How government can foster young entrepreneurs
Barbara McLean- Stollery was working part- time at Executive Airways Grooming Services in Calgary when then- owner Wayne Kaut decided to retire and offered her the opportunity to acquire the business. McLean- Stollery took him up on his offer, and in the past 10 years has increased revenue at the company 1,500 per cent.
With half of all owners of small and medium- sized business in Canada expected to retire in the next decade and youth unemployment more than double the rate of older age groups, Futurpreneur Canada is encouraging federal politicians to think about McLean- Stollery’s story.
Youth entrepreneurship is an opportunity that should be at the top of every MP’s agenda, regardless of which party wins. Young entrepreneurs are creating jobs for themselves and others, generating tax revenue and producing the products and services that will play a vital role in our economic success. We need more of them.
We see firsthand the difference young business owners make in their communities. And across the country they tell us about the kinds of government support they need to launch, grow and buy businesses. Based on their feedback, including through initiatives such as Action Entrepreneurship and the G20 Young Entrepreneurs’ Alliance Summit, here are five recommendations to help the incoming government expand youth entrepreneurship:
Encourage young entrepreneurs to buy existing businesses from retiring owners through a program similar to the RRSP first- time homebuyer plan, and offer retiring owners incentives to sell. The benefits of this are threefold. The entrepreneurs will buy businesses with established products, operations, customers and financing; retiring owners will have some extra money for their next phase of life; and communities will retain businesses that provide needed goods and services and create jobs and tax revenue.
Support the pan- Canada adoption of provincial actions promoting financial literacy and entrepreneurial skills. Ontario and Alberta, for example, are building these into their curricula beginning in elementary school. The earlier students develop these skills, the less daunting entrepreneurship will be when they start to think about career options.
Initiate the development of a G20- wide entrepreneur visa program. This year’s delegates to the G20 Young Entrepreneurs Alliance Summit in Turkey identified the need for G20 countries to remove barriers to entrepreneurs who want to grow their businesses globally. Accenture’s recent report, “Harnessing the Power of Entrepreneurs to Open Innovation,” suggests governments need to adjust their policies for an increasingly borderless world. An entrepreneurs’ visa program would encourage international mobility, allowing young entrepreneurs to more easily do business on a global scale.
Encourage provincial governments to provide a longer student loan repayment or deferral program to graduates who start businesses. Securing financing is one of the major roadblocks to starting a business. The extra burden of student debt can make graduating students hesitant to accept the financing they need to launch. The government of Ontario, through its Student Assistance Program, provides a grace period for entrepreneurs. This is a good example of what can be done nationally to help graduates pursue entrepreneurship as a career option.
Expand support for programs that provide mentorship to entrepreneurs. Research has shown that 70 per cent of small businesses that receive mentoring survive for five years or more — double the rate of non-mentored entrepreneurs. Earlier this year the Status of Women’s Woman’s Entrepreneur Forum recommended that existing organizations providing mentorship services to women should be better supported. We would encourage the federal government to expand this to include young entrepreneurs.
The federal government is in a unique position to create opportunities and remove barriers for young entrepreneurs. We are looking forward to working with the incoming government to champion and continue to support Canada’s young entrepreneurs as they grow our economic future.