Introduction
The overwhelming approval of small businesses and their role in Canada and America is a clear indication that people are increasingly appreciating and embracing small business compared to large corporations.
A study by Canadian Federation of Independent Business (CFIB), as reported by Nicole Troster, provides a clear indication that most people in Canada are willing to join small business entrepreneurship due to their appreciation of SMEs as a formal way of investing.
In addition, it is worth noting that small business owners and operators appreciate their work, their employment and the role they play in nation building. Technologically, it is clear that the country’s small businesses are increasingly embracing technology as a tool to expand their businesses.
However, it is evident that government policies have a negative impact on small businesses. For instance, the Canadian education system does not support or provide the learners with the required knowledge for starting and operating a small business.
In addition, high taxation rates and poor capital availability hinder investment in this sector. This analysis aims at providing an in-depth critique of the article “Perspectives on small business in Canada” by CFIB.
Arguably, this article provides important information needed by the government and policy makers in the financial, economic, education and private sectors to enhance the environment needed to create opportunities for small business and improve the value of entrepreneurial knowledge for staring and operating SMEs.
Critique
I tend to agree with most of the findings in the study for a number of reasons. First, the credibility of the article by Troster and CFIB is evidenced by the nature of the study and its authorization.
On its part, CFIB is a renowned organization in Canada, especially in its effort to carry out studies on various topics related to the Canadian economy, the financial sector, education, and other sectors.
Over the last 40 years, the organization has been providing important information to the Canadian business community, the government and the public relating to the economic and social issues affecting the national economy at various times.
In addition, CFIB has the mandate to carry out research and provide important information to the business community in Canada relating to a number of issues affecting the sector.
Secondly, I agree with the results of the study as provided in this article based on the credibility of the organizations that funded and commissioned the study.
For instance, the poll was carried out jointly by CFIB and HP/Intel, one of the most respectable technology corporations in North America.
On this note, I agree with the study on a number of issues presented in the article. First, a number of challenges have affected the Canadian economy over the last decade. For instance, large organizations and corporation have dominated the economy over the last few decades.
This effect has seen many people locked out of business. In fact, the capitalistic economy of Canada and North America, in general, has always been in favor of corporations and against small businesses.
However, there has been a focus on managing and improving SMEs over the last two decades. There has been a realization that small business organizations play an important role in social and economic development.
The business community in Canada has been calling for the establishment of a good environment that can create opportunities for people to invest in small businesses. This explains why the research by CFIB has shown an overwhelming appreciation of small businesses by the public.
For instance, the article indicates that over 90% of Canadians appreciate small businesses and more than 91% would recommend or appreciate a member of the immediate family to invest in small business.
I also tend to agree with the finding that most Canadians admire entrepreneurs. In fact, the economic situation in North America over the last five years has seen many households live under strict budgets due to the recent economic crisis.
Most people are looking for alternative sources of income, especially those in formal employment. The economic hardships have forced many people to consider investing in small businesses in order to increase their income.
The approval of the role of small businesses by more than 60% of the employees in this sector is an additional indication that the sector is increasingly becoming an important source of employment.T herefore, the finding that most people would like to invest in the sector is reasonably accurate.
Thirdly, I agree with the CFIB that most people tend to shy away from investing in small businesses because of monetary restrictions, a large amount of risks involved and uncertainties of success in the sector.
In actual sense, few people are willing to leave their formal employment to start a small business because the amount of capital required is still high.
Secondly, small businesses face massive competition from local and international corporations and large organizations, which complicates their chances to succeed. There is a need for the Canadian government to protect small business from such competition.
In addition, the risks involved in investing in small businesses in Canada are significantly high not only due to competition, but also due to inadequate knowledge in SME management and entrepreneurship, economic dynamics such as frequent credit crisis and technological changes.
Moreover, I tend to agree with the research by CFIB that small business owners in Canada are reluctant in embracing technology, while the public seems to support the improvising of technology in business.
In fact, although most small business entrepreneurs note the importance of technology in their business, it is evident that businesses in Canada observe the high rate of technological dynamism as a risk to their businesses.
In addition, adopting technology seems to be still costly, with most organizations seeking to adopt technology after their colleagues or competitors have already tested it.
The increasing rate of disapproval of the Canadian education system in its support for small business organizations is evident in the article.
In fact, I agree with the article to some extent because the education system seems to be rigid, especially in providing the learners with the required knowledge and experience to start and run their own businesses.
In fact, it is worth noting that most of the Canadians leave school with one thing in mind- seeking employment rather than seeking to start their own businesses.
While middle-aged people are eager to start their own business, young people, fresh from institutions of higher learning and middle-level colleges, seem to be hungry for jobs.
This is an indication that our education system is failing to provide young people with entrepreneurial skills because it is still based on old models that required institutions to create massive human resources for the existing corporations.
However, I tend to disagree with the research by CFIB on its finding that the cost of technology is an actual hindrance to SME adoption of business technologies.
While it is true that technology for business organizations is expensive, small business organizations need to note that they do not need the sophisticated technology that corporations are employing because there is a wide range of cheaper technologies applicable in their business.
For instance, Smartphone technology, desktops, and tablet computers are equally effective in business management in addition to being affordable.
What SME owners should note is that there is an opportunity for them to link their businesses with customers, suppliers and other groups online without the need to engage sophisticated technologies.
Reflection
Nearly all the information presented in the article by CFIB is important for business, entrepreneurship, and policymaking. In fact, small business organizations need to have the information presented in this article as they seek to expand their business.
They need to note that the public highly appreciates the roles that small businesses play in the economy, the willingness of the public to seek employment in the sector and the need for them to employ technology in expanding their business.
Secondly, I find the information on insufficiency of academic training on small business entrepreneurship in the Canadian education system as a discrepancy that needs to be solved. In fact, the government must study this article as it seeks to improve our education system.
In addition, I find it necessary for the government to consider using the information in the article when developing financial policies.
For instance, there is a need for the financial sector to recognize the role of SMEs, improve the accessibility to loans, and risk insurance cover. In this way, small business organizations will thrive in the Canadian economy.