Small Canadian businesses in the regions that have a non-traditional business model will finally be able to have access to financing, the Business Development Bank of Canada (BDC) announced this Thursday.
Published at 8:00 a.m.
This new collaborative financing announced by the BDC targets small businesses that operate in the circular economy, the social economy or start-up businesses that do not have assets to put up as collateral.
“The idea is to partner with other members of the ecosystem who support SMEs to be able to support more companies across the country than we currently do,” explains Miguel Barrieras, head of the collaborative financing and impact department at the BDC.
The BDC wants to partner with organizations that are already on the ground in the region, who understand the local reality, who can help them develop their business plan and offer them mentoring, but who do not have the means to finance them.
“Futurpreneur is already a partner, and we are in discussions with others in regions where there is less funding, because they are in rural or remote or less well served regions,” explains Miguel Barrieras.
Despite the increase in the Canadian population, there are 100,000 fewer SME owners than 20 years ago, reports the BDC.
Lack of financing options for Canadian SMEs
Firstly because of the aging population. Among entrepreneurs who are considering retirement, 20% plan to close their business or dissolve it because they have not found someone to take it over, reveals a BDC study.
Financing is also an issue. According to research, this time from the Organization for Economic Co-operation and Development, financing for Canadian businesses has increased by 165% since 2011, but the percentage of new loans going to SMEs has decreased from 16% to 8.6%. , recalls the BDC.
Canadian SMEs have fewer and fewer financing options compared to their G7 peers, argues Miguel Barrieras.
“And yet, 50% of Canada’s GDP comes from small and medium-sized businesses, and they employ 65% of the workforce in the private sector. There is a need to increase the number of SMEs in the country and to support these SMEs. »
Within 10 years, the BDC estimates that it will have supported approximately 100,000 Canadian small business owners, increasing their number by 10%.
However, collaborative financing is not a grant. These are commercial loans that will have to be repaid by businesses.
