Executive Summary
July 2018
Prepared for Innovation, Science and Economic Development Canada
Supplier Name: Quorus Consulting Group Inc.
Contract Award Date: March 5, 2018
Delivery Date: July 2018
Contract #: U1400-186742/001/CY
POR Number: 113-17
For more information, please contact Innovation, Science and Economic Development Canada at: ic.publicopinionresearch-recherchesurlopinionpublique.ic@canada.ca
Ce rapport est aussi disponible en français
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Innovation, Science and Economic Development Canada
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235 Queen Street
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Canada
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Email: ISDE@Canada.ca
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Industry, (2018).
Cat.No.: Iu1-25E-PDF
ISSN : 2561-8040
Aussi offert en français sous le titre Sondage annuel d’ISDE - Recherche qualitative, volet entreprises 2018.
I hereby certify as Senior Officer of Quorus Consulting Group Inc. that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Policy on Communications and Federal Identity and the Directive on the Management of Communications - Appendix C.
Specifically, the deliverables do not include information on electoral voting intentions, political party preferences, standings with the electorate or ratings of the performance of a political party or its leaders.
Signed:
Rick Nadeau, President
Quorus Consulting Group Inc.
Innovation, Science and Economic Development Canada (ISED) conducted this project to help policy makers, program designers and service providers better meet the needs and expectations of Canadian small and medium sized businesses (SMEs), entrepreneurs and innovators.
This project collected insights, opinions and views of SMEs and self-employed Canadians on various issues including business confidence in the economy; perception of government performance on priorities; the preferred role of government; government progress on addressing barriers to business growth, including breaking into new markets, support for underrepresented groups, access to talent and skilled labour, access to financing, reduction of administrative burden; and on specific initiatives supporting innovation, including the Canadian Intellectual Property Strategy, Superclusters and supply chains., progress with SMEs, services for innovation and businesses, economic development, overall satisfaction with government for business and red tape reduction.
The insights gained from the project findings will be used to help develop policies, programs and services as well as refine communication messaging and initiatives to better meet the needs and expectations of SME’s and self-employed Canadians.
Most would describe the Canadian economy as “stable” or performing fairly well. The biggest challenges facing the economy these days included: access to talent and skilled labour; the cost of living for consumers; the growing difficulty with buying a home; the increasing costs of doing business, including increases in the minimum wage; the growing level of consumer indebtedness; and, domestic and international competition.
For the most part businesses would say that their businesses’ performance has been either stable or better compared to a year ago and most would expect that trend to continue for the next few years. Businesses were interested in growth and barring anything unexpected, they were optimistic about the future. Some of the more noteworthy barriers to growth included:
Businesses agreed that the Government of Canada has a role to play in growing the economy and supporting SMEs. Some of the more important issues in need of government attention at this time included:
Businesses were hard-pressed to identify what the federal government is doing to support small and medium sized businesses. A few did mention that access to certain types of funding (like that found through the Atlantic Canada Opportunities Agency (ACOA), Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, and Industrial Research Assistance Program (IRAP), etc.) was noteworthy.
When specifically asked about the recent 2018 federal budget, businesses could not identify anything in that budget that could help them achieve their business goals or that was even seen as potentially beneficial for their industry overall.
Focus group participants were provided a handout with a list of 18 initiatives either introduced in the 2017 budget or included in the 2018 budget. This exercise generated the following key reactions:
The initiatives businesses were most likely to select because they felt that they could be beneficial for their business or industry were: Innovation Canada; Futurpreneur; the proposed federal and regional programs designed to support women in entrepreneurship; and, cybersecurity.
The initiatives that received the lowest priority/least support from those listed were:
Female, Indigenous, young and disabled entrepreneurs were all specifically asked if they faced any particular barriers to success.
Women entrepreneurs often explained that they either did not face any barriers or that if they did, it was not because they were women (i.e., barriers might be related to finding talent, skilled labour, risk financing at start-up). Many were working in female-dominated industries, and this seemed to leave them with the perception that barriers they may have encountered were not related to being a woman. The minority of women SMEs working in industries that have been traditionally male-dominated, such as construction and STEM, indicated they had more barriers to overcome initially to be taken seriously. When prompted to consider financing however, women across most of the groups identified access to financing as a barrier, with some noting that they didn’t feel that they received the same consideration as their male counterparts when starting their businesses or that banks didn’t seem to understand their business or their approach to business.
Young entrepreneurs identified their challenges as having to learn the basics of operating a business, not having good access to mentors and coaches, lacking work experience and not having assets against which to obtain capital or loans.
Disabled entrepreneurs face the obvious obstacle of overcoming or managing whatever disability they have and that tended to be the primary barrier they discussed during their interview.
Indigenous entrepreneurs were mixed in terms of whether or not they face barriers specific to the Indigenous community. While some explained they face racism, others explained that they had the opportunity to access a variety of support programs and funding that are dedicated to the Indigenous community.
Businesses agreed that the government should focus on initiatives that are designed to help businesses break into new markets even though most study participants had very local target markets and many did not plan to go beyond that footprint. They expect their government to work to negotiate international trade agreements (NAFTA was a prime example), to reduce regulations and to improve internal trade, with this last area noted by a few businesses as a particularly important challenge.
Improving access to skilled labour was also seen as an important role for the government. Participants seemed to prefer initiatives that prioritized developing talent that is already in the country, improving foreign credential recognition and making it easier to work with immigrants who are prepared to fill low-wage positions that are more difficult to fill.
Access to capital was a common barrier although some businesses admitted that they were not necessarily interested in taking on any loans or borrowing beyond their means. Some also explained that it is very difficult to qualify for government funding, that it is a lot of work to fill out the paperwork and that they are not familiar with all the programs available.
Unaided awareness of specific government programs that provide financing was limited overall. Among initiatives that were mentioned, the Business Development Bank of Canada (BDC), Export Development Canada (EDC), ACOA and Futurpreneur were common mentions. Not surprisingly for newly launched initiatives and programs, awareness was low for both Innovation Canada.ca and Innovative Solutions Canada. However, interest for both was high.
Participants agreed that there is a role to be played when it comes to supporting and developing initiatives that provide financing to businesses, although some felt that the government probably just needed to better communicate what is already out there rather than create new programs.
Overall, awareness and understanding of Intellectual Property Rights (IPRs) was quite low among businesses and most argued that IPRs were not that important to their business.
Some debated whether the Government needed to be putting more resources into increasing awareness of IPRs in the business community since businesses need to take some initiative to seek out the information already available. The Government could help by making the process more affordable or less cumbersome and if the Government were to develop more tools and resources, participants emphasized the need for non-technical content.
Awareness of the recently announced Innovation Superclusters was very low. Based on the high-level explanation provided by the moderator, few could immediately establish any sort of connection between the new Superclusters and their own business or industry. With the limited amount of information that participants were provided, most were inclined to believe that Superclusters would be a positive development for Canada although some concerns were raised:
When asked if they face any particular administrative burden when dealing with the Government of Canada, participants were more apt to complain about telephone customer service and the Service Canada website (Canada.ca) than about specific administrative burdens. As well, few have noticed a change in whether or not their burden in dealing with government has changed over recent years.
Nearly all businesses were interested in an optional, central e-account. Among those with concerns, privacy and access to their information was at the top of the list.
For nearly all participants, innovation meant developing new products, especially for businesses in manufacturing. Manufacturers explained that innovation also involved developing new ways of processing and using new or different production inputs. Innovation was more difficult for smaller or one-person service industry businesses. These businesses tended to view innovation as anything new, including new ways of marketing their services, developing new markets, or new ways of managing their back office to become more efficient.
Among six innovation-related statements provided to participants, the most popular articulation of why innovation is important for Canada was: Innovation is important because it can lead to breakthroughs in agriculture, medicine, green technology and service delivery, improving the quality of life for all Canadians.
Very few participants had heard of any recent Government of Canada announcements proposing tax changes for small businesses or “private corporations.” Awareness did increase slightly when the moderator broached the new tax changes related to income sprinkling while awareness remained very low regarding the measures related to passive investment income.
Participants seemed most comfortable assessing the fairness of the proposed income sprinkling measure, mostly because it is easier to understand and that they had heard of this practice.
Many businesses, especially microbusinesses in the services industry, had trouble understanding how trends in technology, like artificial intelligence or automation, could have an impact on their industry or on how they would operate their business in the future. The greater the service area or the larger their business was, the more importance they placed on keeping up with technology trends as this could help their manufacturing, distribution, operations, client service, etc.
Participants were asked to provide a term they would prefer to hear when others describe them as business owners. They most often referred to themselves as “small business owners” or “self-employed.” Other common references included “business owner”, “owner”, “businessman”, “small business operator” and “entrepreneur.”
During some of the focus groups, participants evaluated different tag lines and visual concepts related to the Women Entrepreneurship Strategy. Across the four tag line concepts tested with participants, concepts B, C and D were equally popular, with concept C (the (EM)PowHer concept) attracting the most votes, especially among women, mostly for its tag line: “Passion. Potential. Power. Partnership.”
In terms of the visual concepts tested, participants showed a marked preference for the strength and confidence conveyed in the overall look and feel of the purple concept in combination with the diversity of occupations depicted in the multi-coloured concept.
The research methodology consisted of 8 traditional, in-facility focus groups and 25 telephone depth interviews (TDIs) with decision-makers from various business segments.
The target population for this research consisted of Canadian small and medium-sized enterprises, targeting the company’s main decision-maker or someone playing an important role in the decisions related to the growth and direction of the company. For the purposes of this research, small businesses were defined as those businesses with fewer than 100 employees (including self-employed Canadians), and medium businesses were those with 100 to 499 employees. Within the small business segment, the research also targeted “micro” businesses which were defined as businesses with 5 or fewer employees.
The research targeted a mix of businesses. While some sessions included general small and medium sized businesses, there was also a focus on the following sub-segments:
Other parameters of the study include:
Location | Segment | Language | Number of participants | Date and Time | Honorarium |
---|---|---|---|---|---|
Toronto, ON |
Self-employed professionals |
English |
8 |
March 21 @ 6:00 pm |
$250 |
Toronto, ON |
Medium-sized businesses |
English |
8 |
March 21 @ 8:00 pm |
$250 |
Halifax, NS |
Small/ micro businesses |
English |
6 |
March 23 @ 6:00 pm |
$200 |
Montreal, QC |
Self-employed professionals |
French |
8 |
March 26 @ 6:00 pm |
$250 |
Montreal, QC |
Medium-sized businesses |
French |
5 |
March 26 @ 8:00 pm |
$300 |
Winnipeg, MB |
Small/Micro businesses |
English |
6 |
March 27 @ 6:00 pm |
$200 |
Vancouver, BC |
SME – Women entrepreneurs |
English |
8 |
March 28 @ 6:00 pm |
$200 |
Vancouver, BC |
SME – Youth entrepreneurs |
English |
7 |
March 28 @ 8:00 pm |
$200 |
All telephone depth interviews were conducted during regular business hours and during evenings (whatever suited the respondent’s availability and preferences) using a conference call service allowing members of the client team to listen-in, and to enable audio-recording. The distribution of the interviews is presented in the grid below:
Segment | Number of participants | Language | Date and Time | Honorarium |
---|---|---|---|---|
Entrepreneurs with disabilities |
4 |
English |
March 15 – April 6 |
$150 |
Indigenous entrepreneurs / North of 60 entrepreneurs |
10 |
English |
||
Rural and remote SMEs entrepreneurs |
11 |
9 English / 2 French |
Recruitment Screener – English
Questionnaire:
Focus Groups: Toronto: March 21, 2018 - ENGLISH Group 1: Self-employed professionals 6:00 pm $ 250 Group 2: Medium-Size Businesses 8:00 pm $ 250 Halifax: March 23, 2018 - ENGLISH Group 3: Small / Micro Businesses 6:00 pm $ 200 Montreal: March 26, 2018 - FRENCH Group 4: Self-employed professionals 6:00 pm $ 250 Group 5: Medium-Size Businesses 8:00 pm $ 250 Winnipeg: March 27, 2018 - ENGLISH Group 6: Small / Micro Businesses 6:00 pm $ 200 Vancouver: March 28, 2018 - ENGLISH Group 7: SME – Women entrepreneurs 6:00 pm $ 200 Group 8: SME – Youth entrepreneurs 8:00 pm $ 200 |
Details: recruit 8 for 6 to show 2-hour sessions |
Telephone Depth Interviews:
|
Mix of English and French Incentive: $150 Interviews are 45 minutes each |
Respondent’s name: _______________________________ Respondent’s phone #: ________________________ (home) Respondent’s phone #: ________________________ (work) Respondent’s fax #: ________________________ sent? _____ or Respondent’s e-mail : ________________________ sent? ________ |
Segment | Definition |
---|---|
Small-Size Business |
1 to 99 FTE employees |
Micro-Size Business |
1 to 5 FTE employees (sub-segment of the Small-Size Business Segment) |
Medium-Size Business |
100 to 499 FTE employees |
Self-employed professionals |
1 to 5 FTE employees who offer professional services: these include healthcare professionals, lawyers, accountants, consultants (IT, management), architects, auditors, engineers, actuaries, training and development (coaching, organizational development, etc.), investment planners/ financial advisors |
Medium-Size Business – Growth Focused |
Medium-sized business with an average annualized growth greater than 20% per annum, over a three-year period |
SME – Women Entrepreneurs |
Women who started and operate their own company |
SME – Youth Entrepreneurs |
Individuals who are currently 18 to 34 years old who started and operate their own company |
Innovators |
Businesses that have introduced or developed an innovation over the past 12 months and/ or a business that, through their normal business activities, invests in the research, development and/or commercialization and export of new products, processes and/or services. |
Indigenous Entrepreneurs |
Individuals who self-identify as a member of a First Nations community and who started and operate their own company. Some of these will be located “North of 60.” |
Entrepreneurs with a Disability |
Individuals who self-identify as having a physical or mental disability and who started and operate their own company |
Focus Group Segment Definitions | Definition |
---|---|
Groups 1 and 4 |
Self-employed professionals (Q2=YES) – obtain a mix in Q3 |
Groups 2 and 5 |
Medium-sized businesses (100-499 FTEs in Q1) with half of participants “Growth Focused” (at least 20% in Q10) |
Groups 3 and 6 |
Mix of Micro (1-5 FTE) and larger small businesses (6-99 FTE) with half of participants from “innovator” companies (IF YES AT ANY OF Q11, Q12 OR Q13) |
Group 7 |
Participant is a woman and Q7=YES |
Group 8 |
Participant is 18-34 and Q7=YES |
Toronto Facility Address |
Halifax Facility Address |
Consumer Vision 2 Bloor Street West, 3rd floor |
MQO 1883 Upper Water street 3rd floor, Collins Bank Building, Historic Properties Halifax |
Montreal Facility Address | Winnipeg Facility Address |
Leger 507 Place d’Armes, 6e étage |
NRG 213 Notre Dame Avenue, Suite 804 |
Vancouver Facility Address | |
NRG 1100 Melville Street, Suite 1380 |
Hello, my name ________________. I'm calling from Quorus Consulting, a Canadian market research company and we are calling on behalf of the Government of Canada.
Would you prefer to continue in English or French? / Préférez-vous continuer en anglais ou en français?
[INTERVIEWER NOTE: FOR ENGLISH GROUPS/INTERVIEWS, IF PARTICIPANT WOULD PREFER TO CONTINUE IN FRENCH, PLEASE RESPOND WITH, "Malheureusement, nous recherchons des gens qui parlent anglais pour participer à cette recherche. Nous vous remercions de votre intérêt." FOR FRENCH GROUPS/INTERVIEWS, IF PARTICIPANT WOULD PREFER TO CONTINUE IN ENGLISH, PLEASE RESPOND WITH, “Unfortunately, we are looking for people who speak French to participate in this research. We thank you for your interest.”]
From time to time, we solicit opinions by sitting down and talking with people. We are preparing to conduct a series of these discussions on behalf of the Government of Canada and I would like to speak to the senior decision-maker in your organization who is responsible for communicating with government or who plays an important role in the decisions related to the growth and direction of the company. Is there a person available who fits that description? …this is most likely the owner or President of your company.
ONCE APPROPRIATE CONTACT HAS BEEN REACHED – REPEAT INTRO IF NEEDED AND CONTINUE:
We are reaching out to you today to invite you to a research session to share your feedback on the opportunities and challenges your business faces and the kind of role you expect the Government of Canada to play in relation to these.
Other decision makers from small and medium sized companies located in Canada will be taking part in this research, all of them involved in shaping the direction of their company. It is a first-name basis only discussion so nobody, including the Government of Canada, will know the companies being represented. For their time, participants will receive a cash compensation.
Participation is voluntary and all opinions will remain anonymous and will be used for research purposes only in accordance with laws designed to protect your privacy. We are simply interested in hearing your opinions, no attempt will be made to sell you anything. The format may be a “round table” discussion or a telephone interview lead by a research professional.
[INTERVIEWER NOTE: IF ASKED ABOUT PRIVACY LAWS, SAY: “The information collected through the research is subject to the provisions of the Privacy Act, legislation of the Government of Canada, and to the provisions of relevant provincial privacy legislation.”]
But before we invite you to attend, we need to ask you a few questions to ensure that we get a good mix/variety of businesses. This should only take about 5 minutes. In case you are uncertain, all my questions pertain to your company’s Canadian operations. May I ask you a few questions?
Yes 1 CONTINUE
No 2THANK & DISCONTINUE
ASK MICRO BUSINESSES
ASK SELF-EMPLOYED PROFESSIONALS
[ASK ENTREPRENEURS ONLY]
*Source: 2017 Canadian Survey on Disability
[ASK IF INCREASED]
_____________________________________
I would like to invite you to participate in the focus group in your city. The discussion will be led by a researcher from a Canadian market research company, Quorus Consulting. The group will take place on [DAY OF WEEK], [DATE], at [TIME]. It will last two hours. People who attend will receive [INSERT INCENTIVE BASED ON GROUP] to thank them for their time. This will be provided to you at the facility after the session. Would you be willing to attend?
o Yes
o No TERMINATE
Sometimes participants are also asked to write out their answers on a questionnaire. Is there any reason why you could not participate?
o Yes TERMINATE
o No
If you require reading glasses, please remember to bring them with you, as you may be required to read some materials during the session.
The session will be audio and video recorded for research purposes and representatives of the Government of Canada research team will be observing from an adjoining room. You will be asked to sign a waiver to acknowledge that you will be video recorded during the session. The recordings will be used only by the Quorus Consulting research team and will not be shared with others. As I mentioned, all information collected in the group discussion will remain anonymous and be used for research purposes only in accordance with laws designed to protect your privacy.
The focus group will be at the following location: REFER TO PAGE 3
We ask that you arrive fifteen minutes early to be sure you find parking, locate the facility and have time to check-in with the hosts. The hosts may be checking respondent’s identification prior to the group, so please be sure to bring some personal identification with you (i.e. driver’s license).
As we are only inviting a small number of people, your participation is very important to us. If for some reason you are unable to attend, please call so that we may get someone to replace you. You can reach us at 1-800-XXX-XXXX at our office. Please ask for [recruiter to provide]. Someone will call you the day before to remind you about the discussion.
So that we can call you to remind you about the focus group or contact you should there be any changes, can you please confirm your name and contact information for me? COLLECT ON FRONT PAGE
Thank you very much for your help!
I would like to invite you to participate in a telephone interview with a senior research consultant from a Canadian market research company, Quorus Consulting. We would like to schedule the interview with you between DATE START and DATE END at a time that works best for you. Would you have time on [INSERT DATE AND TIME OPTIONS]? It will last roughly 45 minutes, depending on how much feedback you provide. People who participate will receive $150 to thank them for their time – we will get this to you either by email transfer or by mailing you a check at the conclusion of the interview.
SCHEDULE INTERVIEW THAT FITS RESPONDENT AND INTERVIEWER SCHEDULES
The session will be audio recorded for research purposes and representatives of the Government of Canada research team may be on the line as remote observers. You will be asked to acknowledge that you will be audio recorded during the session. The recordings will be used only by the Quorus Consulting research team and will not be shared with others. As I mentioned, all information collected in the group discussion will remain anonymous and be used for research purposes only in accordance with laws designed to protect your privacy.
Over the coming days we will be sending you an email with the conference call logistics with the specific telephone number you will need to dial, the participant passcode, as well as the date and time of the call. There will also be contact information in the email in case you need to change the date or time of the interview.
As we are only inviting a small number of people, your participation is very important to us. If for some reason you are unable to participate, please call so that we may get someone to replace you. You can reach us at 1-800-XXX-XXXX at our office. Please ask for [recruiter to provide]. Someone will call you the day before to remind you about the discussion.
So that we can send you the email with the call logistics, call you to remind you about the interview or contact you should there be any changes, can you please confirm your name and contact information for me? COLLECT ON FRONT PAGE
Thank you very much for your help!
Focus Group Moderation Guide – English
A. Introduction (5 minutes)
So let’s go around the table and have everyone introduce themselves…I’ll be curious to know the following:
B. Business Confidence (15 minutes)
DRILLDOWN AS NEEDED IF THESE THEMES ARE RAISED:
C. Role of Government (15 minutes)
Let’s now turn our attention to the role the Government of Canada could or should be playing when it comes to growing the economy and supporting small and medium sized businesses like yours. (Let’s try to stay focused on the role of the Federal government and not the roles the provincial or municipal governments play.)
What is the federal government doing right these days to support small and medium sized businesses like yours?
D. Budget and Initiatives to Support SMEs (15 minutes)
HANDOUT #1 – LIST of 2017 Initiatives & LIST of Budget 2018 additions
I’m going to give you a handout with a list of initiatives included in the budget. Please give each a thumbs up or thumbs down. Then, circle what you feel the best initiative on this list is. Next, I’d like you to put check marks next to the ones you feel will have a positive impact on your business/industry.
PROBE:
ONLY ASK FEMALE, INDIGENOUS, YOUNG OR DISABLED ENTREPRENEURS: A number of the initiatives are intended to address barriers to innovation and business growth for small businesses, women, and young entrepreneurs and other underrepresented groups.
BREAKING INTO NEW MARKETS: You may have also noticed that some initiatives are designed to help businesses break into new markets. Through the initiatives listed in the handout exercise and recent announcements, the GC has indicated an intention to …
IMPROVING ACCESS TO SKILLED LABOUR -- Finally, some initiatives are designed to help businesses by improving access to skilled labour.
E. Venture Capital/Access to Financing (5 minutes)
(SKIP FOR SELF-EMPLOYED GROUPS – ASK ONLY OF SMALL and MEDIUM BUSINESSES)
In terms of access to financing and capital…
Are you aware of government accelerator or incubator financing? (DO NOT PROMPT, BUT RECORD GOVERNMENT DEPARTMENTS, EG. ISED, NRC, IRAP)
F. Intellectual Property Strategy (5 minutes – All GROUPS)
Now a few questions on intellectual property.
The proposed new National Intellectual Property Strategy aims to support the development and commercialization of intellectual property rights (IPRs), which include patents, trademarks, copyright, and industrial designs.
G. Innovation Superclusters & Supply Chains (DO NOT ASK OF SELF-EMPLOYED PROFESSIONALS) (5 Minutes)
Who has heard of the Innovation Superclusters? Government is co-investing with industry in ambitious proposals to strengthen Canada's most promising clusters and build Superclusters at scale. Five Superclusters have been announced so far for the following industries: digital technology, the protein industries, advanced manufacturing, Artificial Intelligence-Powered Supply Chains and the Ocean industries supercluster.
H. Red Tape / Administrative Burden / Efficiency of Service (5 minutes)
If the government offered your company an optional, central e-account that would tailor government data to your needs and allowed you to pre-populate forms based on information different departments already have, would you use it? [SHOW OF HANDS]
I. Innovation Defined (10 minutes)
HANDOUT #2 - Innovation Statements
J. Corporate Taxes (15 minutes)
Budget 2018 introduced a series of new tax changes for SMEs:
Income sprinkling: Here is how it works: Owners of private corporations – many of whom are in a higher personal tax bracket – can sprinkle income with family members. This can reduce the total income tax paid by the family because these family members face lower personal tax rates or aren’t taxable at all. The Government now proposes to move forward with changes to the tax rules to limit income sprinkling using private corporations. The new rules will not impact businesses as long as family members make meaningful contributions to the business.
Passive investment: This refers to situations where an incorporated business owner or professional saves money within the corporation. The advantage of saving in this manner is that corporate income tax rates are generally much lower than personal income tax rates.
Recently, the Government said that it heard that savings held in a business can be for business purposes, such as future expansion or new equipment, but also to deal with personal needs, such as maternity leave, sick days and retirement.
The Government proposes to make changes to the tax rules to limit the use of passive investments within a private corporation – but also provide greater flexibility for business owners to save for both business and personal purposes. For example, the Government will provide a passive income threshold of $50,000 per year for go-forward investments. There will be no tax increase on investment income below this threshold. Assuming a 5-per-cent rate of return, earning $50,000 today means you would have to have $1 million in savings
K. Business of the Future (10 minutes)
L. SMEs: ONE WORD TO DESCRIBE (5 minutes)
[ENTREPRENEURS/ BUSINESS OWNERS ONLY]
Magazines, the media, government – they all have a host of words or labels that they like to use when they talk about individuals like you or businesses like yours. But we are interested in hearing how you would describe yourself as a business owner – what word or expression would you use to describe the category that you fall into?
What about the category your business falls into?
M. Women in Entrepreneurship (10 minutes)
Two Concepts and Messaging
N. THANK AND CLOSE (1 MIN)
[BACKROOM CHECK]
In parting, is there anything that you think I should have asked but I didn’t?
Please remember to sign out as you leave the focus group room – this is just to confirm you’ve received the incentive we promised you. [FOR GROUP 1: Take care as well not to discuss what has been discussed here as you leave the facility since I have participants from my next session in the lobby/ waiting area.]
Thanks again! And have a great evening!
Telephone Interview Guide – English
A. Introduction (2 minutes)
So I’d like to get to know you a bit better…I’ll be curious to know the following:
B. Business Confidence (6 minutes)
DRILLDOWN AS NEEDED IF THESE THEMES ARE RAISED:
C. Role of Government (7 minutes)
Let’s now turn our attention to the role the Government of Canada could or should be playing when it comes to growing the economy and supporting small and medium sized businesses like yours. (Let’s try to stay focused on the role of the Federal government and not the roles the provincial or municipal governments play.)
What is the federal government doing right these days to support small and medium sized businesses like yours?
D. Budget and Initiatives to Support SMEs (7 minutes)
ONLY ASK FEMALE, INDIGENOUS, YOUNG OR DISABLED ENTREPRENEURS: A number of the initiatives are intended to address barriers to innovation and business growth for small businesses, women, and young entrepreneurs and other underrepresented groups.
BREAKING INTO NEW MARKETS: Some initiatives are designed to help businesses break into new markets. For instance, the GC has indicated an intention to …
E. Venture Capital/Access to Financing (2 minutes)
(SKIP FOR SELF-EMPLOYED GROUPS – ASK ONLY OF SMALL and MEDIUM BUSINESSES)
In terms of access to financing and capital…
Are you aware of government accelerator or incubator financing? (DO NOT PROMPT, BUT RECORD GOVERNMENT DEPARTMENTS, EG. ISED, NRC, IRAP)
F. Intellectual Property Strategy (2 minutes – All GROUPS)
Now a few questions on intellectual property.
The proposed new National Intellectual Property Strategy aims to support the development and commercialization of intellectual property rights (IPRs), which include patents, trademarks, copyright, and industrial designs.
G. Innovation Superclusters & Supply Chains (DO NOT ASK OF SELF-EMPLOYED PROFESSIONALS) (2 Minutes)
Have you heard of the Innovation Superclusters? Government is co-investing with industry in ambitious proposals to strengthen Canada's most promising clusters and build Superclusters at scale. Five Superclusters have been announced so far for the following industries: digital technology, the protein industries, advanced manufacturing, Artificial Intelligence-Powered Supply Chains and the Ocean industries supercluster.
H. Red Tape / Administrative Burden / Efficiency of Service (2 minutes)
I. Innovation Defined (4 minutes)
HANDOUT #1 - Innovation Statements
J. Corporate Taxes (5 minutes)
Budget 2018 introduced a series of new tax changes for SMEs:
Income sprinkling: Here is how it works: Owners of private corporations – many of whom are in a higher personal tax bracket – can sprinkle income with family members. This can reduce the total income tax paid by the family because these family members face lower personal tax rates or aren’t taxable at all. The Government now proposes to move forward with changes to the tax rules to limit income sprinkling using private corporations. The new rules will not impact businesses as long as family members make meaningful contributions to the business.
Passive investment: This refers to situations where an incorporated business owner or professional saves money within the corporation. The advantage of saving in this manner is that corporate income tax rates are generally much lower than personal income tax rates.
Recently, the Government said that it heard that savings held in a business can be for business purposes, such as future expansion or new equipment, but also to deal with personal needs, such as maternity leave, sick days and retirement.
The Government proposes to make changes to the tax rules to limit the use of passive investments within a private corporation – but also provide greater flexibility for business owners to save for both business and personal purposes. For example, the Government will provide a passive income threshold of $50,000 per year for go-forward investments. There will be no tax increase on investment income below this threshold. Assuming a 5-per-cent rate of return, earning $50,000 today means you would have to have $1 million in savings
K. Business of the Future (3 minutes)
L. SMES: ONE WORD TO DESCRIBE (1 minute)
[ENTREPRENEURS/ BUSINESS OWNERS ONLY]
Magazines, the media, government – they all have a host of words or labels that they like to use when they talk about individuals like you or businesses like yours. But we are interested in hearing how you would describe yourself as a business owner – what word or expression would you use to describe the category that you fall into?
What about the category your business falls into?
N. THANK AND CLOSE (1 MIN)
In parting, is there anything that you think I should have asked but I didn’t?
We will notify the team that invited you to participate in this interview that the interview has been completed and they will take care to send you the incentive we promised you as soon as possible.
Thanks again! And have a great evening!
HANDOUT #1 – Programs and Policies Supporting Small Businesses & Entrepreneurs
The government supports a broad array of programs and policies intended to support business growth, innovation, enhance manufacturing competitiveness, and secure investment.
Please give a thumbs up or thumbs down for each initiative identified by a letter. Then, circle what you feel the best initiative on this list is. Next, put check marks next to the ones you feel will have a positive impact on your business/industry. |
Like |
Dislike |
REMOVING BARRIERS TO INNOVATION AND GROWTH | ||
SUPPORTING SKILLS OF TOMORROW Programs and policies geared to provide Canadians with the tools, skills and experience they need to succeed in the workforce and helping employers access the high-skill talent they need to succeed, including: |
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a) Global Skills Strategy -- Expedites processing of visas and work permits for low-risk, high-skill talent. |
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b) Cancode program – Invests in the digital literacy of Canadian youth |
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c) Futurpreneur – Offers financing, mentoring, and business support to young Canadians |
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d) Mitacs internships Helps Canadian students prepare for the modern-day workforce and helps employers create more workplace learning opportunities for students in science, technology, engineering and business programs. |
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e) National Intellectual Property Strategy – to help Canadian entrepreneurs better understand and protect their intellectual property – copyright, trademarks, patents and industrial designs. The objective of the strategy is to support the scale-up and growth of Canadian businesses and the successful commercialization of Canadian innovations. |
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SUPPORTING BUSINESS GROWTH THROUGH ACCESS TO INNOVATION AND FINANCING | ||
f) Innovation Superclusters Initiative -- areas that contain a dense concentration of large and small companies, post-secondary schools and research institutions who work together to create new business opportunities and jobs for people in the area through innovation. |
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g) Strategic Innovation Fund – Funding open to all industries to encourage R&D that will:
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h) Innovative Solutions Canada – Supports early stage R&D and late stage prototypes for innovators who wish to scale-up and grow their business by having the federal government act as a first customer. |
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i) Innovation Canada, a new collaborative platform that makes it easier and faster for Canada’s innovators and entrepreneurs to access government programming. |
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j) Artificial Intelligence Strategy - retains and attracts top researchers and trainees studying artificial intelligence. |
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k) Venture Capital Catalyst Initiative -- increases the availability of late stage venture capital in Canada. |
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l) Regional Economic Growth Strategies – supporting Innovation and skills through programs including regionally tailored programs including Women in Entrepreneurship and initiatives such as the Rick Hansen Institute (to achieve breakthroughs in spinal cord injury research and care). |
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m) Clean technology – financing to help Canada’s clean technology firms grow and expand |
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n) Substantial investments in scientific research to set a solid foundation for Canada’s capacity to innovate. |
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Programs and Policies Supporting Small Businesses and Entrepreneurs and Innovation New Programs for 2018 | ||
SUPPORT WOMEN IN ENTREPRENEURSHIP |
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o) Proposed federal and regional programs designed to support women in business and women in entrepreneurship by:
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SUPPORTING BUSINESS AND MARKETPLACE INFRASTRUCTURE | ||
p) Cybersecurity: Helping business improve their security and safeguard their prosperity in a digital world. |
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q) Broadband –– new technological solutions required to improve service (through the Strategic Innovation Fund) for rural Canada. |
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r) Marketplace Frameworks
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Innovation is important because… | Agree | Neutral | Disagree | The best reason to invest in innovation is… (SELECT ONE) |
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a) …it can lead to breakthroughs in agriculture, medicine, green technology and service delivery, improving the quality of life for all Canadians. |
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b) …the time has come to change not just what we do, but how we do it. |
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c) … by investing in skills and training, we’re making sure Canadians have the tools they need to get jobs of the future, and that no one gets left behind. |
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d) …Canada needs to keep up with other nations. |
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e) …it ensures the continued prosperity of our nation. |
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f) …we need technology that works for us and not against us. |
Concept/Idea |
Tag Line Options |
Call to Action |
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A) The “EntreprenHER” Concept Canada’s EntreprenHER strategy |
Sustaining, growing and empowering women-owned businesses. |
#EntreprenHER |
B) The “…By Her” Concept |
Check your favourite(s) from this list: Envisioned by her Started by her Grown by her Built by her Powered by her We are here for her. |
#EnterprenHER #InvestHER |
C) The “(Em)PowHer” Concept The Canadian economy, powered by women |
Passion. Potential. Power. Partnership. Empowered by women. Promoted by the Government of Canada. |
#EmpowHER |
D) The “CDN-Women-Can” Concept Canadian women can… |
Check your favourite(s) from this list: Women can... build the economy Women can...create the jobs of tomorrow Women can... bring ideas to market |
#cdnwomencan |
Now choose your preferred concept overall (circle): A B C D