Getting Small and Mediumsized Business More Involved

1
Getting Small- and Medium-sized Business More
Involved

• Andreea Dulipovici, Manager Research, CFIB
• Presentation to Passport to Prosperity
  Coordinators Forum
• November 26, 2004
• Toronto, Ontario

2
Canadian Federation of Independent Business Key
Facts

• Founded in 1971, CFIB is a not-for-profit,
  non-partisan, non-government lobbying
  organization representing independent,
  Canadian-owned businesses
• CFIB has more than 105,000 small and medium-size
  enterprises (SMEs) members across Canada, of
  which 42,000 are in Ontario. It represents all
  sectors and all regions.
• Members decide our policy stance via surveys
• 1 member 1 vote
• CFIB delivers value-added benefits and help via
  the telephone
• The head office is located in Toronto, and it has
  regional offices in all other provinces.

3
Ontario Business Profile Its a Small Business
World
Source Statistics Canada, 1983-1999 Employment
Dynamics (2002), Ontario Data

• Almost three-quarters of Ontarios businesses
  employ fewer than five people.
• 96 per cent of Ontario businesses have fewer than
  50 employeesthe upper limit most often used in
  defining small business.

4
SMEs Create Most of the New Jobs in the Ontario
Economy
Source Statistics Canada, 1983-1999 Employment
Dynamics (2002) , Ontario Data

• SMEs create about two-thirds of the net
  new jobs in the economy

5
Small Business Priorities Factors that are
important for the growth of the SME sector
Source CFIB Our Members Opinion No.55, Ontario
Results (July-Sept. 2004)
6
Ontario Business Concern over Shortage of
Qualified Labour, 1989-2004
Source CFIB, Our Members Opinions Surveys
24-55, Ontario (1989-2004) and Statistics
Canada

• SMEs are concerned about finding the right person
  for the job
• Even in times of high unemployment, one-fifth of
  SMEs cannot find qualified labour

7
Ontario Business Concern over Shortage of
Qualified Labour in 2004, by Sector
Source CFIB, Our Members Opinions Survey 55.
This survey reflects the views of 3317 business
owners in Ontario interviewed during
July-September 2004
8
Ways SMEs Can Help Reduce the Shortage of Labour
Source CFIB, Survey on Labour Availability and
Training (Sept-Oct 2002)
9
Ways Education Institutions Can Help Reduce
Shortage of Labour
Source CFIB, Survey on Labour Availability and
Training (Sept-Oct 2002)
10
SMEs Most Effective Hiring Methods
Source CFIB, Survey on Labour Availability and
Training (Sept-Oct 2002), 2672 responses in
Ontario
11
Most Important Skills and Qualities in Employees
Source CFIB, results of 1997 Hard Facts Survey
(Oct-Nov 2000)
12
What Small Businesses Need

• SMEs are looking for all levels of education (
  of SMES)

• SMEs need all levels of experience 50 are
  looking for entry low level 50 are looking
  for mid to high levels of experience
• Based on a 2002 CFIB survey, SMEs have experience
  hiring youth
• 73.3 have hired youth
• 13.7 have tried, but candidates lacked the
  required experience or skills
• 1.1 have tried, but have not received
  applications from youth
• 11.9 have no experience hiring youth

13
Top Youth Occupations Small Business Are Likely
to Hire
Source CFIB, results of 1997 Hard Facts Survey
(October 1997)
14
Most Powerful Predictors of Future Youth Hiring

• Satisfaction with past youth hires
• Sectors (agri, hospitality, construction
  likely)
• (Business and community
  services likely)
• Higher expectation for firm sales growth
• Higher number of youths currently employed
• Higher total employment
• Younger business
• Expected growth in employment

15
What Young People Can Do to Plan for Their Future
1. As soon as possible, look for work experience
any work experience
2. Apply your interests into the work world
3. Build a network
4. Be proactive
5. Be your own source of information
6. Focus on the other "3 Rs" of landing a job
respect, reliability and references
7. Ensure that you have the necessary skills
8. Examine the non-monetary benefits of a job as
well
9. Don't ignore the benefits of volunteering
10. Don't overlook private technical and
vocational schools
16
What Education Institutions Can Do to Help Youth
Find Jobs

• Encourage as much student contact with the
  business sector as possible and vice versa
• Focus on relevant guidance and support
• Encourage contact between employers and all
  staff, without limiting it to those in guidance
  or career development departments
• Co-op programs are important in bringing students
  and employers together
• Reduce barriers to students switching programs or
  institutions
• Ensure that basic skills and qualities are fully
  integrated into the students education
• No action is too small.

17
What Education Institutions Can Do to Help Small
Employers Hire More Youth

• Sell them the option of hiring youth (co-op,
  trial placements)
• Help employers determine what roles within the
  firm would be suitable for young employees
• Help employers search out qualities not just
  skills
• Sell them on the advantages of having young
  employees fast learners, and enthusiastic
• Keep in contact with small employers