Minister comments on optimism revealed in small business survey

"Small businesses continue to perform well, growing and creating new jobs in all parts of Newfoundland and Labrador," said Minister of Industry, Trade and Rural Development Kelvin Parsons. "And the sector will continue to play a critical role in the growth and diversification of the provincial economy for many years to come, especially in rural Newfoundland and Labrador."

Minister Parsons was commenting on a recent survey released by the Canadian Federation of Independent Business (CFIB) on January 8, which revealed that most small- and medium-sized enterprises in Newfoundland and Labrador expect healthy growth in 2003. According to the survey, 47 per cent of small business owners in Newfoundland and Labrador expect to be performing much stronger or somewhat stronger 12 months from now, while only 12 per cent expect to be worse off, and the remaining 41 per cent see things remaining much the same. In addition, 25 per cent of the businesses surveyed by the CFIB plan to increase their full-time staff levels in the next 12 months. The CFIB said this "points to healthy overall economic growth in 2003" and that "in all regions [of the province], optimism significantly outweighs pessimism" in regards to prospects for the coming year.

Minister Parsons noted that almost 95 per cent of all businesses in our province are small businesses � employing fewer than 50 people. He said that there are over 20,000 of them in Newfoundland and Labrador today, accounting for over one-third of total employment.

"That is why the Government of Newfoundland and Labrador has given particular attention to small business development in its Renewal Strategy for Jobs and Growth and why we have created a Small Business Advisory Council to keep the momentum going," said Minister Parsons. "Our small business development agenda is helping to contribute to the results we are seeing in the recent CFIB survey � through such measures as successive increases in the tax free threshold for the payroll tax which have removed 95 per cent of all businesses from that tax today, our new Small Business Seed Capital Equity Program, our new Venture Capital Tax Credit Program and our new Small Business and Market Development Program."

He added that between 1995 and 1999, the last year for which statistics are available, the small business sector in Newfoundland and Labrador created 8,400 new jobs, representing 80 per cent of all new jobs generated in our province during that period.

"Government�s plan is working. Good things are happening in Newfoundland and Labrador," said Minister Parsons. "I commend small businesses and the entrepreneurs of Newfoundland and Labrador for creating new jobs and generating real results for Newfoundlanders and Labradorians and look forward to continued success in 2003 and beyond."

Media contact: Tracy Kenney, (709) 729-2257

2003 01 17                                        10: 40 a.m.