Business Support

In early 2005, Canada was ranked by the World Bank as the second richest country in the world. According to the World Bank, the ten richest countries in the world are ranked in the following order:

  1. Australia;
  2. Canada;
  3. Luxembourg;
  4. Switzerland;
  5. Japan;
  6. Sweden;
  7. Iceland;
  8. Qatar;
  9. United Arab Emirates;
  10. Denmark.

The United States is recognized as the twelfth country on the list, and the United Kingdom of Great Britain (England) is ranked twenty-second.

The latest Royal Bank of Canada quarterly report published by Maclean’s magazine argues that “today’s record low bank interest rate, persistently low inflation and a significant improvement in government finances provide the best opportunities for the Canadian economy to grow since the end of World War II”.
Canada today has the world’s lowest corporate income tax and the highest job creation rate.

According to Garth Turner, financial analyst and commentator for the Canadian BBC, the Canadian economy is growing at an impressive rate, creating more jobs, but without any noticeable inflation.

Contrary to popular misconception, doing business in Canada is cheaper and easier than in the United States. The operating costs of any Canadian business are on average 6.7% lower than the costs of a similar business located slightly further south in the United States in comparable conditions.

There are many favorable factors that distinguish favorably the set of conditions for doing business in Canada. They include:

  • lower prices for land;
  • lower cost of all construction work;
  • the cost of electricity in Canada today is the lowest in the world;
  • the most favorable conditions for attracting investment;
  • availability of venture capital;
  • a large number of various state – federal and provincial programs – support and development of entrepreneurship, small and medium-sized businesses.

If you are a businessman, you have the opportunity to organize your own business in Canada – start from the very beginning or develop an existing business. For years, entrepreneurs have been converting ideas into products and services. On the one hand, they satisfy the needs of buyers of their goods and services, on the other hand, they build their own careers. The Canadian authorities are ready to assist entrepreneurs by inviting them to assess their business potential by answering questions of the so-called National Entrepreneurship Test. This test is available on the Internet. Based on the test results, you can receive a number of recommendations and an overall assessment of your business potential in Canada.

When starting a business, each person must have some initial capital, but in Canada, there are many opportunities for obtaining loans.

The most common source of small business finance is charter banks such as Bank of Montreal, Royal Bank of Canada, Scotiabank (British Columbia). These banks provide loans for short and long terms.

In addition, small businesses are financed by:

  • Insurance сompanies;
  • Trust companies;
  • Credit unions;
  • Commercial credit and acceptance companies;
  • Venture capital loan companies;
  • Factoring companies;
  • Leasing companies.

State programs

There are also a number of provincial and federal government support programs for starting new businesses in Canada.

One of the programs is called The Canada Small Business Financing (CSBF); the loan for ten years does not exceed 250 thousand dollars at 2-3 percent per annum. In other cases, by partially offsetting any loan losses, the federal government makes it easier for small businesses to get loans. The program is applicable to businesses with an annual income of less than $5 million during the financial year in which the business applies for the loan. In this case, the organizational form of the enterprise can be different – sole proprietorship, partnership or corporation; they can operate in all provinces and territories of Canada. Agricultural, charitable and religious enterprises are excluded from the small business financing program.

There is a special fund created especially for young entrepreneurs (18-29 years old). Information on this program is provided by the Business Development Bank of Canada. In addition, immigrants can use a special source called The Canada Immigrant Investor Program, which is based on contributions to the Canadian economy by business class immigrants. To use this source, you need to inquire with the Business Service Centers located in your province or territory.

Note: To receive financial assistance, you must have a business plan for a new business, and if you have an existing business, you must keep your accounting accounts in perfect order and strictly observe financial discipline.