The Small Business Roundtable’s mandate is to engage in dialogue with the small business community, identify key issues and opportunities, and develop recommendations to government and to the small business community on strategies to enhance small business growth and success.
To fulfill this mandate, the Roundtable conducts consultations with small businesses in all regions of the province. The focus is on identifying small business opportunities and challenges through the consultation processes outlined in the section below. Since its inception in 2005, the Roundtable has conducted 34 consultations around the province, engaging over 600 small business owners to identify key small business issues and opportunities.
In addition to consultations, the Roundtable undertakes a variety of other activities throughout the year that contribute to fulfilling its mandate.
Board meetings, video conferences, teleconferences
Four quarterly Board meetings are held each year, augmented by video conferences or teleconferences when necessary. The Board convenes to discuss issues that affect the small business community and to help develop strategies for government action.
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Small Business Roundtable subcommittees
Over the past year, Roundtable members have partnered with government and other organizations to provide advice about developing products and services that meet the challenges small businesses face. Roundtable members serve on steering committees and as Board members of other organizations – such as Junior Achievement British Columbia and Small Business BC – to review materials, develop project plans and provide advice to ensure products and services provide meaningful solutions for the small business community.
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Small business climate action
The government of British Columbia established a target of a 33 per cent reduction in greenhouse gas emissions by 2020. As 98 per cent of all businesses in British Columbia are small businesses, they have an important role to play in meeting this target.
In 2008, the Small Business Roundtable established a subcommittee to focus on small business climate action issues. The goals of the subcommittee are to support small business in adopting climate action initiatives and in seizing new opportunities presented by climate change to develop new competitive advantages. To achieve these goals for the small business community, the climate action subcommittee has identified the need for:
- Simple, effective and accessible tools for businesses to use to achieve carbon neutrality.
- The means to remain current with what others are doing to leverage synergies.
- Consistent, ongoing public recognition of efforts made by small businesses.
The climate action subcommittee provides an ongoing advisory service to government to help them develop climate action strategies designed specifically for small businesses. For more information on climate change solutions and to access “Green Business Success Stories” and other resources, visit www.livesmartbc.ca.
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Small Business BC
Small Business BC is British Columbia’s key resource centre for business information and services. A member of the Small Business Roundtable sits on the Board of Small Business BC to advocate for the needs of the small business community.
Small Business BC is a not-for-profit society jointly funded by the federal and provincial governments to provide services and tools to the small business community. These include business information services, business registration, seminars, market research services, business plan advisory services, one-on-one export coaching, e-business services, library and business bookstore.
In addition, Small Business BC, in partnership with FrontCounter BC and the Community Futures Development Association of BC, delivers business seminars via video conferencing to 43 locations in 34 communities throughout British Columbia.
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Building skills for small business
Human resource access, development and education are frequently raised during the small business consultations as key small business priorities.
In response, the provincial government provided $1 million to a Building Skills for Small Business initiative to develop programs and tools specialized for small business owners. A steering committee, including members of the Small Business Roundtable, was established to guide the development and implementation of the initiative.
In 2008, some of these funds were used to develop a Human Resource Quiz and Resource Guide for identifying and developing training strategies for small business owners. Roundtable members also provided advice on the development of a complementary Employers Toolkit. These tools are available on the WorkBC website as a suite of options to help businesses attract, retain and develop employees. To access these tools online, visit www.workbc.ca/looking_for_workers/index.htm.
In 2009, funds were allocated to the Leadership and Management Development Council of British Columbia to develop and deliver workshops and peer networks on recruitment and retention in six communities across the province. Funds were also committed to establish up to 20 new video conferencing centres at BC Chamber of Commerce sites. The addition of these sites to the existing video conference network in B.C. allows greater access to business workshops and seminars in communities across the province.
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Small Business Month activities
For the second consecutive year, October 2008 was officially proclaimed Small Business Month in British Columbia. British Columbia’s small business owners are an important source of innovation, and an economic driver that has transformed the province into a national leader in the most amount of small businesses per capita.3
Small Business Month is a time to celebrate this growing sector by showcasing its strength and diversity. Included during the month was the joint observance of Small Business Week (October 19-25, 2008) with the rest of Canada. Sponsored by the Business Development Bank of Canada and the Canadian Chamber of Commerce, the Small Business Week theme was “A world without boundaries, open to new markets.” Small Business Month 2008 involved a series of events held throughout the province to highlight the importance of small business in British Columbia. Many of the events were either attended or supported by Roundtable members. During the month, the Province also launched two tools for small businesses, developed in consultation with Roundtable members:
- Asia Pacific: A Small Business Guide to Exporting
This web-based planner was launched during a networking event hosted by S.U.C.C.E.S.S., a Vancouver based multi-service agency for immigrants. The planner was developed in partnership with Small Business BC to help small businesses take advantage of the export opportunities available to British Columbians. Our province is uniquely situated in North America to develop new trade relationships in Asia-Pacific countries and diversify our trade partners.
The Asia Pacific planner is available at www.bcexportasiapacific.ca.
- Guide to Doing Business with the Government of British Columbia
This web-based tool allows British Columbia entrepreneurs to explore opportunities to supply goods and services to the public sector. It explains in simple terms how the purchasing process works, and how to use services like BC Bid to become a successful vendor to government. The guide is available at www.resourcecentre.gov.bc.ca/stg/index.htm.
Junior Achievement of British Columbia
“Our business programs build young people’s confidence and workforce readiness, whatever career they pursue. They also develop important teamwork, leadership and entrepreneurial skills. We connect thousands of students to the example and encouragement of local business role models.”
Junior Achievement British Columbia president Jan Bell-Irving
During Small Business Roundtable Consultations, small business owners consistently identified a need to expand the education of our youth to include business, financial, and entrepreneurship training, and to provide them with the knowledge and tools they need to consider becoming the entrepreneurs of tomorrow.
In 2006, the provincial government provided $2 million to Junior Achievement of British Columbia (JABC) to expand the breadth and depth of their program delivery in the province over five years. The goal is to ensure the organization’s programs are available in all 60 school districts, and to increase the number of courses offered. JABC has successfully established a solid foundation for this expansion program and achieved some impressive results, particularly in regional expansion and increases in the number of programs delivered and in the number of students participating in their programs. JABC is well positioned to achieve the 2010 expansion goals.
To ensure sustained and enriched program delivery that will inspire the next generation of business leaders, a further $1 million was granted to JABC by B.C.’s Ministry of Small Business, Technology and Economic Development. This continued investment provides the necessary resources for the organization to focus on marketing, volunteer management, fund raising and partner relations to ensure ongoing sustainability of existing programs, expansion to new schools (particularly in rural areas), and development of new programs focused on at-risk youth and Aboriginal youth.
The Roundtable has taken an active role in supporting this partnership. The vice chair of the Small Business Roundtable sits on JABC’s board of directors to further strengthen the organization’s ties to the small business community, and support its ongoing expansion activities.
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Honourable Ida Chong presents a one-million dollar cheque to JABC during a presentation to a Junior Achievement class at Oak Bay High School in Victoria. Pictured from left to right: Honourable Ida Chong; Cindy Choi, Round Table Member; Greg Garnett, JABC Board Member and Chair, Vancouver Island Regional Committee; Anne Towers, Vice President of Program, JABC.; Chad Jacques, JABC Host Teacher, Oak Bay High School; and Paul Hooper, JABC Volunteer. |
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Labour Market Agreement
Under the Labour Market Agreement, the federal government is providing the Province with about $66 million a year until 2012- 13. Through a variety of programs, these funds increase training for employed people who need essential skills or recognized credentials to reach their full potential in the marketplace. The funding also increases access to training for unemployed people who are not receiving employment insurance.
About $10 million per year of this funding was targeted to small business. The Roundtable worked with government to develop a program that addresses small business needs. In spring of 2009, about $17 million was invested in 10 small business pilot projects being delivered in all regions of the province. Some of these projects meet the needs of small businesses across all sectors, while others are targeted directly to the manufacturing, forestry, hospitality, construction, horticulture, and food service industries.
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Consultation findings
The consultation processes has developed over the past four years and is designed to stimulate engaged discussions with small business owners. Our reporting for this report starts in October 2008 and captures all consultations to the end of March 2009.
The consultations give business owners the opportunity to speak directly to the minister responsible for small business. The Minister of Small Business, Technology and Economic Development chairs each consultation, assisted by the Roundtable’s vice chair, Linda Larson. While all issues brought forward are given consideration, a short list of key issues raised is posted to the Roundtable website following each meeting (www.smallbusinessroundtable.ca).
This year, Roundtable discussions, which involved 100 small business participants, were conducted in seven communities: Kamloops, Saanich, Terrace, Prince Rupert, North Vancouver, Nanaimo, and Port Moody.
Due to the special efforts of Geri Collins of the Central Interior First Nations Community Futures Development Corporation, the inaugural Aboriginal Business Rountable was held. Thirty-three participants from different parts of the province met with the Roundtable in Vancouver. The Roundtable obtained valuable insights to the specific issues and opportunities for this segment of the small business community. It is clear that the small business success factors for 203 First Nations communities in British Columbia vary depending on location, population, and uniqueness. The small business sector already plays a major role in bringing revenues into these communities. With joint planning from all levels of government, industry, and other business sectors, many more jobs can be created.
In every community consulted, it was clear that the three key priorities for small business remain:
- Human resource access, development and education.
- Regulatory complexity.
- Sales tax complexity and tax competitiveness.
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Human resource access, development and education
Promotion of entrepreneurship and careers in skilled trades in grades K-12 is seen as an important means of addressing the province’s skilled labour supply and expanding the small business sector. This was particularly evident in the northern communities we visited, where it was noted that career and trades training in high school could also provide an incentive for youth to stay in school. In several communities, it was noted that small businesses would benefit from the development of an apprenticeship and/or mentorship program for all industries.
Small business owners continue to advocate for changes in the temporary foreign worker program and for simplification of the immigration process.
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Regulatory complexity
The overall tax and regulatory burden placed on small business by the various levels of government continues to be at the forefront of discussions with small business owners. Many business owners feel too much time is spent complying with regulatory requirements – time that could be invested in their businesses and employees. The provincial government’s efforts to Small Business Roundtable Annual Report 13 address these concerns over the past four years are recognized by the small business community. However, we continue to hear that regulatory reductions are not always felt by small businesses.
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Sales tax complexity and tax competitiveness
Since the onset of the economic downturn, the provincial government has shown that it understands this particular concern of small businesses. The small business income tax rate was reduced from 4.5 per cent to 2.5 per cent as of December 1, 2008, and by April 1, 2012, the small business income tax rate will be the lowest in Canada. With this announcement came the news that effective January 2010, the small business income threshold will be increased to $500,000.
Many small businesses suggested harmonization of PST and GST to reduce the tax complexity and tax burden for small businesses. The Province of British Columbia has responded and will be implementing a harmonized sales tax on July 1, 2010. The Roundtable recognizes the overall benefits that harmonizing will bring to the B.C. economy. Although the transition will pose some difficulties in some business sectors, the Roundtable is encouraged that government is engaging affected industries to develop solutions.
Property tax and the assessment process were also key issues for small businesses. As in previous years, small business owners considered the property tax rates to be too high, especially compared with residential property taxes.
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Other issues raised:
During the consultation process, we asked participants questions about specific issues that may be affecting their businesses, including climate action, training, innovation, and local opportunities. Here are some of the recurring priorities we heard:
Climate action
- Increase ways to measure individual businesses’ carbon emissions.
- Make saving incentives clearer so businesses will do more.
- Create something like “EnergyPal” (modelled after BizPaL) - a site to find
specific climate action topics incentives, and information on businesses that have been successful in achieving sustainability or have leveraged climate action into their business strategy.
Training
- Pressure on the federal systems to fast-track immigrant development programs and train new workers.
- Provide further training for succession planning and issues related to exit strategies and tax treatment for passing business on to others.
Innovation and local opportunities
- Find a way for small business owners to co-ordinate similar training to take advantage of group rates.
- Increase efforts to reduce crime against small businesses.
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