| Title | Small Business Issues: Impact of Canada's Global Competitiveness and Recommendations for Sustainable Growth |
|---|---|
| ID_Doc | 75092 |
| Authors | Loo, MKL |
| Title | Small Business Issues: Impact of Canada's Global Competitiveness and Recommendations for Sustainable Growth |
| Year | 2014 |
| Published | |
| Abstract | Purpose - Identify barriers to small business in Canada and propose policies to sustain growth due to three key reasons: (a) small businesses are the driver of economic growth, forming 87% of Canada's total businesses and 25% of total value of export goods worth $ 68 billion, (b) they sustain the Canadian economy with the highest growth in export value by 20% in the last decade when big firms declined by 20%, and (c) their growth is impeded by Canada's slipping rank in global competitiveness from top 10 to 14h in the last two years. Design/methodology/approach - As the performance of small firms is influenced by the nation's global competitiveness, the author proposes an approach to identifying the barriers by replicating and validating the World Economic Forum's (WEF) annual survey of 16 business barriers in over 140 nations, reported in the WEF's global competitiveness reports. The WEF's sample comprises an average of 98 firms per nation of unspecified firm size. This research samples 316 small firms to identify the rankings and relevance of the 16 barriers and match them against Canada's 12 pillars of global competitiveness to develop policies that promote small business growth and sustainability. Originality/value - This methodology puts in evidence for the first time the validation of the WEF's 16 barriers to business, not tested anywhere previously but critically important among small firms, the economic spine of a nation. The top five barriers were found uniquely different from WEF's rankings: tax rates, tax regulations, access to financing, Poor Work Ethic and restrictive labour regulations. Chi-square and independent sample tests found respective significant associations and differences between barriers and business categories, provinces and data collection methods, which further help highlight the respective barriers specific to each demographic variable. Practical implications - The outcomes of the research provide implications for focusing resources in dismantling barriers by type of business, employee size and province, and strengthening weak pillars in global competitiveness to sustain long-term growth for small firms. Abiding by the United Nation's Principles for Responsible Management, this research helps build a model of knowledge management for decision makers to monitor and analyse relevant data sources, design and implement policies to promotesmall business sustainability. This research will provide the stimulus among academic scholars, industry captains and government leaders to collaborate for a better economic future and a more globally competitive nation. |
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