
Well, the stats are in, and it looks like the trend to democratic freedom in the form of operating a small business isn't letting up.
Amidst warnings that the growth boom is peaking and big businesses are starting to pull back, especially in the resources sector, a report by the Chartered Accountants of BC showed that the number of new businesses in the Lower Mainland rose 3.0 percent in 2007 to reach 282,000.
Almost all those new businesses had less than 20 employees, which puts them in the very small business category.
Another sign that small businesses were propping up the economy came in the form of incorporations, which jumped by 56 per cent. This is a good indicator of small business growth because new businesses tend to incorporate after a year or two when revenues stabilize.
So, okay, small business is still on a roll. Does anybody care?
Not really. You see, while they all pay lip service to small business, governments and most large institutions such as banks don't really want much to do with them. Small businesses have very small workforces and tend to operate close to the bone, financially.
In fact the large majority of small businesses in BC have less than four “employees” and rely heavily on partnering, outsourcing and contracting out to operate. This really bothers the government, which likes to see big vote-catching job creation numbers in return for favouring businesses with its attention. Banks don't like them much because their loans are so small they barely register in portfolios filled with billion-dollar deals.
Unions aren't real crazy about them either. It's too hard to organize a business that has only a handful of real employees and a squad of virtual contractors to back them up. So they concentrate on old-economy sectors like resources and manufacturing, where there are big workforces.
This blind spot about small business isn't just relative to BC. Recent Canadian reports that showed huge increases in job growth nationally were routinely dismissed by several organizations and stock market obsessed media because they almost all involved self employment. More people were becoming self-employed only because they were losing “real” jobs, banks, unions, and analysts sniffed.
So what we have here, both in Canada, and in BC – which has the highest proportions of very small businesses in the country -- is the usual dichotomy of thinking between “authorities” and people in
Meanwhile those supposedly in charge of the economies are still locked in some time warp where everybody worked for Acme Humongous Corp. and dutifully kept their mouths shut in return for swelling pay packets.
Sorry guys, the world's becoming a more democratic place and Canada isn't immune. People are starting small businesses because they're sick of working for some unfeeling corp.
Get used to it.
Comments
Alan: Congratulations! I am
By Tonywanless, June 6, 2008 at 12:06Alan:
Congratulations! I am quite used to being accused of spouting "hogwash", usually by those who disagree with me, but I don't think I've every been labeled as a running dog of the "environmental sect". So you have achieved a first.
However, what you quote me as saying is confusing and contains statements I never made (i.e. harmful effects on internal combustion engines -- which I suspect is currently more a problem with carmakers who insist on one kind of fuel use).
For the record, here is what I did say (taken by the way from several consulting companies' world fuel reports):
--biofuel costs more to make than it is worth -- initially, yes, but after infrastructure costs, it is the equivalent of oil at about $45-$60 a barrel).
--raises food prices -- marginally, but many other supply chain factors, such as hoarding and rationing, have a much larger effect on food prices. Besides, how does converting tree cellulose to fuel affect food prices?
--leaves a bigger carbon footprint than it relieves; if you only count the carbon input costs to produce it and ignore the output costs - the removal of carbon from other sources and in other areas.
This post was not meant to be a debate on the causes of global warming or the use of food grains for ethanol (which I agree appears philosophically to be stupid). Instead it was more pragmatic -- a call to action to approach the BC situation more wisely in an economic sense, and do some good for the world at the same time.
It's been said that if you torture a statistic (information) long enough it will always tell you what you want to hear. So perhaps, your obvious passionate antipathy to ethanol fuel has blinded you to the rest of the blog post. It is a common problem when people become welded to information, and thus can't see beyond it to the larger picture.
Tony Wanless
Alan, I'd like to see you
By BusinessBrad, June 6, 2008 at 10:28Alan,
I'd like to see you back up your comments with links to these environmentalists, or UN reports.
Brad
Yes - Mr Wanless- the World
By Anonymous, June 6, 2008 at 07:02Yes - Mr Wanless- the World is more democratic now than ever ! Especially if you happen to live in Democratic countries - such as Canada - where anyone ,like you , can, within their claimed " Human Rights " have the freedom to write hogwash - and not be required to back up their contentions with real facts !
Your offhand remarks that "biofuels " - such as Ethanol - do NOT cost more to produce , are less efficient , create even more CO2 emissions , than gasoline - and have harmful effects on todays internal combustion engines - is just plain WRONG , WRONG, WRONG !
Even the established gurus of the environmental sect - are running as fast as their Global Warming feet will permit - away from any such contention - even to the extent of now saying that "they never told the politicians to replace gasoline with biofuels " That's a fact that even the Europeans are only now addressing these established harmful effects of biofuels , and are now looking at REVERSING this move .
Besides the direct harmful and economically wasteful effect of the use of Biofuels- we now see the spectre of the indirect effects on the production and prices of basic food stuffs - around the World - and it's immediate inpact on the poor countries' populations .
Don't take it from me - just ask, or read the UN reports on this aspect that you manage to ignore, and mislead your readers .
Alan Webster P, Eng.
Surrey , BC
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