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What's In It For Small Business?
Part 1: Government's Role in Business

 More of this Feature
• Part 2: Income Tax Cuts
• Part 3: Capital Gains and The Brain Drain
• Part 4: Corporate, Fuel, and GST Taxes
• Part 5: Red Tape and Free Trade
• Part 6: Creating a Favourable Business Climate
 
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"Government should stay out of business, should allow businesses to flourish or fail based on their own competitive and efficient edge (in the long run, it is this - competition and efficiency that is going to have the best impact on the consumer and the country as a whole).”
Ian Scott
 
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• Who's Kissing The E-Commerce Baby?
 
 

Chrétien would not look good in a wet suit. Day doesn’t know which way the water runs. Clark's latest K-Tel style campaign catalogues Liberal lies. And McDonough does her own mud-slinging, claiming Day’s leadership style is "absolutely abhorrent" (”Day's success shows Liberals' failure: NDP” (Globe and Mail Update, November 15, 2000)). What does any of this have to do with deciding who to vote for on November 27th?

Nothing. Especially if you’re a Canadian entrepreneur.

While all the parties have published their policies, and subjected us to endless rounds of televised and printed bickering, there’s not much difference between the parties in terms of economic policies, and few of these policies offer any specific strategies for encouraging Canadian small business.

The Government's Role in Business

As a Canadian businessperson, the first issue you have to consider is what government’s relationship with business should be. Does government have any place in the boardrooms of the nation or should we have a truly free enterprise system?

Simply put, the Alliance appears to have the most “laissez-faire” attitude towards business, while the Liberals are offering the most support. The federal NDP are continuing to spout their old rhetoric and prefer to ignore business if possible, and bash it if it gets in the way of any of the sacred cows, while the Conservatives are borrowing everyone else’s policies piecemeal.

The Canadian Alliance’s Economic Policy for instance, spells out their position on government’s role; “We will withdraw government from areas of the economy where the private sector could deliver the same services more efficiently and will end the unfair practice of providing subsidies to industries, businesses and special interest groups.” The Liberals, on the other hand, have become famous (or should I say infamous?) for their various programs that subsidize business in various ways. They promise to continue to “work with the private sector to brand Canada as one of the most innovative economies in the world” (Liberal Platform, p. 30). Which position do you find more attractive?

I admit that I’m ambivalent about the role government plays in business. Most days, like Ian Scott, (see the sidebar), I want to hold up a cross and a rope of garlic and yell, “Get away from me, spawn of evil!” But on other days, I realize that government has a important role to play, such as codifying business regulations and protecting the consumer. And on days when I have to deal with government, government efficiency and access become prime concerns.

I am not a fan of government “interference” in business; I don’t think it’s fair or useful for provincial or federal governments to invest in particular business enterprises, especially when the enterprises they seem to prefer to invest in are those that are failing. How does this create a level playing field or stimulate the economy? Corporate welfare is neither equitable or desirable.

I’m also not a fan of job “creation” programs. These programs appear to have no lasting positive effects; they don’t create lasting jobs, and while they do create jobs for a few, the cost is exorbitant. They also, I think, can be seriously detrimental to small business; how is the average Jane or Joe running her or his little business supposed to compete with a government-funded business?

Yet I believe that it is possible for governments (both provincial and federal) to stimulate the economy by creating a climate favourable to business, without either unfair “handouts” or job creation programs. Are any of the major parties promising to create such a climate? Let’s examine some election issues from a small business point of view.

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