One of the most interesting reports under business issues is the perspectives on small businesses in Canada. The report was developed at the time when the country celebrated its 40th anniversary in entrepreneurship in July 2011. The information from the report was derived from research that was conducted by the Federation of Independent Business (FIB). The main issue of the research was to highlight the public’s perception of entrepreneurship and small businesses (FIB, 2011).
Based on the outcome of the report, it is important to note that the majority of Canadian citizens appreciate the role of small businesses in economic development. Many Canadians also like entrepreneurship and would, therefore, encourage their family members to start and operate businesses for self-employment. Small businesses contribute to the economic development of the country by creating employment opportunities and increasing private consumption among citizens. This information, therefore, coincides with the general agreement that entrepreneurship is the key element that fosters economic growth. Moreover, most employees of small organizations are also motivated by the goals and objectives of such organizations. However, one factor that affects the growth and development of entrepreneurial culture in the country is the lack of funds. The report indicates that the majority of the citizens in the country have been locked out of business activities due to a lack of funds to finance such initiatives (FIB, 2011).
In addition to a lack of funds, regulatory issues have also been identified by many Canadians as some of the factors that inhibit the development of small businesses in the country. The government has laid down several regulatory requirements, which must be fulfilled by an entrepreneur before establishing a business. Canadian entrepreneurs assert that documentation and procedures to be followed to start a business automatically increase the cost of owning a business in the country. Moreover, it is also important to acknowledge the challenges that small business owners experience once they have established their businesses. One of the notable challenges is the tax burden imposed by the government on such businesses. The tax regime in the country has raised the cost of doing business.
Apart from increased tax rates in the country, competition is another factor that greatly affects small businesses. Small and medium enterprises in Canada face stiff competition from well-established organizations that offer varieties of products and services at very low prices. The enterprises also face unfair competition from multinational companies, which also offer very competitive products. However, the government has done very little to protect small businesses. Most business owners believe that the government should play a foreground role in establishing a favorable environment, which is important for the growth and development of small and medium enterprises (FIB, 2011).
The adoption of technology by small businesses in Canada is also another issue that has been highlighted by the report. It is indicated that the majority of small businesses in the country have embraced the role of technology in business. Most entrepreneurs in the country believe that technology has enabled them to meet or exceed their expectations. However, the report does not highlight the specific benefits of technology to small businesses. It generalizes the use of computers and internet technology without indicating specific areas of benefits. Moreover, the impact of technology on the future of small businesses has not been adequately addressed by the report (FIB, 2011).
Despite its failure to adequately address the benefits of technology to small businesses, the report played an important role in identifying the barriers, which may hinder a small business from acquiring the technology. The cost was identified as one of the factors that hinder the adoption of technology by small business owners. The cost of acquiring technology in the country is very high, hence denying the entrepreneurs the opportunity to use technological methods of operations. The inability to acquire technology that meets the tailored needs of a business is also another barrier that inhibits the adoption of technology (FIB, 2011). This information is therefore very useful for business owners who intend to acquire technology. The factors are very important in identifying the cost requirements and the type of technology that can be used by a business owner.
The report has brought into perspective the role of entrepreneurship in the society, the perception of the people towards entrepreneurship, the factors that affect the development and growth of entrepreneurship, and the role of technology in entrepreneurship. This information is important for an individual who intends to start a business and also very useful to the entrepreneurs who have already established their ventures. The report also reveals the current issues that affect businesses such as competition and taxation, which are very important when analyzing the performance of a business in any country.
FIB. (2011). Research: Perspectives on small businesses in Canada. Web.