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DRIVING CANADIAN GROWTH AND INNOVATION: FIVE CHALLENGES HOLDING BACK SMALL AND MEDIUM-SIZED ENTERPRISES IN CANADA
Research Summary: “Driving Canadian Growth and Innovation: Five Challenges Holding Back Small and Medium-Sized Enterprises in Canada” By Dan Herman & Anthony D. Williams, deepcentre: Centre for Digital Entrepreneurship + Economic Performance (2013)
At Issue: Small and medium-sized enterprises (SMEs), which comprise over 99 percent of businesses in Canada, are commonly portrayed as the backbone of the national economy. However, only a small minority of companies, approximately 4 to 7 percent, demonstrate sufficient growth to make a meaningful contribution to job creation and overall GDP. It is imperative for policy makers to mitigate or remove the prevailing impediments facing small businesses, such that a larger share of SMEs may embark upon growth trajectories that enable substantial contributions to the national economy.
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Research Objective(s): The objectives of this study are to accurately characterize SMEs in Canada, identify key obstacles to their growth, and propose specific recommendations for policy makers to better support the small business economy.
Scope: The study addresses SMEs, defined as companies with fewer than 100 employees, in Canada. In addition to comprising over 99 percent of Canadian companies, SMEs employ more than 6.9 million people and account for nearly 70 percent of private-sector payrolls.
Approach: The authors of this study conducted secondary research by completing a review of more than 23 independent sources.
Findings: Canadian firms lag behind international competitors in adopting productivity-enhancing technologies. In 2006, Canada ranked eleventh among 21 OECD countries in total economic investment in information and communication technologies, down from tenth in 2005 and ninth in 2004. Technology investments by Canadian manufacturers fell by 37 percent between 2000 and 2013. There is a 33 percent technology investment gap between Canadian and U.S. firms, with Canadian SMEs spending 38 percent less on technology than their U.S. counterparts.
Despite the preponderance of service firms among Canadian SMEs, only 12 percent use supply chain management software. Just 4.2 percent of SMEs in Canada qualify as “innovative SMEs” – defined as those that allocate more than 20 percent of investment expenditures to research and Filemaker development. Studies of SMEs in the U.K., Germany, and France indicate that greater adoption of technology by SMEs benefits not only individual companies but also the economy at large. Increased innovation by SMEs results in increased job creation, productivity improvements, and GDP growth.
To enlarge the pool of high-growth, high-impact SMEs in Canada, policy makers are advised to:
(1) Incentivize business growth via tax policy reforms that reward revenue and employment growth;
(2) Promote international expansion of SMEs by (a) facilitating access to export markets and (b) proactively identifying would-be exporters and facilitating their global expansion via management training, export assistance, and export financing;
(3) Build SME management competencies by hosting innovative management mentorship programs and providing incentives for participating in ongoing training;
(4) Promote technology adoption among SMEs by (a) sponsoring collaborative industry-government approaches to financing, (b) engaging in information sharing in order to build the case for technological investment, and (c) emphasizing that technology adoption does not just narrowly benefit knowledge-intensive companies or tech start-ups;
(5) Facilitate more competitive prices for telecommunications services;
(6) Encourage R&D spending by (a) facilitating the development of industry-academic partnerships and (b) providing financing options and commercialization support for SMEs that pursue promising ventures with university partners; and
(7) Improve access to capital for SMEs with high-growth potential by providing conditional loans and matching grants, in order to facilitate private SME investment in technology, training, and R&D.
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LOOKING TO HIRE A RIGHT SOFTWARE DEVELOPMENT COMPANY? DON’T MISS THESE TIPS!
The advancements in the field of technology have become instrumental in the success of different entrepreneurs all over the world. This is why you need to join the bandwagon of companies that are starting to embrace the power of technology. Whether you like it or not, it is essential for you to step up your game and be ahead of your competitors through the use of technology.
One of the best decisions that you need to make is to hire the right custom software developer for your company. In this article, we are going to provide you with some tips on how you can make this happen.
Know What You Want
Before getting in touch with a professional software development company, you have to assess the needs of your own company first. This is where you will list down the day-to-day operations or transactions of the business. Identify the aspects that may require some improvements. Create a list of your needs so that it would become easy to hire the professionals who will be responsible for developing custom software. Knowing what you want is a good head start for your upcoming project with the said experts.
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Do Your Own Research
Take note that many companies are now engaged in providing application and software development services. Because of this, it can be challenging to find the ideal one for your business. As such, it is highly recommended to research first the top developers in your local community. Keep in mind that doing this is part of the due diligence process that you need to go through. You cannot just randomly hire a firm without knowing the credentials of their team members. At the same time, you can also check their company profiles.
Ask For Referrals
Establishing strong and close ties with other businessmen is essential for your survival in the industry. For this reason, you are encouraged to network with other business owners who can provide you with some guidance or assistance. Once you have already achieved this, it will be easier on your part to seek referrals or recommendations from them. Feel free to inquire from these individuals if they can give you the name of the firm responsible for their custom software development company. Do not be ashamed to ask around.
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Set Expectations Right
Never make the mistake of signing a contract with the custom software development company without discussing your expectations. Be sure to inform the professional developers about your needs ahead of time. Aside from this, you must also ask questions or clarifications. At this point, it is significant to emphasize the fact that it is necessary to create clear communication lines with your chosen business software or application developer. Make it a habit to be clear in providing instructions. Most importantly, never hesitate in discussing the timeline for the project. Set a reasonable deadline.
Be smart enough to hire the right company to help you with your custom software needs. Call us today.
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