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Table of Contents(1)
1. An Overview of Self-Employment Incentive Programs in Canada 3
2. Historical Background 4
2.1. The Self-Employment Incentive Program 4
2.2. The Self-Employment Assistance Program 4
2.3. The New Employment Insurance Act of 1996 6
2.4. Performance Measurement 9
2.5. Program Results 9
3. The Programs of Human Resources Development Canada 11
3.1. The Self-Employment Program 13
3.2. Industry Canada Youth Programs 14
3.3. Canadian Heritage Programs 15
3.4. Indian and Northern Affairs Canada Programs 16
3.5. Aboriginal Business Canada (an Industry Canada) Program 16
3.6. Entrepreneurs with Disabilities Program 18
3.7. Women's Enterprise Initiative Loan Program 18
4. Other General Business Development Incentive Programs 19
4.1.Atlantic Canada Opportunities Agency 19
4.2 Industry Canada's Small Business Loans Act 19
4.3. Provincial Small Business Finance Programs 19
5. Summary Statement: Employment and Small Business Financial Incentive Programs 20
6. Research Studies 21
7. Annexes:
Contacts 37
1998-1999 Employment Insurance Expenditures 61
An Overview of Self-Employment Incentive Programs in Canada(2)
Self-employment incentive programs have received wide support, at both the Federal and Provincial level in Canada, for more than a decade. Yet in that space of time there have been significant changes in the actual structure and delivery of self-employment incentive programs.
The Self-Employment Incentive (SEI) Option of the Community Futures Program was established in 1987. By May of 1992 it had been replaced by the Self-Employment Assistance (SEA) program of Human Resources Development Canada.
Following the introduction of the new Employment Insurance Act in 1996, the provinces were permitted to enter into negotiations to establish individual, bilateral Labour Market Agreements with the Federal government.
2. Historical Background
2.1. The Self-Employment Incentive Program
The original SEI program was designed to promote labour market self-sufficiency through self-employment. The funding for SEI was made through the Consolidated Revenue Fund (General Revenues of the Federal Government). However, at the outset Unemployment Insurance (UI) regulations did not allow clients to receive Unemployment Insurance benefits if they intended to become self-employed. The passage of Bill C-31 in November 1990 resulted in changes to the Unemployment Insurance Act and regulations, thereby permitting unemployed persons to pursue self-employment under the Development Uses of UI funds. Income support was provided to participants for one year, during which time they would start their own business. The self-employment option was delivered as part of a broader range of Community Futures programs in rural areas served by Community Futures satellite programs that were spread throughout Canada.
The SEI program provided for a weekly taxable allowance or grant of $180 CDN. (rising to $230 in 1991) for up to 52 weeks to provide income support to successful applicants, in lieu of UI or social assistance during a period of self-employment development. The option gave access to free business counselling and was not, therefore, just a small business subsidy. {Author's note: it is important to recognize that many other programs of free business counselling for small business were also being provided by various levels of government - federal, provincial and municipal.}
To be eligible, applicants had to be in receipt of or entitled to UI or welfare benefits at the time of application, have an approved business plan, an equity stake of at least 25 percent of the benefit entitlement ($180 x 52 weeks = $9360 x 25% = $2340) to invest in the business over the 52 weeks, agreed to work full-time (at least 30 hours per week) in the business and be a resident of a designated higher unemployment rural Community Futures area.
The SEI was administered by local employment offices with assistance from the Community Futures Development Centres (CFDCs). CFDCs played a significant role in the delivery of SEI. They provided the SEI client with counselling and support prior to and after the program approval. CFDC approval of business plans was usually a requirement of SEI approval. CFDCs also arranged for basic business training.
2.2. The Self-Employment Assistance Program
In May of 1992, the new Self-Employment Assistance Program, replaced the previous flat rate payment system with a variable rate system based on prior insurable earnings that had been accrued by UI recipients, resulting in an increase in income support during the time they were launching their new enterprises. This followed the November 1990 amendment of the Unemployment Insurance Act that provided for new regulations and additional funding under the Development Uses of Unemployment Insurance. At the same time, the previous arrangement allowed the use of Consolidated Revenue Funds to address income support requirements for welfare recipients. Overall, the legislative changes were intended to realign the UI program away from passive income support towards active training and re-employment assistance for the unemployed.
The fundamental change in the funding source away from general tax revenues to the UI Account affected the program coverage and delivery in significant ways. The enriched SEA financial incentives under UI resulted in greater program take-up by qualified UI claimants. The program also included a mandatory training component for those preparing themselves for self-employment. It addition, it extended the eligibility criteria to include access to funding in both Community Futures and non-Community Futures areas, thereby making access universal. The resulting changes broadened the scope of the SEA program, allowing to actively target those individuals and groups in greatest need of support, namely: women, aboriginals, visible minorities and persons with disabilities.
Since CFDCs were not available in non-Community Futures areas, alternate capacity had to be organised to support micro-enterprise ventures at the development and implementation stages. The solution was the recruitment of local community co-ordinators and third-party providers (non-governmental community organisations) to deliver the SEA program on a wider scale.
The Community Futures Program, which was controlled by Human Resources Development Canada (HRDC) was transferred to Industry Canada in 1995 because of its better fit within the regional economic framework of programs being managed by Industry Canada and its regional economic development agencies, namely:
The Atlantic Canada Opportunities Agency in the Maritime Provinces (Newfoundland, Nova Scotia, Prince Edward Island and New Brunswick); the Canada Economic Development Agency in the province of Québec; by FEDNOR, an agency of Industry Canada that managed the program for southern and northern Ontario; and by the Western Economic Diversification agency for the Western Provinces (Manitoba, Saskatchewan, Alberta, British Columbia).
The Community Futures Program, which was run through these various agencies delivered its economic development support to rural communities through local community business groups, which as mentioned earlier were known as Community Futures Business Development Centres. The Communities Futures Program covered the operating costs of the CFDCs and capitalized the local investment funds which were sometimes matched by local investors. Each CFDCs, which was run by a local committee of experienced business people and community leaders, managed an investment fund for small and medium-enterprises; provided business counselling services to businesses in the rural area; and assisted with strategic planning and economic development. In the case of the Maritime provinces (Newfoundland, Nova Scotia, New Brunswick and Prince Edward Island) the services provided by the CFDCs were limited to the first two activities, hence they became known as CFBCs (Community Futures Business Centres). The Strategic Planning and Economic Development work for rural regions in the Maritime provinces was handled by officials from the Atlantic Canada Opportunities Agency and counterpart staff from each of the provinces.
The CFDCs and CFBCs, being locally based delivery agencies were often handed the role of administering HRDC Employment Service Programs, such as the Self-Employment Program, at the local community level.
During this period of time, 1992 - 1995, the rate of SEA allowance was equal to the UI benefit rate that could be topped up with supplementary allowances including child care, commuting, living away for home allowances and disability support measures. Where entitlement was insufficient to cover the SEA participation, entitlement was extended to cover the 52 week SEA period, with the maximum of 156 weeks total UI benefit duration. Earnings from self-employment during the claim period were not deducted or clawed back while paid employment earnings were subject to the usual 25% earnings allowance rule.
In contrast, social assistance or welfare recipients received a basic training allowance which may be lower than UI benefits plus supplementary allowances paid by the designated co-ordinator up to a maximum of 52 weeks with no extensions. In addition, earnings from both self-employment and paid employemnt were treated on the same footing for dollar for dollar clawback beyond a certain threshold by the federal-provincial Canada Assistance Plan.
As a result of the provisions of the SEA program, UI claimants were more likely to be selected for program participation. In addition, their self-selection to use the program was also greater because of the higher level of financial incentives.
During this period of time, when the program was nationally administered by Employment and Immigration Canada (EIC), the arrangement with SEA participants were governed by individual agreements or contracts between EIC and UI clients. Similarly, a letter of understanding formed the basis of the contractual arrangements between delivery co-ordinators/third party delivery agencies and SEA welfare recipients. The agreements, outlined the roles and responsibilities, including the SEA support payments and services for business viability assessment. For their part, participants agreed to develop and implement their approved business plans, which had to show the potential for long-term self-employment. The business plans submitted had to show that SEA participants had plans and were capable (with support) to start a new business or take over an existing business involving an arms-length transaction (i.e. no prior ownership). They also had to agree to participate in business start-up training. Financially, they were required to make a personal investment of at least 25% up to a maximum of $4,000. They were also expected to work full-time on the business while they were receiving financial assistance. A unique feature of the program extended eligibility to seasonal enterprises and participants could be involved in managing more than one seasonal enterprise at a time.
2.3. The New Employment Insurance Act of 1996
The SEA program that was included as one of the general measures of the Unemployment Insurance program up until 1995, was still being maintained by HRDC across Canada and delivered to end-user clients by third party agents such as the CFDCs. Under this arrangement the program was managed nationally and delivered locally. In 1996, that changed when the Unemployment Insurance Act was replaced by the new Employment Insurance (EI) program of the Federal Government. This move was part of a national campaign to remove the negative connotation associated with Unemployment Insurance support. The change was designed to reposition the entire range of Employment Benefits and Support Measures in a more positive light. Unemployment Insurance program was replaced by the new Employment Insurance program, which was designed to provide five employment support benefits (options) to people wishing to enter/re-enter the workforce.
The five Employment Benefits are:
The three Employment Support Measures include:
Changes to the Employment Insurance Act permitted the transfer of control and management of Labour Market policies and programs to the Provinces and Territories, which allowed them to design and manage tailor-made labour market support programs for each of their regions. The regional programs had to maintain the major benefits of the national program but provincial and territorial administrators were permitted to modify the programs to provide better delivery and services based on the needs of their local clients. The transfer from Federal government to regional administrators takes place following one or more rounds of bilateral negotiations between the Federal government and each regional party. This process is concluded when a three-year Labour Market Development Agreement is signed.
At present, the majority of the provinces are just beginning the process of developing their own comprehensive labour market programs, including modified self-employment programs delivered through third party agencies. Since this process is still at an early stage of development, it is not possible to provide a detailed picture of each of the provincial programs during this period of transition.
Under the provisions of the new Act the provinces/territories had three options:
1) They were permitted take over full control of the Employment Benefits programs (or offer programs of a similar nature that were more closely tailored to the needs of their provincial labour markets. In situations where the provinces agreed to a complete transfer, Federal funding which had been set aside to finance operations within a given province would be transferred in their entirety to the province. The provinces that have opted for full transfer are: New Brunswick, Québec, Manitoba, Saskatchewan and Alberta.
2) Provinces also had the option of co-managing the Employment Benefits programs. In such instances, joint Federal (HRDC) and Provincial/Territorial Labour Committees were established, for each of the provinces, to manage the administration of all labour market programs in each of the respective provinces. Under the terms of this option, the management of all labour market funding remained with the Federal government. The provinces that chose this option did so for two reasons: i) they did so because they lacked the capacity needed to manage and deliver all of the program services; or ii) they chose this option because they wanted more time to prepare their own program first before negotiating a full transfer agreement. The provinces that opted to co-manage their labour market programs include: Newfoundland, Nova Scotia, Prince Edward Island, and British Columbia, Yukon Territories and Nunavut.
Labour Market negotiations between Ontario and the Federal government, that will eventually lead to a full transfer agreement, have just begun.
At the present time, most of the CFDCs and CFBCs continue to serve in their roles as third party program delivery agencies, often with expanded mandates to serve larger urban communities. In some instances, other CFDCs/CFBCs have had their delivery mandates rescinded. In those cases, the responsibility for the delivery of various employment programs have been transferred to other third party delivery agencies. In addition, there are situations where existing CFDCs/CFBCs have continued to serve as delivery agents while new third party agencies have been added in the same regions. According to some local authorities that were interviewed for this paper, this last arrangement has caused problems, resulting in competition amongst the various agencies for funds and for clients. Some third party agencies complained that the current system is very inefficient and is open to abuse by clients because there is no central control supervision of the transactions taking place, leading to "double-dipping"- in which clients are able to present the same investment opportunity to two different agencies and receive equal funding from both for same activity, as well as "leveraging up" - using the funds of one program to raise additional funds and larger amounts from another program or vendor.
Currently, the number of CFDCs and CFBCs across the country are as follows:
Each of the Community Futures Programs operate under General Terms and Conditions established by the Treasury Board of Canada. While the terms and conditions set the broad parameters of the program, each of the regional economic development agencies has the authority to run the program on the basis of the regional economic requirements. In light of this fact, the individual programs in each region vary in their design and delivery.
2.4. Performance Measurement
Of the thirty organizations/individuals contacted across the country, none of them was able to provide any statistics about the self-employment programs, since the introduction of the new Employment Insurance Act of 1996. As a result, there is no clear picture about the number of clients served, the types of new business start-ups, the success:failure ratio, the reasons for the successes and failures, or information about best practices, lessons learned, etc. Nor were they able to provide any consolidated budget figures that rolled up the costs of all self-employment programs across Canada. With the provinces and territories only beginning to track the performance of their new programs this summer, formal analysis of the data will not begin until the end of the Year 2000.
2.5. Program Results to Date:(3)
3. The Programs of Human Resources Development Canada
It should be recognised that HRDC's Self-Employment Program is not a program standing in isolation. As mentioned above, it is part of a cadre of employment support programs that are covered by the Employment Insurance Act of Canada (EIAC) and other stand-alone, employment support programs that are funded out of the Consolidated Revenue Fund, which will be described.
In looking at the various programs that support self-employment and various aspects of human resource development, it is important to see them in two ways: as collaborative programs and as competitive programs. Clearly some of these programs serve as disincentives to self-employment or at the very least, as incentives which encourage those seeking government support to pursue the employment stream rather than self-employment.
Here is a short review of other HRDC programs, that are covered under the Consolidated Revenue Fund.
The Literacy Support Program
One of the major impediments to employment or self-employment is literacy. The Literacy Corps Funding program funds national public and private sector organizations which provide literacy training to help the unemployed gain the literacy skills they need to become employed or self-employed. This literacy component was considered a key component of The Atlantic Groundfish Strategy (TAGS), which was launched to help unemployed fishermen prepare to pursue new avenues of employment and self-employment following the collapse of the Atlantic fishing industry throughout the Maritime provinces.
The Opportunities Fund
The Opportunities Fund is program designed to help persons with disabilities prepare for, obtain and maintain employment or self-employment. The program offers income support, advice concerning access to business capital, coaching and technical assistance during the preparation and launch phase of the new business; as well as providing work experience that leads to employment or self-employment.
The Sectoral Youth Internship Program
The Sectoral Youth Internship program provides partial financial support to employers in the following enterprise categories: auto repair and services, tourism, horticulture, logistics, environment, electrical services and electronics, software development, aviation maintenance, women in trades and technology and textiles. The program provides financial support for a period up to eighteen months to help subsidise on-the-job training that is intended to help the individual secure long-term employment or self-employment.
Youth Services Canada
The Youth Services Canada is a program that is designed to provide young people who are out-of-school and unemployed with the opportunity to gain relevant and related work experience while developing their personal skills through service to their community. YSC projects typically last one year and are carried out at the community level. YSC provides up to $10,000 per participant, which can be used to support administrative costs, wage subsidies and special costs for the disabled. This program is expected to help the young person obtain full-employment and possibly to gain sufficient knowledge and skills to pursue self-employment.
The Transitional Job Support Program
The Transitional Jobs Fund is designed to support long-term sustainable job creation activities in high unemployment areas. The funding agreement, reached between a third party (government, business, non-governmental institution) and HRDC, may be used to cover wages, employment related costs, administrative costs, overhead and capital costs. Partners are eligible for funding so long as they can demonstrate that the proposed activity will create long-term sustainable jobs. They must also fund 50% of the costs and their proposals must be consistent with local economic development objectives and be supported by the province or territory.
Other Government Self-Employment Programs:
In addition to what might be considered the core employment and self-employment programs of the federal and provincial governments, there are other support programs that are intended to encourage self-employment amongst Canadian Youth, Canadian Women and Canadian Aboriginals. These special programs will be addressed separately because they are managed differently than the self-employment program that is funded by the Employment Insurance program of Canada.
It is also important to recognize that these programs represent only a portion of a much larger array of government programs that are designed to help new entrepreneurs launch their businesses in Canada. For example, the Small Business Loans Program helps provide bank financing at reasonable rates to new start-ups. The Business Development of Canada provides loans, venture loans, and venture capital to higher risk business that cannot access bank capital or that do not have a great deal of collateral to pledge as security against a loan.
While financial support programs, such as the Small Business Loans Program, are not designed as incentive programs for self-employment, they help make self-employment possible for first-time entrepreneurs. Similarly, non-financial programs play just as important a role in helping new entrepreneurs to launch their enterprises. Across Canada there is the national network of Canada Business Service Centres - CBSCs (these are different from the Community Futures Development Centres and CFBCs). The CBSCs provide excellent business start-up advice to start-up enterprises, as well as established businesses. The impact of both the financial and non-financial programs is significant in facilitating self-employment, as is evidenced by the fact that the oustanding Small Business Loans Portfolio has grown to $15 billion in 1999 from $400 million in 1985. Studies have shown that the majority of new entrepreneurs visit one of the business centres in their region and also access the web-resources that are available on the CBSC Business web-sites as well as at the national business web-site of Industry Canada, which is known as Strategis, and other provincial business web-sites and trade association web-sites.(4) 3.1. The Self-Employment Program
HRDC's Self-Employment Program is designed to provide income support, coaching and technical assistance to help those who are unemployed or who are in receipt of welfare support that wish to start their own business.
Eligibility:
A Potential Client must:
To Qualify for Self-Employment Benefits:
A Person must:
Types of Assistance Given:
The program is delivered on a local basis through expert organizations known as co-ordinators, which are local community groups funded by HRDC or by the provinces, under full transfer arrangements, to assist the end-user clients with the development of self-employment opportunities. Co-ordinators are expected to provide the end-user client/new entrepreneur with:
Financial Assistance provided to the end-user client:
The contract period may be shortened by the local co-ordinator if it is determined that the business has becomes self-sufficient before the end of the contract period.
Youth Employment Programs:
This brief summary of federal programs is intended to provide an overview of programs that compliment or compete with Youth Self-Employment Programs. Most of the programs are relatively small in terms of the number of clients they serve but they are noteworthy because of their general support for the employment stream as opposed to self-employment stream.
Summer Career Placements - is a wage subsidy program that enables private, public and not-for-profit employers to create career-related summer jobs for students. SCP proposals are judged on how well the proposed jobs prepare students for the labour market (employed/self-employed) and the type of supervision, learning and work experience offered. Employers gain by hiring high-school, college or university students for 6 to 16 weeks, and students benefit by gaining experience in their chosen fields.
Human Resources Development Canada Offices for Students - 360 HRDC Student Offices operate in Canada during the summer months. Employers can get quick access to student workers by placing job orders with the offices to hire students for a day, a week, or the entire summer.
Partners in Promoting Summer Employment - A partnership between the Federal government and local business associations provide the business associations with funding to hire students to help promote the hiring of students within their communities without using government wage subsidies.
Student Business Loans - Students living in Newfoundland, Québec, Manitoba, Saskatchewan, Alberta, British Columbia, the Yukon and the Northwest Territories and intending to return to school full-time in the fall are eligible for loans up to $3,000 to help them start up and run their own small businesses during the summer months. The loans are interest-free until early October, when full payment is due. Students who repay their loans in full (having a value of more than $1,000) between the beginning of August and the beginning of September will be eligible for a cash rebate of $100.
SchoolNet Digital Collections Program - awards contracts to Canadian firms, associations and institutions to hire teams of young people 15 to 30 years of age. Young Canadians get paid experience in multimedia production converting heritage, science and technology material into a digital format for display on SchoolNet.
SchoolNet Youth Employment Program - helps libraries and schools hire young graduates to provide technical assistance and to integrate information technology with learning. SchoolNet plays a key role in helping to connect all of Canada's schools and public libraries through the internet. Since 1997, more than 700 youths have helped 3,000 schools and libraries get connected.
Student Connection Program - is funded through the Youth Employment Strategy of Industry Canada. It is an initiative that hires university and college students as Student Business Advisors. They assist small and medium-sized businesses. These specially trained students provide customized, hands-on Internet and electronic commerce training. In July 1998, SCP launched Year 2000 First Step to help small businesses prepare for the Year 2000.
Since the program began in 1996, over 2,800 students and 43,000 business people have benefited from the services of SCP. Students gain valuable on-the-job experience while financing their education.
Community Access Program - is a program in which youths help connect rural Canadian communities to the information highway and help the communities use their connections to promote local economic and social development. The youths also help small businesses, community organizations and individuals of all ages to increase their knowledge of the Internet and related information technologies.
Computers for Schools Program - repairs and refurbishes surplus computer equipment donated to the program by federal and provincial governments as well as private-sector organizations. The computers are then donated to schools and public libraries across Canada. Interested students perform the repair and refurbishment functions at one of the program's 25 full-time repair centres across the country. They may also provide on-site installation assistance to information technology staff in local school boards.
Young Canada Works in Both Official Languages - this program has provided job opportunities for more than 1000 bilingual students to secure summer work in small, medium and large-scale enterprises, public and not-for-profit organizations that give them new career development opportunities that also allow them to use their bilingual language skills.
Young Canada Works in Heritage Institutions - this program provides up to 1000 student summer jobs at Canadian heritage institutions - museums, archives, libraries and other cultural institutions to work in such areas as research, analysis, design, electronic applications, restoration, animation, writing and editing, exhibits, education programs, special events, automation and desktop publishing, planning and demographic analysis. The program is open to young people between 16 and 30 years of age. Priority is given to students wishing to continue their studies. The program provides wage support for an 8 to 16 week period.
Young Canada Works in National Parks and Historic Sites - this program provides up to 350 jobs per summer to full-time students (16 to 18 years of age) to work at selected parks and historic sites. The jobs offer them opportunities to gain experience in the fields of archeology, history, tourism, client services or environmental work.
Young Canada Works with Aboriginal Urban Youth - this program provides up to 300 jobs for Aboriginal youths living in urban centres served by the 114 Friendship Centres across the country. Participants are eligible if they are high-school or post-secondary students, graduates or unemployed Aboriginal youths between the ages of 16 and 24. Successful candidates may be asked to develop, supervise or manage Aboriginal youth activities within the Friendship Centres.
Young Entrepreneurs ConneXion Seed Capital and Counselling Program - this is a program funded by the Atlantica Canada Opportunities Agency. It provides repayable, unsecured loans up to a maximum of $15,000 for small business start-ups. They are delivered in partnership through the 40 Community Business Development Corporations. The program is open to young people between 18 and 29 years of age. Business counselling and training costs are limited to a maximum of $2,000 paid for by ACOA.
First Nations and Inuit Student Summer Career Placement - this wage subsidy program helps on-reserve First Nations and Inuit students prepare for their future entry into the labour market by providing them with opportunities for career-related work experience during the summer months, for a 6 to 16 week period. Students who are already in school and intend to return the following year are eligible.
Aboriginal Business Canada is a special agency within Industry Canada that supports aboriginal business development. It provides three key services:
Aboriginal Capital Corporations - There are 30 Aboriginal owned lending and investment organisations across Canada. They provide business services and support to the Canadian aboriginal community: individuals, businesses, associations, partnerships that are wholly or partly owned or controlled by Canadians of aboriginal origin. The ACCs can provide a wide range of financial support - from a few thousand dollars to tens of millions of dollars.
First Peoples' Fund - is a program operated by the Calmeadow Foundation, a Canadian microfinance institution. It is a private sector initiative designed to assist First Nation communities establish and operate their own micro-enterprise loan funds. Loans are offered at commercial interest rates and range from $300 to $3,000. Loans are offered to self-employed people within borrower circles of 4 to 7 people who approve and collectively guarantee loans. No collateral or equity contributions are required. Loan funds are administered by the communities themselves with the support of First Peoples' Fund.
Canadian Aboriginal Economic Development Strategy - CAEDS was created in 1989 to help native people with long-term employment through business development.
Guaranteed Loan Program - This is a program that is administered through Indian and Northern Affairs Canada (INAC). Its objective is to guarantee loans for unincorporated Indian and Band businesses on reserves needing financial aid from approved lending institutions. The program is available to any unincorporated Canadian Status Indian or Inuit individual or group, and other entities which are majority owned by Aboriginal people.
Settlement Investment Corporation - Métis Settlement of Alberta administrers this program which is designed to encourage and assist Métis entrepreneurs start and/or expand a business. It gives business loans up to $100,000 and agriculture loans up to $50,000. Any applicant must be a resident member of a Métis settlement.
The only organization that offers a special program of self-employment support for people with disabilities is the Western Economic Diversification Program. The Rural Entrepreneurs with Disabilities Program provides loans to people with disabilities up to a maximum loan of $125,000 at competitive interest rates, when individuals are not able to secure financing from traditional financial institutions. The Urban Entrepreneurs Disabilities Program provides loans up to a maximum of $75,000. Other business support services are also provided.
Western Economic Diversification operates a special loan fund to meet the needs of women. To access the loan fund, a woman/women must:
It is possible to access up to a maximum of $100,000 in debt financing to finance a start-up or expand an existing business.
4. Other General Business Development Incentive Programs
ACOA operates a Business Development Program that provides an interest-free, unsecured, repayable contributions that cover:
The Small Business Loans Act provides loan guarantees for small enterprises wishing to borrow funds, up to a maximum of $250,000, from a Canadian chartered bank. Businesses are eligible if they make less than $5 million (most enterprises earn less than $100,000 per annum). Industry Canada charges a 2% administration fee on the value of the loan, which can be added to the cost of the loan. The loans are term loans with a maximum term of ten years and an interest rate that does not exceed 3% above prime. The maximum personal security the bank can ask the borrower to pledge is limited to 25% of the value of the loan. The loan may be used to cover the purchase or construction of business facilities, including buildings; pay for fixed and movable assets, as well as leasehold improvements but not working capital.
Each of the provinces has one at least one small business financial support program. In most cases they have two or three that are tailored to meet the needs of the small business community as well as economically disadvantaged groups such as aboriginals and women. The list is too long to present in this summary report. A list that can been found on the Aboriginal Small Business Web-site of the Canadian Imperial Bank of Commerce ( one of Canada's leading chartered banks), which provides information about sources of financing for aboriginal businesses as well as sources of financing for small and medium enterprises. This list can be found at the following URL: http://www.cibc.com/aboriginal .
This paper has attempted to provide a broad overview of the various employment, financial and business support programs that currently exist in Canada that are designed to foster employment and self-employment across Canada. One of the goals of this exercise has been to provide an overview of the wide range of support programs that exist, for it is within this context that the self-employment incentive programs must be seen. The Self-Employment Program that is funded by the Employment Insurance Fund is only one small part of a much broader array of federal, provincial and territorial programs that encourage the unemployed to launch new businesses and support them in that activity. Without the existence of the other financial and non-financial support programs it is almost certain that the positive results of the Self-Employment Incentive Programs would be diminished.
As mentioned earlier, good research studies on self-employment incentive and assistance programs are limited in number. What follows is a list of research studies that have been completed by Canadian government officials and Canadian academics. The title and the names of the authors are presented along with short abstracts of the works themselves. General comments about the research studies have been included as well to provide the ILO with some idea about the value of the research as it applies to the evaluation of self-employment incentive programs in Canada.
It is found that the self-employment rate was more than twice as high among those who did not experience unemployment as among those who experienced unemployment in the previous year and that within the unemployed, the self-employment rate was lower among those who were in receipt of UI than among those who did not receive UI benefits.
Probit models are estimated to investigate the determinants of the transition to self-employment from unemployment. It is found that after a spell of unemployment, the likelihood of becoming self-employed in the subsequent year decreases with the receipt of UI, differs across provinces, increases with age and education, varies with a number of demographic characteristics, and differs greatly across industries and occupations.
It is found that although total employment in Canada was generally on the rise in the 1980s, the self-employed segment grew at a much faster rate and its share of total employment has been steadily increasing. Over 2.1 million Canadians were self-employed in each of 1988, 1989, 1990, accounting for about 12 percent of the labour force or nearly 16 percent of the total employed, higher than in the early 1980s in both the level and share of employment.
** Janice Yates
*** Garnett Picot
The self-employed sector now employs over two and a half million workers, has expanded on average by over 4% a year so far in this decade and accounted for over three out of every four new jobs the economy has created. There are substantial flows both into and out of self-employment over the last 15 years. Gross flows into and out of self-employment averaged nearly half a million per year between 1982 and 1994, amounting to 42% of the total of self-employed population.
Regression results reveal no statistical evidence supporting the dominance of the push hypothesis over the pull hypothesis - the notion that people are increasingly pushed into self-employment by deteriorating economic conditions. This analysis is done both through time-series analysis and the analysis of the determinants of flows into (and out of) self-employment - they are not only more likely to enter but also substantially more likely to leave. Prior paid-employment experience and prior self-employment experience are both found to be associated with a higher likelihood of entering self-employment. The longer one is self-employed, the less likely he/she is going to leave the business. Having a spouse in business (being self-employed) substantially increases the likelihood of the other spouse becoming self-employed - a self-employed spouse often attracts the other to either join the family business or start their own. We also find evidence that steady family income through paid-employment from one spouse increases the self-employed's (the other spouse's) affordability to continue with the business venture and hence reduces the likelihood of leaving self-employment.
Some of the other interesting findings of the study are:
(Page 2)
Robert Sproule, Department of Economics, Bishop's University
The results of the study provide unique insights into the labour market dynamics. For example: "The estimated returns leading to high school completion, a post-secondary diploma, or a university degree are higher for self-employed men and women than their wage-employed counterparts." (Page 15) The study leads to other interesting revelations, for example: "Lower unemployment rates are associated with increased self-employment activity for men, reflecting what we have termed the 'prosperity pull' hypothesis. Lower unemployment rates result in reduced self-employment activity for women, however, consistent with the 'unemployment push' hypothesis. The effects of age and family circumstances on the self-employment decision also differ quite dramatically for men and women." (Page 25)
While the results of this study do not directly apply to self-employment incentive programs, they nevertheless point to the need for a broader framework of analysis. The impact of the incentive programs must be seen against the general labour market dynamics of self-employment. The results of this study arguably warrant different approaches when promoting self-employment to women and men. They behave differently under different labour market conditions and on the basis of their age and family circumstances.
This study is important because it is a longitudinal study lasting more than a decade. It reveals that the self-employment behaviour of men and women differ on the basis of gender, education and labour market conditions. In studying the impact of self-employment incentive programs it is essential that these factors be included as part of the analysis.
Richard Roy
Chris Robinson, University of Western Ontario
A Canada - U.S. Comparison. McMaster University. April, 1998.
This study provides some excellent tables which include a detailed analysis of the self-employment sector of the economy of both countries on the basis of age, education, marital status, number of children, and industrial sectors. It also provides some useful profiles of national, provincial and state tax rates, as well as unemployment rates for the period in question.
3.2. Industry Canada Youth Programs:
3.3. Canadian Heritage Programs:
3.4. Indian and Northern Affairs Canada Programs:
3.5. Aboriginal Business Canada (an Industry Canada) Program:
3.6. Entrepreneurs with Disabilities Program:
3.7. Women's Enterprise Initiative Loan Program:
4.1. Atlantic Canada Opportunities Agency:
4.2. Industry Canada's Small Business Loans Act:
4.3. Provincial Small Business Finance Programs:
5. Summary Statement About Employment and Small Business Financial Incentive Programs:
6. Reseach Studies
TITLE: Evaluation of the Self-Employment Assistance Program - Macro Evaluation. Human Resources Canada, July 1994.
Author(s): Peter Graves and Benoit Gauthier of Ekos Research Associates, Ottawa, Canada
Abstract: This report represents the findings of a comprehensive evaluation of the Self-Employment Assistance Program. It assessed the effectiveness of the program on the participants. The study found that SEA provides social and economic benefits to the participants. It also showed that short-term business survival rates were high (~85% the first year after the completion of the program). The study examined the funding costs to the Unemployment Insurance Program and found them to be high, yet at the same time the research showed that the participants were less likely to collect Unemployment Insurance benefits or social assistance in the post-program period. The estimated pay-back period to recoup the investment in this program is six years. The study also uncovered an important fact, namely, that about half of the clients subsidized would have started their business with or without the subsidy.
Comment: This study is the most comprehensive study on Self-Employment Incentive Programs that has been done in Canada. It offers a great deal of empirical data profiling the clients and their businesses but it is slightly dated (1994).
TITLE: From Unemployed to Self-Employed in Canada: The Role of Unemployment Insurance. Insurance Programs Directorate, Program Evaluation Branch, Strategic Policy and Planning, Employment and Immigration Canada, 1993.
Author(s): Zhengxi Lin, Statistics Canada
Abstract: Using the 1988-1990 longitudinal wave person-file of the Labour Market Activity Survey (LMAS) of Statistics Canada, this study is the first in the literature to empirically analyse the characteristics and distribution of those unemployed workers who became self-employed in the subsequent year and investigate the determinants of such a transition in Canada in the late 1980s.
Comment: This is a sound empirical study, which is somewhat dated: 1989-1990, which nevertheless provides a clear picture of the unemployed and their behavioural pattern concerning the strategy of using self-employment as a means of returning to the labour market.
TITLE: Self-Employment in Canada: Characteristics, Distribution and Determination. Insurance Programs Directorate, Program Evaluation Branch, Strategic Policy and Planning, Employment and Immigration Canada, August1993.
Author(s): Zhengxi Lin
Abstract: Using the 1989-1990 longitudinal wave person-file of the Labour Market Activity Survey (LMAS) of Statistics Canada, this study empirically analyses the characteristics, distribution and determination of self-employment activities in Canada in the late 1980s.
Comment: This is a companion study to the earlier study which provides an overview of self-employment in Canada.
TITLE: The Entry and Exit Dynamics of Self-Employment in Canada. Micro Economics Analysis Division *, Labour Force Survey Sub-Division**, and Business and Labour Market Analysis Division*** of Statistics Canada. September, 1998.
Author(s): * Zhengxi Lin
Abstract: This paper 1) documents the extent and cyclicality of self-employment entry and exit flows; 2) explores transitions to and from self-employment; and 3) investigates the influences of individual characteristics and labour market experience as well as macroeconomic conditions on the probability of moving into or out of self-employment.
Comment: This study provides a current picture of self-employment in Canada (1998). This document presents some interesting information about the patterns of self-employment versus employment concerning entries and exits which may have some implications for the continuance of self-employment incentive programs. For example: "One full year after leaving the old job, 40% of self-employment exiters were working for others; 18% were working on their own again; 12% were unemployed; and 27% were not in the labour force. In comparison, a much higher proportion (57%) of those ending paid-employment were working for a different employer; a substantially smaller fraction (6.1%) were working on their own again; 18.9% were unemployed and a significantly lower fraction (18%) were not in the labour force." (Page 13). What is interesting to note here is that self-employment exiters were much more likely to resume self-employment activities 18% versus 6.1% for the employed exiters. This suggests that it is a good deal more challenging to get employees who are laid off to consider the self-employment option. It is also interesting to note that the numbers of unemployed are significantly higher for employees who have been laid off vs. self-employed exiters: 18.9% versus 12%.
TITLE: How important are "Entry Effects" in financial incentive programs for welfare recipients?: Experimental evidence from the Self-sufficiency Project. Social Research and Demonstration Corporation. August, 1997.
Author(s): David Card, Princeton University; Philip K. Robins, University of Miami; Winston Lin, Manpower Demonstration Research Corporation. Social Research and Demonstration Corporation, 275 Slater Street, Ottawa, Ontario, K1P 5H9. (613) 237-4311.
Abstract: This study concerns the "entry effects" of an income subsidy program for single parents on welfare, called the Self-Sufficiency Project. It offers an income subsidy incentive to single parents who manage to find work and stay off welfare. The program works as follows, as illustrated by the pilot program in British Columbia. "Individuals who work at least 30 hours per week receive one-half of the difference between their gross earnings and a target earnings level of $37,500 per year. For example, an individual who works 30 hours per week at $7.50 per hour (roughly the median wage earned by SSP participants) earns $975 per month and receives a $1,075 monthly earnings supplement. Early data shows a sizeable take-up rate for the supplement offer and significant behavioural responses to the program."
Comment: The relevance of this study for Self-Employment Incentive Programs is marginal. Yet this research is useful in that it helps to illustrate what other forces compete with self-employment incentive programs. This fails to make the connection between the "entry effect" or impact of self-employment incentive programs on the Self-Sufficiency Program and vice versa.
TITLE: Econometric Analysis of Canadian Self-Employment using SLID. Income and Labour Dynamics Working Paper Series: Statistics Canada Product Number 75F0002M. November, 1998.
Author(s): Wayne Simpson, Department of Economics, University of Manitoba.
Abstract: This paper estimates a structural model of self-employment using recently released data from Statistic Canada's Survey of Labour and Income Dynamics. In addition to providing a first set of results for Canada, the paper provides a more comprehensive analysis of the self-employment decision than earlier studies. We find that the self-employment behaviour of men and women is quite distinct and merits separate assessment. In particular, while both men and women appear to be quite sensitive to the relative earnings opportunities for wage- and self-employment, they respond very differently to local unemployment conditions. Adjustment for sample bias arising from both participation and self-employment is found to be significant in earnings equations for both men and women.
Comment: This research paper provides some interesting national data on the state of self-employment in Canada. "In Canada, self-employment has risen at a robust rate of 3.6% since 1976, and the proportion of workers who are self-employed has risen from 11% to 16% [HRDC, 1988]. What is curious is that recent growth has been sluggish, averaging only 1.4% per annum." (Page 2). This study is a highly technical one that employs complex math modelling techniques as part of its analysis. It gives a detailed breakdown of the self-employment sector into two major groups: male and female. The analysis includes: percentage of positive earnings in 1994; median age; years of schooling; percentage with high school diploma; percentage with post secondary diploma; percentage with a university degree; percentage educated outside Canada; percentage who worked full-time; percentage of career in full-time self-employment; the unemployment rate; percentage who are part of a group - i.e. visible minority/aboriginal/immigrant/disabled/student in 1994/married or common law partnership; percentage with children under 6/with children 6-19 years; percentage with English as mother tongue/French as mother tongue; percentage that had fathers who completed high school/completed university/had mothers who completed high school/university; residence in Atlantic Canada/Québec/Ontario/Prairies/British Columbia; median earnings in 1994; hours worked per week; work experience full-time in years; sample size.
TITLE: The Self-Employment Dynamics of Men and Women in Canada: 1982-1985. McMaster University. September, 1998.
Author(s): Peter Kuhn, McMaster University. This summer he is moving to take up a post as a professor at the University of California, Santa Barbara. Herb. J. Schuetze, McMaster University. This summer he is moving to take up a post as a professor at Dorchester College in Massachusetts.
Abstract: This study managed to overcome the lack of Canadian longitudinal data by employing a rarely utilised source of information on dynamic behaviour contained in a series of Surveys of Consumer Finances for the survey years 1982 to 1995. These data files contain standard labour force data for the week prior to the survey as well as supplemental data on the previous year's work experience and income. The survey covered self-employed persons aged 25 to 54 with disaggregated data for men and women. This study looks at self-employment of men and women relative to wage and salary employment and non-employment (unemployed or no longer in the workforce).
Comment: This study reaches somewhat different conclusions than the Simpson/Sproule study. It found that increases in self-employment for Canadian men "are closely tied to a deterioration in overall labour market conditions, constituting, for some, a kind of 'employment of last resort'. In contrast, the steady-state rate of self-employment increase among women has risen primarily because of decreased exit from self-employment....the increase in self-employment is associated with improved overall labour market outcomes, perhaps because an increase in their skills and experience contributed to a higher survival rate of their businesses."(Page 3) {Author's note: Empirical studies of Canadian women entrepreneurs show that they are more successful than Canadian male entrepreneurs for several reasons: 1) women are better planners; 2) women more practical and realistic as to what can be achieved - less likely to be swayed by big dreams; 3) women are more likely to seek help and seek it at an earlier stage than men in similar circumstances; 4) women are better financial managers - they do a better job of keeping costs low and setting money aside for unexpected expenses or slow periods; 5) women are more risk averse than men, thus they are less likely to gamble with their money or risk their savings foolishly. The authors of this study did not look at these factors in assessing the performance of the enterprises of self-employed women.} The study also reveals other interesting facts: "The fraction of men who were not employed prior to entering self-employment was 9 percentage points higher than the population average in the 1980s and grew to 12 percentage points in the 1990s.... A larger fraction of men entering self-employment came from non-employment (32 percent in the 1990s versus 25 percent in the 1980s). The opposite was true of women entering self-employment. The fraction of women entering self-employment from non-employment actually fell by 3 percentage points between the 1980s and 1990s." (Page 7) Other points: "most Canadians entering self-employment are married, have no children, are Canadian born and tend to be younger than the population as a whole." and: "relative to the overall population, the self-employment sector attracted more highly educated women while men entering self-employment tended to be less educated.....Women entering self-employment were more likely than the population as a whole to have children while the opposite was true of men entering self-employment." (Page 8)
TITLE: Diverging Trends in Self-Employment in Canada. Applied Research Branch, Strategic Policy, Human Resources Development Canada. August, 1997.
Author(s): James Gauthier
Abstract: This study gives a detailed overview of self-employment trends by occupation and industrial groupings. It shows that the trend toward the development of a knowledge-based economy has contributed to the rise in the proportion of self-employment, but these effects have been largely offset by negative contributions in more traditional vocations such as farming, fishing and forestry whether the proportion of self-employment is relatively large or not. The study also showed that since the 1990s, "poor opportunities in paid -employment and good opportunities in self-employment encouraged individuals to become self-employed. Moreover, since paid-employment is found to be cyclical and self-employment is not, in periods of weak employment growth, self-employment will comprise an unsustainable proportion of the net overall increase in employment. The current economic recovery should therefore translate into some fall in the share of self-employment in total employment." (Page 3)
Comment: While this study does not directly relate to self-employment incentive programs it provides useful information about the cyclical pattern of economic growth and its impact on paid-employment versus self-employment. It also provides clear evidence of the impact on self-employment from the decline of traditional industries and the growth of knowledge-based industries. This study serves a useful purpose in terms of policy considerations. For example, based on the findings of this study, a self-employment incentive program that helped a person become self-employed in a traditional industry would be a poor labour market support strategy. Alternatively, an incentive program that helped a person make the transition to a knowledge-based industry would likely produce better results and a greater level of economic sustainability in the long-run.
TITLE: Explaining the Recent Rise in Self-Employment: Lifecycle, Cohort and Aggregate Economy Effects. Paper prepared for presentation at the OECD International Conference on Self-Employment. Burlington, Ontario, Canada. September, 1998.
Author(s): Danny Leung, University of Western Ontario
Abstract: This highly technical study looks at the rise in self-employment within different age brackets 15-16, 17-19, 20-24, 25-34, 35-44, 45-54, 55-64, 65-69, and 70+ broken down by gender. It provides charts showing the general trends in self-employment of men and women. It also shows the percentage of self-employed persons from 15 years old to 70+ based on a time series: 1971, 1981,1991, and 1996 with data for both men and women.
Comment: This study is useful in one respect, it provides dramatic evidence of how self-employment increases among both males and females as people age. The difference is dramatic showing an increase in male self-employment as men get older: men aged 15-17 making up 8% of the employment population, while self-employed men in their fifties and sixties, make up 25%+ of the employment population. This information has some relevance for national labour market policies and how self-employment incentive programs can be better designed to serve the needs of young people. What the research reveals is that older people are more likely to consider self-employment because they already have marketable skills, proven experience that they can sell. Young people on the other hand have very little to offer until they gain some experience. Self-employment incentive programs need to be designed to help them gain that experience.
TITLE: Taxes, Economic Conditions and Recent Trends in Male Self-Employment:
Author(s): Herb Schuetze, University of California at Santa Barbara. Mr. Schuetze, Dorchester College in New Hampshire.
Abstract: North American workers have increasingly turned to self-employment since the 1970s. Analysts who have primarily focused on changes in technology, industrial restructuring and in the demographic composition of the work force as explanations for the rise in self-employment have had limited success. At the same time, international statistics suggest that country- or region-specific factors, rather than widely-shared trends may play central roles in the evolution of self-employment rates. This paper assesses the importance of two less commonly analysed factors which do vary across regions and countries - macroeconomic conditions and the tax environment - used to help explain the trends in male self-employment in North America. The microdata from the period 1983-1994 for Canada and the United States are more similar than other bilateral country studies. However the income tax policy environments and the macroeconomic environments as well as the trends in self-employment in the two countries differ a great deal. The research findings suggest that higher income tax and unemployment rates are associated with an increase in the rate of male self-employment in the two countries. Changes in the tax environment account for a considerable amount of the secular trends in male self-employment over the survey period, while changing economic conditions play a smaller role in determining these trends.
Comment: This study showed that the self-employment rate of prime-age males in the United States fell from 13.9 percent in 1983 to 12.4 percent in 1994, while male self-employment in Canada rose from 16.3 percent to 18.5 percent. In both cases, the changes in male self-employment rates were directly related to changes in macroeconomic conditions and taxes, with higher unemployment and higher taxes leading to statistically significant increases in male self-employment. The much higher levels of unemployment in Canada suggest that as unemployment increases fewer paid-employment options exist and as a result, self-employment becomes more attractive. This can be described as the "unemployment push" hypothesis. At the same time, an increase in taxation leads to increased entry into self-employment, which appears to offer some shelter from the increased taxation. It also presents the self-employed with the option to under-report income and overstate business expenses.
| TITLE: The Effect of Social Capital, Neighbourhood Characteristics and Peer Group Lending on the Performance of the Small-Scale Self-Employed. Centre for Industrial Relations, University of Toronto. |
| Author(s): Rafael Gomez, Centre for Industrial Relations, University of Toronto. |
| Abstract: This study assesses the impact of social capital and neighbourhood characteristics and peer group lending on 451 self-employed, micro-credit clients of the Calmeadow Foundation in Toronto, Ontario. |
| Comment: This study deals with "fuzzy", qualitative variables that are interesting but hard to quantify. The study uses proxies for the measurement of social capital. For example, various levels of education are correlated with self-employment income. It simply shows that those with less education as a rule make less money than self-employed individuals with higher levels of education. The study also looks at variables such as membership in community organizations, institutions and clubs relative to self-employment incomes. Increased social networks directly correlate with higher levels of income. As interesting as this study is, it does not have much relevance to general policy considerations concerning self-employment incentive programs unless they are tied with increased levels of education, self-employment training, technical training, and programs that strengthen an individual's social network. |
| TITLE: Earnings Impact of Self-Employment Assistance for the Canadian Unemployed: 1987 - 1996. Strategic Evaluation and Monitoring Division, Human Resources Development Canada. November 21, 1998. |
|
Author(s): Ging Wong, HRDC
Harold Henson, HRDC
Chris Riddell, HRDC |
| Abstract: One potential policy intervention to increase the self-sufficiency prospects for unemployed workers is to allow those eligible for income maintenance to pursue the alternative of creating their own employment by starting their own business. The Canadian program of self-employment assistance evolved in three main phases from its inception in 1985 to the present. This paper examines whether the self-employment strategy results in more successful earnings outcomes for program participants, using administrative data, and whether the three policy regimes differ in their relative effectiveness. The empirical evidence provides support for the hypothesis that total earnings from paid and self-employment are improved by adding a self-employment option to earning a living. This increase in self-sufficiency, however, appears to be affected by program changes and self-selection issues. |
| Comment: This paper provides the most detailed overview of the history of Canadian self-employment incentive programs since 1987 to the present. It provides an up-to-date evaluation of the effectiveness of the self-employment policy alternative compared with paid-employment incentive programs. It compares the effectiveness of the Self-Employment Incentives option relative to the newer Self-Employment Assistance program using earnings as a measure of performance. The paper provides valuable data which shows the participation rate of UI clients who used the Self-Employment Incentive and Assistance Programs from 1987 to 1998. It breaks down the data by province, by age and by gender. It is interesting to note that more than 50 percent of the total number of clients (a total of 66,391 in 11 years) participated in the SEA Program starting after 1994, reaching a maximum of 11,000 participants per annum in 1995. The median earnings of the self-employment incentive program participants shows a significantly higher level of income than for individuals who pursued paid employment. Some of the charts presented will require explanations from the authors of the study to correctly interpret the findings because the graphic presentation cannot be interpreted in the black and white printed format. The original chart lines must have been displayed in colour, which when printed in black and white cannot be distinguished one from the other. The authors of this study are currently on holiday. |
| TITLE: HRDC Lessons Learned Summary: Own-Account Self-Employment in Canada. Evaluation and Data Development, Strategic Policy, Human Resources Development Canada. July, 1997. |
| Author(s): This HRDC study is based on a technical paper prepared by Norm Leckie of Ekos Research and Associates, Ottawa. |
| Abstract: This summary study is part of a larger "Lessons Learned" series that was developed by HRDC for their senior program managers, the department's policy analysts, members of the academic research community and other stakeholders. The paper addresses the following issues: What is the current state of own-account self-employment in Canada and what have the longer-term trends been? Who are the self-employed and what type of work do they do? Are men or women / older or younger Canadians more likely to be self-employed? How does the rate of self-employment vary across occupations and industries? The study also examines the reasons for the growth in self-employment: Are people being pushed or pulled into self-employment? Why are people actively choosing to become self-employed? |
|
Comment: This study provides some "big picture" facts and figures that provide a backdrop for analysis associated with self-employment incentive programs. It also provides detailed information about the behaviour of the self-employed. "There were nearly 1.5 million own-account self-employed people in Canada. This represents almost 10 percent of total employment. Between 1989 and 1995, the number of self-employed Canadians grew by
one-half. Between 1976 and 1995, self-employment almost doubled while total employment grew by less than 40 percent over the same period.....Since 1976, growth in self-employment has been steady and largely insensitive to economic cycles....The increasing incidence of own-account self-employment (OASE) has been observed for both men and women, for all age groups, in all education groups (at least in the 1990s), in all regions (in the 1990s) and in all industry and occupation groups except agriculture." (Page 3) As this paper promises, it provides information about the lessons learned which have direct application for national and provincial labour market policies and strategies. For example, the study shows that young people and older people have different self-employment expectations and needs. "Younger people may be better able to sustain the self-employment experience because they have up-to-date skills, are more amenable to a challenge and have greater interest in self-employment. Older workers with outdated skills, on the other hand, who have been in traditional employment positions for some time may be in greater need of assistance, despite their greater connections, life skills and capital. Similarly, those coming from layoff situations who have been in management and professional positions are probably better equipped, have greater motivation and connections (informal networks), and therefore have less need for help than those in blue collar occupations." (Pages 13-14) The author of this paper poses many questions concerning self-employment public policy issues that cannot be answered by current research data. This gap in research data can only be addressed by further studies. The lack of useful data echoes the short-comings of virtually all of the research papers listed in this report. A good deal more research needs to be done on self-employment and self-employment incentive programs. |
|
TITLE: The Role of Self-Employment in Job Creation in Canada and the United States.
Statistics Canada and the United States Bureau of Labour Statistics. Detailed report September, 1998. Reported in the Canadian Economic Observer, March, 1999. |
|
Author(s): Garnett Picott, Statistics Canada.
Marilyn E. Manser, Statistics Canada.
Zhengxi Lin, Statistics Canada. |
| Abstract: This study examines the contribution toward job creation in Canada made by self-employment business entities. This study focuses on the characteristics of the self-employed and the growth of self-employment. |
|
Comment: This study provides useful, national data for the whole of the self-employment sector. The differences between the two countries is quite striking. "The growth of total self-employment was substantial in both Canada and the U.S. from 1979 to 1997, although much higher in Canada at 74.8% than 37.0% in the U.S....The increase in the self-employment rate (the share of self-employment in total) for Canada is striking, rising from 13.8% in 1989 to 17.8% in 1997, after having changed little during the 1980s. There was little change in the self-employment rate in the U.S. at around 10% over the entire period." (Page 3.4) Other interesting facts emerge: "Between 1989 and 1997, self-employment accounted for about 80% of the net employment gain in Canada, but very little in the U.S. (11% using adjusted data)." (Page 3.5)...."Next to farming, management had the highest self-employment rate in the U.S., while it was next to the last in the seven categories in Canada. Otherwise, the occupational concentration appears very similar in the two countries." (Page 3.7) "In both Canada and the U.S., men have a greater tendency to be self-employed than women. The proportion of male/females workers who were self-employed in the late 1990s was 13.0%/7.6% in the U.S. and 21.1%/13.9% in Canada..... The major exception is the service occupations, where women are considerably more likely to be self-employed than men. The gap in self-employment between men and women has narrowed recently, at least in Canada." (Page 3.7) The authors provide possible reasons why the self-employment growth rates are so much higher in Canada than in the United States, "it may be that prolonged periods of slow growth (rather than recession - periods of high unemployment) encourage greater self-employment." Other explanations include: "technological change that results in reduced operating costs and increased production opportunities for small business, especially home-based business; increased contracting-out by employers; change in the attractiveness to U.S. workers of taking paid rather than self-employment jobs that offer health benefits; differences in immigration rates and incentives for immigrants to enter self-employment; differences in interest rates affecting the ability of entrepreneurs to finance their business; changes in personal income and payroll taxes; and increasing entrepreneurial spirit perhaps associated with the preference to be one's own boss." (Page 3.12)
This comparison study is interesting because it highlights the unique differences of the Canadian self-employment sector versus the U.S. and suggests that general differences in economic performance and national employment policy frameworks do have an impact on the growth of the self-employment sector, with or without special incentive programs. |
| TITLE: The Survival of Self-Employment in Canada: An Empirical Analysis. Insurance Programs Directorate, Program Evaluation Branch, Strategic Policy and Planning, Employment and Immigration Canada. September, 1993. |
| Author(s): Zhengxi Lin; formerly employed with Employment and Immigration Canada, now serving as a senior economic researcher with Statistics Canada. |
|
Abstract: Using the 1988-1990 longitudinal wave person-file of the Labour Market Activity Survey (LMAS) of Statistics Canada, this study is the first in the literature to empirically analyse the survival of self-employment.
It is found that the two-year survival rate of self-employment in Canada was 88.7 percent between 1988-1989 and 83.6 percent between 1989-1990, and the three-year self-employment survival rate was 76.2 percent between 1988 and 1990.
Probit models are estimated to investigate the determinants of self-employment survival. It is found that the likelihood a self-employed worker remains self-employed in the subsequent year differs across provinces, increases with age, is invariant to education, varies with gender and marital status and differs greatly across industries and occupations. |
|
Comment: While the data of this study is somewhat dated, it is nevertheless revealing. For example, the self-employment survival rate is much better the older one is, reaching 94.5% for those in the 55 to 64 age bracket compared with 63% for those aged 16 to 19. The spread is even more noticeable during periods of recession, 84% versus 47% respectively. (Table 3.1, Page 8). Survival does not appear to be affected by education. With respect to gender, men fair better than women 92% versus 83% in a good year as compared with 87% versus 77% at the beginning of a recession. Self-employment survival is significantly affected by marital status, with married persons having a higher self-employment survival rate at 92.% versus 77% for singles. No differences exist in self-employment survival for minorities versus mainstream cultural groups, nor do survival rates differ on the basis of language. (Table 3.1, Page 9) "Among those who were unemployed and in receipt of UI in 1988, about 6.4 percent became self-employed in 1989 and 72.6 percent of them remain self-employed in 1990, for a two-year survival rate lower than that of 73.7 percent observed among those who were unemployed but did not receive UI in 1988." (Page 10)
This information suggests that more support needs to be provided to young entrepreneurs and women. Further, it also shows that support programs should not be targeted on the basis of cultural considerations. |
General Comments about the Research Papers:
To sum, there are only three or four papers that specifically assess the performance and effectiveness of Self-Employment Incentive/Assistance programs in Canada. Thankfully, though limited in number, the quality of those papers is good.
As for the remainder of the studies reviewed, the research findings collectively provide a wealth of information about self-employment in Canada, which serves as general baseline for the research studies that deal with the self-employment incentive programs.
To produce meaningful results, with respect to self-employment incentive programs, the two bodies of research need to be combined. This will provide a detailed account of self-employment in Canada and will help analysts to properly assess the true impact of Canadian self-employment incentive programs.
At the same time, it is apparent that a major study is warranted in order to fill the gaps in the research that has been done to date. In many cases, the research parameters of earlier studies were far too narrow, in which important variables that could influence self-employment behaviour were overlooked.
There is little doubt that results of earlier research studies can be used as guides to labour market policy-makers in helping them develop new and improved national/provincial labour market strategies and programs.
Annex 1: CONTACTS
National Headquarters Human Resources Development Canada
In September, 1999, HRDC will appoint a new Director who will become responsible for the management of the Self-Employment Assistance Program at the national level. The new director will be:
Ms. Lula Fairfield, Director,
Labour Market Initiatives and Operations,
Human Resources Investment Branch,
Human Resources Development Canada,
Fourth Floor, Place du Portage - Phase IV,
Hull, Québec,
CANADA K1A 0J9
Telephone: 819-953-8635
Fax: 819-953-3134
Two people from HRDC deserve special mention for the help that they provided.
Penny Donnelly,
Former Program Manager Operations,
Self-Employment Program,
Labour Market Initiatives and Operations
T: 819-953-6170
Fx: 819-994-2314
Ms. Donnelly provided information about the history of the program, she provided information about the third party service providers that deliver the program across the country and she provided the financial figures concerning all of the Employment Support Programs.
Stand Psutka,
Chief Labour Policy,
Learning, Employment and Labour Policy,
Strategic Policy, HRDC
T: 819-997-5827
Fx: 819-953-0519
Mr. Psutka provided departmental documentation as well as the contact list of HRDC officials and their provincial counterparts. This information along with the contact lists proved critical in obtaining information from the regional program administrators.
Special mention should be made about the library staff of the HRDC library who provided helpful advice in locating the numerous research documents that were available on self-employment. Without their help, the assembly of the research materials would not have been possible.
At the same time, a word of thanks should be extended to the authors of the research paper who provided information about their own papers and the work that is being done in Canada. It was only with their help that it was possible for the author of this paper to track key people involved in this field and locate copies of obscure research papers.
The Provinces and Territories
Contacts for the Provinces and Territories will be presented in tables, starting with Newfoundland on the East coast and proceeding across the country to British Columbia and the Northern Territories. The information provided is complete. It includes contact names of people from HRDC who handle the management of the national programs at the provincial and territorial levels of government. It also includes contact names of people who are the provincial and territorial counterparts that serve in a liaison capacity on behalf of the provincial and territorial governments. The tables also list the names of local, third party agencies across the country that deliver the Self-Employment Assistance Program to the end-user clients.
Newfoundland and Labrador
Newfoundland
P>O> Box 12051,
St. John's, Newfoundland
A1B 3Z4
Fx: 709-772-0815
Lead Provincial Co-ordinator,
Forum for Labour Market Ministers
Confederation Building,
Prince Phillip Dreive,
St. John's, Newfoundland,
A1B 4J6
Fx: 709-729-5560
Placentia, A0B 2Y0
Clarenville,A0E 1J0
Marystown, A0E 2M0
Gander, A1V 1W8
Port aux Basques, A0M 1C0
Corner Brook,
A2H 6G1
Ferryland, A0A 2H0
Carbonear, A1Y 1C2
Individual or Agency
Address
Contact Numbers
Don Sellars, Regional Executive Head, HRDC,
689 Topsail Road,
T: 709-772-5331
Gerald Crane,
3rd Floor, West Block,
T: 709-729-1946
Avalon West Community Development Corporation
Box 419,
7092272147
Bonavista Peninsula and Surroundings Area Business Development Centre Inc.
P.O. Box 280,
7094461170
Burin Peninsula Community Development Corporation
P.O. Box 470,
7092794540
Gander Area Community Development Corporation
P.O. Box 471,
7096514738
Gateway Community Development Corporation
P.O. Box 430,
7096957406
Humber Community Development Corporation
P.O. Box 657,
7096397755
Southern Shore-St. Mary's Bay Community Development Corporation
General Delivery,
7094382563
Trinity Conception Community Development Corporation
P.O. Box 700,
7095963849
NOVA SCOTIA
| Howard Green, Regional Executive Head, HRDC |
Metropolitan Place,
99 Wyse Road,
P.O. Box 1350,
Darmouth, Nova Scotia,
B2Y 4B9 |
T: 902-426-2988
Fx: 902-426-4724 |
|
Person who provided the material:
Iris Peeples,
Consultant Delivery Support,
HRDC |
Metropolitan Place,
99 Wyse Road,
P.O. Box 1350,
Darmouth, Nova Scotia,
B2Y 4B9 |
T: 902-426-5652
Fx: 902-426-8724 |
|
Mike Townsend,
Acting Director,
Employment Support Services |
P.O. Box 578,
2021 Brunswick House,
Trade Mart Building,
Halifax, Nova Scotia,
B3J 2S9 |
T: 902-424-4329 |
|
Also:
Ms. Shannon Delbridge,
Acting Director,
Planning and Research Division |
Same |
T: 902-424-5242
Fx: 902-424-0626 |
|
Person who provided the material:
Sandy Spencer |
Same |
T: 902-424-0288
Fx: 902-424-0260 |
| Acadia Centre for Small Business and Entrepreneurship |
c/o Acadia University,
Wolfville, B0P 1X0 |
9025851180 |
| Annapolis Ventures Limited |
P.O. Box 478,
Bridgetown, B0S 1C0 |
9026652635 |
| Apt Training Associates Inc. |
P.O. Box 808,
Darmouth, B27 3Z3 |
9024692023 |
| Coastal Business Opportunities | Sydney, B1P 1C8 | 9025394332 |
| Colchester Regional Development Agecny |
P.O. Box 181,
Truro, B2N 5C1 |
9028930140 |
| Cumberland Development Corporation Ltd. |
P.O. Box 546,
Amherst, B4H 4A1 |
9026675700 |
| Goshen Leisure Park Association |
General Delivery,
Goshen, B0H 1M0 |
9025332770 |
| Grey Matter Development Limited |
PO Box 203,
Musquodoboit Harbour,
B0J 2L0 |
9028892279 |
| Growth Opportunities Limited |
PO BOX 160,
Digby, B0V 1A0 |
9022456166 |
| Hants-Kings Business |
Development Centre,
Winsor, B0N 2T0 |
9027985717 |
| Henson college |
6100 University Avenue,
Halifax, B3H 3J5 |
9024948837 |
| Inrich Business Development Centre Limited |
PO BOX 600,
Inverness, B0E 1N0 |
9022583697 |
| Northern Opportunities for Business Limited |
980 East River Road,
New Glasgow, B2H 3S8 |
9027527402 |
| Northside Economic Development |
Assistance Corporation Limited,
Sydney Mines, B1V 2Y4 |
9027366211 |
| Shelburne County Business Development Centre |
PO BOX 189,
Shelburne, B0T 1W0 |
9028751133 |
| South Shore Opportunities Incorporated |
PO BOX 1204,
Liverpool, B0T 1K0 |
9023542616 |
| Watershed Association Development Enterprises Ltd. |
PO BOX 2832 East,
Dartmouth, B2W 4R4 |
9024254464 |
| Yarmouth Regional Business Corporation Limited |
PO BOX 607,
Yarmouth, B5A 4B6 |
9027425364 |
NEW BRUNSWICK
The Self-Employment Incentive Program was completely transferred to the Province of New Brunswick. That is why the only contact name presented is that of the provincial program director.
Employment Development,
Department of Labour
Fredericton, New Brunswick,
E3 B 5H1
Planning Services,
Department of Labour
Fx: 506-453-3806
Piece 212J
Bathurst, N.B. E2A 1A9
PO BOX 668,
Bouctouche, N.B. E0A 1G0
113 Roseberry Road,
Campbellton, N.B. E3N 3H4
Suite 407,
Carrefour Assompotion,
Edmundston, N.B. E3V 1J9
Barker House,
Fredericton, N.B. E3B 6Z6
551 main Street,
Grand Falls, N.B. E3Z 1E5
Harvey Station, N.B.
E6K 2P4
Miramichi, N.B. E1N 1L9
Moncton, N.B. E1N 1L9
Saint John, N.B. E2L 3H4
144 Main Street, Shediac, N.B. E0A 3G0
123 Milltown Blvd.,
St. Stephen, N.B. E3L 2X3
439, rud du Moulin,
Succursale bureau chef
Tracadie-Shelia, N.B.
E1X 1G5
Jean-Marc Dupuis, Director,
PO BOX 6000,
T: 506-453-2969
David Dell, Policy Analyst,
Same
T: 506-453-6797
Centre de développment et d'entrepreneurship Chaleur Inc.
275, rue Main
506-548-5951
Adel-Kent Leda
190 Irving Blvd.,
Restigouche Community Futures Development Corporation Inc.
PO BOX 1089,
506-7534-2422
Société d'aide aux développement des collectivitiés du Madawaska, Inc.
121, rue de l'Eglise,
506-737-8924
Greater Fredericton Economic Development Commission
570 Queen Street,
506-444-4686
Victori/Madawaska-South Business Development Centre
PO BOX 2410,
506- 473-6446
Southwest Valley Development Corporation Inc.
1910 Route 3, Suite 112,
506-366-3022
Northumberland Business Advisory Centre Inc.
158 Wellington Street,
506-778-2121
YM/YWCA of Greater Moncton
68 Highfield Street,
506-857-0606
YM/YWCA Enterprise Centre
27 Wellington Row,
506-634-4949
Southeast Lead Corporation Inc.
PO BOX 1238,
506-532-8312
Charlotte County Development Corporation Inc.
PO BOX 455,
506-466-5055
Société s'aide aux développement des collectivitiés péninsule acadienne
PO BOX 3666,
506-395-9700
PRINCE EDWARD ISLAND
| Derek Gee, Regional Executive Head, HRDC |
85 Fitzroy Street,
PO BOX 8000,
Charlottetown, PEI,
C1A 8K1 |
T: 902-566-7651
Fx: 902-566-7580 |
|
Burton McKinnon,
Senior Policy Advisor,
Executive Council,
Department of Development |
105 Rochford Street,
PO BOX 2000,
Charlottetown, PEI,
C1A 7N8 |
T: 902-368-4244
Fx.: 902-368- 4242 |
| Active Communities Inc. |
PO BOX 758,
Montague, PEI, C0A 1R0 |
902-838-4030 |
| East Prince Development Inc. |
660 Water Street East,
Summerside, PEI,
C1N 4J1 |
902-888-3793 |
| Enterprise PEI |
PO BOX 910,
Charlottetown, C1A 7L9 |
902-368-5968 |
| La Société de Developpement de a Baie Acadienne |
PO BOX 67,
Wellington, C0B 2E0 |
902-854-3439 |
| Results Marketing Inc. |
PO BOX 2066,
Charlottetown, PEI,
C1A 7N7 |
902-629-2375 |
| Western Development Commission |
West Prince Industry Centre,
Alberton, C0B 1B0 |
902-853-4385 |
ONTARIO
|
Mrs. Julyan Reid,
Regional Executive Head, HRDC |
4900 Yonge Street,
Suite 200,
North York, Ontario,
M2N 6A8 |
T: 416-954-7700
Fx.: 416-954-7707 |
|
Bruce Baldwin, Director,
Labour Market Policy,
Planning and Research,
Ministry of Education and Training |
18th Floor, Mowat Block,
900 Bay Street,
Toronto, Ontario,
M7A 1L2 |
T: 416-314-3764
Fx.: 416-314-3872 |
| Chukuni Business Development Corporation |
PO BOX 250,
Red Lake, P0V 2M0 |
8077277325 |
| Academy of Learning |
159 King Street,
Peterborough, K9J 2R8 |
7057415852 |
| Atikokan Economic Development Corporation |
PO BOX 218,
Atikokan, P0T 1C0 |
8075972757 |
| Au Ganne Inc. |
140 Lyons Avenue,
Welland, L3B 1M2 |
9057341391 |
| BDC Human Resource Development Corporation |
45 Jarvis Street,
Fort Erie, L2A 2S3 |
9058717331 |
| Brant Community Futures Development Corporation |
Unit 10-330 West Street,
Brantford, N3R 7V5 |
5197524636 |
| Bruce Community Development Corporation |
281 Durham Steet, Box 208,
Kincardine, N2Z 2Y7 |
5193968141 |
| Brydges Marketing Communications |
2085 Mulberry Drive,
Mr. Brydges, N0L 1W0 |
5192642503 |
| Business Advisory Centre of Hamilton-Wnetworth |
7 Innovation Drive,
Suite 200,
Flamborough, L9H 1K6 |
9056892888 |
| CBDC Muskoka- East Parry Sound |
114 Main Street East, Unit 3,
Huntsville, P1K 1K6 |
7057898821 |
| Chatham |
PO BOX 681,
Chatham, N7M 5K8 |
5193549424 |
| College Boreal |
PO BOX448, 84, Rue Ethel,
Sturgeon Falls, P0H 2G0 |
7057535420 |
| Community Development Centre |
PO BOX 718,
Thessalon, P0R 1L0 |
7058423605 |
| Community Development Centre for East Algoma |
PO BOX 718,
Thessalon, P0R 1L0 |
7058423605 |
| Community Development Corporation of Sault Ste. Marie |
672 Queen Street East,
Sault Ste. Marie, P6A 2A4 |
7059429000 |
| Community Opportunties Development Association | 139 Father David Bauer Drive, Waterloo, N2L 6L1 | 5197421782 |
| Creative Career Systems Inc. |
RR 5,
Owen Sound, N4K 5N7 |
5193767396 |
| Discovery North - Centre for Business |
124B Ontario Avenue,
Elliott Lake, P5A 1Y2 |
7058482908 |
| Donna Douglas Editorial Services |
399 Codrington Street,
Barrie L4M 1S9 |
7057270789 |
| Elgin Community Development Corporation |
12 Barrie Blvd.,
St. Thomas, N5P 4B9 |
5196337579 |
| Ernst and Young |
979 Alloy Drive,
Thunder Bay, P7B 5Z8 |
8073456571 |
| Fletcher and Associates Inc. |
135 James Street South,
Suite 105,
Hamilton, L8P 2A6 |
9055260807 |
| Georgian Triangle Economic Development Corporation |
450 Hume Street, Unit 2,
Collingwood, L9Y 1W6 |
7054458410 |
| Georgina Job Skills Project |
155 Riverglen Drive,
Unit 7,
Keswick, L4P 3M3 |
9054768088 |
| Geraldton District Chamber of Commerce |
PO BOX 128,
Geraldton, P0T 1M0 |
8078541530 |
| Grenville Community Development Centre Inc. |
197 Water Street,
Prescott, K0E 1T0 |
6139254275 |
| Haliburton County Development Centre Inc. |
PO BOX 210,
Haliburton, K0M 1S0 |
7054573555 |
| Halton District School Board |
5151 New Street,
Burlington, L7L 1V3 |
9053333499 |
| Halton Peel Enterprise Development Centre |
1515 Rebecca Street,
Unit 34,
Oakville, L6L 5G8 |
9058252345 |
| Huron County Planning and Development Department |
The Court House Square,
Goderich, N7A 1M2 |
5195242188 |
| Intravision |
RR 3,
Calabogie, K0J 1H0 |
6137522001 |
| La Cité Collegiale, Arts Appliques et Technologies |
801, Promenade de L'Aviation,
Ottawa, K1K 4R3 |
6137422475 |
| Lacloche Manitoulin Business Assistance Corporation |
PO BOX 130,
Gore Bay, P0P 1H0 |
7052823215 |
| Leamington District Chamber of Commerce |
PO BOX 321,
Leamington, N8H 3W3 |
5193262721 |
| Learning Initiative |
367 Harrison Drive, Apt. 2,
Sudbury, P3E 5E1 |
7055227753 |
| Learning Initiatives |
124 Cedar Street, Suite 411,
Sudbury, P3E 1B4 |
7056738943 |
| Les Entreprises Boreal |
21 Boulevard Lasalle,
Sudbury, P3A 6B1 |
7055606673 |
| London Community Small Business Centre Inc. |
1764 Oxford Street East,
London, Ontario,
N5V 3R6 |
5196592882 |
| Lutherwood Community Opportunities Development Association | 139 Father David Bauer Drive, Waterloo, N2L 6L1 | 5198847755 |
| Newport Training Group |
128 Brock Street South,
Whitby, L1N 4J8 |
9056650802 |
| Niagara College of Applied Arts and Technology |
RR4 135 Taylor Road,
N.O.T.L, L0S 1J0 |
9056412252 |
| Nippissing East Community Opportunities |
1000 High Street, Room 218,
North Bay, P1B 6S6 |
7054761013 |
| Nippissing East Community Opportunities |
204-510 Main Street East,
North Bay, P1B 1B8 |
7054768822 |
| Nord-Aski Non-profit Development Corporation |
PO BAG 6000,
Hearst, P0L 1N0 |
7053627355 |
| Norfolk District Business Development Corporation |
BOX 732,
Simcoe, N#Y 4T2 |
5194282323 |
| North Claybelt Business Development Centre Inc. |
58 Riverside Drive,
Kapuskasing, P5N 1A9 |
7053371407 |
| North Hastings Community Development Corporation |
PO BOX 517,
Bancroft, K0L 1C0 |
6133325564 |
| North Simcoe Business Development Centre |
354 King Street,
Midland, L4R 3M8 |
7055261371 |
| Northumberland Business Development Assistance |
PO BOX 304,
Cobourg, K9A 4K8 |
9053728315 |
| Ontario Office Works |
PO BOX 4,
Welland, L3B 5N9 |
9057341483 |
| Orillia Area Community Development Corporation |
BOX 2525,
Orillia, L3V 7A3 |
7053254903 |
| Oxford Small Business Support Centre Inc. |
99 Thames Street North,
Ingersoll, L3V 7A3 |
5194250401 |
| PARO: A N.W. Ontario Women's Community Loan Fund |
114-105 North May Street,
Thunder Bay, P7C 3N9 |
8076250328 |
| Parry Sound Area Community Business & Development |
17 Bay Street, Unit C,
Parry Sound P2A 1S4 |
7057464455 |
| Patricia Area Community Endeavours |
72 Van Horne Avenue,
Dryden, P8N 2B1 |
8072213293 |
| Port Colborne-Wainfleet Community Development Corporation |
PO BOX 519,
PORT COLBORNE,
L3K 5X7 |
9058347572 |
| Prince Edward County Community Development Corporation |
PO BOX 2559,
Picton, K0K 2T0 |
6134767901 |
| Rainy River Future Development Corporation |
400 Scott Street,
Fort Frances, P9A 1H2 |
8072743276 |
| Renfrew County Business Development Centre |
270 Lake Street,
Pembroke, K8A 7Y9 |
613735951 |
| Sarnia-Lambton Business Development Corporation |
16-1362 Lambton Mall Road,
Sarnia, N7S 5A1 |
5195422292 |
| Sugeen Economic Development Corporation |
554 7th Avenue,
Hanover, N4N 2J7 |
5193643694 |
| Self-Employment Development Initiatives | 406-1110 Finch Avenue West, Toronto, M3J 2T2 | 4165048730 |
| Seneca College of Applied Arts and Technology |
10720 Yonge Street,
Suite 222, Richmond Hill,
L4C 3E1 |
9057705211 |
| Skebo and Associates |
121 Counter Street,
Kingston, K7K 6C7 |
6135450244 |
| Small Business Centre |
Suite 211, Kent Place,
Lindsay, K9V 5G6 |
7053280261 |
| Société de developpement Communitaire De P & A |
519, Rue Principale East,
Hawkesbury, K6A 1B3 |
6136320918 |
| South Essex Economic Development Corporation |
202-33 Princess Street,
Unit 212, Leamington,
N8H 5C5 |
5193261863 |
| Special Events Committe |
P.O. Box 2140,
Sturgeon Falls,
P0H 2G0 |
7057535450 |
| St. Clair College of Applied Arts and Technology |
2000 Talbot Road West,
Windsor, N9A 6S4 |
5199722727 |
| St. Lawrence College Saint-Laurent |
2288 Parkedale,
Brockville, K6V 5X3 |
6139336080 |
| St. Lawrence College |
Windmill Point,
Cornwall, K6H 4Z1 |
6139334693 |
| Superior East Development Corporation |
PO BOX 709,
14 Ganley Street,
WAWA, P0S 1K0 |
7058561105 |
| Superior North Business Development Centre |
PO BOX 716,
Terrace Bay P0T 2W0 |
8078254505 |
| The Community Business Resource Centre |
145 Front Street East,
Suite 101, Toronto,
M5A 1E3 |
4164152370 |
| The Learning Enterprise |
120 Diane Drive,
Orangeville, L9W 3N6 |
5199412661 |
| The Mentor Group |
5755 Prairie Circle,
Mississauga, L5N 6B4 |
9058749861 |
| The Waller Etc. Inc. |
180 Rue Waller South,
Ottawa, K1N 9B9 |
6135655448 |
| Total Training |
2495 Parkedale Avenue,
Brockville, 6KV 3H2 |
6133450378 |
| Trenval Business Development Corporation |
5 Stewart Street,
Trenton, K8V 6H5 |
6133945976 |
| Vaughan Technology |
3300 Highway NO. 7,
Suite 809, Concord,
L4K 4M3 |
9057388625 |
| VDMA Training & Consulting Inc. |
850 Seyton Drive,
Suite 317,
Nepean, K2H 9G7 |
6135960518 |
| Wil Counselling and Training For Employment |
141 Dundas Street,
London, N6A 1G3 |
5196630774 |
| Wilfred Laurier University |
75 University Avenue West,
Waterloo, N2L 3C5 |
5198841970 |
| YMCA of Midland |
PO BOX 488,
Midland, L4 4L3 |
7055267828 |
| YMCA of Greater Toronto |
1400 Bayly Street, Suite 16B,
Pickering, M1W 3R2 |
9058393845 |
| YMCA-YWCA of Ottawa-Carleton |
Enterprise Centre,
Ottawa, K2P 1B7 |
6137885001 |
MANITOBA
| Ms. Marilyn Hay, Regional Executive Head, HRDC |
Paris Building, Room 600,
259 Portage Avenue,
Winnipeg,
Manitoba, R3B 3L4 |
T: 204-983-2231
Fx: 204-983-2640 |
|
Jerry Phomin,
OPS Consultant,
Manitoba Region |
Same |
T: 204-983-4235
Fx: 204-984-7290 |
|
Ms. Leah Goodwin, Director,
Labour Market Support Services, Manitoba Training and Continuing Education |
#407 - 185 Carleton Street,
Winnipeg, Manitoba,
R3B 1B9 |
T: 204-945-3684
Fx: 204-948-3104 |
| Mary Lou Kuxhouse, Director, Employment and Training, Education and Training | 4th Floor, 209 Notre Dame Avenue, Winnipeg, Manitoba | T: 204-945-1018 |
|
Jane White,
Labour Market Support Services |
Same | T: 204-945-2116 |
|
Sandra Larson,
Acting Co-ordinator,
Program Development and Evaluation, Employment and Training Services |
Same |
T: 204-945-3455
Fx: 204-945-0221 |
| Conseil de developpement economique des munipalites bilingues du Manitoba (CDEM) |
Unite K,
Boulevard Provencher,
St. Boniface, Manitoba |
204-925-2830 |
| YM-YWCA of Winnipeg |
604-428 Portage Avenue,
Winnipeg, Manitoba |
204-989-5860 |
| Management Exchange |
100-93 Lombard Avenue,
Winnipeg, Manitoba |
204-944-8516 |
| Parkland Community Futures Development Corporation Inc. |
Box 516, 421 Main Street,
Grandview, Manitoba |
204-546-3403/3409 |
| East Parkland Economic Development |
Box 605
Dauphin, Manitoba |
204-622-5622 |
| Triple S Community Futures Development Corporation |
2nd Floor, 356 Main Street,
Selkirk, Manitoba |
204-482-2020 |
| NEICOM Developments |
PO BOX 10,
12 Main Street,
Riverton, Manitoba |
800-378-5106 |
| Super Six Community Futures |
Box 68,
Ashern, Manitoba |
204-768-3351 |
| Wheat Belt Community Futures Development Corporation |
141 Rosser Avenue,
Brandon, Manitoba |
204-726-1513 |
| Heartland Community Futures |
11-2nd Street,
Portage La Prairie, Manitoba |
204-239-0135 |
| Triple R Community Futures |
PO Box 190,
Unit 4 - 116 Main Street,
Morris, Manitoba |
204-746-6180 |
| Pembina Valley Development Corporation |
Box 1180,
Altona, Manitoba |
204-324-8641 |
| Dave Turpie |
166 Brandon Crescent,
Thompson, Manitoba |
204-778-8239 |
| Eastman Regional Development Inc. |
Box 429,
Beausejour, Manitoba |
204-268-2884 |
| Cathedral Group |
182 Cathedral Avenue,
Winnipeg, Manitoba |
204-992-9922 |
| Winnipeg River Brokenhead Community Futures Development Corporation |
Box 505,
Lac du Bonnet, Manitoba |
204-345-8691 |
| Kelsey Management Services |
Box 1200,
The Pas, Manitoba |
204-623-3880 |
| Greenstone Community Futures Development Corporation |
84 Church Street,
Flin Flon, Manitoba |
204-687-6967 |
SASKATCHEWAN
| Allan Jacques, Regional Executive Head, HRDC |
Financial Building,
2045 Broad Street,
Regina, Saskatchewan,
S4P 3H9 |
T: 306-780-6255
Fx: 306-780-6717 |
| Brian Harris, HRDC Sask. | Same |
T: 306-780-5939
Fx: 306-780-6170 |
|
Ms. Debbie Smith,
Senior Policy Analyst,
Inter-governmental Relations,
Post-Secondary Education and Skills Training |
2220 College Avenue, 5th Flr.,
Regina, Saskatchewan,
S4P 3V7 |
T: 306-787-6224
Fx: 306-787-0074 |
|
Denise Sandison,
Post-Secondary Education and Skills Training |
T: 306-787-9330
Fx: 306-787-7182 | |
| Access Management |
1328 Wellington Crescent,
Winnipeg, Saskatchewan,
R3N 0B1 |
2044896734 |
| Beaver River Community Futures Development Corporation |
Box 2678,
Meadow Lake, S0M 0V1 |
3062365818/4422 |
| Carlton Trail Regional College |
PO Box 720,
Humboldt, S0K 2A0 |
3066822623 |
| Deloitte & Touche |
#400-122 1st Avenue South,
Saskatoon, S7K 7E5 |
3063434200 |
| Deloitte & Touche |
Suite 400 - PSC Tower,
Saskatoon, S7K 7E5 |
3063434203 |
| East Central Development Corporation |
Box 727, Broadview,
S0G 0K0 |
3066962443 |
| Fontanie Associates Consulting Services Inc. | Suite 100-1849 McIntyre Street, Regina, S4P 2P9 | 3063527689 |
| Global Infobrokers Inc. |
2160 Easthill,
Saskatoon, S7J 3C9 |
3062410941 |
| Lokken Associates Training Consultants Inc. |
Box 2975,
Prince Albert, S6V 7M4 |
3067638558 |
| Meridian Community Gutures Development Corporation | Box 70, Alsask, S0L 0A0 | 3069682545 |
| Newsask Community Futures Development Corporation |
P.O. Box 357,
Tisdale, S0E 1T0 |
3068734449 |
| Northwest Business Development Corporation |
142B-100th Street,
North Battleford, S9A eL8 |
3064463200 |
| Prairie Financial Management |
Box 202,
Regina, S4P 3P1 |
3067914855 |
| Regina Business & Training Centre |
200 1919 Rose Street,
Regina, W4P 3P1 |
3067914800 |
| S.I.A.S.T. - Woodland Institute |
Box 3003, Prince Albert,
S6V 6G1 |
3069535538 |
| Sagehill Development Corporation |
Box 10,
Bruno, S0K 0S0 |
3063692610 |
| South Central Community Futures Development Corporation |
PO Box 1087,
Assiniboia, S0H 0B0 |
3066425558 |
| South West Centre For Entrepreneurial Development |
Box 2126,
Swift Current, S9H 4V1 |
3067734030 |
| Southeast Regional College |
Box 2003,
Weyburn, S4H 2Z9 |
3068482500 |
| Venture Community Futures Development Corporation |
44 - 4th Avenue North,
Yorkton, S3N 1A2 |
3067820255 |
| Visions North Community Futures Development Corporation |
Box 810,
La Ronge, S0J 1L0 |
3064252612 |
Regional Executive Head
9700 Jasper Avenue,
Edmonton, Alberta, T5C 4C1
Fx: 780-495-4250
Policy Branch,
Information and Policy Services Division,
Department of Advanced Education and Career Development
Commerce Place,
10155-102 Street,
Edmonton, Alberta,
T5J 4L5
Fx: 780-422-0880
Senior Program Consultant,
Career Development Division,
Alberta Human Resources & Employment
10155-102 Street,
Edmonton, Alberta,
T5J 4L5
Fx: 780-427-0354
Executive Director of the Community Futures Network Society of Alberta
Medicine Hat, Alberta,
T1A 0L1
Fx: 403-504-2145
120-17Avenue, S.W.,
Calgary, T2S2T2
Edmonton, T5P 4T2
Drumheller, T0J 0Y0
Viking, T0B 4N0
Edmonton,T5J 1E3
Medicine Hat, T1A 2W3
Fort McMurray, T9H 1S2
High River, T1V 1E6
T0G 2A0
Llyodminster, T9V 0W2
High Level, T0H 1Z0
Calgary, T2V 1K6
Berwyn, ToH 0E0
Beaverlodge, ToH 0C0
Smoky Lake, Toa 3C0
Calgary, T2W 1L4
Calgary, T2P 3E8
Stratmore, T1P 1K2
ALBERTA
Russ Brown,
Canada Place, Suite 1440,
T: 780-495-2424
Ms. Nancy Stewart,
9th Floor,
T: 780-427-8502
Darryl Timmerman,
8th Floor,
T: 780-427-9638
Mr. Jon Close,
607 - 4th Street S.E.,
T: 403-529-6180
Calgary Catholic Immigration Society
3rd Floor,
4032622006
Communicating Power Inc.
305-10451 170 Street N.W.,
4034441940
Drumheller & District Chamber of Commerce
P.O. Box 999,
4038238100
East Central Alberta Community Futures Development Corporation
P.O Box 5000,
4033363455
Edmonton YMCA Enterprise Centre
10211-105 Street N.W.,
4034291991
Entre-Corp Business Development Centre Ltd.
#12-941 South Railway Street, S.E.,
4035282824
Fort McMurray Regional Business Development Centre
300-9913 Biggs Avenue,
4037910330
Highwood Business Development Corporation
3, 28 - 12 Avenue S.E.,
4036523700
KTB Enterprises Inc.
Suite 1100, 736 8 Avenue S.W., Calgary, T2P 1H4
4035431450
Lesser Slave Lake Community Development Corporation
Box 2100, Slave Lake,
4038493232
Lloydminster Region Business Development Centre
4420-50 Avenue,
4038755458
Lokken Associates Training Consultants (Alberta) Inc.
340-10665 Jasper Avenue N.W., Edmonton, T5J 3S9
4034249895
MacKenzie Economic Development Corporation
Box 210,
4039264233
Mennonite Centre for Newcomers
101-10010 107A Avenue N.W., Edmonton, T5H 4H8
4034247709
MKS Learning Centre
8227 Elbow Drive S.W.,
4032538484
Peace Country Development Corporation
Box 479,
4033382125
SMEDA Enterprise Centre Inc.
Box 939,
4033548747
St. Paul Smoky Lake Regional Business Development Centre
P.O. Box 310,
403652110
The People Equation
807 Canford Crescent S.W.,
4032514058
The Tamarack Group Ltd.
600 808 4 Avenue S.W.,
4032691011
Wild Rose Economic Development Corporation
Box 2159,
4039346488
15th Floor,
300 West Georgia Street,
Vancouver, B.C.,
V6B 6G3
Fx: 604-666-8222
Federal/Provincial Relations Branch, International Education, Ministry of Advanced Education, Training and Technology
Station Provincial Government,
835 Humboldt Street,
5th Floor,
Victoria, British Columbia
Fx: 250-387-0878
Burnaby, V5G 3H2
Nelson, V1L 4H9
Grand Forks, V0H 1H0
Merritt, V1K 1B8
Revelstoke, V0E 2S0
Ashcroft, V0K 1A0
Quesnel, V2J 4C7
Kamloops, V2C 2G9
Penticton, V2A 6G5
Salmon Arm, V1E 4N3
Victoria, V8Z 6L8
Prince George, V2L 3P4
Duncan, V9L 1R9
Mission, V2V 5T1
Kelowna, V1Y 8R6
Vernon, V1T 9P7
Kelowna, V1X 6E6
Powell River, V8A 2L2
Vernon, V1T 9P7
Campbell River, V9W 5A7
2509236840
Salmon Arm, V1E 4P9
Sechelt, V0N 3A0
Nanaimo, V9R 2V7
Williams Lake, V2G 1M1
Fort St. John, V1J 4N4
Campbell River, V9W 5A7
Port Alberni, V9Y 8A9
Trail, V1R 2T3
Cranbrook, V1C 3P8
CFDC of Mt. Waddington
Port Hardy, V0N 3G0
Squamish, V0N 3G0
Courtenay, V9N 7P1
New Westminster, V3L 5B2
6045275400
6045275847
6045275850
Victoria, V8W 2C5
Prince Rupert, V8J 1H4
Surrey, V3W 2M8
Vancouver, V6J 1S1
Vancouver, V5Y 2Z6
Houston, V0J 1Z0
New Westminster, V3M 1C4
Campbell River, V9W 6B5
North Vancouver, V7P 2M3
100 Mile House, V0K 2E0
Revelstoke, V0E 2S0
Self-Employment Program
Prince Rupert, V8J 1H2
Terrace, V8G 1S6
Venderhoof, V0J 3A0
Surrey, V3W 1K5
Vancouver, V6J 1Y1
Vancouver, V6Z 1Y2
Career Development Culture and Career Branch,
Department of Education,
Culture and Employment,
Government of the Northwest Territories
4501 - 50th Avenue,
3rd Floor, Lahm Ridge Tower,
Yellowknife,
Northwest Territories,
X1A 2L9
Fx: 867-873-0200
Yellowknife, X1A 3S8
Hay River, X0E 1G2
Labour Market Programs and Services, Advanced Education Branch
Whitehorse, Yukon,
Y1A 2C6
Fx: 8676678555
Whitehorse, Yukon,
Y1A 2N2
NUNAVUT
BRITISH COLUMBIA
William Gardner, Regional Executive Head, HRDC
Library Square Tower,
T: 604-666-2282
Ms. Gail Thomas, Director,
P.O. Box 9882,
T: 250-356-7250
British Columbia Institute of Technology
3700 Willingdon Avenue N.E. 25, Room 3050,
6044328761
Community Futures Development Centre of Central Kootney
520 Baker Street,
2503521933
CFDC of Boundary Area
Box 2949,
2504422722
CFDC of Nicola Valley
Box 159,
2503783923
CFDC of Revelstoke
PO Box 2398,
2508375345
CFDC of Sun Country
Box 1480,
2504539165
CFDC of the North Cariboo
679 Hwy 97 South,
2509925626
CFDC of Thompson Country
301-340 Victoria Street,
2508288772
CFDC of OK Similakeen
#102-3115 Skaha Lake Road,
6044932566
Community Cooperative Resource Centre
PO Box 245,
2508040199
Community Fisheries Development Centre
106-4475 Viewmont Avenue,
2507442727
Community Futures Committee
1566 7th Avenue,
2505629622
Community Futures Cowichan Region
135 Third Street,
2507461004
CFDC of North Fraser
32386 Gletcher Avenue,
6048266252
CFDC of the Central Okanagan
100 - 2045 Enterprise Way,
2508682132
CFDC of North Okanagan
102 - 3105 33 Street,
2505452215
CFDC of Central Okanagan
6A - 1414 Hunter Court,
6048682132
CFDC of Powell River Region
4717 Marine Avenue, 2nd Flr.,
6048577901
CFDC of Vernon
#302, 3105 - 33rd Street,
2505452215
CFDC of Strathcona
PO Box 160,
2508301141
CFDC of the Shuswap
PO Box 1930,
6048328091
CFDC Sunshine Coast
PO Box 128,
6048511959
CFDC Central Island
420 Albert Street,
2507536414
CFDC Williams Lake
266 Oliver Street,
2503923626
CFDC Fort St. John
9325 - 100 Street,
2507856794
CFDC Campbell River
PO Box 160,
2503344415
CFDC Port Alberni
Alberni Clayoquot,
2507241241
CFDC Trail British Columbia
2950 Highway Drive,
2503642595
CFDC Cranbrook
125 Cranbrook Street North,
2504894356
CFDC Port Hardy
PO Box 1031,
2509497888
CFDC of Howe Sound
PO Box 2539, Suite 201A,
6048925467
Creative Employment Access Society
Box 3774,
2503343119
Douglas College-Centre 2000
PO Box 2503,
6045275169
Future Works Training Inc.
#100 - 601 W. Cordova Street, Vancouver, V6B 1G1
6046844176
Greater Victoria Economic Development Commission
#G - 7, 1001 Douglas Street,
2503842432
Hecate Straight Employment Development Society
719 2nd Avenue West,
6046249498
Kwantlen University College
12666 - 72nd Avenue,
6045992157
La Chambre de Commerce Franco-Colombiene
1555 7E Avenue Ouest,
6047300790
Langara College
100 West 49th Avenue,
6043235619
Nadina CFDC
Box 236,
2508452522
New Westminster Community Skills Centre
1001 Columbia Street,
6045176145
North Island Employment Foundations Society
940 12th Avenue,
2502863441
North Shore Continuing Education
102 - 2132 Hamilton Avenue,
6049853695
Peter McCaffrey & Associates
C55 RR1 103 Mile,
2503951221
Revelstoke Community Skills Centre
PO Box 4500,
2508374239
Prince Rupert
612 - 2nd Avenue West,
2506249498
Sixteen Thirty Seven Community Futures Committee
204 - 4630 Lazelle Avenue,
2506355449
Stuart Nechako Community Futures Society
Box 1078,
2505675219
Surrey Self-Employment & Entrepreneur Development Society
104 - 7565 132nd Street,
6045914626/4144
United Chines Community Enrichment Services Society
# 501 - 1788 West Broadway,
6047323278
Westcoast Centre for Development Management & Centre for Commercial Excellence
1400 - 207 West Hastings Street, Vancouver, V6B 1H7
6046855058
YMCA of Greater Vancouver
955 Burrard Street,
6046858066
NORTHWEST TERRITORIES
Mr. David Gilday, Director,
P.O. Box 1320,
T: 867-873-7146
P & L Consulting Services
#25, 5102 - 5oth Avenue,
8678735056
Southwest Territorial Business Development Centre
Suite 7, 6 Courtoreille Street,
8678742510
YUKON
Mr. Brent Slobodin, Director
P.O. Box 2703,
T: 8676675129
Dana Naye Ventures
409 Black Street,
8676686925
LIST OF OTHER CONTACTS
ANNEX 2: 1998-1999 Employment Insurance Expenditures
As of March 31, 1999
Period 14
($000s)
Scotia
HQ
Partnerships
Subsidy
Note: Figures include only the Employment Benefits, not the Support Measures
* Training Purchases include: Government to Government Purchases, HRCC Purchases, Project-based Training and Co-ordinating Groups
1.
This paper was prepared by William Finseth of MarketPower International
2. This introduction is an amalgamation of information, which based in part on the Introduction to the Human Resource Development Canada's evaluation of the Self-Employment Assistance Program conducted by Peter Graves and Benoit Gauthier of Ekos Research, Ottawa, Canada (1996, pages 9 and 10) and the author's interviews with people from across Canada who are responsible for self-employment incentive programs.
3. The summary list of positive results is based on an internal HRDC memo on the program's success (Directorate of Labour Market Intiatives and Programs- 1999)
4. In conducting this research assignment, more than 1,000 pages of business support information, on every aspect of entrepreneurship and business start-up support was down-loaded from national and provincial web-sites where the main focus was support for self-employment by all Canadians, by the unemployed, by those on welfare, by youth, by new graduates, by women and by aboriginals.
Program
NFLD
Nova
PEI
N.B.
Quebec
Ontario
Manitoba
SASK.
Alberta
B.C.
Nat'l
Total
Self-Employment
$4,070
$9,229
$2,043
$1,810
$31,944
$64,848
$6,089
$4,071
$7,011
$36,623
$0
$167,738
Job Creation
$24,955
$5,984
$1,594
$2,978
$68,536
$41,678
$2,789
$795
$202
$20,074
$181
$169,766
Trageted Wage
$5,895
$3,331
$2,641
$29
$6,847
$30,688
$1,161
$932
$448
$10,362
$345
$62,679
Skills Loans and Grants/Enhanced Feepayers
$42,861
$16,991
$10,356
$24,546
$129,746
$44,983
$25,746
$13,540
$3,165
$51,204
$0
$363,138
Training Purchases*
$36,456
$40,266
$7,897
$267
$234,671
$223,201
$15,471
$23,011
$50,626
$112,564
$15
$744,445
Total Benefits
$114,237
$75,801
$24,531
$29,630
$471,744
$405,398
$51,256
$42,349
$61,452
$230,827
$541
$1,507,766
Transferred to Provinces through Labour Market Development Agreements
$0
$0
$0
$74,888
$213,621
$0
$0
$5,630
$76,463
$0
$0
$370,602
Total
$114,237
$75,801
$24,531
$104,518
$685,365
$405,398
$51,256
$47,979
$137,915
$230,827
$541
$1,878,368
Updated by RW. Approved by GT/HH. Last update: 8 October 1999.