NLIS 1
October 21, 2002
(Industry, Trade and Rural Development)

 

Small businesses making it happen in Newfoundland and Labrador

"Small businesses are making a real difference in our economy. They are making it happen in Newfoundland and Labrador every day," said Industry, Trade and Rural Development Minister Kelvin Parsons. "This week is Small Business Week, so it is fitting that we take time to celebrate our small businesses and the contributions they make to our communities and our province in general."

Almost 95 per cent of all businesses in Newfoundland and Labrador are small businesses, employing fewer than 50 people. There are more than 20,000 of them in Newfoundland and Labrador today, accounting for more than one-third of total employment and creating 80 per cent of all new jobs in our economy.

The achievements of small businesses and their contributions will be spotlighted during the week of October 20 to 27 as the country celebrates Small Business Week, a national annual program organized by the Business Development Bank of Canada in cooperation with the Canadian Chamber of Commerce.

"Government recognizes the important role that our small businesses play in our economy. That is why we gave particular attention to small business development in our Renewal Strategy for Jobs and Growth," said Minister Parsons. "We have implemented numerous measures to stimulate the growth of this vital sector of our economy and the Department of Industry, Trade and Rural Development applauds those entrepreneurs in all corners of the province who have taken the courageous step of starting up their own small business enterprises and making them succeed."

Media Contact: Clifford Grinling, Communications, (709) 729-7066

BACKGROUNDER

Renewal Strategy for Jobs and Growth
Creating an attractive environment for Small Business Growth

The enterprising spirit of the private sector is the engine of economic growth. Government�s role is to establish and maintain an environment that allows private enterprise to be competitive and create lasting economic wealth. During the jobs and growth consultations, many entrepreneurs came forward with ideas for strengthening our overall small business environment. Government listened and has been putting that advice to work through the Renewal Strategy for Jobs and Growth with such initiatives as following:

Enhanced the EDGE program to make Newfoundland and Labrador the most competitive jurisdiction in Canada for encouraging new business investment, with enhanced benefits for businesses starting up or expanding in rural areas;

Eliminated the payroll tax for small businesses with payrolls of $500,000 or less, removing 95 per cent of all businesses from the payroll tax rolls and putting an estimated $8.6 million back into the hands of the business community each year;

Created two new programs to assist small businesses take advantage of new growth opportunities in our economy - a $2 million Small Business Seed Capital Equity Program and a $500,000 Small Business and Market Development Program;

Introduced a new venture capital tax credit program to encourage private investment in new or expanding small businesses, with enhanced incentives for those who invest in eligible businesses located outside the Northeast Avalon area;

In partnership with the Federation of Cooperatives, expanded the Collective Enterprise Development Program which provides loans from $500 to $5,000 to very small (micro) businesses and self-employed entrepreneurs;

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 industry;

Made additional investments with the federal government to strengthen and expand the network of "single window" federal-provincial-community business service centers in each of the 20 economic zones. These centers are designed to provide more accessible and streamlined "one stop" support services to the small business sector in all areas of the province;

Taken steps to reform the workers� compensation system to make it more competitive, effective and affordable for workers and employers throughout the province; and,

Established a Small Business Advisory Council to provide ongoing advice on appropriate measures government should consider to help stimulate and grow the small business sector over the long term.

2002 10 21                                       10:00 a.m.


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