Building Prosperity for the Future: An SME perspective on productivity in Atlantic Canada
For more details
Building prosperity for the future
An SME perspective on productivity in Atlantic Canada
October 2010
Amelia DeMarco, Atlantic Research Analyst
Erin McGrath-Gaudet, Senior Policy Analyst
Judith Hindy, Business Counsellor/Policy Analyst
Atlantic Canada has traditionally been a region that is rich in labour and where public policy has focused on finding jobs for people rather than finding people for jobs. With an aging population, the out-migration of young people, and low immigration levels, our labour force is changing and we must now deal with the fact that the future prosperity of the region requires us to do more with less. The region needs to be more productive.
Building on research by the Canadian Federation of Independent Business (CFIB) and others, this report examines the context of productivity in Atlantic Canada and the perspective of the region’s small- and medium-sized enterprises (SMEs). This provides a unique examination of productivity from the perspective of the Atlantic Canadian SME.
Investments in people by province (% response)
Source: CFIB, results of Provincial Surveys, 2009, 847 responses, ±3.4%, 19 times out of 20
As the findings indicate, small- and medium-sized business owners plan to make productivity enhancing investments into their firms in three key areas: capital assets, technology and people. Approximately half of Atlantic small business owners plan to make investments into capital assets and technology which will improve the efficiency of their operations. The skills of employees are also a key area of focus as many business owners plan to make investments in training and staff. But while many SMEs are making plans focused on increasing productivity, very few are accessing government programs aimed at encouraging investment and innovation. These programs are often not seen as beneficial by the SME community.
Government has many public policy tools which it can use in order to help businesses improve their productivity. CFIB survey results make a strong case that tax reductions would result in productivityenhancing investments into small- and medium-sized businesses, notably in their employees, capital assets and technology. Reductions in the regulatory burden would result in similar savings for businesses and also allow business owners more time and money to devote to more productive pursuits. In this vein, Atlantic governments should work together to ensure that provincial economies are able to operate efficiently by removing interprovincial barriers to the flow of people and business activities. CFIB also recommends that governments take steps to encourage and reward workplace training, including informal training, which is more often provided by small- and medium-sized businesses.
By taking a proactive approach to our productivity challenges, governments can help the Atlantic small business community address the looming demographic shift and ensure the long-term prosperity of region.
