottled right here.
  • We�re cleaning up oil spills in Australia with a unique peat-based product made right here.
  • We�re sending educational software around the world in English, Korean and Spanish � software developed right here.
  • We�re using private sector technology on the orbiting space station � technology developed right here.
  • We have the only producer of kosher wine in Canada � one of the select few to sell into the large American Jewish market.

We�re breaking ground on many fronts. And, We�re doing it. Right here.

You are a strong source of growing confidence in our province for all Newfoundlanders and Labradorians

You are an inspiration to all of us, and we thank you for the invaluable contribution you make to our economic growth and employment.

I look forward to working with you.

Thank you.

2000 10 25 4:20 p.m.


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