5 Discovering Enough:
Incubating Local Small Businesses
In the previous section, Building a Local Industrial Base, the term industry referred to the fabrication, manufacturing, resource extraction and development, and energy generation sectors of the economy. Discovering Enough: Incubating Local Small Business will discuss business development in the retail, service and professional sectors of the economy.
It is a widely held truth that small businesses hire more employees and are the innovative engines of the overall economy. Rather than subsidizing existing large industry and business, perhaps we should employ more NB citizens and improve the local economy by incubating small local businesses.
The GNB routinely offers grants and loans to existing large industry and businesses using taxpayer money. Should not a viable large business or industry that can afford high CEO salaries be able to acquire loans from banks and investment funds? How many government subsidized businesses have eventually filed for bankruptcy leaving the taxpayers holding the bag?
Large industries and businesses are often offered tax abatement schemes to encourage their development. Why not tax abatements and incentives to encourage small businesses to get off the ground?
80% of investment dollars currently invested by maritimers are invested outside the maritime provinces. How can maritime businesses flourish if our investment dollars are invested elsewhere?
One approach could be local communities using local community investment funds to develop small business incubators. Small businesses could focus on local needs and services that are currently unmet or under serviced. Active and retired business leaders could act as mentors to help new entrepreneurs develop business plans. Communities could provide short term, affordable space to get these businesses off the ground.
Shop local programs can be developed to encourage a local and loyal consumer base. Dollars spent in local businesses turn over multiple times within a community. In contrast, money spent in large big box or national chain stores typically turns over once, then leaves the province.
Consumers will ultimately hold the key. Local small businesses can only flourish if those businesses are used by local or neighbourhood residents. Beyond economics, small local businesses are an essential element to the overall well being and the social fabric of a community. What is the value of personalized interactions between individuals who know and care about each other and their common community? Intentionally incubating and supporting small local business is one of the essential elements of living with enough.
Imagine small local businesses and services within walking distance or a short drive from local neighbourhoods offering locally produced services and products from small and medium size local industries and businesses that provide for the basic needs that provide just enough for a maritime quality of life.
A series of personal opinion pieces as to where New Brunswick could head in the future. Now that the citizens of New Brunswick have spoken through the ballot box that they are not in favour of unconventional hydraulic shale gas exploration or development (fracking), these opinion pieces will put forth alternate ideas for job creation within a sustainable economy.
Richard Lachance
Cocagne NB
No comments:
Post a Comment