Levels of new business activity and start-ups well above the G20 average
TORONTO, Aug. 27, 2013 /CNW/ - Scoring consistently high on nearly all
categories of the entrepreneurial environment, Canada ranks among the
top five countries in the EY G20 Entrepreneurship Barometer 2013, released today.
"Canada has emerged as a real leader in fostering an entrepreneurial
culture," says Colleen McMorrow, EY Partner and Leader, Canadian
Entrepreneur Of The Year™ Program. "There's an emphasis on research and
innovation in this country, and we value the role of entrepreneurs in
job creation. Canada also offers a supportive tax and regulatory
environment for entrepreneurs. All these factors are combining to
really promote the growth of entrepreneurs and entrepreneurship from
coast to coast."
Despite Canada's favourable entrepreneurial ecosystem, the EY G20
Entrepreneurship Barometer 2013 finds nearly three in four (73%)
Canadian entrepreneurs still struggle to access funding.
"That may be strong relative to much of the G20, but the picture is very
mixed," explains McMorrow. "The ratio of private equity activity to GDP
in Canada is now higher than in any other G20 nation, except Australia.
So private equity and venture capital are improving, but bank financing
remains a challenge."
However, the lending environment is improving - and more quickly in
Canada than elsewhere in the G20.
"While there's no denying access to funding remains a barrier to growth,
45% of entrepreneurs in Canada say it has improved, compared to only
35% across the G20 as a whole," says Charles-Antoine St-Jean, EY
Partner and Leader, Government & Public Sector Services. "Canada's
government has been highly supportive of entrepreneurs, providing
regulatory and tax regimes that have enabled start-ups and growing
companies to flourish."
The Barometer showed a similar push-pull around education. While Canada
scores high for public spending on education and the teaching of
entrepreneurial skills in schools and universities, this country is
below average on informal education.
"Interestingly, entrepreneurs in this country are still critical of the
country's incubators, whether public or private-sector led, and the
lack of mentors available. They also have trouble accessing informal
networks and mentoring services," says St-Jean.
Despite those challenges, entrepreneurs in Canada operate in an
environment that is highly supportive of their activities. McMorrow and
St-Jean agree: "Entrepreneurs play a vital role in any healthy and
vibrant economy. They create jobs and drive growth, and today, their
contribution is more important than ever. But they need to be given the
tools and environment that will enable them to succeed. The power of
three: governments, entrepreneurs and corporations need to work
together to foster sustainable growth."
About the EY Entrepreneurship Barometer
The EY G20 Entrepreneurship Barometer 2013 introduces a model for scoring countries across the five pillars of
entrepreneurship. The purpose of this model is to help identify areas
of relative strength by country and where opportunities for improvement
lie. The model is composed of qualitative information (from our survey
of more than 1,500 entrepreneurs) and quantitative data based upon
entrepreneurial conditions across the G20 economies.
For more information, visit ey.com/G20Canada, and join the debate on Twitter #G20ey.
About EY's Entrepreneurial Services
EY's Entrepreneurial Services practice guides Canadian entrepreneurs by
delivering integrated services tailored to their goals and needs at
every stage of the business lifecycle. We are the world's leader in
advising, guiding and recognizing the entrepreneurs who propel the
economy — and community — forward.
For more information, please visit ey.com/ca/Entrepreneurs.
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services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world over.
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For more information, please visit ey.com/ca. Follow us on Twitter @EYCanada.
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information about our organization, please visit ey.com.
Image with caption: "The power of three: Find out how governments, entrepreneurs and corporations can spur growth across the G20 (CNW Group/EY (Ernst & Young))". Image available at: http://photos.newswire.ca/images/download/20130827_C8361_PHOTO_EN_30150.jpg
SOURCE: EY (Ernst & Young)
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