A consideration of Canadian government measures for simulating small business growth

  • Raymond Wen-yuan Kao

    Student thesis: Doctoral ThesisDoctor of Philosophy


    As an introduction, Chapter I attempts to:
    l. present an overview of Canadian economy and small business.
    2. define the purpose and objectives of the study, and
    3. outline the method used for the study.

    The efforts of Chapter II are directed towards the definition
    of small business by examining three popular approaches for
    the definition: Structural Approach, Behaviourial Approach.
    ang Generic Consideration. Arguments of all three alternatives
    were analyzed. Consequently, from the operational point of
    view and the purpose of this study, the structural definition
    is adopted, nevertheless, it is assumed that business is
    normally managed by its owner or owners.

    Chapter III concentrates its deliberation on the Economic
    Justification for Promoting Small Business. The argument presented in the chapter compares the relative
    efficiency of the smaller firm with that of larger company,
    its innovative activities and above all the resources consideration.
    t was concluded that there is no clear evidence that small
    firms are less efficient than large corporations, moreover,
    from the point of view of both the innovative activities and
    resources allocation, the performance of the smaller firms must,
    be recognized. For this reason, the government's efforts in promoting the growth of smaller firms is justifiable. However,
    the question of the extent to which the government should be
    involved in stimulating small business growth is yet to be

    Chapter IV establishes a set of general criteria relating to
    small business development policy. Essentially, it emphasizes
    the importance of understanding the behaviourial characteristics
    of the owner/managers of small firms; the need of regional
    emphasis and above all, the self-sufficiency and self-reliance
    be the focal point of all government undertakings.

    Chapter V examines Canadian government policies affecting small
    business growth in retrospect. The examination includes major
    protective policies, and the various government incentive programmes
    and grants. Finally, the chapter closely examines the establishement
    of the Industrial Development Bank 3 its objectives,
    operations and accomplishments.

    Government measures to assist the small business since 1975 were
    assessed in Chapter VI. The first part of the assessment concentrates on the purposes and objectives of the Federal Business
    Development Bank and its first 2 years performance since its incorporation, A comparison is also made on the structural difference
    between the Industrial Development Bank and the Federal
    Business Development Bank.

    The latter section of the chapter is devoted exclusively to
    recent government undertakings, including the inauguration of
    the Minister of State Small Business, the Enterprise Development
    Programme and Enterprise Canada '77.

    As a general consideration for government measures in aiding
    the small business, Chapter VII analyzes the fundamental issues
    of the Canadian economy as related to small business. development
    problems encountered by Canadians. The lack of
    an effective industrial strategy, strong government presence
    and government influence on entrepreneurship are thought
    to be experienced by the small business community in

    Specific considerations are directed into inquiries of various
    crucial areas affecting Canadian small business growth (Chapter
    VIII). This includes a detailed assessment of the effectiveness
    of the operations of the Federal Business Development
    Bank, the government grants and incentive programmes on the basis
    of early established development criteria, taxation, the
    presence of crown corporations, legislation and regulations
    as well as the attitude of small business owner/managers towards
    the government.

    To conclude the findings of the study, Chapter IX reveals
    some of the policy recommendations made by the Canadian
    Federation of Independent Business that have been implemented
    by the government, At the same time, it is re-emphasized that should any attempt be made to resolve Canadian small business
    development problems, the need of adopting an effective industrial
    strategy must be taken into account, furthermore, the fundamentals
    of such a strategy must be based on self-sufficience and self-reliance.
    The model used by Ryerson Polytechnical Institute is
    demonstrative of total involvement in promoting small business by
    an educational institution and other undertakings in the private
    sector on self-sufficiency projects. These are illustrated and
    recommended as a starting point to begin the search for an
    effective small business policy for Canada.
    Date of Award1978
    Original languageEnglish

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